120
MARCH 2016 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
10th anniversary issue
Big Project Me CElEBRaTES TEN yEaRS COvERINg THE gCC CONSTRUCTION INdUSTRy
Contents
Issue 120 March 2016 06
16
22
30
40
46
04 ME Construction News.com
14 Explaining PPP
38 What causes rework?
06 $2bn Aykon City unveiled
16 Akar Technical Services
40 In Safe Hands
22 Doha Festival City
54 Top Tenders
34 From design to construction
56 HR challenges in construction
OnlIne
The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure
Damac reveals plans for project on Dubai Water Canal
10 Sweett pays for bribery offences InTernaTIOnal news
Construction services company to pay $3.24 million after UAE bribery offences
12 Dubai office market MarkeT repOrT
Cluttons’ first ever Dubai Office Bulletin showcases the performance of 22 submarkets in the city
news analysIs
Scott Lambert examines whether Dubai’s PPP law could be an answer to funding issues In prOfIle
Big Project ME speaks to Adnan Nalwala, executive director of the Omani landscape and MEP contractor prOjecT prOfIle
Revisiting the project to find out how Conject is encouraging collaboration on-site susTaInabIlITy
How UPC’s Estidama team helps projects achieve their sustainability goals
cOMMenT
Ahmed Hassan outlines the major causes of rework on construction projects healTh and safeTy OnsITe
Big Project ME talks to the leading HSE experts in the UAE to find out how they keep workers safe on-site Tenders
Listing the top tenders in the GCC for March 2016 lasT wOrd
Genoveva El Tayer looks at the HR challenges in construction
March 2016 1
Introduction
In good health
T
his month is something of a special one as it is the 120th issue of Big Project Middle East, meaning that it’s our 10th anniversary as a magazine. Since we’ve launched, we’ve seen projects like the Burj Khalifa come to fruition, Qatar win the rights to host the FIFA World Cup, and work beginning on the Louvre Abu Dhabi, to name just a few. During all of this, we’ve always been there to get the inside story, examining the how’s and why’s of it all, while charting the ups and downs of this fascinating, and often turbulent industry. It’s a source of pride for me to know that I’m in charge of one of the best and most well-regarded construction magazines in the GCC. It’s not a responsibility that I take lightly, and I guarantee that we’ll always look to do better for you, our readers. Over the years, Big Project ME’s tone has shifted from being a magazine about the construction industry to being a magazine for the construction industry. While we focus primarily on the contracting sector, we also believe in speaking up about the issues that matter. This month’s issue is a continuation of that philosophy, as we focus on health and safety in the construction industry. I had some very insightful chats with
EDItORIAL EDItOR GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 REPORtER JeRuSHa SeQueiRa CPI MEDIA GROUP FOUnDER Dominic De SouSa GROUP CEO naDeem HooD
jerusha.sequeira@cpimediagroup.com +971 4 375 5477 OnLInE EDItOR Ben FLanaGan ben.flanagan@cpimediagroup.com SUB EDItOR aeLReD DoYLe
PUBLISHInG DIRECtOR RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471
aelred.doyle@cpimediagroup.com ADvERtISInG COMMERCIAL DIRECtOR micHaeL STanSFieLD michael.stansfield@cpimediagroup.com
EDItORIAL DIRECtOR
+971 4 375 5497
ViJaYa cHeRian
SALES MAnAGER FaaJu aBDuLFaTaH
vijaya.cherian@cpimediagroup.com
faaju.abdulfatah@cpimediagroup.com
+971 4 375 5472
+971 4 375 5495
2 March 2016
MARKEtInG MARKEtInG MAnAGER LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGn ARt DIRECtOR Simon coBon simon.cobon@cpimediagroup.com CIRCULAtIOn & PRODUCtIOn DIStRIBUtIOn MAnAGER SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCtIOn MAnAGER ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGItAL WEB DEvELOPER mohammad awais
three of the leading HSE experts in the region, who all had very positive things to say about how the UAE has stepped up its game in terms of policing health and safety standards on construction sites. What’s especially heartening to see is that neighbouring countries are starting to use the UAE as a reference point, with a number of developers and contractors telling their HSE teams to ‘do it like they do in Dubai’. This is only good news for the construction industry, in both the UAE and the wider GCC, as it will push all stakeholders to constantly search for ways to improve and develop, which ultimately benefits those who need it the most – the workers on-site. I’d love to hear more from all of you. If you’d like to give some feedback about the magazine, the issues in the industry or if you just fancy a chat, feel free to get in touch on my official twitter account – @MECN_Gavin
Gavin Davids Editor gavin.davids@cpimediagroup.com
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Registered at imPZ Po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLc © copyright 2016 cPi. all rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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1
EDITOR'S CHOICE
READERS' COMMENTS
Saudi strike: 1,000 workers ‘protest over unpaid wages’
Construction workers at Jeddah company unpaid for six months – report
2
PHOTO GALLERIES
Half of Dubai 2015 property projects delayed: ValuStrat
Dubai property prices stopped falling in the last quarter of 2015, and may plateau this year
3
Work underway at Dubai’s ICD Brookfield Place First major project approved at the Dubai International Financial Centre (DIFC) since 2008. See photo galleries at: meconstructionnews.com/photos
Tough times ahead:
Robert Allan, via email
Gulf construction
outlook for 2016
READER POLL
Low oil prices and challenging
How stringent should the UAE’s new fire safety code should be?
economic conditions to weigh heavily on the industry
4
‘40 to stand trial’ – report
Accused include 30 staff
5
51%
36%
8%
5%
Very: Offending materials manufacturers need to be prosecuted
Mecca crane collapse:
at construction firm
The construction sector is heading south, apparently (“Tough times ahead: Gulf construction outlook for 2016”). But the fact remains that, despite the low oil prices and economic jitters, a mass of master-planned projects are still going ahead in the region. Take the new developments around the Dubai Water Canal and plans for some of the ‘mega events’ in the region. Maybe time for less talk of doom and gloom?
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green light to project
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Only specific clauses need to be added regarding certain materials
A moderate overhaul of existing regulations is needed
The current regulations are adequate
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4 March 2016
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The big picture
Damac unveils details for $2 billion Aykon City project at Dubai Water Canal Construction of six-tower project to commence before summer of 2016 Damac has unveiled details of a $2 billion development overlooking the Dubai Water Canal, with construction on the project due to start before summer. The Dubai Financial Market-listed developer said the Aykon City project will include six towers, spanning a total of 371,612sqm. The project sales value is $2 billion, Damac said, with completion scheduled for 2021. It will include the 80-storey Aykon Hotel and Residences, the 63-storey Damac Maison Serviced Hotel Residences, a 60-storey apartment tower and a 65-storey office tower. The other two towers will be around 30 storeys tall, and include what Damac called “state-of-the-art car lifts to each unit”, along with views over Dubai Canal and Safa Park. A limited number of serviced residences will be released for sale immediately, with further releases in due course, Damac said in a statement. The project will also include a tourist attraction called Aykon Dare, described as “an adrenaline experience on the 80th floor of the hotel where guests get to walk around the outside of the tower’s roof”. There will also be a plaza, swimming pools, spa, beach club, cafés, restaurants and a private members’ club. The project is apparently set to occupy plots of land that Damac on Thursday said it was buying for $343 million, on the eastern and western sides of Sheikh Zayed Road at the Safa Park intersection, close 6 March 2016
to the Dubai Water Canal. Hussain Sajwani, chairman of Damac, said the project was being undertaken in collaboration with Meraas Holding. “This area of our city is one of the most important developments in Dubai’s Canal attraction The project will also include a tourist attraction that will allow guests to walk around the outside of the hotel’s roof.
expansion, opening up access to many kilometres of the Dubai Canal. Aykon City is testament to our solid commitment and belief in Dubai’s strong economy and especially in the future of the real estate sector.”
The Dubai Water Canal, an extension of the Creek that links the Business Bay area with the Arabian Gulf, is on track to complete by the end of this year, according to the Roads and Transport Authority.
CONTRACTORS CUP 2016 Not only is the Golf Day a great day out, it also represents an ideal opportunity to network with potential clients and entertain existing ones, while giving you a chance to get to know the people who make up the contractor industry. Whether you’re part of the industry or if you provide services to it, it’s an opportunity not to be missed! Now in its 4th year, the Big Project Golf Days are a staple of the construction industry’s annual calendar. With some of the biggest names in the industry coming together for a day out on the course, the golf days allow construction professionals to network with peers from all sectors of the industry in a relaxed and fun-filled environment, while also indulging in friendly competition. The 2016 Contractors Cup is an invite-only, free-to-attend event for contractors. We offer various sponsorship opportunities for those companies that provide services to the construction industry. All sponsorship opportunities include a free day on the golf course - you might even call it working!
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The big picture
Kuwait’s Al Kout waterfront project to open by the fourth quarter of 2017 $234 million Al Kout Mall is part of the 300,000sqm mixed-use project Kuwaiti developer Tamdeen Group has announced that its Al Kout waterfront project is on track to open in the fourth quarter of 2017. The project, being developed by a subsidiary of Tamdeen Group, will reflect Kuwaiti architectural
heritage, the developer said in a statement. Upon completion of all phases, Al Kout will occupy 300,000sqm, making it Kuwait’s largest waterfront mixed-use destination. A major component of the Al Kout project is the replacement
of Al Manshar Mall and four residential towers with the new Al Kout Mall, built at a cost of $234 million. The expansion of the mall will make Al Kout the largest shopping centre in southern Kuwait, with over 100,000sqm of retail leasable area New mall The $234m Al Kout Mall will replace Al Manshar Mall and four residential towers.
