116
NOVEMBER 2015 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
PLAN 2030
THE UPC REVEALS ITS GRAND PLAN TO BRING ABU DHABI’S VISION 2030 TO LIFE
Contents
Issue 116 November 2015 12
18
26
34
40
46
06 ASTM supports Qatar The BIg pIcTure
Qatar construction specifications get ASTM International Product support
12 PPP Law Examined News aNalysIs
Experts examine the impact of the UAE’s soon-to-be-released PPP Law
18 Urban Planning Council IN profIle
Gavin Davids speaks to Abu Dhabi’s Urban Planning Council to find out how they’re helping support Vision 2030
26 Island Living sITe vIsIT
Big Project ME tours the Lu’luat Al Raha development project in Abu Dhabi
34 2045: A Construction Odyssey fuTure coNsTrucTIoN
Dr Ian Pearson outlines his vision for construction’s future
40 Leading the Change susTaINaBIlITy
Big Project ME speaks to Ibrahim Al-Zu’bi, head of sustainability for Majid Al Futtaim, about the developer’s sustainability plans
46 Powering the Future TechNology focus
Jerusha Sequeira asks the experts why the construction industry should switch to LED lighting
50 Tracking your kit TechNology focus
Jerusha Sequeira investigates how RFID
technology can help construction firms manage their on-site assets more effectively
60 Big Project ME Awards 2015 eveNT prevIew
Looking back at last year’s awards and winners and introducing the judges for the 2015 edition of Big Project ME’s annual awards
80 Middle East tenders TeNders
Big Project ME lists the region’s top construction tenders for November
88 Paint is more than colour lasT word
Hempel’s PureEarth range incorporates the latest coatings technology in a bid to create a healthier, more hygienic environment November 2015 1
Introduction
A Brand-new Look
A
s the more astute among you may have noticed, Big Project Middle East has undergone a complete redesign, one that has been in the works for quite some time. While I’d like to claim that it’s been a collaborative effort, doing so would really be doing a disservice to our fantastic design team, led by the indefatigable Simon Cobon, our art director, who have done, and continue to do, an absolutely fantastic job behind the scenes to make the magazine look and feel like one of the best in the business (in my humble and obviously biased opinion). Appreciating the work done behind the scenes seems to be a theme running through this month’s issue. Back in mid-October, I had the chance to visit the offices of the Abu Dhabi Urban Planning Council and meet with some of the bright, young minds shaping the way the UAE capital is growing and evolving into a truly global city. Our cover story focuses on three of these individuals, and I came away with a healthy respect for the amount of work that the UPC has done for the
EDItORIAL EDItOR GAVin DAViDS gavin.davids@cpimediagroup.com +971 4 375 5480 REPORtER JeRuSHA SeQueiRA CPI MEDIA GROUP GROUP ChAIRMAn AnD FOUnDER Dominic De SouSA GROUP CEO nADeem HooD
PUBLIShInG DIRECtOR RAZ iSLAm raz.islam@cpimediagroup.com +971 4 375 5471 EDItORIAL DIRECtOR ViJAYA cHeRiAn vijaya.cherian@cpimediagroup.com +971 4 375 5472
2 November 2015
jerusha.sequeira@cpimediagroup.com +971 4 375 5477 OnLInE EDItOR Ben FLAnAGAn ben.flanagan@cpimediagroup.com SUB EDItOR AeLReD DoYLe ADvERtISInG COMMERCIAL DIRECtOR micHAeL STAnSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALES MAnAGER FAAJu ABDuLFATAH faaju.abdulfatah@cpimediagroup.com +971 4 375 5495
MARKEtInG MARKEtInG MAnAGER LiSA JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGn ARt DIRECtOR Simon coBon CIRCULAtIOn & PRODUCtIOn DIStRIBUtIOn MAnAGER SuniL KumAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCtIOn MAnAGER ViPin V. ViJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGItAL WEB DEvELOPER mohammad Awais WEB DEvELOPER umair Shamim
development of Abu Dhabi. It’s not just a case of formulating specifications or plans that the construction industry must follow. There’s an incredible amount of research, information sharing, collaboration and communication that goes on behind the scenes, and I think it’s only right that they be recognised for that. Speaking of being recognised, being November, it’s that time of the year again. We’re back with the Big Project ME Awards on November 24, 2015 at the Jumeriah Emirates Towers Hotel, and now that the nominations have closed and the judges have voted, I’m fairly confident about predicting that it’s going to be one heck of a night. I can’t wait to see you all there!
Gavin Davids Editor gavin.davids@cpimediagroup.com
PUBLIShED By
Registered at imPZ Po Box 13700 Dubai, uAe Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLc © copyright 2015 cPi. All rights reserved 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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EDITOR'S CHOICE
READERS' COMMENTS
Qatar Rail floats tenders for 12 Doha Metro stations
Company was to accept tender forms between October 11 and 25, officials said
2
SKAI looks to export patented Dubai building concept
PHOTO GALLERIES
Mall of the Emirates extension, Dubai
Design of Viceroy Dubai Jumeirah
Majid Al Futtaim has opened its $272m extension of the Mall of the Emirates in Dubai.
Village property could be
See photo galleries at: meconstructionnews.com/photos
replicated in cities like Shanghai, Singapore or New York
3
Dubai apartment prices down 11%, set to fall further – JLL
“We also had a similar situation [as described in MEConstructionNews.com article about online fraudsters targeting regional construction firms]. But thankfully, our accounts realised that there was fraud interception of our emails and our emails were compromised. Hence we took immediate action by informing the client through phone and personal emails to avert a disaster of money being transferred to the fraudsters’ accounts. The matter was reported to the police” Name not supplied, comment to story ‘Hacking scam alert after fraudsters target Dubai construction firm’
Tighter regulations, higher inflation and a stronger dollar expected to push prices down further
4
READER POLL Top 10 Oman infrastructure projects
Are low oil prices having an impact on the Gulf construction sector?
Despite the decline in global oil prices, Oman is pressing ahead with several large projects
5
Dubai’s Nakheel awards construction
VIDEO
Strongman plays tug of war… with a Cat Dozer
Three major retail projects
Hafthor ‘Thor’ Bjornsson, winner of Europe’s 2015 Strongest Man competition, engaged in an epic tug-of-war against a Cat D10T Dozer.
expected to be completed in 2018
See videos at: meconstructionnews.com/videos
contracts worth $626m
67%
13%
13%
7%
Yes: There’s been a big drop in business
Yes: Only a limited reduction in activity
Yes: But only in the government sector
No: I’ve not seen any impact
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4 November 2015
The big picture
Qatar gets technical ASTM International will launch Qatar Construction Specifications 2014 this month.
Qatar construction specifications get ASTM International Product support ASTM standards used around the world cover areas like quality and safety ASTM International, the international standards organisation, has said it will launch Qatar Construction Specifications 2014 (QCS 2014) in November 2015. QCS 2014 is a mandatory Qatari technical regulation that is to be followed in the construction sector. ASTM International is a not-for-profit global organisation that specialises in the development and delivery of international standards. There are approximately 13,000 ASTM standards used around the world to improve product quality, enhance safety, facilitate market access and trade, and build consumer confidence. “We are about to launch the 6 November 2015
new product to the country, which will enable QCS 2014 and all the referenced ASTM standards to be accessible from a single online platform,” said Nick Ecart, director for the Middle East and Africa at ASTM International, in an interview with The Peninsula Qatar. “The original agreement was signed in June 2015, and we have been building the product by working closely with Qatari entities like the Ministry of Environment and the Public Works Authority [Ashghal]. We will launch the product at the second conference on QCS 2014, which is being held at The Torch Doha on November 16.” Developed by 30,000 of the
world’s top technical experts and business professionals, ASTM’s test methods, specifications, classifications, guides and practices are used by organisations in Qatar and the rest of the GCC to minimise risk and enhance compliance with the latest quality standards and improve the level of safety, reliability and quality in the construction sector, Ecart said. “ASTM standards have been [used] in the GCC region for a very long time... most
foreign and national companies working in Qatar [have been] following ASTM standards for many years. Now, through ASTM Compass, ASTM is working together with the Qatar government to expand the availability of ASTM standards and make access much easier. The idea is to make our standards available to more end users and support Qatar in its attempt to enhance the quality standards of the country’s construction sector.”
13,000
No. of ASTM standards used around the world
The big picture
National BIM standards needed in UAE BIM adoption still low in the region, Brookfield Multiplex exec says The UAE needs a national building information modelling (BIM) standard to ensure the technology is adequately implemented on local projects, says an expert in the field. Although the Dubai Municipality’s mandate last year to use BIM on large-scale projects is a move in the right direction, a stronger focus on BIM is needed at a national level, says
25%
Average estimated project time saved using BIM, according to data released by software provider Bentley Systems
Pavithran Kv, design and BIM director at Brookfield Multiplex. “We don’t have a national BIM standard in the UAE, so everyone tends to follow ad hoc standards. The Dubai Municipality has taken the initiative of implementing BIM and making it mandatory, and it’s much appreciated. But at the same time, there is no BIM standard put in place to follow,” he says, noting that the
“The Dubai Municipality has taken the initiative of implementing BIM and making it mandatory, and it’s much appreciated. But at the same time, there is no BIM standard put in place to follow”
UAE could look at countries like the UK, which already have such standards in place. “I would say the Dubai Municipality should initiate forming a consortium of professionals within the industry and delegates from different government departments to form a protocol for workflow for the region.” Although there is awareness around the region of the benefits of using BIM on projects, adoption is still low, he argues. “Construction is teamwork. When it comes to subcontractors, we see low BIM adoption. Ideally, everyone should be at the same level, but the industry is not there yet. The BIM maturity of the construction industry as a whole has to be improved, as BIM adoption in the region is still at a considerably low level.” BIM usage need not be restricted to large construction firms, and there is value in adopting the technology for small- and medium-sized contractors and projects as well, says Hady Amal, sales manager for the MENA region at Bentley Systems, a provider of BIM software. Bentley Systems provides packages scaled to suit the needs of organisations of different sizes, Amal notes, adding that there are cases where contractors have seen the value of BIM on small projects. “One of our users... on a small villa project has estimated that they have saved up to 25% of their time in using BIM on the project. So I believe that BIM is as useful on small projects as it is on larger and complex projects.” November 2015 7
The big picture
Habtoor Leighton Group wins $127m contract for Dubai smart hospital October 2017 delivery date for Phase One of $272.2 m ‘smart hospital’ UAE-based Habtoor Leighton Group (HLG) has bagged a $127 million contract for the construction of the first phase of the Fakeeh Academic Medical Centre (FAMC) in Dubai. The contractor is set to build research and treatment facilities for the $272.2m facility, billed as the country’s first ‘smart’ hospital, which is being built at Dubai Silicon Oasis. “This is an important award for the group and an opportunity for HLG to deliver this distinctive and high-profile project to a significant client,” HLG CEO and managing director José A. López-Monís said in a statement. The medical facility will comprise five centres specialising in diabetes and endocrinology; muscles, bones and joints; emergency medicine; pulmonary medicine; and cardiology. It will offer robotic surgery and feature an automated medication dispensing system. The hospital’s ‘smart’ component will include ITenabled patient rooms, which will be fitted with healthmonitoring technology that will cut down on paperwork, giving nurses more time to focus on patient care. The scope of work on the contract for phase one includes the construction of a 150-bed smart hospital and the installation of the medical equipment and loose furniture. It also includes structural works, architectural and civil works, mechanical, electrical and plumbing (MEP) 8 November 2015
works and the final testing, commissioning and cleaning. Work on the project will begin immediately, with completion expected in October 2017. HLG is 45% owned by Australia’s Cimic Group, known as Leighton Holdings until April 2015. Also in October, HLG’s joint venture with STFA Construction Group, Al Habtoor STFA Soil Group, won the piling contract Smart treatment The hospital in Dubai Silicon Oasis will comprise five specialist centres and will offer robotic surgery and an automated medication dispensing system.
for Jumeirah Golf Estates’ Alandalus residential project in Dubai. Construction on that project was expected to begin by the end of October, and it will be
completed before Expo 2020. The JGE project will consist of 54 townhouses and 674 mid-market apartments, with prices starting from $162,000.