8 March 2016
and a multi-storey car parking that accommodates 3,600 cars. “Construction is well underway, and we are building the mall to the highest specifications,” said Ahmed Al Sarawi, CEO of Tamdeen Shopping Centres. Anchor tenants will move in to the mall in 2017, as it starts fit-out in order to complete works by the mall opening date. The remaining tenants will move in once the mall is ready. Leasing for the mall, managed and operated by GLA Property Management, is ongoing. The mall is currently over 50% leased and committed for by tenants. The Al Kout Mall will be adjacent to the 200-suite Rotana Hotel, which will connect directly to the shops and restaurants in the new mall. The shopping centre will also be linked by bridge to the Souq Al Kout. The Al Kout project’s 1.6km of seafront across Fahaheel Beach is now being renamed Sahel Al Kout, the developer said. The project also includes a traditional market, a supermarket, banks, entertainment venues, a fishing port, musical fountains and a marina with facilities for over 150 boats. “Al Kout will transform the Al-Fahaheel area into a vibrant social and economic centre. With projects worth $2 billion in the pipeline, the Tamdeen Group is truly developing significant symbols for Kuwait,” said Shavak Srivastava, a board member of Tamdeen Shopping Centres.
The big picture
Largest in the Kingdom Majid Al Futtaim will build the largest shopping mall in the Kingdom of Saudi Arabia.
Dubai’s Majid Al Futtaim to invest $3.7 billion into Saudi Arabian retail market Dubai developer to build KSA’s largest mall and first City Centre in Riyadh Majid Al Futtaim plans to invest $3.73 billion in the construction and development of two shopping malls in Saudi Arabia’s capital, Riyadh. The Dubaibased retail giant said that one of the projects would be the Mall of Saudi, set to cover 300,000sqm, making it the largest mall in the kingdom. It will include shops, restaurants, entertainment areas, offices, hotels and residential units. The project will also house Saudi Arabia’s first indoor ski slope. In terms of total land area, the Mall of Saudi will cover more than 866,000sqm. Work
on the project is expected to start in mid-2017, with phase one expected to be completed by 2022, the developer said. The first phase will include the mall, ski slope, a hotel and a serviced apartment
20
Total number of Majid Al Futtaim malls in MENA
building, as well as the general infrastructure, Majid Al Futtaim said. Future phases will include the development of residential, office, medical and hotel spaces. Majid Al Futtaim’s second planned retail project is the City Centre Ishbiliyah in east Riyadh. This will be the first City Centre project in Saudi Arabia and will cover more than 100,000sqm of gross leasable area, with 250 stores and a 9,000sqm Carrefour hypermarket. “Our new mall developments in Riyadh [will] deliver more than 10,000 direct and
indirect jobs to the capital,” said Alain Bejjani, chief executive officer at Majid Al Futtaim – Holding. “Bringing to life such iconic destinations requires a significant amount of collaboration between the public and private sectors. We are privileged to witness the authorities welcoming our projects and investments by ensuring the highest levels of support and collaboration.” The two new developments will bring the total number of Majid Al Futtaim owned and operated malls to more than 20 across the MENA region. March 2016 9
The big picture
1
1. Sweett payS for bribery offenceS Construction services firm Sweett Group has been ordered to pay $3.24 million after being convicted of a bribery offence that took place in the UAE, according to the UK’s Serious Fraud Office (SFO). The UK-based company pleaded guilty in December 2015 to the charge of failing to prevent an act of bribery, which was intended to secure and retain a contract with a local insurance company, the SFO said. “Acts of bribery by UK companies significantly damage this country’s commercial reputation. This conviction and punishment, the SFO’s first under Section 7 of the Bribery Act, sends a strong message that UK companies must take full responsibility for the actions of their employees and in their commercial activities act in accordance with the law,” said David Green, director of the SFO. The offence occurred between 1 December 2012 and 1 December 2015, and concerned the building of a hotel in Abu Dhabi, the SFO said. Sweett Group said late last year that it is exiting the Middle East after admitting to the bribery charge.
10 March 2016
$509m Value of cancelled mixed-use project in Norwich, UK
2. cryStal lagoonS landS two contractS in egypt Crystal Lagoons has landed two contracts in Egypt, including a deal to develop North Africa’s largest waterbased leisure attraction. The developer of large
crystalline lagoons said it has been contracted for the Bo Islands project. Located on the Alexandria-Marsa Matrouh north coast road, the tourism and residential community will cover an area in excess of 10 million sqm and is being developed
at a total investment cost of around $1.8 billion. Crystal Lagoons’ second project is the two-hectare El Gouna community development on the Red Sea coastline. The $100 million project is scheduled to begin construction in Q2 2016.
The big picture
7.5%
4. egypt’S SiSi callS on ruSSia to execute agreed projectS
Contraction of Russian construction industry in 2015
4
2 3
10-year
Partnership agreement signed between Indonesian and Saudi construction firms
3. dubai Holding openS 246-acre KocHi Smart city in india Dubai Holding has opened the Kochi Smart City project in the Indian state of Kerala, UAE state news agency WAM reported. Kochi Smart City is being developed across 246 acres. Fourteen million square feet (1,300,643sqm) will be used for the construction of the project, including 6.5 million square feet
(603,870sqm) designed specifically for knowledge and IT-related services. The remaining space will be allocated to schools, colleges, retail and hotels. The project will contribute to creating more than 90,000 new jobs in the state by 2020. Mohammed Al Gergawi, Minister of Cabinet Affairs and Future and Chairman of Dubai Holding, said the launch of the project “comes within the
framework of strengthening partnership and cooperation between the UAE and the Republic of India”. Indian Prime Minister Narendra Modi visited the UAE last August, announcing his intention to build 100 smart cities in India. The Kochi Smart City project, said to be similar to Dubai Internet City, is one of several smart city projects being developed by Dubai Holding worldwide.
Egyptian President Abdel Fattah el-Sisi has called on Russia to execute agreed-upon projects as soon as possible, a senior government official has said. Tarek Qabil, Egypt’s Trade Minister, said el-Sisi made the remarks while meeting with a visiting Russian delegation headed by Russia’s Trade Minister Denis Manturov. Speaking during a press conference, Qabil said that the government is currently studying how to accelerate the execution progress of those projects. During the meeting, the President also discussed various topics with the Russian delegation, including trade, industry and the aviation sector. Additionally, the two sides reviewed the as yet unestablished Russian industrial zone in Egypt, and the number of projects to be executed inside it. However, Qabil confirmed that Egypt and Russia have signed off on the first project to be established in the industrial zone during the meeting, a report in Amwal Al Ghad said.
March 2016 11
Market report
Cluttons’ first ever Dubai Office Bulletin showcases the performance of 22 submarkets in the city
Stability in office rents in Dubai’s main markets persisted throughout the first quarter of the year due to continued high demand from both international and domestic occupiers, according to data collected by real estate consultancy Cluttons.
The consultancy has launched its first ever office market bulletin, showcasing the performance of 22 submarkets across the city in the first quarter of the year. Using heat maps, the bulletin highlighted that 13 submarkets witnessed no change in starting rents in 2015, seven submarkets witnessed a notable increase, and the remaining two saw rents decrease over the course of the year. “Despite sustained demand, occupiers remain cost-conscious and budget-driven in the face of a softening global economic backdrop, with the key word for many being ‘prudence’,” says Faisal Durrani, head of research at Cluttons. “Landlords, by contrast, appear to be slow to react to the cooling market, with many reluctant to move on asking prices and others demonstrating a lack of flexibility for lease terms at renewal. The emerging gulf between market reality and landlords’ expectations is a concern, particularly for a market that is now starting to show signs of maturity,” he adds. According to the report, central Dubai has become the focus of a number of developers and
12 March 2016
Lower limit (aed psf)
12 month % change
upper limit (aed psf)
12 month % change
1. dubai marina
90
0%
160
0%
2. JLt
70
-13%
180
-10%
3. tecom dic/dmc/dKV
165
10%
225
13%
4. tecom
75
7%
100
11%
5. al barsha
65
0%
110
10%
Lower limit (aed psf)
12 month % change
upper limit (aed psf)
12 month % change
1. dubai South
75
0%
100
0%
2. diP
40
0%
70
0%
3. imPZ
60
0%
70
0%
4. dubai Studio city
140
8%
160
7%
5. dubai Silicon oasis
45
0%
140
56%
Dubai fringe
Source: Cluttons
Strong demand SuStainS dubai office rentS
New Dubai
Market report
Central Dubai
1. business bay
Lower limit (aed psf)
12 month % change
upper limit (aed psf)
12 month % change
70
0%
140
0%
2. downtown dubai
120
0%
200
-13%
3. difc
175
0%
350
8%
4. trade centre
100
-13%
300
36%
5. dtcd freezone
190
0%
200
0%
6. dtcd non freezone
170
0%
180
0%
7. ddd freezone
150
67%
165
38%
8. ddd non freezone
130
44%
150
25%
Lower limit (aed psf)
12 month % change
upper limit (aed psf)
12 month % change
60
20%
140
-7%
Old Dubai
1. bur dubai 2. deira
60
0%
120
0%
3. garhoud
80
7%
110
16%
4. dafZa
160
0%
180
0%
occupiers, driven by the establishment of two new free zones in 2015 – Dubai Design District (D3) and Dubai World Trade District. The area has long suffered from a demand-supply imbalance in the face of rising requirement levels, it adds. As such, D3’s lower and upper limit freezone rents have registered a 67% and 28% rise respectively since its launch, pushing them to between AED 150 per square foot (psf ) and AED 165 psf. This sharp rise was also underpinned by the gradual fading of favourable terms offered to initial occupiers. Cluttons data also shows that the strongest performing submarket in New Dubai for the year just passed was the Tecom Dubai Internet City, Dubai Media City and Dubai Knowledge Village area. Overall, this submarket saw a 10% rise in lower limit rents to AED 160 psf, while upper limit rents rose by 13% to AED 225 psf. Murray Strang, head of Investment and Agency at Cluttons UAE, says that firms continue to be attracted to the free-zone submarket because of the high-quality build and the presence of other high-profile occupiers in the area. “In comparison, Jumeirah Lakes Towers (JLT) has seen both lower and upper limit rents fall over the past 12 months, by 13% and 10% respectively, to AED 70 psf and AED 180 psf,” he says, explaining that the attractive lease rates initially offered to attract occupiers were positioned to undercut rents. This strategy has resulted in some downward readjustments as the JLT submarket rebalances itself following the release of extra space. According to heat maps produced by Cluttons, Old Dubai remains a hub for local businesses, with demand staying steady over the course of 2015. The area’s continued popularity is reflected in the rise of rents in areas like Bur Dubai and Garhoud. Bur Dubai registered a 20% rise in lower rent limits to AED 60 psf, while upper rent limits moved up by 7% to settle at AED 140 psf at the end of the year. “The narrowing rental band is reflective of the market’s gradual maturing process. However, it is also hinting at the achievement of a potential ceiling in upper limit rents. With the majority of stock comprised of older buildings, there is a growing opportunity for landlords to undertake refurbishment in order to drive rents up,” Strang points out. The Dubai Fringe submarket gained particular attention as it was one of the few submarkets that showcased the effects of rental stagnation – three of the five submarkets in the area registered no change in upper or lower rents over 2015.
March 2016 13
News analysis
Explaining ppp How should Dubai’s prosperity and infrastructure be funded? Is the new PPP Law an answer? Scott Lambert, regional head of Construction and Infrastructure at Al Tamimi and Company, attempts to answer these questions
2016 is emerging as a year of challenges for the budgets of many GCC governments. There is talk of the introduction of a VAT to raise revenues, as well as governments reducing fuel subsidies and considering selling off stakes in government-owned businesses to help balance their budgets. The region still needs ongoing investment in infrastructure and projects for its population, to sustain economic growth and more diverse economies.
There appears to be little prospect of a resurgent oil price to boost funding, so aside from issuing bonds or taking on debt, governments are starting to again look more seriously at alternative funding arrangements to fulfil these needs. Even one of the more advanced economies in the region, Dubai, needs more infrastructure with its planned growth in population and tourism and the hosting of the World Expo 2020. 14 March 2016
Firmly signalling an intention to explore alternative arrangements for projects, in November last year Dubai implemented new laws promoting and facilitating the use of publicprivate partnerships as a means for the delivery of projects in the emirate, in the form of its new law governing public-private partnerships (Law No. 22 of 2015) which came into force in November 2015 (“PPP Law�). The PPP Law allows the parties to structure the project based on a range of PPP models, including the models traditionally known by the private sector: concession agreements, build-operate-transfer (BOT), build-own-operate-transfer
(BOOT), build-transferoperate (BTO), and manage and operate arrangements. Flexibility is built into this law to allow the emirate to explore other types of project structures, as the PPP Law gives the Financial Department and the proposing government entity an ability to propose other arrangements to the Supreme Committee for approval. Once a model has been selected by a government entity and the Financial Department, the Financial Audit Department will then have oversight over the project. One innovation the PPP Law introduces is that a private sector company may propose partnership projects, not just
a government entity. When a private sector company proposes a project, it may bypass the public tender process (set out in more detail below). The PPP Law provides that if the project is specifically developed by a private sector company, the interested government entity may directly contract with that company for the project without need of a public tender. However, the PPP Law sets out several preconditions. The private sector partner must form a limited liability project company (a special purpose vehicle) licensed to operate and implement the partnership contract in Dubai. Also, the project must be economically,
News analysis
Business innovation The PPP Law signals that Dubai is interested in business innovation.
“The region still needs ongoing investment in infrastructure and projects for its population, to sustain economic growth and more diverse economies”
financially, technically and socially feasible. In addition, a PPP is not permitted where it will require the relevant government entity to make payments that have not been allocated to the project entity’s budget. It should be noted that not all types of infrastructure are available, as the PPP Law expressly excludes projects related to the production and supply of water and electricity. The Supreme Committee may also from time to time exclude other projects or sectors from the PPP Law. The PPP Law sets out clear rules which apply to most PPP projects. Where a government entity is the proponent of a
project, it must first obtain certain approvals. Depending on the value of the project, as well as the cost to the government entity, the approvals may be internal or external. In summary: If the PPP will result in financial income or savings to the government entity, the director general, secretary general or chief executive officer (or a nominee) of the relevant government entity must approve the project. If the total costs to the government entity are up to AED 200 million, the director general, secretary general or chief executive officer (or a nominee) of the government entity must approve the project. If the costs to the government entity are between AED 200 million and AED 500 million, the Financial Department must approve the project. If the cost of the project exceeds AED 500 million, the Supreme Committee must approve the project. The government entity must also form an internal committee, the Partnership Committee, made up of people nominated by the director general of the government entity. The resolution nominating the committee members also sets out how the Committee is to function. If the project requires the government entity to incur costs exceeding AED 200 million, then the director general of the government entity must also nominate a representative from the Financial Control Department to sit on the Partnership Committee. The government entity must seek private sector partners by means of a public tender. The tender can occur after all approvals are obtained. The invitation to tenderers must
be accompanied by project details comprising financial, administrative and technical requirements to be satisfied. When the government entity has a private sector partner, the PPP project agreement to govern the relationship must address the following: The nature and scope of the works to be performed by the SPV; Intellectual property rights, title of project assets and transfer of title; Financing specifications; Financial and technical obligations of the parties; Determination of sale price or consideration related to project product or services, as well as a mechanism to amend and determine price; Termination and amendment of the partnership contract; Allocation of risk; Environmental safety. The term of a PPP project may not exceed thirty years, though the Supreme Committee may approve a longer term for public interest reasons. The governing law must be the law of Dubai, unless otherwise provided in the partnership contract. The PPP Law signals that Dubai is interested in business innovation. It is an opportunity for those who wish to innovate, as the economic times might be right for Dubai, and all governments, to be looking more closely at opportunities to work with the private sector on PPP projects. The new PPP law seeks to encourage the private sector to be innovative and creative in identifying and funding projects for Dubai. If successful, this law will lay the foundation for reducing the financial burden on the government to provide and maintain world-class infrastructure in a rapidly growing international emirate. March 2016 15
In profile
“In the current envIronment, banks are also becomIng a lot more strIngent about project fInancIng, based on who your clIents are. so It’s very Important, In fact It’s ImperatIve, that you choose your clIents IntellIgently” 16 March 2016
In profile
Gavin Davids speaks to Adnan Nalwala, executive director of Akar Technical Services, to find out how the Omani MEP contractor is establishing itself in both the Oman and UAE markets
March 2016 17
In profile
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n February 2016, Oman-based MEP contractor Akar Technical Services announced that it had completed two major projects in its portfolio – Meydan Heights Villas in Dubai and the Khasab Hotel in Musandam, Oman. The delivery of these projects was indicative of the continued growth of the subcontractor, a subsidiary of the Al Ansari Trading Group, following a period of sustained investment and effort by its senior management team. Established in 1994, Akar primarily operates in the MEP and landscaping sectors, delivering projects in both Oman and the UAE. With a number of major projects in the pipeline for 2016, Adnan Nalwala, executive director of Akar, sat down with Big Project ME to discuss the company’s remarkable run over the last few years. “We’re a 20-year-old company, and we have two primary activities that operate under the Akar name – landscaping and MEP. The business was started by my father, and it is part of the Al Ansari Group, which was formed in 1975,” he recaps. “Akar has been growing steadily for the last 20 years, but in the last five years we’ve really changed gears. We used to be a company of around 300 people. Today we’re 900 plus, closer to 1,000. Also, in the last year we’ve become an integrated management systems company. That’s kind of like an ISO certification, but it’s not just ISO – we look after the environment, 18 March 2016
game-changers Adnan Nalwala says that recent completions of high-profile projects in Oman and Dubai have pushed Akar into the spotlight.
health and safety, and also all the processes within the company.” Nalwala puts the surge in the company’s growth over the last five years down to a number of factors, but identifies some key project completions as gamechangers. “Some of the projects that we’ve completed [over the last three years] are of size and they are quite high-profile. One of them was the Khasab project in Musandam, Oman. We completed that last year, and it was one of our landmark projects, it was the first hotel project that we have done.” “It required a lot of intense project management skills, as there were a lot of challenges. It’s in a remote place, so shifting materials and maximising worker output [were key]. Also, the engineering specifications were of a higher quality as it’s a hotel and you have to have best practices over there,” he says, adding that the completion of a project like this, for a high-profile client like
“Akar has been growing steadily for the last 20 years, but in the last five years we’ve really changed gears. We used to be a company of around 300 people. Today we’re 900-plus, closer to 1,000”
Omran, really put Akar on the construction industry map. “Last year was satisfactory for us, because we completed the projects we wanted to. We also bagged two projects that were of size. In that way, everything is a function of scale and size. The kind of projects we take on, if we get two or three projects a year, then that’s more than enough for our capacity in turnover.” Another major reason for the company’s success was its care in choosing the right partners and clients, Nalwala says, pointing out that a number of contractors have run into problems when their payments don’t come in on time. “That creates a lot of pressure for contractors, because they’ve got to make payments to suppliers and they have to pay out salaries and all that. There’s a lot of outflow commitments, so if you don’t have good clients, then it’s pretty much a disaster! “In the current environment,
In profile
ThE KhASAb ChAllENGE The Khasab Hotel is a four-star property in Oman’s Musandam peninsula. Constructed in compliance with LEED requirements, the project posed significant challenges to Akar’s team, says Nalwala. “To go to Khasab, you have to go through three borders. So right from the time of planning the materials, we needed to also plan the procurement a lot earlier than usual. We needed to have a lot of paperwork done ahead of time so that the materials could land in time for the project to go ahead as planned. In terms of logistics, planning and supply chain management, that was one big issue we had. “The second challenge was the kind of output we were
banks are also becoming a lot more stringent about project financing, based on who your clients are. So it’s very important, in fact it’s imperative, that you choose your clients intelligently.” Another factor in the growth of the company has been a change in perceptions and attitudes in the market, Nalwala adds. Traditionally, clients would give the MEP packages to the main contractor, especially in Oman, which remains a fairly conservative market. However, the last few years have seen contractors gain a greater understanding of the value of MEP on a project, and they have been taking a more active role in nominating MEP subcontractors. “Clients have now understood that MEP is a large part of the
value of the contract, and they have been directly subcontracting or nominating the MEP contractors,” says Nalwala. “When you get directly involved with the client, and when you provide value engineering propositions to the client, when you save money and they save money, then they get very happy.” “I feel that being a nominated subcontractor has changed the way contracting is done, because it now allows the MEP contractor to suggest to the client where they can save money, and it really can save a lot of money on a project.” This was evident in the recently completed Meydan Heights project, where the MEP contract was given directly to Akar, despite there being a main contractor already on the
project. “This gave us a chance to open dialogue and talk to the client, where we can tell them, ‘Look, money can be saved here.’ Otherwise, if you’re in the main contractor’s fold, they may not have that dialogue with the client.” Despite being reluctant to talk about financial figures and market share due to shareholder confidentiality agreements, Nalwala says that Akar is one of very few nominated MEP contractors, asserting that the company appears in most tier-one client registration lists, which means that it is qualified to execute large jobs. This is borne out by a client list that includes the likes of Omran, Aldar, Emaar, Nakheel, the Ministry of Public Works and the RTA. The question that next arises khasab challenge The location of the hotel made it a challenge for Akar to get materials and workers to the site.