$127 million
Value of HLG contract for first phase of Fakeeh Academic Medical Centre
The big picture
1. DUBAI’S DP WORLD TO BUILD LOGISTICS FREE ZONE IN SENEGAL Dubai port operator DP World has signed an MoU with Senegal to build and develop a logistics free zone outside the capital city of Dakar. The free zone will be developed near the new Blaise Diagne International Airport, not far from the DP World Dakar Terminal in the outskirts of the city, state news agency WAM reported. The new free zone will complement the port, which is touted as West Africa’s largest container terminal after a new terminal was built in the facility in November 2011, doubling capacity to over 600,000 TEUs. The agreement to build the free zone was signed by Sultan Ahmed bin Sulayem, DP World chairman and chairman of the Ports, Customs and Free Zone Corporation (PCFC) and Mankeur Ndiaye, Senegal’s Minister of Foreign Affairs. The investment is in line with the UAE’s aim to support growth and development in friendly countries like Senegal, bin Sulayem said. “It is our longstanding commitment at DP World… to help these countries build necessary infrastructure for trade and economic development”
10 November 2015
28%
Increase in rents over last year for Sector 2 of New Cairo, JLL says
2. PERKINS + WILL TO DESIGN AIRPORT CITY IN ISTANBUL Architecture and design firm Perkins + Will has been selected to devise the masterplan for a major mixed-use urban development beside Istanbul New Airport, which is currently under construction. Airport City is a planned 1700-acre development that will include a central innovation district, hotels, retail and commercial office space, logistics centres, an
expo and a convention centre. Plans include a metro and high-speed rail connections to Istanbul and beyond. “The opportunity to lay the groundwork for a development of this magnitude is both a tremendous honour and responsibility. Istanbul’s new airport will serve millions of passengers, but its airport city will be key to capturing that vitality. “Beyond simply supporting aviation, our plan will create a framework for a truly unique
1
centre of economic, cultural and social life,” said David Green, EMEA Urban Design lead at Perkins + Will. Cem Cakaralir, deputy general manager of IGA Havalimani Isletmesi AS, which is overseeing the Airport City development, said: “This is an unprecedented opportunity to launch the Istanbul New Airport as a global crossroads into Europe, the Middle East and Asia. It is an important investment for the future of Turkey.”
The big picture
150
Number of students that will use school built by Deyaar in Nepal
4. TANZANIA BEGINS WORK ON $10BN PORT BACKED BY CHINA, OMAN Tanzania has begun construction work on a $10 billion port and special economic zone backed by China and Oman. The port, set to be the East African nation’s biggest, is being built at Bagamoyo, 75km north of Dar es Salaam. The Tanzanian
2
capital currently houses the country’s main port, which is
3
operating beyond its capacity and has limited space for expansion, Reuters reported. “The construction of the
4
Bagamoyo port and a special economic zone is aimed at
51%
realising the government’s goal of bringing about an industrial revolution in Tanzania,” said President Jakaya Kikwete at the groundbreaking ceremony of
Stake acquired in Oman Electro Mechanical Contracting by Blue Star
the port, quoted by Reuters. Construction on phase one of the project will take three years, he added. Government officials said the port will be able to handle mega-ships with a container vessel size of 8,000 twenty-foot equivalent units (TEUs) once
3. JORDAN BEGINS OPERATIONS OF $287M WIND FARM
of 117MW. The project will produce about 400 gigawatthours annually. The $287
financing through several international institutions and banks, including the
Jordan has begun the operations of the Tafila Wind Farm, its first utilityscale wind a, owned and operated by the National
million project, built in the southern governorate of Tafilah, will account for 3% of the total energy currently produced in Jordan.
International Finance Corporation, European Investment Bank, Eksport Kredit Fonden, OPEC Fund for International Development,
Electric Power Company and the Jordan Wind Project Company (JWPC), after the successful connectaion of the wind farm to the national grid, Jordan Times reported. The Tafila Wind Farm is now
The wind farm project consists of 38 wind turbines, each with a rated capacity of approximately 3MW. Each turbine is approximately 150m in height, and weighs around 200t.
Dutch Development Bank, Europe Arab Bank and the Capital Bank of Jordan. In May 2013, the UAE’s Masdar signed a share purchase agreement to acquire a 31%
operating at its full capacity
The project secured
shareholding in JWPC.
the first phase is complete, with room for expansion. The entire project, including roads, railways and the economic zone, is expected to take ten years to complete.
News analysis
PPP LaW to Boost Private sector investments Stephen Jurgenson, Kilian de CintrÊ and Katharine Sonneborn, from the Dubai office of international law firm Winston & Strawn, examine the impact of the UAE’s new PPP law
In the run-up to Expo 2020, the Emirate of Dubai published a new public-private partnerships law in September 2015, designed to allow it to tap private sector funding and expertise to implement infrastructure projects. The PPP Law will come into force on 19 November 2015 and is a welcome development. While PPP structures have previously been used successfully in the UAE in projects such as Zayed University in Abu Dhabi, and extensively in the power and water sectors in IPPs in Abu Dhabi and Dubai, market participants expect the PPP Law to generate significant project activity and to attract substantial interest from foreign investors. 12 November 2015
Welcome development The PPP Law which will come into force on 19 November 2015 will generate significant project activity and attract substantial foreign investment.
News analysis
Which projects does the new law apply to? The PPP Law is of deliberately broad application, stating that it will apply to PPP projects, “regardless of their type, form or nature of activity”, originated by Dubai government agencies subject to the general budget of the government. It may also apply to off-budget bodies with the approval of the Supreme Fiscal Committee. Power and water projects are, however, excluded from the scope of the PPP Law and will remain governed by existing legislation. The Roads and Transport Authority (RTA) was at the forefront of the PPP Law. The RTA’s Union Oasis Project, a five-tower project above Union Square Metro Station, will be one of the first projects to use the new Law, with a tender deadline of April 2016 announced. The Law may also be used for the expansion of Al Maktoum International Airport, which with a $32 billion development budget is anticipated to become the largest airport in the world. Dubai’s Expo 2020 will also offer numerous opportunities for the private sector, such as the 14.5km Metro Route 2020 from the existing Nakheel Harbour & Tower station to the Expo 2020 site. The PPP model may well be used to procure such projects.
What will the impact of the PPP Law be on projects going forward? The publication of the PPP Law indicates strong political support for public-private partnerships in Dubai, which is key to any successful PPP policy. This support, and the new approach that underpins it, is articulated succinctly in the Law, which provides simply that the aim is to encourage the participation of the private sector in the
development of projects. Behind this stated aim is a desire to enable the Dubai government to take advantage of private sector expertise, to ease the financial burden and financial risks of capital-intensive projects on the government’s budget and to offer (and evidence) the best value for money to the community. This new policy is a very welcome initiative – a strong relationship between the Dubai government and the private sector will be key to addressing the infrastructure needs of the emirate over the medium and long term.
THE UAE’S NEW PPP LAW - HOW DOES IT WORK?
What impact does the PPP Law have on bidding processes?
2
The PPP Law describes a transparent bidding process led by the relevant government agency. It provides that submitted offers will be evaluated by the Partnership Committee, an internal committee formed by the government agency for each project, with the project being awarded to “the most feasible offer technically and financially among the submitted offers”. It allows bidding developers to form a consortium, and provides that if this is done the offer should be made in the name of the consortium, unless specified otherwise in the invitation to bid. The PPP Law also sets out clear consequences for not following the rules of the process. Any offer received from sponsors not meeting the conditions contained in the invitation to bid will be rejected, and if only one offer is submitted, or only one offer remains after other offers have been disqualified, the bidding process may be cancelled by the Partnership Committee. It should be noted, however, that government agencies do not need to follow a competitive
1
Projects with a total cost of up to $54 million to be incurred by the government agency through the partnership contract must be approved by that agency’s director general.
Projects with a total cost of between $54 million and $136 million to be incurred by the government agency through the partnership contract must be approved by the Department of Finance.
3
Projects with a total cost in excess of $136 million to be incurred by the government agency through the partnership contract must be approved by the Supreme Fiscal Committee.
tender process and unsolicited PPP proposals are possible.
What are the requirements for government approvals and licensing? The PPP Law sets out a sliding scale (by reference to total project costs) of requirements for Government approvals: • Projects with a total cost of up to $54 million to be incurred by the government agency through the partnership contract must be approved by that agency’s director general. • Projects with a total cost of between $54 million and $136 million to be incurred by the government agency through the partnership contract must be approved by the Department of Finance. • Projects with a total cost in excess of $136 million to be incurred by the government agency through the partnership contract must be approved by the Supreme Fiscal Committee. The PPP Law specifies that the project company must be licensed to operate in Dubai and contemplates that in most cases the project company must be a special purpose vehicle. The new Law does not specify whether the project company must be incorporated as a local entity under the requirements of the UAE commercial companies law, or whether it can be established as a free zone entity. Should it be permissible to establish the project company as a free zone entity, foreign investors should note that a key limitation of a free zone entity is that it is generally permitted to conduct business solely within its relevant free zone, therefore limiting this structure to PPP projects strictly contained in that free zone. The PPP Law does not relax requirements requiring November 2015 13
News analysis
local ownership of businesses established as limited liability companies (LLC), therefore it should be assumed that project companies incorporated as an LLC will have to comply with the so called 51/49 rule. This rule prevents foreign investors from owning more than 49% of UAE companies, although it is possible for the constitutional documents of the LLC to contain certain provisions in order to protect the interests of a foreign minority shareholder. The PPP Law also provides that the government agency may hold an interest in the project company, which would have an impact on the status of the project company under Dubai law, but does not specify the proportion nor the conditions of such participation.
Structural considerations The Law allows for a wide range of potential PPP structures. It provides that BOOT, DBO, lease and concession agreements may be used, together with any other structures approved by the Supreme Fiscal Committee. The relationship between the project company and the government agency responsible for the PPP project will be governed by a partnership contract. Key features of the partnership contracts are described in the PPP Law, including the scope of works, ownership of assets and intellectual property rights, responsibilities for obtaining necessary approvals, offtake or service prices, rules on supervision of the project company by the government
agency, environmental requirements, termination rights of the government agency and penalties imposed on the project company, and transfer and decommissioning of the project. Private sector investors will also note that, while the Law does not yet impose restrictions on finance sources, it does expressly state that the obligations under the financing arrangements will be borne by the project company alone. The absence of restrictions on finance sources is a positive feature and should allow international sponsors to combine multiple sources of finance, such as commercial lenders and export credit agencies. Finally, the PPP Law provides that partnership contracts with government agencies can
be entered into with a term of up to 30 years (and, in some exceptional cases, longer) from the date of signing the partnership contract. This is in line with practice for PPP projects elsewhere and should certainly allow the private sector to raise long-term finance and realise a return on its investment.
Conclusion The PPP Law is a positive development that will certainly attract the attention of international investors with the many opportunities that Expo 2020 will bring to the emirate. It is detailed and clear legislation that offers the legal framework necessary for a successful PPP policy, and is a step towards addressing the infrastructure needs of Dubai in the future.
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Real estate report
SAUDI ARABIA OFFICE
Jeddah office market Supply of office space in Jeddah currently stands at 820,000sqm of GLA with over 100,000sqm of office supply due to be added to the market in the short term. As a result of construction delays, H1 2015 saw few completions, which resulted in market-wide vacancy rates remaining stable at 10%. Total stock is expected to exceed 1 million sqm of GLA in the medium term as new supply comes online. H2 2015 will see additional
supply coming from a number of small- to medium-sized projects, the largest being Al Khair Tower, which will add circa 30,000sqm of office space to the market. While H1 2015 saw the completion of the Headquarter building on the Corniche, the majority of space in the development has either been leased already or sold to individual investors, reflecting the strong pent-up tenant and investor demand for good quality office space. Rental
rates for grade A and grade B space remained unchanged in H1 2015 due to continuing demand from the non-oil sector. Grade A and B rents currently stand at SAR 1,200 and SAR 700 per sqm per year respectively. Due to the historic lack of grade A stock in the market, we see robust demand for good quality offerings in the short to medium term as tenants look to upgrade to better quality premises and the non-oil economy continues to show healthy growth.