getting from the workers over there. It’s a very sandy and windy place, so we had to take special care with all the HSE requirements, and we had to put in some extra safety engineers and precautions to ensure that no accidents took place. “Finally, the third challenge was that a lot of the materials, because it’s a special kind of hotel, were specified from Dubai. So that meant that we had to get those products into Oman from Dubai. That involved a lot of paperwork and even the clients had to get involved, from both parties, at the Oman and UAE border. It may not seem like a big deal, but there was a lot of planning behind the project that was needed for it to be done on time,” he explains. March 2016 19
In profile
is: where does the company go from here? While he admits that the current market situation makes predicting the future something of a lottery, Nalwala insists that the foundations laid over the last few years will bear fruit, as Akar’s relationships with UAE and Omani clients continue to develop and strengthen. “The way this contracting business works is that you are, at the end of the day, driven by price. Clients look at L1 most of the time, but what has happened is that because of the relationships we’ve built with consultants, and the scale of the projects we’ve done, we’re allowed to go and talk to clients, even if we’re L2 or L3. It’s not all the time, but a good 50% or 60% of the time, the client does give us a second hearing, and if we’ve matched the price, they sometimes give it to us. “The point I’m trying to make is that we have been growing, and because they see our resources, because they see a financially steady company, they also feel that we can deliver. Now that we’ve done projects of different sizes,
“I feel that being a nominated subcontractor has changed the way contracting is done, because it now allows the MEP contractor to suggest to the client where they can save money, and it really can save a lot of money on a project”
scale and nature – we’ve done towers, villas and hotels – they know that the experience this team will bring will be a lot better. “That’s how we’re positioning ourselves – by being able to talk to the client and consultant directly, by telling them not to be driven only by price, but by telling them that we have the resources and experience to execute their projects [better than others]. That’s the way I’m trying to drive the business,” Nalwala outlines. It is because of this approach that he says there are no immediate plans to grow Akar beyond the UAE and Oman, especially since he believes there’s plenty of room for growth, given the continued investment and focus on the hospitality industry in both countries. “Now that we’ve done the Khasab hotel, we’re also an approved contractor for hotels, and it’s something we’ll try and do more projects of.” Furthermore, with Oman and Dubai following different pathways to development, Nalwala points out that there are plenty of opportunities for Akar to
expand its expertise and work on different types of projects. “There are two major differences between the two markets. Dubai has gone through a lot more property development, where they want external people to invest. That’s why MEP and landscaping requirements have been much higher. That’s not been the case in Oman, which hasn’t had as much property development for investment going on. “The second difference is that Dubai has gone down the skyscrapers and towers route, whereas Oman doesn’t have that. That reduces the MEP load in a building. It’s a function also of what the governments and countries are spending on. “But the flip side is that there’s a lot being spent on infrastructure work in Oman. They’re building huge roads, water networks and so on, so yes, MEP needs in Oman have been a lot less and a lot simpler, because they don’t have towers and they don’t have as many property developments where FDI happens,” he concludes. focused on the uae and oman Nalwala says Akar has no immediate plans to expand operations beyond the UAE and Oman.
20 March 2016
Project profile
Big Project ME revisits the Doha Festival City project to find out how project control software has helped the construction team collaborate
WORKING
22 March 2016
Project profile
TOGETHER
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Project profile
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onstruction work on Doha Festival City continues apace, with its massive mall scheduled to open its doors to the public on September 29, 2016. With more than 500 stores, a food court, cinema and entertainment offerings set to debut at the opening, the pressure is on for the construction team behind the project. In February 2016, Kareem Shamma, CEO of Bawabat Al Shamal Real Estate Company (BASREC) WLL, announced that there was a “day-to-day” plan to
ensure the facility is finished and ready to go by its due date. Big Project ME decided to catch up with various members of the team behind the project to find out how they managed to foster a culture of collaboration and cooperation on this complex development. Michael Beggs, development director at Al Futtaim Group Real Estate (AFGRE), which has overall responsibility for the development and operation of Doha Festival City, says, “We’re working closely with the appointed project manager, Mace International, to ensure that all key milestones and specifications are delivered, in order to meet the scheduled completion date.” That close cooperation and partnership between the various stakeholders has been a key factor in the success of the project. This drive has come from the very top, with contractor,
ProjeCt Details Project Name: Doha Festival City total floor area: 433,000sqm opening: September 29, 2016 Project Developer: Bawabat Al Shamal Real Estate Company (BASREC) Development Manager: Al Futtaim Group Real Estate (AFGRE) Project Manager: Mace International Cost Manager: Arcadis Main Contractor: ALEC Qatar / Gulf Contracting Company JV
consultant, project manager, development manager and client all determined to encourage collaborative thinking throughout the entire project team. This was exemplified by the main contractor on the project, a joint venture between ALEC Qatar and Gulf Contracting Company. During a prior interview with Big Project ME, Kez Taylor, CEO of ALEC, touched upon the synergy in the team. “Everyone is pulling in the right direction. In terms of the structure, the guys are doing a fantastic job, they’re doing really well. The project has got real momentum, which is a good thing to see. When you see projects that have momentum, things tend to happen almost effortlessly.” Spread out over a total site area of 433,000sqm, with a gross leasable area of over 240,000sqm, Doha Festival City has been
Positive vibes ALEC CEO Kez Taylor has praised the good momentum surrounding the project, stating it helps work flow smoothly.
24 March 2016
Project profile
described as a “category killer” by Kareem Shamma. Terming it the “first international mall in Doha” due to the wealth of local and overseas expertise and knowledge applied to the project, Shamma says that 90% of the mall has now been leased. Recently, retailers were invited on a tour of the site to give them an update and demonstrate firsthand the readiness in order to meet the planned opening date. “They came very sceptical. No one believes here that something will open on time. But they left very convinced,” he told Doha News, adding that progress on the centre was going well, with shop units ready for tenants to fit out, while infrastructure like escalators had also been installed. All stakeholders on the project seem to be happy with how work is progressing on this prestigious project for Doha.
“When the overall scheme was at its peak, we saw more than 1,000 active users from 45 different organisations, across all the different project roles, using our platform for collaboration”
The biggest challenges facing a project like this are often found in maintaining an effective working balance between all the stakeholders involved. This means that there needs to be clear communication pathways between all collaborators, to ensure that construction is carried out smoothly and that teams don’t get in each other’s way. To that end CONJECT, a German provider of software and services for construction project management, was appointed to the project to help implement its project controls system. The software provides the Doha Festival City construction team with a secure cloud-based framework, which enables all the team members to share key information while being able to communicate effectively throughout the project life cycle.
“Having spent nine years in the region, I would say there is a general maturing of the market when it comes to the use of technology on construction projects, and in particular technology which supports effective collaboration,” Dr Asif Sharif, regional director of CONJECT, tells Big Project ME. “The adoption rates for collaboration technology usage are increasing in the GCC, where we estimate that at least 60% of mega-projects [projects with a value of more than $1 billion] are now using cloud-based collaboration technology to support design and construction delivery. “With the Doha Festival City project, when the overall scheme was at its peak, we saw more than 1,000 active users from 45 different organisations, across all the different project roles, using
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Project profile
Project controls Dr Asif says that Conject was viewed as a true project control that supported decision-making.
our platform for collaboration.” Dr Asif also points out that over and above the document management functions that supported the general sharing of information and communication, CONJECT was viewed as a true “project control” that was designed to support the decision-making of all stakeholders involved. Configuration of the system was handled by the Dubai-based CONJECT team, which at the start of the project mapped out BASREC’s processes and information management requirements, Dr Asif says. The software was set up to manage collaborative design and engineering processes, and to integrate with the client’s own developed work flows, creating a project information management template which could be used for every subproject running under the overall Doha Festival City programme. At this stage, known supply chain members were created in the system as users, and assigned rights which allowed them to see project data relevant to their own individual roles. Training workshops were also set up to acquaint project members with the software, and a course guide was provided, unique to 26 March 2016
Close Cooperation Michael Beggs, development director at Al Futtaim Group Real Estate, says that they work closely with the project manager, Mace International, to ensure all key milestones and specifications are delivered.
“In terms of the structure, the guys are doing a fantastic job. The project has got real momentum, which is a good thing to see”
the BASREC implementation. When it came to deployment of the project control software, Dr Asif recalls that by mid-2014, more than 10,000 documents and drawings had been uploaded to the system by some 600 registered users from the different organisations. By February 2016, this number had grown to 142,000. “By the end of the year, when construction was ramping up, use of the software increased exponentially, adding many more contractors and sub-contractors to the system. Altogether
Information sharing Known supply chain members were created in the system as users, and assigned rights which allowed them to see relevant project data.
22 unique business process workflows were established, to be repeated as standard across all projects during construction.” Early 2015 saw several individual projects all under construction, and all operating under the one programme. This was possible due to a mechanism that enabled the project teams to review each project and programme status in real time, using a dashboard-style interface. “A good dashboard reporting tool allows decision-makers to analyse supply chain performance in terms of responsiveness, compliance and numbers of defects. Dashboards are also used to identify trends and potential risks to the quality and progress of work, using custom-built reports. “Over time, the historic data captured by the system will provide as-built information to be maintained, which in turn will support the transition from the construction phase through into operational management. This will enable BASREC to maintain their built assets on a centrally available platform,” he concludes.
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Off-site construction
GettinG Off-Site RiGht
Big Project ME speaks to Faizal E Kottikollon, founder and chairman of KEF Holdings, about the potential of the off-site construction technology market
30 March 2016
With the regional economic outlook continuing to look fairly gloomy due to falling oil prices, real estate developers have begun to look for alternatives to allow them to continue progress on announced projects, while also keeping costs down. One alternative rapidly gaining in popularity is offsite construction. Essentially, this refers to structures built at a different location to the location of use. Most often used on projects where repetition is key, the structures are built in a manufacturing plant
specifically designed for the process, before being shipped to site, where they are installed on permanent foundations. In order to get a clear idea of how this process works and the benefits it offers a developer or contractor, Big Project ME spoke to Faizal E Kottikollon, founder and chairman of KEF Holdings, a Dubai-headquartered conglomerate that specialises in the fabrication and supply of off-site construction technology. What work does KEF do in off-site construction?
Off-site construction
“Off-site construction reduces costs by up to 30%, all the while producing highquality, custombuilt buildings and facilities”
KEF’s work in off-site construction focuses on the infrastructure, healthcare and education sectors. All of our projects are built using advanced, automated off-site construction technology and solutions through integrated business processes. We apply this expertise to the creation and upgrade of essential infrastructure to address the growing demand in the healthcare, hospitality, educational, commercial and residential property sectors. How does one develop the
Removal of error Minimising the amount of human intervention means that the room for error is virtually eliminated.
technology required to build structures off-site? We start by understanding the technology requirements for the kinds of buildings and projects that we foresee a demand for in the future. We then work with suppliers from all over the world to understand where this technology is available and where to source it from. We currently work with technology experts from Germany, Finland, Austria, Italy and many more countries. Then we go ahead and procure the equipment and integrate it with our existing systems. Our goal is to revolutionise the infrastructure development sector by bringing in the best technology to address the growing demand in the market, by building faster and more efficiently at a lesser cost, without compromising on the quality of the build. What are the pros and cons of building off-site? How do you convince clients to go for this option? There are a number of major advantages of off-site construction which make the technology inherently appealing to clients. For clients, costs and construction time are the major factors which determine the success of a project. Offsite construction cuts delivery times by 50% and reduces costs by up to 30%, all the while producing high-quality, custombuilt buildings and facilities. It is important to understand why off-site construction can deliver so well in terms of speed, scale and costs. Think about whole building components, such as walls, staircases, pillars, bathroom units, that are entirely manufactured inside a factory, in settings that are controlled by computers and aided by
automation. Minimisation of human intervention means the room for error is virtually eliminated. For example, computers calculate the precise amounts of raw material that need to go into a particular process. Furthermore, off-site construction provides optimal resource conservation throughout the manufacturing process and a significant reduction in wastage as compared to traditional construction methods. Hardly any materials are wasted through the off-site process, because the leftover materials from one project constructed at our off-site manufacturing facilities can be recycled and used for the next project. How does KEF Holding work with contractors on-site to ensure that what is being built is in line with what is required by the design? While we prefer to take on turnkey projects where we are the main contractor, we do also work with other contractors on certain projects. Our facilities both in India and the UAE are designed to be one-stop shops for developers, starting right from the design phase to the construction, delivery and even the finishing and interiors. We also have structural design, architectural design, POD and Modular MEP teams internally, who work together to design a particular project. Where are the biggest GCC markets for KEF Holdings’ offsite construction products? At present, we are seeing the greatest demands in the UAE, particularly as Dubai gears up for Expo 2020, which brings with it major infrastructure requirements. Furthermore, in 2016, 37% of spending, or $4.60 billion, will go towards health, education,
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Off-site construction
housing and community development, compared with $3.89 billion in 2015. KEF’s use of off-site construction technology is ideal for these kinds of projects. and particularly within the UAE market. where it is able to deliver in short time frames and at extremely high volumes, based on the ‘assemble rather than build’ approach. In the coming years, we hope to expand into other countries such as Saudi Arabia, particularly as off-site construction technology continues to gain traction and popularity in the region. With the expected growth of the hospitality market, how is KEF Holdings gearing up to target this particular segment of the construction market? Given the fact that Dubai Expo is just four years away, we foresee a huge surge in hospitality projects. We are in discussions with a few prospective clients to build their projects to address the increase in demand for Dubai Expo 2020. What was KEF Holdings’ performance like in 2015, and what trends have you seen in the local market? 2015 was a good year for us, with the announcement of several partnerships and projects. In January, we announced our strategic partnership with TAHPI, an Australian design firm, through which the KEF-TAHPI studio was set up in Dubai Healthcare City, to address the healthcare infrastructure gap in the region. The studio brings together the core competencies of KEF and TAHPI – hard and soft modular construction respectively – through the Catalogue Hospitals concept, which offers clients the convenience of choosing design options from a design
32 March 2016
site construction technology. The growth potential for off-site technology is huge, both in the GCC region and across the world. The majority of construction projects today could be executed using advanced off-site construction and robotic technology using BIM, CAD and CAM processes which we have integrated. These buildings come with a guaranteed building life of at least 100 years. They are shock-proof and can withstand a certain degree of seismic and earthquake jolts.
focused on growth Faizal E Kottikollon says that 2016 will be focused on growth, expansion and a continuation of projects.
“Minimisation of human intervention means the room for error is virtually eliminated. For example, computers calculate the precise amounts of raw material that need to go into a particular process”
catalogue. The designs created at the KEF-TAHPI studio will be produced off-site at our facilities in Krishnagiri, India and our Jebel Ali facility, set to open later this year. KEF-TAHPI is currently overseeing the construction of its pilot project, a 500-bed tertiary hospital in Calicut. The PMHP Hospital will be India’s first healthcare facility designed and built completely off-site. The project is scheduled to be completed in Q3 of 2016, less than two years after construction began, compared to the four- to five-year industry average to build a healthcare facility using conventional construction methods. In the UAE and GCC region, we are currently in advanced talks with some of the region’s top developers to design and develop high-end residential projects using off-
What are your plans for 2016 and beyond? 2016 will continue to be a period of growth, expansion and a continuation of the projects for which we have laid the foundation in the last few years. We will continue to innovate and further develop the robotics and construction automation technology we are bringing to these markets. A major milestone will be the launch of our fully automated robotics-driven facility later this year in Jebel Ali, into which we have invested $100 million. This facility will be the first of its kind in the UAE and will provide world-class expertise in design, engineering, manufacturing, assembly and project management to the GCC region. With the requirement for healthcare and education facilities growing, not just in this region but in India and other parts of the world, healthcare and education will continue to be key sectors for KEF Holdings. With the need for affordable housing increasing in the region, we will also work within this sector, as off-site construction is ideal in terms of providing far reduced costs for these kinds of projects.
Sustainability
three-pronged approach Developers achieving their targeted rating requires a combination of education and guidance, along with monitoring and enforcement.
From Design to ConstruCtion
Yasmeen Al Rashedi, senior manager Estidama Department at the Urban Planning Council, reveals how her team helps ensure that the projects being built in Abu Dhabi meet their commitments to the Estidama Pearl Rating System 34 March 2016
For any government body that sets guidelines and rules, establishing a regulatory framework is only half of the challenge. Implementation is another matter entirely, and arguably harder to accomplish.
The Abu Dhabi Urban Planning Council (UPC) is tasked with ensuring compliance with one of its standout initiatives – the Estidama Pearl Rating System (PRS). Introduced five years ago under the umbrella Estidama programme, the PRS is Abu Dhabi’s mandatory sustainability framework for all new villas,
Sustainability
buildings and communities. The PRS ensures the minimisation of resource use from the commencement of a project at design stage, through the various construction phases and continuing throughout operation. The emphasis on sustainability throughout a building’s lifecycle presents the Estidama Department with a challenge. How do you ensure that sustainability features set out by project teams on paper at the design stage are implemented in the complex world of contractors and subcontractors
on the construction site, so that they become reality when the keys are handed over? As Yasmeen Al Rashedi, senior manager – Estidama Department, Urban Development & Estidama Sector, UPC, explains, the key to developers achieving their project’s targeted Design Pearl Rating during construction lies in a three-pronged approach that combines education and guidance with monitoring and enforcement. The first of the three phases is the UPC’s provision of a support handbook that provides
all parties working on a project with a step-by-step outline of what they need to be mindful of at key stages of construction. This includes examples of the documentation they should be collecting and an overview of the reporting mechanisms applied during the audit process. A comprehensive audit process forms the second phase. It contains four chronological stages in which sustainability experts (Estidama Pearl Qualified Professionals, PQPs), who have been trained by the UPC and independently assessed, closely monitor a building’s progress in line with the expected construction timeline. PQPs are the UPC’s eyes and ears on a construction site and are required to report back to the UPC and demonstrate the project’s compliance, including photographic evidence. Fully trained and accredited in every aspect of Estidama theory and implementation, these ‘green professionals’ work alongside building contractors and consultants to ensure a building achieves its targeted Construction Pearl Rating. “We work hand in hand with the construction industry to ensure that projects uphold the sustainability commitments made at the design stage and follow through to the handover to the client,” says Al Rashedi, who manages a team that evaluates the design, construction and eventually the operational sustainability of developments. “Although the UPC is a regulatory body, our ethos isn’t about using force to ensure strict compliance. Our strategy is to empower the PQPs that are assigned during the construction phase to conduct technical preaudits with the project teams, to identify in advance things they had set out to achieve but
are now finding challenging. “These reports will be issued to the UPC, who in turn will work with the teams to minimise the risks of noncompliance. It’s a very proactive way of trying to ensure the success of the project, and a far more productive approach to achieving sustainable development in the emirate.” The audit monitors compliance during the following four stages of construction: 1. Site set-up and substructure 2. Superstructure and envelope 3. Fit-out (including mechanical, electrical and plumbing) 4. Commissioning and verification Addressing stage 1, Al Rashedi explains that if the contractors do not procure the right specification of materials as set out in the design phase, the wrong items can then be installed, which in turn has an impact on the sustainability of a building. “If you procure materials that are completely different to what was intended for the design rating, then you’ll find it difficult to meet the intent of the design and the subsequent Pearl Rating.” In the audit of the substructure, the PQPs ensure that a project site has been cleared appropriately and that the environmental elements identified during the design phase have been managed or protected where appropriate. The audit checks that no additional structures are being added to the project and that proper de-watering has been carried out so that the foundations are not affected. In stage 2, the PQPs monitor installation of a building’s structure (typically reinforced concrete or steel) and envelope – the cladding and façade. “It’s really important that the façade is fitted properly,” says Al Rashedi. “You can get the best block work with really good insulation, but if the installation isn’t done
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Sustainability
properly then you can create air gaps or enable thermal bridging that means the building is not performing as it should. This is the level of detail we are looking at in the audit process, to ensure that they’re not just procuring the right material, but that they’re installing it properly too.” Once the PQPs have submitted the audit report, it is reviewed by the UPC’s Estidama team. In an ideal world, this pre-emptive process ensures that every completed project achieves the same Pearl Construction Rating as its design rating. But there are cases in which a building ready for handover is found to have missed its targets. “Because of the way the audit process is set up, it helps to minimise that risk,” Al Rashedi says. “If you think of the construction phase of a project – say three years – that’s a lot of time for us to communicate with the client to inform them that they’re at high risk of not meeting their sustainability design intent.” “Automatically, when there are risks of missing targets, they are required by the UPC as a regulatory authority to submit mitigation plans to rectify or resolve issues that relate to the risk of noncompliance. At the end of the day, if a project fails to meet its sustainability intent, it simply can’t achieve its Pearl Rating.” The UPC also carries out training workshops in which a project’s entire team – developer through to designers, architects, consultants, contractors, landscapers and PQPs – is brought in to receive construction training in areas the UPC deems to be lacking. This most commonly applies to teams attempting their first Pearl Rated project or to teams that displayed technical weaknesses during previous projects.