Robust demand for good quality offerings is likely in the short to medium term for Jeddah
Jeddah stock, 2009-2018 (million sqm)
Jeddah grade A rents (SAR per sqm)
1.25
1250
1.0
1000
0.75
750
0.5
500
0.25
250
2010
2011
2012
2013
2014
2015
2016
2017
2018
H1 2011
H2 H1 H2 H1 H2 H1 H2 H1 2011 2012 2012 2013 2013 2014 2014 2015
City-wide vacancy rates (%) 25
Key market indicators
20
15
10
5
2009
2010
16 November 2015
2011
2012
2013
2014
2015
2016
H1 2015
Value
Grade A
SAR 1,200
Grade B
SAR 700
Vacancy
10%
Trend
Source: Knight Frank Research
Real estate report
MARKET OVERVIEW Riyadh office market
Current supply of grade A and grade B office stock in Riyadh stands at 3.5 million sqm, the majority concentrated in the central and northern parts of the city. Demand for commercial space continues to be focused on headline schemes such as Kingdom Centre, Business Gate and Granada Business Park, which are all enjoying in excess of 90% occupancy. The average vacancy rates across the city remain unchanged, indicating that
demand for office space has kept pace with new supply that has come to the market through H2 2014 and H1 2015. Grade A and grade B office rents have also remained stable throughout the period and currently stand at SAR 1,300 and SAR 900 per sqm per year respectively. The potential oversupply following the release of successive phases of King Abdullah Financial District (KAFD) and the handover of the Information and Technology Complex (ITCC) has
not materialised, partly as a result of historic lack of international quality grade A stock, as well as the gradual phasing of KAFD. As a result of these two government-backed schemes, the capital will see an additional 1.2 million sqm of GLA come into the market in the next two years. We do not expect the market as a whole to see increased vacancy rates or a reduction in achievable rental rates, as demand for quality commercial spaces that are well located and benefit from good floor plates will remain strong.
Demand for commercial space continues to focus on headline schemes such as Kingdom Centre
Riyadh stock, 2009-2018 (million sqm)
Riyadh grade A rents (SAR per sqm)
5.0
1250
4.5
1000
4.0 750 3.5 500 3.0 250
2.5
2010
2011
2012
2013
2014
2015
2016
2017
2018
H2 2011
H1 2012
H2 2012
H1 2013
H2 2013
H1 2014
H2 2014
H1 2015
City-wide vacancy rates (%) 25
Key market indicators
20
15
10
5
2009
2010
2011
2012
2013
2014
2015
2016
2017
H1 2015
Value
Grade A
SAR 1,300
Grade B
SAR 900
Vacancy
108%
Trend
Source: Knight Frank Research
November 2015 17
In profile
Big Project ME heads to Abu Dhabi for a chat with the Urban Planning Council
18 November 2015
In profile
“The whole objecTive of whaT we do is To improve The qualiTy of life and liveabiliTy wiThin abu dhabi. To do ThaT, you really need To have plans ThaT Take inTo consideraTion The needs of The people and The communiTies” November 2015 19
In profile
b
ack in the 1990s and early 2000s, Abu Dhabi had a reputation as something of a bureaucratic city. The early part of the UAE’s boom as a tourist and commercial destination was firmly fixed on Dubai, with companies and visitors alike flocking to the emirate, lured by its shopping malls and attractive business propositions. Meanwhile, Abu Dhabi continued to push along at its own pace, driven by its strong oil-based economy and its position as the seat of power in the UAE. In many respects, it resembled a sleeping giant, waiting for a catalyst to come along and shake it awake. In 2006, that catalyst arrived in the form of a mandate issued by HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Executive Council to the General Secretariat of the Executive Council, the Abu Dhabi Council for Economic Development and the Department of Planning and Economy. Known as Vision 2030, this mandate was the first step towards the creation of a longterm roadmap for economic progress for the emirate, through the establishment of a common framework that aligns all policies and plans, while engaging the private sector in their implementation. Building upon the foundations set up by the Abu Dhabi Policy Agenda 2007/2008, the initiative 20 November 2015
yasmeen al rashedi Planning manager at Estidama.
was produced by a taskforce that joined stakeholders from the public and private sector, while also receiving significant expert support from international institutions. Their mandate was clear: to conduct an exhaustive assessment of the key enablers for economic growth and to create a comprehensive long-term economic vision, with explicit targets, to guide the evolution of the Abu Dhabi economy through to the year 2030. With the wheels for Vision 2030 now firmly in motion, the task of guiding the activities through to a successful conclusion falls to the Urban Planning Council (UPC), the strategic planning
“All of the policy frameworks that the Council has produced as part of the Vision 2030 suite of documents have very key strategies or targets that are shaped around sustainability”
agency for the UAE capital. In its broadest definition, the UPC is the body responsible for defining the shape of the emirate, which includes the associated land use and the development of professionally designed, sustainable and well-managed urban environments that incorporate world-class transport and infrastructure systems that ultimately support the implementation of Vision 2030. Therefore, to get a clear idea of how the Urban Planning Council is going about the implementation of the government’s vision, Big Project ME spoke to three key members from various departments – Yasmeen Al Rashedi, planning manager, Estidama; Yousif Ahmed Al Fahim, infrastructure planning manager; and Talal Al Ansari, senior associate planner. With the interviews taking place in the wake of an announcement that the UPC is undertaking the next phase of its data collection and information sharing strategy through the creation of a database of Abu Dhabi’s real estate developments, it was an opportune time to ask about UPC’s role as a facilitator for collaboration and coordination in the industry. One key component is Estidama, the program helping contractors, consultants and developers to build Abu Dhabi according to green building standards, as Yasmeen Al Rashedi explains. “The word sustainability is very much embedded in our planning approach. I think that’s a really key thing to note. All of the policy frameworks that the Council has produced as part of the Vision 2030 suite of documents – which is for Abu Dhabi, Al Ain and the Western Region – have very key strategies or targets,
In profile
from a planning perspective, that are shaped around sustainability and Estidama. “The whole objective of what we do is to improve the quality of life and liveability within the emirate of Abu Dhabi. To do that, you really need to have plans that take into consideration the needs of the people and the communities. That is showcased through our community and city planning approach.” Given that Estidama already encourages the sharing of information so as to create a more effective monitoring arm, Al Rashedi explains that the creation of a database for Abu Dhabi developments will only make the program more effective. “It’s already something that is embedded within Estidama, though it’s a little different to the agreement between developers and the UPC. The reason for that is because we have a very strong monitoring arm. “Within the lifecycle of a project, we have design, construction and then operation. We’re now beginning, with a number of projects in and around Abu Dhabi, to monitor and measure the output of buildings that have been built. Data sharing for these projects is already in place, which is fantastic. “What that begins to do is demonstrate and showcase the achievements of green development. It also allows us to analyse what those results are, in order to feed into the policies and development team and improve the policies. If we notice, within the results, that these pilot projects are achieving the savings that we had initially targeted or put in within our range, and we know the experience of the project owner, then we can push those boundaries. “We know it can be done, we’ve already witnessed it and
“What we’ve done is that we have ongoing coordination for a lot of projects. We can see from them what is actually working, in terms of our manuals especially”
gone through it with the industry and heard their feedback about what they found challenging versus what was really easy to do. So if we know what those things are, then we’re able to modify and evolve the policies and requirements within the rating systems to push those boundaries and drive the targets that we have set for ourselves, or that the government is setting for developments right now,” she adds. Talal Al Ansari, senior associate planner at UPC, is in agreement on the benefits such collaboration can bring, and says that the UPC needs to communicate with both sides – the construction industry and government departments – to
Talal al ansari Senior associate planner at the Urban Planning Council.
create a viable framework that benefits all stakeholders. “The UPC has been in operation since 2007. Since then, there have been a lot of projects going through us. Whether it is developers, consultants or even contractors, that understanding of what is the quality, the standards, the regulations, has actually gone back and forth and been refined to become the typical standard now, so that everybody knows exactly what they’re doing,” he explains. This dialogue also extends to the end users – the public – he reveals. Ultimately, the people using the finished project should feel comfortable and relaxed in an environment where they’ll be sending the majority of their time. “We try to focus more on the public because they’re the end user for us. I may be designing the city, and I could think that the best thing for the area could be a park. But in reality, they could need a community facility like a library or a store. “So what we do, in multiple places, is that we actually create that public outreach where we listen to them. One example of this is actually a survey that was published about three years ago, where we tried to understand the shortage of community facilities and open public spaces,” Al Ansari recollects. “There were surveys for 10,000 households asking about the different areas – what they had, what they liked and what they’d like to have. Sometimes, we’d have people come and say, ‘We want a Disneyland!’ But of course, it comes down to ‘Can we do it?’, ‘Does it make sense?’ “That’s what we study. In the end, our job is to understand their needs, but to also give them what is best – based on our experience, knowledge November 2015 21
In profile
and the shared knowledge amongst the government agencies – for that area as well.” This sense of cooperation extends to contractors and developers, Al Ansari adds, pointing out that one of the major works in progress is an update of the Public Realm Design Manual, which will have certain aspects refined and improved. To do so, the team has involved developers, government entities and consultants to offer feedback and find out what the real issues are, whether it’s application of standards or even a lack of clarity in existing regulations. Al Ansari points to a recent survey done for the Commercial Signage Regulations policy as an example of how this collaboration can benefit all stakeholders. “This was done in collaboration with the Department of Economic Development. They were the main stakeholders that we had to work with, they were responsible for the authorising and giving the permits for the signage. But once that started, there was actually a workshop for the signage developers and manufacturers – what materials did they have? What are the techniques they’re using? If we say that they require a certain material, does that impact the cost? Because there’s a liability on the other as well. “We needed to understand the parameters before we move towards finalising or developing the policies. Once that was done, we initiated the training and invited all the signage manufacturers to the DED, and we gave courses about what are the signage required and so on.” Perhaps this sense of collaboration is most evident in the way that the Infrastructure Planning Team works with developers and government bodies to provide effective 22 November 2015
“Our job is to understand their needs, but to also give them what is best – based on our experience, knowledge and the shared knowledge amongst the government agencies – for that area as well”
technical input and feedback to the other teams in the UPC. Part of the team’s role is to provide, or come up with, planning manuals like the Urban Street Design and Urban Corridor Design manuals. As such, they need to ensure that the data the planning teams receive is up-to-date and a reliable reflection of what is actually built on the ground. To do so, Yousef Al Fahim, infrastructure planning manager, says that his team coordinates with both government stakeholders and the private sector to create plans that give the best use of existing infrastructure, while ensuring that new plans don’t prove to be a burden on current systems. “Through the urban development team, what we’ve
done is that we have ongoing coordination for a lot of projects. We can see from them what is actually working, in terms of our manuals especially. This is the main medium that they use from us – the Urban Street Design and Urban Corridor Design manuals – they basically implement them and then we can see from this what are the shortfalls or challenges they face. “At the UPC, we’re trying to streamline this process [of collaboration]. Before these manuals were established, every project had to go through different stages of obtaining approvals. But now, with these roads, streets or corridors that have already been pre-agreed with government agencies, this reduces the amount of time that needs to be taken
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yousif ahmed al fahim Infrastructure planning manager at the Urban Planning Council.
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Part of
In profile
Developers sign Data-sharing charter for abu Dhabi projects
Example to the region Other emirates and GCC countries are approaching the UPC to see how they can learn from them.
for approval, so long as the developer or the consultant satisfies the requirements that are set in the manuals. “Usually, the approvals follow in a quick process. As for how we deal with it, it’s through the Urban Development team, where any new project is provided to the government agencies for their review or comment. If there is anything, they are dealt through one medium in the UPC, and these comments are then provided to the developer or consultant [through us].” Clearly, there has been tremendous progress towards the goal of collaboration and communication. The obvious next question is to see how far this idea can spread. Having already been trialled to great success in Abu Dhabi, all three of the UPC members speaking to Big Project ME say that expanding the processes and methodology is on the agenda. “Personally, I see this as a symbol of our success,” says Talal Al Ansari. “We’re being 24 November 2015
approached by other entities, that’s currently happening. We have Qatar approaching us, we have Kuwait looking at Plan 2030. Some entities in Sharjah are approaching the UPC to understand how we’re operating and what the manuals are, and so on.” “There are also some projects that almost force you to apply [planning and regulations]. Look at Etihad Rail. It links the UAE all the way from Abu Dhabi to Fujairah, so it’s more of a UAE-level, rather than just Abu Dhabi-level, project. So that discussion is always there, and the best part is that we’re being recognised by the region and they’re coming to us for ideas and support, and asking us to share policies. Not because they want to take it on, but because they want to adapt and amend it to their own contexts and needs.” Yasmeen Al Rashedi chimes in, pointing out that Estidama is continuously looking to evolve its review process and learn from the development community in
Abu Dhabi’s Urban Planning Council (UPC) says it has signed a charter with 19 developers to share more data about residential, commercial and retail projects, in a move aimed at improving future land management. The UPC says the new charter will build on existing datasharing agreements with developers, to provide details on their completed and ongoing projects. Using these details, UPC will be able to build a Real Estate Data Management database on supply and demand in the residential, commercial, retail and hospitality sectors in Abu Dhabi. This will be done through land use reports and projections, and frequent data updates. “This is a key milestone for the Abu Dhabi real estate sector. The new database builds on the strong foundations for data collection already in place by deepening the level of data shared and the frequency of collection. Seeing 19 of the emirate’s key developers work together is indicative that the real estate community understands the mutual benefit of collaboration,” says HE Falah Al Ahbabi, director general at UPC. The 19 participants include Rosewood Hotel Abu Dhabi, Aldar Properties, Mubadala Real Estate and Infrastructure, Al Qudra Holding, Masdar and National Investment Corporation.
Abu Dhabi as it goes through its own growth process. By encouraging developers to go beyond what is required in their quest to receive strong green ratings, she believes the knock-on effect across the industry will be huge. “What we begin to do is try to find opportunities, together, with the development community within Abu Dhabi. We’re now beginning to look at the urban development process and evolve it so that it allows for opportunities and incentives to be a part of the review. It’s about being able to find opportunities where it’s a win-win situation. “Abu Dhabi is benefiting, the community is benefiting and the developer is also benefiting, because it’s making their project more feasible, more viable and financially sounder. I think it’s about working with them to find and build these incentives within the development review process. I think it’s fantastic, and that’s where we are now,” she concludes.
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Site visit
Big Project ME tours the Lu’luat Al Raha development site with Mouchel, as Phase One of construction works begins on this ambitious mixed-use development. Gavin Davids reports
islanD 26 November 2015
Site visit
living November 2015 27
Site visit
a
s the GCC looks to modernise and create cities that measure up to any in the Western world, there has been a shift across the region towards developing master planned communities that fulfil both residential and commercial needs, while also meeting the requirements of municipalities and governments in terms of sustainability and urban planning. One city that has perhaps done this better than most is the UAE capital of Abu Dhabi, which is rapidly gaining a reputation as a global capital city thanks to its many developments along the coast of the emirate, as one enters the city travelling from Dubai. While there has been considerable focus on projects such as Al Reem Island, Saadiyat Island and Abu Dhabi Capital District, one that has escaped the attention of the general public is the Al Raha Beach development, situated alongside Aldar’s distinctive headquarters. Built on 5.2 million sqm of natural beachfront, the Al Raha Beach development is set to be a mix of residential, commercial, cultural, entertainment and public facilities, and will ultimately house more than 120,000 people. This massive development is set to spawn a number of projects that will have a significant impact on the construction landscape of the capital. One such project is Lu’luat Al Raha, a mixed-use development at the core of the vision for Al Raha Beach. Developed by International Capital Trading, a private 28 November 2015
Building to schedule The scheduled completion date for Phase One of the project is in September 2016.
luxury living The Lu’luat Al Raha project will be home to a number of residential developments, from beachfront villas to mid- and high-rise towers.
Abu Dhabi company that owns a number of real estate developments in the emirate and around the world, the Lu’Luat Al Raha project is a reclaimed island that will be home to a number of developments, ranging from beachfront villas to mid- and high-
rise towers. It is expected to have more than 6,000 residents, with a daytime population of up to 13,000 (including visitors to the island). Situated opposite the existing Al Raha Beach Hotel, the Lu’Luat Al Raha project will be surrounded by the Khor-Al-Raha, a creek
giving residents access to their own beaches and marina. In addition, the site is being designed to be pedestrian- and bicycle-friendly, with a continuous promenade running around the whole island away from car traffic, connecting the entire development.
Site visit
“We have the contractor monitoring plan and we have the procurement plan. That means that whatever the materials, whatever the logistics, all of it is planned”
With the project situated at the core of the Al Raha Beach Development, it is being designed to provide the community with easy access to both Abu Dhabi and Dubai. It is a 10-minute drive from the future Capital District and is accessible to all emerging developments in the area. In addition, it is just five minutes from Abu Dhabi International Airport, 10 minutes from Yas Island, 65km from the Dubai border and 75km from Al Maktoum International Airport in Jebel Ali, Dubai. The project will be further connected through the development of public transportation systems, such as a planned light rail Transit (LRT) network and water taxis that will connect the entire community. Phase One of the project began on January 6, 2015 and is currently well underway, with infrastructure and utilities being installed. Big Project ME paid a visit to the site
offices of Mouchel Consulting, the construction supervisors and concept and landscape designers for the Lu’Luat Al Raha project. Built on reclaimed land, the project posed a number of challenges for Mouchel and the rest of the construction team, as Leighton Greenland, infrastructure director (UAE and Kuwait) for Mouchel Consulting, explains during an interview prior to a tour of the site. “We actually designed the whole island – Phase One and Phase Two. Phase One is now in the construction phase. We looked at all the utilities, as well as the roads, the sewage, the storm water drainage, the irrigation, potable water, landscape and the marina. We also had the bathymetric surveys done to make sure that everything works and flows properly. The total area of the island is 82.4 hectares, so it’s going to be a significant Digging deep The Mouchel team is overseeing the installation of all of the island’s utilities, drainage and sewage systems.
development in the area.” David Dunn, technical manager, and Asaad Ali, resident engineer, are also present at the meeting and explain the impact of the project further. “There’s about 850,000sqm of GFA. It’s a mixed-use development and comprises residential, commercial and also leisure. Approximately 250,000sqm of the site is reclaimed land, and it’s one of several islands that are going to be built along this stretch of coast,” says David. “We’re undertaking Phase One of the construction at the moment, and our role is to provide all the infrastructure design. We’ve also been involved in the land reclamation. At the moment, the roads design is there, and we’re putting in all the utilities, starting with the deep utilities and then working from there.” As resident engineer, it is Asaad Ali’s job to ensure that all of these jobs are being carried out by the contractor – Trojan General Contracting – and subcontractor – National Projects and Construction. In addition, he has to watch over the other contractors, such as Gulf Dunes, the subcontractor for landscaping works. With work on other construction sites also going on around the Lu’Luat Al Raha area, there is limited margin for error. Ali has to ensure that everyone, not just the construction team, but everyone involved in this project, even tangentially, is kept up to date. “On a weekly basis, I conduct coordination meetings with Aldar. All of their construction team is represented and we share information about where we are and where they are. We share our drawings, match their requirements and conduct joint surveys between their construction team and ours, so as to make sure that all our efforts are on the same page,” Asaad Ali explains. November 2015 29
Site visit
“This is a continuing process. If they have any issues, or if we have any issues, we can discuss them during the meetings.” These meetings are crucial to the success of the project, the Mouchel team says. They point out that the Lu’Luat Al Raha development is part of a much larger master plan, and as a result, alternative design solutions are sometimes urgently needed to meet the changing locality. “Some of these challenges have been simply because the whole development – the whole area – is being worked on. It’s the 2030 Vision that they’re looking at. But some places are a bit slower than others. There have been challenges; making sure that everything fits within the master plan [is difficult] because you’re relying on other areas being developed as well,” David emphasises. “We’re fortunate in that we have a very good client here. ICT are great at assisting us with the authorities when something in the approvals process stalls. Building relationships with the client, over a period of time – from the very start of design through to the construction
supervision stages – has been the main point of what we’ve had to do and has paid dividends in the delivery of this project.” The scheduled completion date for Phase One of the project is September 1, 2016 and Asaad Ali praises the role Trojan General Contracting is playing as contractor, in making sure that the deadline will be hit. “They’re achieving the programme, and they’re progressing as per the current available area for their work. Hopefully, we can deliver it ahead of time. That’s been their target for the last couple of months – they think that they can deliver the project ahead of schedule. “We have the contractor monitoring plan and we have the procurement plan. That means that whatever the materials, whatever the logistics, all of it is planned. Initially, we planned that we would have to get all the heavy logistics – the bridge works, the pipes – they all had to be completed within eight months. That’s because, on the other side [of the island], we received information that they had started their construction, so it would be difficult to pass heavy
“ICT have a vision of an extremely high-quality project, and Mouchel has embraced that vision in its design. This is central to the whole island, it’s central to Abu Dhabi’s way of doing things, and it’s central to the technology progressing”
Keeping connections The Lu’luat Al Raha site will link up with other islands and the mainland through a system of bridges.
Peak operations There will be up to 800 workers on site once peak operations are reached between November and December 2015.
30 November 2015
Site visit
site safety The project team has site safety officers touring the construction site three to four times a day.
vehicles from there. We closely monitor our logistics plan.” With an access bridge being built across the creek, coordinating the movement of vehicles, equipment and materials to and from the site will become a lot easier. Work on the bridge is nearing completion, with a finish scheduled for May 2016, the trio say. In the meantime, work on Phase One continues apace. Alongside Mouchel’s team of 12 engineers, there are between 300 and 350 workers on-site, from both contractor and subcontractor. By the time peak operations are reached in November/December
this year, there will be as many as 800 workers on the island, Ali says. This is in addition to the 57 staff – engineers, safety officers, foremen, etc –on Trojan’s team. Having so many people on the island poses an interesting health and safety challenge for the team, and part of Mouchel’s construction supervision remit is ensuring that HSE standards are adhered to. Ali and his on-site team have a fairly complex task on their hands. “Mouchel has its own policy for HSE, which is SHEQ – Safety, Health, Environment and Quality. We use it across the UK, over here and in Saudi Arabia. It’s a tried and tested plan. We have
IsLAnDs On stReAM As part of the sustainability targets for the Lu’luat Al Raha project, Mouchel has engaged a subcontractor called STREAM to develop an automated waste collection system, as Leighton Greenland explains. “We have an automated waste collection system that is a vacuum system that goes to one compaction site, where the waste will be compacted and taken away.” Rather than having the traditional open bins or waste collection bins outside apartment blocks, the STREAM system uses a chute where everything goes down and is vacuum-driven to a collection site, where it is compacted and readied for collection in bulk. “That will be in operation when the residential developments are here. Residents will have a waste disposal system that’s automatic, and the entire process is automated, which means you won’t have a lot of refuse collection vehicles around the island,” Leighton says. In addition, the process separates recyclable waste and non-recyclable waste, with subcontractors engaged to use the recyclable waste in a safe and environmentally friendly manner. “This is in line with the Abu Dhabi waste management policy for recycling. They’re trying to get recycling at a level where it’s more compatible with the likes of Europe,” says David. “This is a very good way of doing it.”