36 March 2016
“One of the most important parts of these sessions is informing the client what their investment in Estidama is and what the risks are of noncompliance,” says Al Rashedi. “The biggest risk is losing what they invested right from the beginning in getting a design rating for their project. They need to understand what their various teams need to deliver in order to achieve a Pearl Rating. It’s for all parties to understand their role and responsibilities. Everyone is then part of the success of achieving a Pearl Rating for a project.” Although the UPC works on a project-to-project basis, ensuring that promised standards are achieved, the organisation’s long-term goal is to train the construction industry as a whole in what it takes to build a sustainable project. “Throughout the process minimising risk The way the audit process is set up helps minimise the risk of the developer missing its Estidama targets, Al Rashedi says.
“We work hand in hand with the construction industry to ensure that projects uphold the sustainability commitments made at the design stage and follow through to the handover to the client”
of designing and constructing sustainable projects, we’re very much educating the industry as well,” says Al Rashedi. “We use the audit process as an opportunity to train project teams on how to properly build a sustainable project, and as we continue to do that, we develop the skills of the industry as a whole.” “We have a responsibility to create a sustainable urban environment for our communities. The conditions needed to make this happen are becoming a reality now that we are seeing the construction industry in Abu Dhabi establishing a new skill set and working towards a new benchmark for sustainable development. The momentum gained over the past five years will only increase as industry players see for themselves the benefits of this system right now, and in the years ahead.”
Geberit HDPE drainage system
A neat solution.
and reliability and suits all building drainage applications: Whether in residential or industrial construction, for high-rise buildings, for laboratories, conventionally installed, prefabricated or embedded in concrete, you make
Comment
Lack of attention Not paying attention to safety procedures, quality assurance or quality control processes can cost contractors.
Ahmed Hassan
What causes reWork?
Ahmed Hassan, a Saudi construction professional, outlines the major reasons contractors have to redo work on a project site What is rework? Rework is the unnecessary effort of redoing activity that is incorrectly implemented the first time. Carrying out rework on a project is a major contributor to increased costs and delayed schedules. In a large, complex environment that involves multiple levels of trades, suppliers and installers, and where many activities take place simultaneously, the likelihood for errors, omissions and poor management practices is high. This often causes neglect that can lead to quality failures, which must then be rectified. Mistakes most often happen during the design and construction stages. The following are some of the most common mistakes that occur during these two vital stages: Common mistakes made during the design stage: Creating the design according to international codes, without 38 March 2016
taking into consideration local codes and requirements (civil defence, security, etc.) Constructability problems and designs that are not constructible always cause reworks for some aspects of the project Neglecting to study the lessons learnt from previous project designs done by the company or by other companies An overly compressed schedule for the design stage will produce designs that are not fully coordinated An underqualified design team will affect the design quality of the project Not developing a full understanding of client or owner requirements during the design phase
Common mistakes made during the construction stage: Lack of attention to safety procedures, quality assurance
or quality control processes Changing suppliers/ vendors midway through the construction phase The supplied materials not complying with project specifications An under-qualified construction team will cause many activities to be reworked An over-compressed construction schedule often means work having to be redone Bad communication between the main contractor, the suppliers, subcontractors and vendors Providing unclear instruction to workers on-site These are some of the main causes of rework on construction projects in the Middle East. By recognising the impact of rework and the source of the problems, the construction industry can reduce rework and ultimately improve cost performance.
Comment
March 2016 39
Health and safety onsite
Big Project ME discusses the outlook for health and safety on UAE construction sites with the leading authorities on the subject. Gavin Davids reports
IN SAFE 40 March 2016
Health and safety onsite
HANDS March 2016 41
Health and safety onsite
I
n February 2016, PricewaterhouseCoopers released its fourth annual independent monitoring report on employment practices in Tourism Development and Investment Company (TDIC) projects on Saadiyat Island. Surveying 880 randomly selected labourers, the report looked at working conditions for the men employed on various projects across the island, covering everything from living conditions to on-site medical care and general wellbeing. Of particular interest was the revelation that 90% of workers received health and safety training on Saadiyat prior to beginning their employment. TDIC has taken a hands-on role in this and is actively engaged in further work to improve health and safety awareness and action on-site, the report added. In addition, the report also examined contractor and subcontractor compliance with TDIC’s Employment Practices Policy (EPP), and praised the “considerable progresses made in strengthening foreign worker conditions and protections”. However, it also noted that the company should consider recruiting additional resources to assist in the day-to-day application and monitoring of the policy. What this report highlights is the seriousness with which the UAE government now views health and safety on construction sites. Given the increased focus on the regional construction industry from the international community, following incidents in Saudi 42 March 2016
Improvement efforts HSE standards in the UAE are constantly changing in an effort to improve, experts say.
“In Europe, the labourers that go on-site have been educated about what is health and safety and it’s in their mind all the time. Here, we’re on the first few steps of it. It’s about changing attitudes towards health and safety”
Arabia and Qatar, it is a welcome sight to see a proactive approach being taken across all levels. Despite these efforts, genuine change can only come from within the industry itself. This is why Big Project ME spoke to the HSE and construction safety managers of three of the top contractors in the UAE to gain a better understanding of where the industry sits when it comes to health and safety on-site. “The UAE has always been a front-runner for health and safety in this region,” says Mohammad Bidad, group HSE manager at Arabian Construction Company (ACC). “By far, we are the most advanced. Speaking for myself, coming from the UK and having worked and lived there for the last 40 years, it really shows that we’re following the British standards very diligently in this country, and that’s down to the local authorities such as the Abu Dhabi and Dubai municipalities.”
Denis Green, Operations Support manager at ALEC, concurs with this assessment, pointing out that health and safety standards in the UAE are constantly changing in an effort to improve. “At present these may not be identical, but the overall standard [in the UAE] remains high,” he adds. “The revised regulatory framework established within Abu Dhabi is very stringent and measures up to almost any legislative HSE framework, and as such has forced companies to up their game in terms of formal HSE systems in order to meet the minimum requirements of the Abu Dhabi EHSMS.” Stephen Wyngaard, group HSE director at Al Shafar General Contracting (ASGC), points out that while major development projects and contractors comply with international standards, things might be a bit different lower down the chain.
Health and safety onsite
“The major construction companies take pride in their HSE systems and it’s very visible, just by driving past the site. [However], the lack of HSE management can still be clearly seen on small projects and in some of the smaller emirates. The standards on major sites are proper, and that’s the difference between big and small companies. But the point is that everyone should be under one legislation,” he asserts. Bidad agrees with this point, adding that while it’s obvious that smaller contractors will lag behind, he’s quite confident that the situation is rapidly improving. “I would say that 80% to 85% of contractors working in the UAE – in Abu Dhabi, Dubai or any of the emirates – are fully aware of health and safety, and they do follow the rules and regulations. Obviously, there’s still room for improvement.
There are a lot of lessons to be learnt, and we’re learning them. “My instruction to my team is this – if there’s an incident, please do not cover it up. Share it with everybody, because that sharing will highlight [the mistakes], and even if one person gets a lesson learnt from it and avoids a repetition of the accident [then it’s worth it].” This doesn’t mean that contractors don’t face considerable challenges when it comes to following these rules and regulations, with all three experts pointing out various issues they’ve had to resolve on the way to achieving acceptable health and safety standards on their projects. “The challenges vary,” says Green. “Currently ALEC’s HSE managers face the challenge of a relatively new workforce, as the business has grown significantly over the last year. The
“I would say that 80% to 85% of contractors working in the UAE – in Abu Dhabi, Dubai or any of the emirates – are fully aware of health and safety, and they do follow the rules and regulations”
introduction of non-ALEC culture people into the business means that they must all be trained on health and safety to the high standards which ALEC set.” “Another challenge is the fact that the workforce consists of multiple nationalities, each with their own culture and language. At the beginning this can hinder communication and teamwork; however, once they have all adjusted and settled into the way we operate, this process becomes simpler.” Dealing with the various nationalities and cultures is a common challenge for all HSE experts, adds Mohammad Bidad. He explains that ACC’s HSE department takes special consideration of this when training and educating workers. “In Europe, the labourers that go on-site have been educated about what is health and safety
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Health and safety onsite
and it’s in their mind all the time. Here, we’re on the first few steps of it. It’s about changing attitudes towards health and safety. If you go to some Middle Eastern countries and talk about HSE, they’ll look at you like you’re talking a foreign language to them. “That’s the biggest challenge we face as an HSE department – the cultural habits. The majority of our workforce is from India and Pakistan, where health and safety aren’t the biggest priorities on-site. We have recognised that and we’re trying to optimise and confront that and get it solved. “We do that by training, toolbox talks and inductions. As well as learning from mistakes in the past –whether ours or anyone else,” he outlines. Stephen Wyngaard agrees wholeheartedly with this sentiment, adding that it’s crucial to get the construction team to buy into the HSE management system. To get them to do that, they need to understand the purpose and scope of the system. “At the end of the day, it’s there for their benefit and for the safety of their workers. The construction team does formal HSE training which equips the team to take ownership of HSE in their respective areas,” he explains, adding that two crucial elements for success is treating all levels of the construction team with mutual respect and leading by example. “From our side, we go to the labour camp first, and for the first few days, they don’t come to site. The safety department will give them an induction about the job that they’re going to do, some more information about the company, as well as information regarding the UAE. “This is just to get them comfortable and to give them the rules and regulations regarding the accommodation where they’re going to be staying. Then we 44 March 2016
Better understanding Denis Green says that ALEC holds regular meetings with project stakeholders to ensure a better understanding of the regulatory framework.