on-site inspectors who look after health and safety, and we have HSE teams,” says David. “At any time, when we find something that’s not quite correct, we talk to the contractor’s health and safety team, we talk to their management, and it’s brought to the attention of the likes of ICT during the weekly meetings. “We also have a monthly SHEQ committee meeting that looks after all our offices and sites in the Middle East. We share knowledge of things we have found on-site, which are then shared with other sites so that we can develop a new plan, as we can now see things that may happen in the future [on other Mouchel construction sites].” Leighton adds that the on-site inspectors provide feedback on a project’s HSE issues to the Mouchel offices, and it is then distributed to the entire senior management team. The information provided is then disseminated back to the project teams, with suggestions for improvements if necessary. “I have one safety engineer, and for the contractor, they have the complete safety team, including a safety manager and three safety engineers. On each area [of the site], they’ve distributed their people, and on a daily basis – three or four times a day – our safety engineer is available on-site to look at safety procedures. These include safety tool talks and safety inductions around the staff. It is part of their usual procedure,” outlines Ali. These different levels of HSE are particularly pertinent due to the site being an island. Not only is excessive humidity a major concern, the team also has to be aware of construction works taking place around the promenade of the island. “That’s a major challenge. They have to make sure there’s the proper protection and November 2015 31
Site visit
that all the workers have their hazard belts, and that the proper barricades are all around the promenade, wherever people are working,” Ali says. David adds that because they’re working in a primarily sand-based work environment, care has to be taken around deep excavation sites to ensure that there is proper shoring and earthworks benching in place and that the contractor is working safely in conditions that do not lead to any ground disturbance that could potentially cause harm to the workers. However, these are far from the only challenges the construction has to overcome. As part of the utilities infrastructure currently being laid out, the Mouchel team has to ensure that the correct levels are planned for and laid out, so that everything works smoothly when complete. “You have the services such as sewage and storm water drainage. They’re gravity-mains, so you’ve got to make sure that you have the correct gradients on the networks for it to function efficiently. Getting the correct levels means that we have to grade the reclaimed land with imported material,” says David. In addition, the team has to ensure that all the infrastructure
“We’re undertaking Phase One of the construction at the moment, and our role is to provide all the infrastructure design. We’ve also been involved in the land reclamation”
and utilities on the island link up with those on the mainland. In order to do so, Ali explains that they had to take great care to ensure they met all requirements from authorities. “The main challenge was with the main potable water line and the sewage line. All the existing connections are there, but they’re all going through the bridge. So, for the bridge, all the authorities have certain requirements when you’re passing rising mains through a bridge. All our utilities connect with existing utilities, which are [across the bridge]. That is a major challenge; everything needs to match the exact criteria.” Another major factor in the development of the island is sustainability. With Abu Dhabi’s Vision 2030 taking shape across the emirate, ICT and the Mouchel team are determined to ensure that the Lu’Luat Al Raha project lives up to the ideals espoused by the government. “There’s a Pearl rating for this site as well, and we’re pushing towards that,” says David. “[The types of ] construction materials used, the reuse of materials, it’s all prominent on the site. We need to meet these Key Performance Indicators. It’s difficult, because not everybody is familiar with
Estidama. It’s still a maturing objective, but we’re certainly pushing for this within the site, and it’s certainly something that the client is looking at as well.” A large part of the coordination and collaboration between all stakeholders on the project entails meeting these sustainability targets. By working together and keeping everyone informed, they ensure that the right materials are used and that the design and installation guidelines are followed to the letter, so that there is no need to go back and fix things, wasting materials, resources and manpower. “ICT have a vision of an extremely high-quality project, and Mouchel has embraced that vision in its design. This is central to the whole island, it’s central to Abu Dhabi’s way of doing things, and it’s central to the technology progressing, with really good building standards,” says David. “It’s fortunate that we have a client who has the foresight to look at it [like this]. It’s a good vision and it’s progressing the way Abu Dhabi will be seen from elsewhere, within the GCC and further afield. I think it’s a project that, once it’s completed, will look absolutely stunning,” he concludes. Embracing iCT’s vision Developer ICT aims to have the Lu’luat Al Raha project live up to the ideals of Vision 2030.
32 November 2015
Future construction
Cons 34 November 2015
Future construction
Dr Ian Pearson, renowned futurologist, on the radical changes we can expect in the construction industry by the year 2045
2045: A truCtion odyssey November 2015 35
Future construction
B
y 2045, planet Earth will be home to 30km-high skyscrapers complete with spaceports, built by construction workers wearing super-strength exoskeletons, with driverless vehicles zooming along smart highways below. These are the predictions of renowned futurologist Dr Ian Pearson in a report commissioned by equipmenthire specialist Hewden, which sets out a vision of future cities in the sky. 2045: Constructing the Future was launched on October 21, 2015 to coincide with the date Marty McFly and Dr Emmett Brown time-travelled to in hit 1980s sci-fi classic Back to the Future II. It looks at what the UK might look like in another 30 years, covering areas such as building design, transport, materials, technology and health and safety. With the GCC, and the UAE in particular, looking set to be the hub of super-tall, futuristic construction in the near future, Big Project ME thought it would be interesting to see what trends we can expect to see in the construction industry, leading up to 2045. “While we’re not all flying around in cars, there are a number of things, such as the use of drones, video conferencing and some of the physical structures, that were portrayed very accurately in the movie,” says Pearson in the report. “The acceleration of new technology has and will continue to be the biggest driver of change. As we 36 November 2015
Future Builders Advancements in technology and artificial intelligence will result in huge changes to the construction industry by the year 2045.
look forward another 30 years, we can expect to see a very different, but exciting world.” With significant strides already being made in artificial intelligence, Dr Pearson predicts that by 2045, buildings might have “an AI personality that runs them, collects and processes all the sensor data and maintains all the various infrastructure systems and human comfort systems, as well as coordinating building robots”. “Their embedded IT and sensor networks will act much like a human nervous system. Building residents will take it for granted that they can just talk and the building will hear them and adjust their environment accordingly. That will reduce the need for switches and manual control systems, though there will still be a master override that can be accessed in the event of failure.”
“The acceleration of new technology has and will continue to be the biggest driver of change. As we look forward another 30 years, we can expect to see a very different, but exciting world”
Experts predict that building materials will generally be lighter and stronger than they are now, with even steel strengthened by the addition of these materials, or replaced entirely as a building skeleton. “Some more exotic shapechanging materials will help buildings adapt faster and better to weather forces. There will also be more use of materials such as translucent concrete, plastics and shape-changing polymers. Light-emitting fillers and paints [will also be used]. Carbon foams will even offer the capacity to make tethered floating structures.” Pearson points out that these materials will help humanity build incredibly tall structures, as high as 30km. Augmented reality will also play a major role in design and aesthetics. “It’s likely that many buildings will actually be very plain, instead using AR to create visually appealing environments for those that visit.”
Super-Materials Experts predict that building materials will generally be lighter and stronger than they are now. Carbon nanotubes and graphene may be in extensive use by 2045, to strengthen building materials, reinforce concrete and enable stronger, lighter and stiffer tension members, fasteners and cables. An additional upshot is that architects will be able to design more intricate and interesting structures. A material like graphene is so transparent that it will even be used to strengthen glass, Pearson predicts. We could even see carbon foam used as a superlight building material, with graphene foams made lighter than air to enable floating structures. Since graphene can carry enormous amounts of electric current and therefore generate
Future construction
strong magnetic fields, it may be possible to generate and contain plasma in almost transparent cavities. By layering these, it may be possible to create plasma-ply that could replace windows, or even be used for decoration for the exterior of buildings. Depending on advancements in nanotechnology by 2045, it could be feasible to spray on special coatings that add solar power generation to external surfaces, turning facades of all types into energy-generating solar panels. Tools and techniques already applicable for conventional surface sealants could comfortably accommodate
such advances, with only wiring needing to be added to collect power from cells.
3D Printing A number of companies are already exploring 3D printing in the construction space, as it allows rapid construction of basic structures by machine, with elaborate detailing as well. It is likely to progress quickly, as new kinds of concrete and other printable building materials are being researched and developed. 3D printing can also add fine detail to structures erected conventionally. Pearson says this could be particularly useful
for customising and modifying buildings according to the companies inhabiting them. The technology also works well with robotic assembly and factory-made prefabricated units, for rapid bespoke construction. Prefabricated units could even be produced with features that assist the strong and precise attachment of 3D-printed components, so that a range of finishing options can be quickly, and cheaply, produced on-site.
Half-man, Half-machine With research into exoskeletons driven by military research, it is expected that we will see super-super-talls Dr Ian Pearson predicts that skyscrapers could be as high as 30km tall in his report for Hewden.
a natural evolution into the construction industry by 2045. Various ‘super-attachments’ will convert construction workers into ‘transformers’ that are half-man, half-machine. These attachments will allow workers to carry heavy loads or wear special equipment that will hold heavy loads in place while they continue to work in an area. In addition, the exoskeletons could be reinforced by hydraulics or electro mechanics, which would allow them to carry even higher loads of equipment or materials. Augmented reality could also be used to allow builders to see exactly where things should go, and what the final state is meant to look like. Heavy machinery is also being developed to work with a variety of attachments, with some of those being sophisticated robotic equipment using heavy machines to put them into place to do their job. Pearson says that another new class of building equipment would be reconfigurable hydraulic supports that change to any shape needed and hold poured concrete until it sets, before moving on to the next piece.
Building design Pearson predicts that by 2045, rapidly changing economics and demographics will necessitate a need for low-cost functional housing for lowand medium-income workers. With environmental demands restricting available space, the cost of land will be very high in the future, and as a result residential accommodation will be built upwards, often to several hundreds of metres. Pearson says that by midcentury there will be buildings that are a few kilometres tall, surpassing the likes of the Kingdom Tower and November 2015 37
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Burj Khalifa. These literal skyscrapers will make good use of new carbon composites. “A few may be so large that their capacity enables them to function as small cities in their own right, with all the usual city functions mixed within the same building. Some floors could have specific functions, such as sport or work or residential, while others might be mixed. “There will be extreme requirements, such as vertical travel, air conditioning and so on, due to the sheer scale. Obviously, many rooms will not have outside-facing windows, so augmented reality virtual windows will be common, simple displays added to any wall that give the appearance and functionality of a window, with the added advantage that it can seemingly look out onto anywhere and show any location. With the height extremes predicted, these super-super-tall buildings are likely to be home to
Material change Advancements in the development of new materials could redefine how structures are built.
38 November 2015
“Some more exotic shapechanging materials will help buildings adapt faster and better to weather forces. There will also be more use of materials such as translucent concrete, plastics and shape-changing polymers”
spaceports, thanks to the boom in the private space industry. As there is a huge cost advantage in going to space from as high a height as possible, we’re very likely to see spaceports that are over 10km high, and even as much as 30km above the ground, using carbon-based materials. “Later in the century, far taller structures will be possible,” Pearson adds.
Nanotechnology Nanotechnology enthusiasts have long talked about the possibility of ‘growing’ buildings from seed. The seed in this case is a box of nanites that replicate over and over again to assemble a building from raw material. While this may be too far-fetched an idea for 2045, the idea behind it bears some weight, says Pearson.
Augmented Reality Augmented reality’s main impact on buildings will be that architects and designers will be
able to customise the appearance of a building in the AR domain, almost independently of the physical reality of the structure. As mentioned previously, windows could be replaced by displays, while walls could be plain, with the finish applied through augmented reality. During the construction phase, augmented reality could be used to ensure greater efficiency and planning, with construction workers able to use the technology to work faster and make less mistakes.
Improving Safety Construction in 2045 will still need people, even with all the advances in place. The same technology being explored for self-driving cars will be used in construction machinery. This makes heavy machinery safer, with the chances of impacts and accidents lessened thanks to the AI observing all directions, anticipating movements and responding accordingly, much quicker than a human would. Even if equipment is controlled or operated by a human, the AI, coupled with a 360-degree monitoring system, will enable automatic safety precautions to be engaged. Robots will also have a very positive impact on health and safety, as they’ll be able to take over many jobs that might be too dangerous, such as those at height, in water or with danger of explosion or collapse, as well as those in hard-to-reach places. They will also work alongside humans to carry loads that are too heavy or dangerous for them. Others will have specific H&S roles, such as cleaning up construction sites, keeping work areas clear of debris and monitoring structures or machinery for warning signs of danger.
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Sustainability
Big Project ME finds out how Majid Al Futtaim is leading the way when it comes to sustainability among the region’s top developers
LEADING THE CHANGE
40 November 2015
Sustainability
November 2015 41
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ast month, Majid Al Futtaim, a retail and entertainment developer headquartered in Dubai, announced that it had been awarded a Green Star rating by the Global Real Estate Sustainability Benchmark (GRESB) for the second year in a row. The developer was recognised for its work in implementing international best practices throughout its real estate portfolio. In 2015, the company increased its sustainability performance to 67%, up from 56% in 2013, while also outperforming the global average performance rate by 12%. The developer also achieved a score of 100% from GRESB for the management of its sustainability practices and a 95% mark for the understanding of risks and opportunities to the Majid Al Futtaim business. The GRESB survey measures the sustainability performance of real estate portfolios globally. For 2015, the survey compared 688 companies on a number of measures, including energy reduction performance, building certifications, stakeholder engagement, and quality of sustainability policies, new constructions and major renovations. Coming during Dubai Chamber Sustainability Week 2015, the announcement also serves as an indicator of the major role the private sector can play to help Dubai achieve its stated goal of becoming one of the world’s most sustainable cities by 2020. In order to fully understand how the developer is approaching 42 November 2015
High marks Lorem ipsum dolor The retail and entertainment Natur ad utachieved fugita venest vendae developer a 100% score ditas dolora dem quia doluptam from GRESB for the management aofvendant molorenis eius its sustainability practices.
and implementing sustainability, Big Project ME spoke to Ibrahim Al-Zu’bi, head of Sustainability at Majid Al Futtaim and a senior advisor for economy and sustainability at Dubai Land Department, Government of Dubai. Speaking at an exclusive media briefing, Al-Zu’bi explains that his role is to oversee the sustainability strategy for the company, while also raising the company’s sustainability profile in the Middle East. He leads Dubai’s Sustainable Real Estate Initiative, and is a member of the board for the Emirates Green Building Council. He is also a member of the advisory board of Dubai Real Estate Institute. However, his core focus remains turning Majid Al Futtaim into one of the most effective and profitable sustainable companies in the region, as he explains. “When we first started talking about sustainability, we spoke to the staff [of Majid Al Futtaim] first. We needed to know how it can be embedded. We discovered that our staff is fully aware of the impact of a building [on the environment]. Everyone knows that buildings consume energy, consume water and that they produce a lot of waste. “And when we spoke to the board and the senior management
“Ethical consumerism is growing and best practices are growing. Governments and the private sector have started working together, especially in this part of the world, to make growth and development sustainable and better for existing generations, and generations to come”
about why we should have sustainability, believe it or not, they all came up with five main reasons. The first point that came up was ‘We’re a business’, and I liked that. I don’t just want people to look at us as tree-huggers or that we’re green-washing or whatever. “First of all, it’s about costsaving, so it makes sense [to embrace sustainability]. You consume energy, you implement energy efficiency and savings, and you’ll save on your utility bills. And it’s good for the planet as well, as you’ve reduced your carbon impact. It just makes sense.” The second point raised by the board was that when you have a green asset, it not only increases the value of the asset, but also helps long-term profitability. The third point raised is particularly pertinent in the modern world. “We operate in countries where there’s a young population: Middle East and North Africa. Almost 60% of the population is under the age of 30, and you see young people – globally, not just here – making a difference and being more aware. “Ethical consumerism is growing and best practices are growing. Governments and the private sector have started working together, especially in this part of
Sustainability
the world, to make growth and development sustainable and better for existing generations, and generations to come.” The fourth point raised was brand reputation. As a developer with a strong legacy in the market, Al-Zu’bi insists that Majid Al Futtaim continue to be a leader in the field, introducing new concepts and methodologies and putting sustainability at front and centre of the brand. “Finally, the most important thing is corporate citizenship. We’re part of the community, we’re not separate. We look at our customers and employees as part of our corporate citizenship. But having said that, this region – the Middle East and North Africa – is something of a unique region. This can be challenging, but at the same time, good for opportunities. “We live in a semi-arid region. We have water challenges, we have energy supply challenges and at the same time we have employment challenges, which don’t help the stability of the region. So when we introduced our
Ibrahim Al-Zu’bi Majid Al Futtaim’s head of sustainability is on a mission to show how sustainability can be profitable.
sustainability policy, we took this into consideration – the economic and community development. It wasn’t only about environment, it was also about improving the communities we’re working in.” To this end, Majid Al Futtaim has taken it upon itself to be a regional leader in sustainability and a reference point for the region’s developers. “As much as we’d like to make
the world a better place, we decided to start with our world,” Al-Zu’bi quips. “The first priority area was to pioneer standards [in the region] by creating internal policies for the business that we do. A great example of this is the Green Building Policy. Anything we build – by policy, by internal law within Majid Al Futtaim – must be green. Which means that it must be LEED Green-certified – either LEED Gold or BREEAM: Excellent or the equivalent. “It means investing and supporting local green building standards, and being the first to implement them. We are board members of Emirates Green Building Council and we’re board members of the Lebanese Green Building Council. We would like to share our knowledge within all of the different green building platforms.” As owners of the region’s first LEED Gold mall in Mirdiff City Centre, which is also the first LEED EBOM-certified mall, Majid Al Futtaim is certainly going about things the right Wider focus Majid Al Futtaim is also involved in the Lebanese Green Building Council as a board member.
way. Eight of its malls are LEED Green-certified, while the Kempinski hotel attached to Mall of the Emirates is LEED EBOMcertified. Majid Al Futtaim Tower 2 is rated LEED EBOM Gold. This commitment to sustainability isn’t just limited to the construction and maintenance of the buildings developed. Al-Zu’bi explains that the other part of the sustainability policy extends to pre-acquisition, an equally vital part of the process. “This doesn’t start when we begin building. It starts way before that. When we decide to develop a project, we have a sustainability checklist. We try to gauge the impact of the project, we do the due diligence for any new development that we do and assess whether it has an impact on the environment around it. We do it through our stakeholder engagement charter, which means we start a dialogue with the different stakeholders in any catchment area that we do business in.” The third of Majid Al Futtaim’s policies is perhaps the one that Al-Zu’bi is most proud of. Centred on labour conditions, he explains that there is a labour supply policy in place that runs throughout the entire supply chain for their developments. “For all our contracts, we have minimum requirements when it comes to health and safety and labour conditions. Our teams audit camps twice a year, and if there are any violations, then the supplier has one month to implement improvements. If not, then they lose the contract. I’m very proud to say that we change people’s lives with this policy. “I guarantee you, with the happiness index when it comes to the supply chain, they’re 100% with us. We make sure of that because it’s part of our contract and part of our policies,” he concludes. November 2015 43
Technology focus
energy savings Using LED lights can help save billions of dirhams in energy usage.
Powering the future
Jerusha Sequeira sits down with Khalid Nashashibi, general manager at Lite-Tech Industries, and Venkat Raman, general manager MENA at UK-based manufacturer Luceco, to find out why the construction industry should switch to LED
46 November 2015
Why should developers consider installing LED lighting on projects, when it’s often much more expensive than other alternatives? KN: LED lighting saves on power
consumption, which means saving on power generation. Power generation is mostly subsidised by governments. Lighting in general contributes to about 25% of your utility bill, so if you save 50-60% of this amount, we’re talking about saving billions of dollars at the government level. How much LED saves on power consumption varies depending on whether you’re using incandescent, halogen, metal halide, neon or CFL bulbs. If we’re talking about incandescent, halogen or metal halide, you’re saving about 85% of the consumption. If you’re talking
about neon or CFL, then you’re saving about 50%. Apart from reducing the power consumption of lighting itself, you also save the cost of replacing light bulbs, because with LED, you’re talking about a minimum lifespan of three-ten years, depending on usage. Another advantage is that conventional lighting using halogen or metal halide generates a lot of heat. This increases the cooling requirements of the surroundings, thereby driving up air-conditioning usage. With LED lighting, this doesn’t happen, so you are saving electricity on air-conditioning usage as well. What are the advantages of LED from a facilities management and maintenance perspective? VR: The biggest advantage
Technology focus
Lack of knowledge As many as 95% of people don’t know how to buy LED lighting, says Khalid Nashashibi.
for LEDs in general versus conventional lighting is in terms of working hours. LEDs can last up to 50,000 burning hours, so the number one benefit is in lamp replacement. You will not have to replace lamps as frequently as you would when using conventional lighting. This helps you save on maintenance and labour costs to replace lights, as in big commercial buildings, lights are generally replaced all in one go. The true cost of conventional lighting is the maintenance over its lifetime, replacement labour, lamp outlay and disposal costs. With LED, these costs don’t exist, so we call it a ‘fit-and-forget’ solution. Where do you see opportunities for growth in the market for LED?
VR: At the moment, the
frontrunners in the industry are the hospitality sector. They are the ones picking up LED the fastest. This is because in the hospitality segment, lights are on pretty much 24x7, so they need the power consumption to be less. Commercial buildings are also adapting to LED now because they have the lights burning at least for 18 hours a day, as common areas are functional throughout. Another opportunity we’re seeing is in catering to refurbishment projects. Eight to nine out of every ten new projects are seeing LED lighting installed. But a major chunk of the market is in refurbishment. We have recently undertaken a project for Jumbo Engineering,
where we refurbished all their existing offices with LED lights, and we will be doing the Jumbo Electronics showrooms in the next phase. What considerations should you bear in mind when buying LED lighting? KN: Not knowing how to buy
LED lights is the main problem most customers face, and you find that 95% of people don’t know how to buy LED lighting and how to compare between different options. It’s important to understand how LED lighting works. Several items make up an LED lamp. You have the chip itself, the heat sink where you dissipate the heat coming from the chip, the driver, diffuser and, sometimes, you
have reflectors. You also have the surroundings. All these factors play a role in the result you get out of an LED fixture. Firstly, you have to consider the reliability of the source that you’re buying the chip from. The second factor is the driver. If the driver is made from bad components, it will not last long. It will heat up and get burnt, and it cannot work for long hours continuously, which will affect the lighting. If there is no protection for the driver, it will burn the LED. The third factor is the heat sink. If the heat dissipated from the chip cannot be dispatched through the heat sink, which is mostly aluminium, then it will heat up and stop working. Number four, the diffuser. A
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diffuser, depending on the type, can make a difference of up to 30% on the output light you’re getting. Therefore, the quality of the diffuser is very important, because you need to have the maximum light coming out. If you don’t understand the role of each of these four components and ensure the quality you’re buying, you are not putting your money in the right place. Some people buy LEDs, and after a short time they throw them away and go buy another one. Is LED lighting just as effective in outdoor applications? VR: For exterior lighting, LED
is not up to the mark when you compare with indoor applications, frankly speaking. The main drawback for LEDs is heat. Heat and LED lights don’t go well together. For outdoor applications, the ambient temperature requirements in the Middle East are a minimum of 50 degrees. Certain applications, such as sports lighting in stadiums, also need very high power. I can see not up to the mark For exterior lighting, LED does not perform as well as it does for interior usage.
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some of our competitors are coming up with products for this. However, at Luceco we don’t want to be in a hurry. I personally don’t recommend that LED be used for sports lighting applications, and also street lighting to an extent. KN: It is effective, but it’s not easy because of the heat. You need to have more testing and experiments before you release your product to the market. Heat dissipation is very important. When dealing with chips of reputable brands, you don’t have to worry about it, but you need to have well-designed products for outdoor use. Is the outlook bright for LED lighting in the Middle East? Or will the initial cost of investment still be a deterrent? KN: The market is certainly
moving, but not as fast as in Europe. In Europe, in three years, LED’s share moved from 10% to 75% of the lighting market, whereas here, in three years, it moved from 5% up to 25%. Luckily enough, in the UAE particularly, the
government itself is driving the change and encouraging people to go for LED. The main reasons behind slow adoption are less education, less awareness and too much money. The industry is not as concerned on the whole about long-term savings. If you have education and awareness, you will know that the initial price of LED lights may be four or five times more compared to conventional, but at the same time, you will spend more down the line to replace CFL lights. Despite this, it seems to me in the GCC and even in the poorer countries of the Middle East like Egypt or Jordan, people will eventually move to LED. Governments now are aware of the huge cost of generating electricity, and it makes a big difference for them. It’s a waste of resources, which could be invested in education, health and so on. Governments will now start to push LED, and start implementing LED lighting in their government buildings, and industries will eventually follow suit.
CasE stuDy: HONEyWELL INstaLLs LED LIgHtINg at DubaI INtERNatIONaL aIRpORt American technology giant Honeywell recently undertook a large-scale refurbishment project at Dubai International Airport’s north runway, transforming its airfield ground lighting to a fully-fledged LED lighting system across the runways and taxiways. The project, considered one of the world’s first complete LED airfield lighting systems, saw Honeywell install more than 8,200 LED lights and 1,300km of cabling in just 80 days. “When it comes to airports, LED-based solutions have become prevalent because of their potential to aid visibility for pilots, which significantly improves safety,” says Raghu Seelamonthula, global solutions leader – Airport Systems at Honeywell. Another key advantage in choosing LED over incandescent, of course, is in terms of energy saving. “For instance, 100 taxiway lights on a 20,000 series circuit with 125 secondary cables can see energy consumption reduced by up to 50% when compared to incandescent lighting,” Seelamonthula says.