start to give them more sitespecific inductions, and finally, after the third day, they’ll come to site, where we’ll have a day of induction with them as well. “This constitutes going to the physical areas of work and showing them the way ASGC works on-site. This training session is then followed by a feedback session, where they make sure the workers understand what they’re supposed to do, which is accompanied by a signed form indicating that they understand and accept it.” While it’s relatively easy to conduct this training with workers within their own companies, all three experts also stress how crucial it is to ensure their partners on the project also measure up to their standards. “We screen all our partners,” says Wyngaard. “We don’t just take subcontractors on-site because they’ve got a low price. First of all, they have to submit to my department the health and
“The majority of our workforce is from India and Pakistan, where health and safety aren’t the biggest priorities onsite. We have recognised that and we’re trying to optimise and confront that and get it solved”
safety management plan and outline how they’re going to do it. They must submit their risk assessments, and then a list of all the people employed by them, with their CVs, so that we can see if these guys are qualified or not.” Green adds that when ALEC works with multiple stakeholders on a project, they make it a point to hold regular internal and external workshops so the team better understands the regulatory framework, and also to improve existing methods of compliance and implementation of operational controls. “These workshops and training sessions are cascaded down to all relevant levels within the business and HSE training and development is conducted on the basis of a strategic project by project needs analysis identifying the specific requirements,” he explains. Clearly, the health and safety of workers on the UAE’s construction sites are in good hands. However, the next step is to spread the awareness and knowledge that the UAE has gained to the rest of the region. This is a task that might be easier than assumed, since, as Bidad says, the country is already recognised as a leader in HSE. “Being a group manager of HSE, I travel quite a bit because we’ve got projects in India, Qatar, Lebanon, Saudi Arabia, Egypt and Iraq. I see that everyone classifies the UAE as a benchmark. Wherever we go, people say, ‘This is how they do it in the UAE.’ I can hear this from the labourers, the HSE, even from the client. “‘If we can do it in the UAE, then we can do it in India, in Saudi Arabia, in Qatar or in Egypt. We cannot give up. Those contractors that say, ‘Oh, we can’t do that,’ they are wrong. You can do it,” he concludes.
Cloud data
real-time sharing BIM users can now use the cloud to share information across the world in real time.
Bright skies for BiM
Sharing models in real time around the world enhances collaboration and project delivery, says Paul Wallett, regional director of Trimble Solutions Middle East
46 March 2016
Megaprojects across the Middle East, such as airports, stadia and the World Expo site, are moving from the design phase to the construction phase. On megaprojects, many architecture, construction and engineering firms are using Building Information Modelling (BIM) to enhance collaboration and sustainability in design, construction and operation. In the region, BIM has increased productivity by 25-30% and reduced costs by 20% on projects such as Ski Dubai and Yas Marina Circuit.
However, with megaprojects requiring firms to staff up and collaborate with offices around the world – a single project could require coordination between New York, Berlin, Riyadh and Shanghai – firms are facing increasing urgency to share models quickly and efficiently. Traditionally, many firms have sent large BIM files via email, which can be a timeconsuming process, especially if firms are using different software to read files in different file formats. With time and
Cloud data
teams and offices depending on resources and requirements. With data stored locally and transferred via encrypted, secure networks, staff can work online or offline, and then upload only the changes that they have made, rather than re-send the entire model. This is especially useful in countries with slow internet connections. Gulf ideally positioned to adopt cloud-based BIM
accuracy vital, Middle East firms cannot continue to risk potential time delays, clashes not detected in every model and version control issues that may not incorporate the previous day’s model changes. Now, using advancing building information solutions such as Tekla Model Sharing, architecture, construction and engineering firms can share real-time models around the world. This frees up teams to work in different offices, and to balance workloads across
With strong investment in leading-edge megaprojects, high ICT penetration and government use of BIM, Arabian Gulf states are ideally positioned to drive Middle East adoption of cloud model sharing. Middle East and Africa cloud data traffic is set to grow eight-fold to reach 260 exabytes in 2018, the world’s fastest growth rate, according to a recent industry report. With the Arabian Gulf having among the world’s highest smartphone penetration rates, as well as extensive use of tablets, staff can also bring these models out of the office and onto mobile devices on the construction site. Using mobile-friendly software such as Tekla Field3D, staff can provide on-the-ground insights to the office to enhance efficiency and collaboration. With BIM easily available and always updated, often in the cloud, Middle East firms can visualise and understand how to create reinforcement, extract documentation and make schedules. In turn, contractors can use the Tekla Open API capabilities to create an application that can connect to software such as Tekla Structures to enhance particular aspects of construction, such as rebar production. Middle East contractors frequently still use 2D drawings
“Across the Middle East, developers, government organisations and contractors need to accelerate training, so that staff can quickly learn the skills needed to adopt BIM and to enhance planning and project management”
for projects, which can be costly, time-consuming and lead to inaccurate results. But it can be a challenge to change the organisational mindset of “That’s the way it’s been done for many years, why change now?” Firms are often also reluctant to adopt advanced BIM technology and train staff due to tight budgets, especially in a region with high staff turnover. Firms should start small with BIM for specialisations, such as rebar fabrication or automating concrete pouring. With BIM solutions and advanced information transfer and management technologies such as the cloud, firms do not need to heavily invest in IT, as the models are hosted on the cloud instead of on local servers. Across the Middle East, developers, government organisations and contractors need to accelerate training, so that staff can quickly learn the skills needed to adopt BIM and to enhance planning and project management. Based on Trimble’s customer experience in the Middle East, BIM training can pay off within three to four months, giving firms a competitive edge based on innovation. Tekla model sharing from Norway to Thailand
While cloud sharing of BIM is an emerging solution in the Middle East, firms can learn best practices from construction projects in Norway, an early adopter. Civil engineering firm Aas-Jakobsen recently began work on a complex megaproject, the new Terminal 3 at Bergen Airport, Norway’s second largest airport. The expansion will significantly increase passenger and flight capacity by 2017.
March 2016 47
Cloud data
The firm needed to produce a large number of BIM models under tight deadlines, and needed to staff up quickly while coordinating with a partner office halfway around the world in Bangkok. Facing slow internet connections in Thailand, sharing large, complex BIM models was practically impossible, and those that were shared did not always include changes made the day before. Aas Jakobsen already used Tekla Structural Designer, for its open approach to BIM and its Open APIs, which allow localised plug-ins in steel and precast detailing. On a wider scale, the Bergen Airport expansion will require the client to manage dozens of different contractors and models across HVAC, electricity and baggage handling. reduced costs BIM has helped reduce costs by as much as 20% on projects like Ski Dubai.
48 March 2016
“With data stored locally and transferred via encrypted, secure networks, staff can work online or offline, and then upload only the changes that they have made, rather than re-send the entire model”
Next, Aas-Jakobsen turned to Tekla Model Sharing to share models with the Bangkok office, with models that take into account passenger safety, airport security and regular operations. The use of BIM facilitated visualised reinforcement, produced rebar, extracted documentation and created schedules with a connected application. Any model clashes can be solved in the virtual model, which is easier and cheaper than on-site. With more effective designs and better collaboration, the terminal is set to be completed efficiently by 2017. The Bangkok office now produces all drawings and model reinforcement for the new terminal, while the local office in Norway handles everything
for the existing terminal. Supporting sustainability, with the airport needing regular renovation, contractors are encouraged to save building information models in textbased IFC format, which can store structural data long-term and is set to be inter-operable with future technologies. As in Norway, the Middle East is advancing innovative megaprojects, with one report showing the region has a construction pipeline worth $3 trillion. Making sure these projects are delivered on time and on budget will mean careful coordination between the public and private sectors to drive cloud-based BIM adoption – giving the region clear skies for projects now and decades into the future.
Supplier focus
Opening new DOOrs
Big Project ME speaks to George Philip, lead marketing, Segment EMEA, to find out what Dorma+Kaba has in store for the region following their successful merger in 2015
Last year, it was announced that Dorma, the Germanowned access solutions and services provider, had joined forces with Kaba, a Swiss security technology provider, to create a new entity called Dorma+Kaba.
The merger made the new company one of the top three in the world for security and access control solutions, with total sales of more than $2.07 billion, and more than 16,000 employees across the globe, in more than 50 countries. Big Project ME caught up with George Philip, lead marketing, Segment EMEA, to find out how things have changed for operations in the region. Technology changes As the world shifts from mechanical hardware to electronic solutions, Dorma+Kaba is evolving to keep up.
What are some of the current projects that you’re working on? What’s in the pipeline?
Our current projects include collaborative work on the Mafraq Hospital and the airport terminal at the Abu Dhabi Airport in the UAE. We’re also at work in the Mall of Qatar and Heart of Doha. And we are simultaneously providing our access solutions to the King Hussain Cancer Centre, Jordan, Salah Airport in Oman, and the King Abdullah Financial District and Dammam University in Saudi Arabia. Furthermore, in Oman, we are working on the Muscat Airport project, in the form of movable walls and aluminium door packages for more than 200 doors. We’re delighted to be working alongside the Ministry on these prestigious projects. In 2016, we are looking at working on the Al Barka Ban and Qatamia Airport with the Ministry in Cairo, Egypt. We are also working on the Saudi-German hospital project. This is quite exciting, as these ventures will see DORMA+Kaba as the sole access providers on the projects. We’re thrilled and determined to make the very best of these ventures and provide reliable access solutions. What are some of the benefits from the merger?