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23-26th November DWTC
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Technology focus
Tracking your kiT
Jerusha Sequeira investigates how RFID technology can help construction firms manage assets on-site more efficiently
As many in the construction industry can probably attest, keeping track of building materials, equipment and work tools on-site can come with its fair share of challenges. Radiofrequency identification (RFID) technology, however, can offer a solution to this problem, enabling contractors and site managers to better track and manage their assets, many of which are considerably high-value items.
Canada-based Intelliwave Technologies saw an opportunity in the market when major engineering, procuring and construction (EPC) firms often faced issues keeping track of materials required to build facilities they were working on. “If you don’t have your materials, you can’t build your Time saved on-site A case study has shown that sites with RFID spend as little as four minutes looking for equipment as opposed to 36 minutes for sites without the technology.
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facility according to the schedule,” says Dale Beard, CEO and cofounder of the Alberta-based firm, which specialises in providing RFID and GPS materials tracking solutions for large industrial construction projects. Delays cost time and money, and therefore incentivise firms to try to find an alternative that helps them manage assets more efficiently. Enter SiteSense, a solution offered by the firm that combines sensor tags (barcode, RFID and GPS), readers, mobile devices and web-based software and support services. SiteSense provides construction firms visibility of their assets, like materials or equipment, from suppliers to project-site warehouse and finally into installation.
Technology focus
Typically, Intelliwave Technologies works with suppliers, vendors or fabricators and attaches sensors to the equipment or the fabricated goods, Beard says. “As soon as it becomes visible on our system, we start tracking it and tracing it. When it gets to the project site, we usually have automated infrastructure to track materials as they move from one location to another.” Materials tracked could be anything from pipe spools to structural steel. “In some cases, we track consumables or some of the bulk items as well, depending on what they are.” As far as equipment tracking is concerned, Beard says there are normally two categories of machinery: manned and non-
manned. Non-manned typically refers to equipment like light stands, generators and welders, while manned equipment includes cranes, trucks and so on. Understandably, nonmanned and smaller equipment is much harder to keep track of, and is usually tracked with RFID or in some cases GPS, he explains. Manned equipment, on the other hand, is tracked more for maintenance or safety purposes, and not generally for improving efficiency and productivity on-site. US-based Trimble also offers a solution to enable construction firms to quickly and easily track and locate equipment in real time. The RFID tracking solution was introduced about 12-18 months ago and is yet to come
to the Middle East, says Andrew Caldwell, regional manager, Trimble Civil Engineering and Construction Division – UK, Ireland, Africa and Middle East. The firm, however, plans to bring it to the region over the next few months, likely by the first quarter of next year. It goes without saying that the most obvious benefit for contractors and equipment managers is inventory management, notes John Taylor, chief operating officer at Sitech Gulf – the distributor for Trimble machine control systems for heavy equipment, operating in all of the GCC except Saudi Arabia. “Quite often, if you talk to a plant manager, he’ll think he has three excavator buckets sitting in his yard. But when he goes
out and checks, those buckets won’t be there yet, and he’ll have no idea where they are.” This issue can be resolved by installing sensors on the machinery or tools to be tracked, as well as on the gate of the site, so that a plant owner can locate pieces of equipment when required, and also know when they enter or leave the yard, Taylor explains. In case a piece of equipment is misplaced, a site manager can walk around with a handheld reader that can help him locate it. “It’s a good control method for lost assets.” Another key advantage of using RFID solutions is in maintaining assets, Caldwell notes. Trimble offers inspection software that works in conjunction with RFID, and can be installed on a
inventory management A simple RFID tag allows site managers to track materials as diverse as pipe spools and structural steel.
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tablet, iPhone or Android phone and given to a maintenance inspection team. “You can have pre-designed inspection checks on the device, so that when an engineer goes out to do a test on a multi-grader or a bulldozer, he has a readymade checklist that he goes through and he ticks it off.” The maintenance team can visually inspect assets, take photographs to document issues, store inspection data and create reports with the software. This helps ensure equipment and maintenance managers have current information for health and safety standards, auditing purposes and scheduling preventative maintenance. The inspection data can be stored in a centralised database and accessed across multiple sites, reducing reliance on paperwork. Although RFID has been around for a long time, its use in construction applications has
“Quite often, if you talk to a plant manager, he’ll think he has three excavator buckets. But when he goes out and checks, those buckets won’t be there yet, and he’ll have no idea where they are”
keeping track of equipment Installing RFID or GPS trackers on large assets lets site managers know where equipment is, anywhere on a construction site.
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RFID: How to go About It If a contractor does decide to deploy asset tracking solutions on a project, Sitech would first have a discussion with his team to determine issues which frequently recur, such as whether equipment is frequently misplaced, and if so, what kind of equipment. For instance, a firm that uses large excavators for port work may not have problems with their big machines but may have a hard time keeping track of their excavator buckets. “In this case, they can put an RFID tag on each one of those buckets. They can create geo-fences around their project and the yard where the equipment is stored, and then they’ll be able to track these assets wherever they’re actually at.” While Sitech will offer support and recommendations on what kind of asset tracking solution would serve the customer’s needs best, a customer is free to set it up the way it would like. “We would recommend assigning a name to each asset. So you can scroll through a list of assets that you’re looking for, select it, and then it will tell you the location of it, or help you find it if you’re in the yard itself,” he explains to Big Project ME.
been relatively recent. But even with the potential benefits it offers, there is still a long way to go in terms of educating the market, Caldwell and Taylor note. “There will be a certain amount of education that’s required to actually justify the investment, but it’s a very simple calculation,” Caldwell says. “Most organisations have experienced first-hand how much kit goes astray. They need it urgently for another project and they end up not knowing where to find it, so they have to go purchase another one. Therefore, it’s really a cost-saving exercise in inventory management.” Considering that the construction industry in the Middle East is usually slow to catch on to technology in general, Taylor anticipates that it will take a while for the market to warm up to RFID. There is also the issue of up-front cost versus long-term savings, where customers only think about the initial investment and don’t consider the time and money they could save. “If you install either an RFID or GPS tracker on some of these large assets, you know exactly where it is at any time. If you lost a gen-set because it’s sitting on a project you did two years ago and nobody went and picked it up, you have no idea where it is.” For a concrete example of how time can be saved, Beard recounts a case study where such savings were calculated. “It took 36 minutes on average to find each piece that was not tracked with RFID. The ones that were tracked with RFID were about four minutes per piece.” Factoring in the thousands of tools or pieces of equipment that may be required on a job-site, that kind of time-saving certainly makes for a persuasive case.
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Event preview
In search of sustaInable cItIes
Sustainability will be in the spotlight at this year’s edition of The Big 5 as an increasing number of companies look to spread the message to the thousands attending the show at the Dubai World Trade Centre The Big 5 is preparing for the biggest year in its 36-year history. More than 85,000 participants from 147 countries are expected to attend The Big 5 2015, which will feature 75 free CPD-certified seminars and workshops and 30 live product demonstrations.
Having broken all attendance records in 2014, more than 63% of attendees will be from the GCC. However, the opportunities being created in the region’s booming construction industries have also attracted the gaze of companies in Europe, with a strong presence already confirmed from Italy and 75 exhibitors from the UK. Among them will be fire curtain manufacturer Coopers Fire, which has worked on projects like the iconic Shard and Buckingham Palace in London, and Sydney Opera House. Leading HVAC manufacturer Dunham Bush will also be represented, and will launch a brand-new centrifugal chiller system, according to Qais Saad, GM of the company’s operations in the Middle East. As sustainability assumes a prominent position on the agenda of the construction industry, another company looking to get in on the market for cooling will be Naser Al Sayer. Meanwhile, keeping people and things cool in one of the hottest places on Earth is not the only climate concern influencing the
54 November 2015
development of green building products, as BIRCO Middle East GM Johan Groult explains. “Due to climate change, rainfall is becoming more frequent around the world. While rain is less frequent in the Middle East at the moment, there is a need to ensure that infrastructure, roads and open spaces are equipped with the capacity to channel large water reservoirs, in anticipation of further changes in our climate.” BIRCO was the first German producer of a concrete channel covered with mesh grating, in 1965, and took its first order for its contemporary drainage systems in the Middle East region in 2013. Buoyed by the huge investment being injected into transforming regional infrastructure, the company has grown its presence and will be among over 3,000 exhibitors at The Big 5, each seeking a slice of an industry that is expected to award $194 billion in building contracts in 2015. The positive forecast for the Middle East construction industry comes despite the ongoing uncertainty surrounding global oil prices. In line with the demand being created for housing, healthcare and education projects by one of the world’s fastest growing and youngest populations, this trend is creating enormous opportunities for construction materials. The fast
pace with which the industry is now moving is also creating a need for regulations that are clear, consistent and understood. In this context, The Big 5 will continue its association with some of the leading experts in construction, offering unrivalled insights into doing business in the UAE and Dubai Municipality’s green building regulations, among other topics. With total registered and certified LEED space in the country currently over 47 million gross sqm, there will also be a session on compliance and documentation relevant to updated energy modelling strategies for LEED v4. Smart cities
Another popular workshop at The Big 5 will focus on smart cities and the Internet of Things; the key message will be that connecting everyday items like bridges, traffic signals and oil and gas equipment to the internet is key to achieving sustainability in the region, but that smart cities are not about technology. This session will be led by Alaa Dalghan, regional director at B&B Smartworkx. “Smart cities are never about technology,” he says. “We must remember that we are not promoting technology for the sake of it. The essence of smart cities is two-fold. It is about using resources more efficiently and
For the full agenda and complete information about the free workshops and industry speakers taking part at The Big 5, please visit: www.thebig5.ae/freeeducation/certifiedworkshops/agenda
November 2015 55
Event preview
biggest ever This year’s edition of The Big 5 is expected to be the biggest on record, with 85,000 participants from 147 countries.
about being environmentally friendly, and most importantly, it is about creating services that enhance lifestyles.” The Internet of Things is essentially when places such as manufacturing floors, energy grids, healthcare facilities and transportation networks are connected to the web, and though it started out as a marketing buzzword, Dalghan says it has become a far more concrete initiative, capable of solving complex everyday challenges. “The Internet of Things extends across many verticals in the technology industry and is shaping up to be the key enabler of smart cities. The biggest challenge in this regard is efficiency. GCC nations are often listed among the top nations in terms of emissions, waste and other environmental impacts. These are real problems that can be reduced by smart cities that link and are driven by the Internet of Things.” However, before this potential can be realised, he says the industry must have a much clearer definition of what the Internet of Things is and the role it can play.
56 November 2015
“We must first define what we mean by the Internet of Things, before we can harness its full potential. This starts with thinking about what is connected to the web at the moment. Your phone, my phone, your iPad, my laptop. When these day-to-day things are connected to the internet, then you can derive bigger value from them. You can present an economic case and then move forward.” Drawing on an example in Ireland, where traffic signals connected to the internet were used to replace timing systems and cut commutes by up to 30%, he says that Dubai is also playing its part in shaping the understanding of smart cities. Skills shortages
The emergence of skills gaps brought about by rapid growth in the construction industry is another important area that will be discussed at The Big 5. Among those scheduled to do so at one of the event’s 75 CPD-certified seminars is Sinan Rasheed, associate senior commissioning manager at KEO International Consultants.
As one of the region’s leading experts on commissioning, he says that independent commissioning authorities are playing a far more significant role in construction in the GCC, as project managers seek to hand projects over on time and on budget. “Total building commissioning is an effective tool for quality assurance, and is being increasingly recognised by our industry partners as an international best practice. However, commission is also a specialised skill that is in short supply in the GCC, and there is therefore a need for more education and training on commissioning and its role in the planning and design phases of major construction projects.” However, while Rashid says commissioning enhances building efficiency and indoor air quality, and has an impact on buildings achieving their sustainability goals, the fact that skills shortages are linked to renewed confidence in construction, growth, rising populations and the revival of projects put on hold is a sign of progress.
These topics and others relevant to the GCC construction industry will be available for visitors to attend and engage in with industry leaders over the course of the four-day event, which opens on 23 November at World Trade Centre. Ashley Roberts, event director dmg, explains that there will also be a new hall called The Big 5 Focus, which will offer more stand space for companies to increase their presence at the region’s biggest construction event. With this in mind, we’ve put together a snapshot of not-tobe-missed CPD workshops and seminars at The Big 5. 1. Updates to Dubai Municipality’s green building regulations 2. GCC construction sector update: Market potential and business development opportunities 3. How to trade in the UAE 4. Life cycle costing: Theory vs practice in the GCC region 5. Introduction to the UN Global Compact Principles: Sustainability and ethicality in real estate and construction.