From the employees’ point of view, it is a merger of two superpowers, making for a bigger, more empowering working environment that will in turn help the group offer a one-stop solution to all our customers. Looking at it from the customer’s point of view, the amalgamation of complementary product portfolios and our combined strength across the entire value chain will
50 March 2016
Supplier focus
help us become a truly integrated access provider. In addition. our geographical synergies, with Dorma’s strong presence in Asia and Kaba’s strength in the Americas, will boost our network in more than 50 countries, and our distribution network and production sites will be vastly spread out for a stronger foothold. Finally, from a technology viewpoint, the strength of design and specification skills of Dorma is now combined with the technical competence and innovative power of Kaba, adding to the complementaries of the company’s skills and expertise.
specialists required for on-site management, is going to be a piece of cake in the near future! Space-saving solutions: Swinging doors could be a thing of the past. The biggest disadvantage of manual sliding doors is that they will not close without a manual command and do not have integral locks. With Dorma launching the MUTO, which is a sleek, selfclosing door system enabled with integral locks, you will be able to save space and have convenient access at all times. After a huge successful launch in BAU, Munich, and regionally in the Dorma Design Centre, we see a major shift to spacesaving solutions like MUTO.
Tell us about some of the products and technologies that Dorma+Kaba is working on.
The world is changing rapidly from mechanical hardware to electronic solutions, and as such, we predict a strong change across a variety of platforms. Mobile Platforms: We are seeing a rapid shift of users now carrying out their daily transactions, from online shopping to bookings for travel and stays across the world, solely from their mobile phones. In such a world, Kaba now offers the on-trend Mobile Key Access solutions to create the next generation of security and guest convenience for consumers. It is quite simple, with the need to only download an app using a smartphone device, check-in electronically, and access guest rooms directly with no need to queue at hotel lobbies to start off a great consumer experience. With engaging technology comes a committed consumer base, and that is our motive. Internet of Things: Products such as our Dorma
egypt in focus George Philip says that Dorma+Kaba will be focusing on the Egyptian market in 2016.
“The strength of design and specification skills of DORMA is now combined with the technical competence and innovative power of Kaba”
sliding doors can be equipped with GPRS-based wireless systems called DORVISION, which is skilfully concealed in the door and has the ability to send out data during break-ins to enable remote diagnostics and corrective action to prevent maltreatment. With real-time data analysis and monitoring, consumers can take intelligent decisions fast, and remote control ability reduces machine downtime and the expense of servicetechnician trips on-site. On-demand Economy: Getting on-demand access control systems with cloudbased configurations with a user-friendly interface, sans the expensive software
Intelligent Openers: Imagine your hand is your key! With Kaba TouchGo, just a touch of the handle is all that is needed to open the door for the authorised person. No complicated PIN codes or awkward fumbling for keys or system passes. Kaba TouchGo is based on Kaba’s own Kaba RCID (Resistive Capacitive Identification) technology, which uses the body’s natural electrostatics to transmit the access rights to the lever handle. It’s not only convenient to users who do not like to keep a heavy bunch of keys, it is also a great support to old age homes and nursing homes, as it simplifies everyday life, as sometimes getting the access to the right door, with ease, is a significant challenge to the users in such situations. As you see from all the innovative developments, there is a rapid integration of mechanical hardware to intelligent software, and this trend will shape our lifestyles in the coming future.
March 2016 51
Tenders
Top tenders Oil RefineRy expansiOn pROject Budget $1,400,000,000 project number MPR1490-E territory Cairo, Egypt client Middle East Oil Refinery – MIDOR (Egypt) address 22 El Badia Street, Heliopolis phone (+20-2) 4195501/4195502 fax (+20-2) 4145936 email midor@egyptonline.com Description Engineering, Procurement and Construction (EPC) contract for the expansion of an existing oil refinery to increase production capacity from 100,000 barrels a day (b/d) to 160,000b/d status Current Project tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Refinery, Offsites & Utilities
status Current Project tender categories Power & Alternative Energy tender products Independent Power Plants (IPP)
period 2018 status Current Project tender categories Construction & Contracting, Hotels, Leisure & Entertainment, Prestige Buildings tender products Hotel Construction, Residential Buildings, Retail Developments, Theme Parks Development
DOha Oasis mixeD-use pROject
King aBDulla meDical city pROject – DuRRat al
Budget $1,300,000,000 project number WPR481-Q territory Doha, Qatar client Halul Real Estate Investment Company (Qatar) Description Construction of 14 ninestorey buildings featuring penthouses and 245 apartments, including a mixed-use podium comprising housing, retail outlets and one of the largest indoor amusement theme parks, a 7-star hotel consisting of 28 floors, six restaurants, a gymnasium, indoor pool and business centre
Budget $270,000,000 project number WPR876-B territory Manama, Bahrain client Arabian Gulf University (Bahrain) phone (+973) 1723 9744 fax (+973) 1723 9552 email alaasa@agu.edu.bh website www.agu.edu.bh Description Construction of a medical city comprising a 300-bed hospital, staff housing and a mini shopping mall period 2019
status New Tender tender categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction
the linKs integRateD tOuRism cOmplex pROject Budget $24,000,000 project number WPR806-O territory Muscat, Oman client Al Badr Group (Oman) phone (+968) 2469 2151 email badr@savills.om Description Development of an integrated tourism complex comprising 260 residential apartments and recreational facilities, in addition to an extensive array of restaurants and shops period 2017 status Current Project tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender products Residential Buildings, Retail Developments
inDepenDent pOweR pROject DevelOpment Budget $480,000,000 project number MPR1488-J territory 11118 Amman, Jordan client National Electric Power Company – NEPCO (Jordan) address Zahran Street, 7th Circle phone (+962-6) 581 8230 fax (+962-6) 581 8336 Description Engineering, Procurement and Construction (EPC) contract for the development of an Independent Power Project (IPP) with capacity of 485MW period 2018
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
54 March 2016
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THE BUSINESS OF CONSTRUCTION
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ALSO INSIDE KEZ TAYLOR CONSTRUCTION EXOSKELETON HVAC CONTRACTORS THE BIG 5 PREVIEW
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AT THE STARTING GATE Core work begins on the first tower at The Residences at Marina Gate
PLAN 2030
TOUCH THE SKAI
THE UPC REVEALS ITS GRAND PLAN TO BRING ABU DHABI’S VISION 2030 TO LIFE
CSCEC (ME) and SKAI Luxury Real Estate Development take us on-site to a building that redefines the concept of high-rise living
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creating history
BEST IN BUSINESS BIG PROJECT ME CELEBRATES THE WORK OF THE TOP CONTRACTORS IN THE GCC
CSCEC (ME)’S awaRd wINNINg CENTRal BaNk OF kUwaIT HEadqUaRTERS TakES CENTRE STagE
HEADQUARTERS BY THE YEAR - CENTRAL BANK OF KUWAIT - BROOKFIELD MULTIPLEX; PROJECT OF G C&T; SPECIALIST CONTRACTOR OF THE YEAR - EVERSENDAI S: GENERAL CONTRACTOR OF THE YEAR CONGRATULATIONS TO ALL OUR WINNER - KEZ TAYLOR, CEO OF ALEC; INFRASTRUCTURE CONTRACTOR OF THE YEAR - SAMSUN ER OF THE YEAR - WASL ASSET MANAGEMENT GROUP; DEVELOP YEAR CSCECME; CONSTRUCTION CEO OF THE KEO INTERNATIONAL CONSULTANTS; WINNERS ON PAGE 24 OF THE YEAR - DONNA SULTAN, CEO OF ST CONTRACTOR OF THE YEAR - EVERSENDAI ENGINEERING; SEE THE FULL LIST OF ENGINEERING; BIG PROJECT ME WOMAN - WSP | PARSONS BRINCKHERHOFF; SPECIALI CONTRACTOR’S CONSULTANT OF THE YEAR
Appetite for investment
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Last word
HR Challenges in the Construction Industry Implementing HR policies in construction is hard due to the nature of the business. Genoveva El Tayer takes a look at some of the challenges facing HR professionals Minimal HR Strategy Planning Time
Construction projects tend to be awarded at short notice following a competitive tendering bid, and construction companies tend to only bring in contractors once they know they have the contract. This reduces your scope to implement a proper HR strategy. Ideally, you want to have a project team with the right skill mix to keep the project under control. Transient Workforce
Construction workforces tend to be made up of transient contractors. This brings with it a high number of issues. The workforce tends to work longer hours and claim higher travelling expenses, and worklife issues tend to surface quite often. Keeping on top of
56 March 2016
a workforce like this is not easy, and as an HR professional you will be asked to produce figures at short notice. Moreover, staff turnover tends to be high on construction projects, which often piles on the pressure. The Changing Nature of a Construction Project
Keeping you on your toes, a construction project brings in different personnel with different skills when needed. This changes as the project progresses. Once again, your skills will be tested as you try and keep on top of who falls under what policy. Health and Safety
Health and safety is a massive issue in the construction industry. In many countries, there are more injuries and fatalities in the
construction industry than any other. Although the health and safety team should be ensuring best practice is followed, accidents still occur no matter how stringent enforcement is. This presents a headache from an HR perspective. Consider: • Time off due to injury has to be worked out, together with necessary deductions to payroll and other administrative policies. • Legislative bodies may become involved, in which case at some point HR will too. • Should there be a persistent health and safety problem, industrial relation problems may arise, becoming an issue for you to deal with, at least in part. • The risk of accidents
“Keeping you on your toes, a construction project brings in different personnel with different skills when needed. This changes as the project progresses. Your skills will be tested as you try and keep on top of who falls under what policy”
and other incidents increases, as workplaces are forever changing, and high staff turnover results in the workforce not really knowing each other’s strengths and weaknesses. This is not looking at all the implications, but you get the idea. Managing HR in Construction
As you can see, managing an HR strategy for a construction company is challenging. The issues are far-reaching and diverse, and due to other factors such as notice periods, there can be no doubt that HR requires a skilled team integrated into the management framework from the very beginning. Otherwise, it could become an HR catastrophe.