Event preview
EDuCaTional agEnDa Some of the free-to-attend technical seminars taking place at The Big 5 Monday 23 noveMber 2015 11:30
construction projects
building system
18:00 end of day 1 educatIonal
18:00 technIcal seMInar:
PrograMMe
12:00 technIcal seMInar: Permeation properties, durability and service life of concrete structures, Dr Abu Saleh Mohammod, GM, Pudlo Middle East 12:30 technIcal seMInar: Disputes and claims in EPC and design and build contracts 13:00 technIcal seMInar:
for Precast and Post
tuesday 24 noveMber 2015 11:30
technIcal seMInar: Concretely Light Slabs
12:00 technIcal seMInar:
11:30
12:30 technIcal seMInar:
technIcal seMInar: Fully Bonded Waterproofing
reinforced (GRC) concrete
Systems 12:00 technIcal seMInar:
mechanisms for material
13:00 technIcal seMInar: Quality control of concrete ingredients and ready-
12:30 technIcal seMInar: Exploring the effect of Soil
Construction sector future
the response of structures
outlook: New developments
13:00 technIcal seMInar:
Emirate of Fujairah
thermal-insulating concrete
15:00 Project case studIes: Optimising building envelopes integrity with concrete
13:30 Panel sessIon: Emerging trends and innovations in concrete 14:30 TechnIcal seMInar:
in building design
and opportunities in the region’s construction and infrastructure sectors 14:30 technIcal seMInar:
13:30 Panel sessIon: New trends
Introduction to efficient
in decorative concrete
material reconciliation
14:30 technIcal seMInar:
Determination of the thermal
Competitive advantage
history on concrete structures
and sustainable supply
by thermogravimetric analysis
chain strategy
and infrared spectroscopy
and equipment 13:30 Panel sessIon:
Structure Interaction (SSI) on
management for construction
Rebar (CGR)
What you need to know about guarantee and warranty
Assessing the benefits of
Continuously Galvanised
Trends and priorities 13:00 TechnIcal seMInar:
weather concreting
mix plant inspections in
Exploring the benefits of
Greening of concrete:
rather than polystyrene
and best practice in project
14:30 technIcal seMInar:
Oman Phase I
Improvements in hot
concrete forms)
projects in the GCC
Greens Housing Development
Reinforced lightweight block
and Technologies in Core
13:30 Panel sessIon: Top tips
12:00 Project case study: Al Hail
The latest innovations in
forms in ICF (insulation
High Rise Towers
thursday 26 noveMber 2015
Wednesday 25 noveMber 2015
development of glass-
Innovative Techniques Wall Setting Out for
tension market
Updates on the use and
12:30 technIcal seMInar:
for steel rebar
PC Strand manufacturing
technIcal seMInar: Instarmac
with epoxy powder coating
15:00 Project case study:
Moawia AbdulRahman Sayed, Project Engineer, Al Ain Distribution Company 15:00 Panel sessIon: Introduction to Dubai’s accident investigation
wall systems: Louvre Abu
15:00 Project case study:
Dhabi and ‘Green Building
Post-tensioned concrete
ground engineering
of the Year 2014’
slab of a high-rise building
Paul Groves, Head of
Emergency procedures when
in Saudi Arabia
Tunneling and Ground
using Mobile Elevating Work
16:00 technIcal seMInar: Implementation of multi-
16:00 technIcal seMInar:
Overcoming challenges in
Engineering, Middle East and India, Atkins
geodetic and geotechnical
Exploring applications
sensors in structural
and methods of
health monitoring for
waterproofing, coating
Recycling for reuse: Options
megastructures
and concrete admixtures
for construction and
and overcoming
demolition waste
16:30 Panel sessIon: Assessing new models of
16:30 Panel sessIon: Updates
16:00 technIcal seMInar:
16:30 Panel sessIon:
construction procurement
and advancements in
Assessing the latest
and risk allocation and
concrete repair technologies
advancements in deep
mitigation strategies
and applications
foundation design and
17:30 technIcal seMInar:
17:30 technIcal seMInar:
Critical success factors
Reducing construction
influencing performance of
time with a panelised
construction 17:30 technIcal seMInar: Improving structure durability
policies and procedures 16:00 technIcal seMInar:
platforms at height 16:30 Panel sessIon: New trends and developments in improving plant and asset performance 17:30 technIcal seMInar: Safe use of Mobile Scaffold Towers: Standards versus non-standards 18:00 close of MIddle east concrete and PMv lIve educatIonal PrograMMe
November 2015 57
Do you know? Contemporary design Architecture and design in the UAE incorporates curved and flowing metals.
Kersten Middle East Kersten Middle East is a production facility of the Kersten Group. At our Ras Al Khaimah production plant, we bend tubes and sections in steel, stainless steel and aluminium for the local industry.
Bending know-how is of great value in the Middle East. We are the only company in the region that is fully focused on bending technology. Other construction companies in the Middle East mostly handle fabrication, and just a few of them have bending machines. However, the specific technical know-how, experience, tools and equipment we’ve gathered in 53 years are something only Kersten Middle East offers to the market. We are driven to deliver highquality products according to the
58 November 2015
strict European quality norms and regulations. Our machine park is equipped with a range of highly advanced European bending machines. This enables us to bend small to large tubes, ranging from 48.3mm to 508.0mm, with square or rectangular hollow sections up to 500mm and beams up to 1,000mm. In addition to the two-dimensional bending, we also offer three-dimensional bending of sections and tubes. Kersten Middle East is focused on the regional industry. The three other production facilities of the Kersten Group are located in Europe. Architecture in the Middle East stands out for its contemporary, beautiful designs, which are mostly curved. The quality standards
and expectations are high, and we aim to deliver the best quality in bending technology possible. The Kersten Group has executed bending work for several major architectural landmarks in the Middle East: the Burj Khalifa, the Burj al Arab, Ferrari Theme Park, Qatar Tower, Opus Dubai and many others. Our bent tubes and section are also used for airports – Al Madinah Airport, King Khaled International Airport and Abu Dhabi International Airport are just some examples – while they have also been used for 3D bent (art) structures, bridges, and stadiums. In addition, other industries like industrial equipment, offshore energy, oil & gas, storage tanks and machinery
constructions use our products. Our clients are spread all over the GCC region and India. Our services are mainly used by steel and aluminium fabricators, industrial equipment manufacturers, façade contractors, main contractors, designers and architects. Quality, service and a quick turnaround of materials is key at Kersten. We aim to deliver the best quality bending work with minimal deformation, according to the strict European standards and regulations and within the set time schedules. For more info: Mike Minten, General Manager mminten@kersten.ae T +971(0)50-4874912
The companies making a difference
Khind MacroAir HVLS fans are designed for indoor, outdoor and heavyduty applications. With their elegant design and different sizes, these fans can be used in a variety of environments, from airports, malls, restaurants, offices and schools to clubs, gyms, factories, warehouses and workshops.
MacroAir fans are among the most efficient air movement products on Earth. Using the perfect 6ixBlade design to move large quantities of air with the least energy required, our fans employ high volume and low speed to reduce energy use by 20% or more. One 24’ Air Volution fan can make a 2,043sqm space feel 5° to 15° F cooler, dramatically lowering energy costs and improving
air circulation and comfort. This product is mostly used by specialist contractors for special green projects, since it is energy efficient, energy saving and a smart solution for air ventilation and air movement. MacroAir products have been used on projects around the world, including Valencia Airport, Barcelona and Singapore Metro stations, Hellman Logistics building in Dubai, Mammut Building Systems in Sharjah and JETCO in Jeddah, Saudi Arabia. In terms of energy saving, the products cover large areas and circulate a huge amount of air with only 1Kwh. They also complement AC systems, saving up to 20% energy, while minimising the need for ducting
and reducing AC working hours. As zero-maintenance ventilation systems, the AirVolution-D fans are designed to perform longer than any HVLS fan on the market. Run this fan at any speed, in any environment, and if anything needs repair, MacroAir will fix it or replace it free within 50,000 hours of use – that’s more than 24 years in a typical installation, an industry first. Even with a smaller profile, the D-Drive motor has been specifically designed to perform longer and stronger, moving air 50% more efficiently and generating more wind power at the same speed than the nearest leading competitor. The AirVolution-D line uses
25% less energy, costing just fils a day to operate. Inside AirVolution-D is a smart processor that acts as the brain behind the fan and can automatically adjust to different power sources and allow users to access real-time performance analytics. The processor can also be remotely updated as new software becomes available. The products are rated up to 60°C, 10°C higher than any other HVLS fan, allowing it to go into the hottest climates, even high up in hot rafters. Im comparison to typical 24inch fans, Air Volution-D is 150 pounds lighter. By eliminating the gearbox, this incredible loss of weight reduces load stress and results in a sleeker aesthetic.
Efficient air movers MacroAir fans can lower energy costs and improve air circulation in a more energy efficent and sustainable manner than traditional methods.
November 2015 59
60 November 2015
Event preview
A Look BAck
Big Project ME looks back at last year’s awards ceremony as the build-up towards November 24, 2015 intensifies The 2014 Big Project Middle East Construction and Sustainability Awards of Excellence were held in the Grand Ballroom at the Conrad Hotel on November 18. Close to 400 guests attended the black-tie event, which was hosted by Tom Urquhart, a local media personality.
Spread across 12 categories, the winners were chosen by an independent panel of judges from a shortlist of nominees compiled by the Big Project ME editorial team. Some of the major winners from last year’s event included ALEC as Contractor of the Year and WSP (now WSP | Parsons Brinckerhoff ) as Consultant of the Year, while Aldar Properties’ Yas Mall took home Development of the Year. For 2015, there have been a few significant changes to the structure of the Awards. With Big Project ME’s sister magazine, Middle East Consultant, holding its own awards on December 6, 2015, the decision was made to recalibrate the Big Project ME Awards towards the contractors and subcontractors of the industry, while also focusing on
sustainability and the evolution of the construction industry. The 15 new categories for the Big Project ME Construction and Sustainability Awards of Excellence 2015 are: • Contractor of the Year (General) • Contractor’s Consultant of the Year • Developer of the Year • Health and Safety Leader of the Year • Contractor of the Year (Infrastructure) • Specialist Contractor of the Year • Big Project ME Woman of the Year • Construction CEO of the Year • Young Construction Professional of the Year • Sustainable Government Department of the Year • Sustainable Initiative of the Year • Sustainable Project of the Year • Excellence in BIM Implementation • Excellence in Construction Technology • Project of the Year (Contractor and Subcontractor)
November 2015 61
Event preview
Meet the judges
Robert Jackson Director, Middle East RICS
Mark kelly Director, Middle East Atkins
Andrea Scotti Director BuroHappold Engineering
Professor Mohammed Dulaimi Professor of Project Management and Innovation British University in Dubai
Suhail Arfath Industry manager - Consulting Services, Middle East, Turkey and Africa Autodesk
Theo Souris Chairman, Abu Dhabi CIOB Committee Senior Project Manager, Arcadis
Greg kane Director of Operations, Middle East WSP | Parsons Brinckerhoff
Andrew Body Managing director, Middle East Mouchel Consulting
Gavin Davids Editor Big Project Middle East
62 November 2015
TAKING WASTE MANAGEMENT TO NEW HEIGHTS We are now proudly providing environmental waste management and recycling solutions to the Burj Khalifa - the latest iconic landmark to our expanding portfolio in Dubai
WE ARE THE FUTURE
Unified vision To create a smart city, it is essential for governments and the private sector to work together.
Comment
Philippe Koebel
CITY PLANNERS FACE PRESSING CHALLENGES
Philippe Koebel, senior VP of Emerging Markets at Orange Business Services, on the challenges facing Middle East governments City planners in the Middle East face a pressing challenge. Their rapidly increasing urban populations are straining existing infrastructure even while governments look to attract new businesses and industries to support their economies beyond oil. Governments are increasingly looking to smart cities to provide the answer.
three quarters of the world’s energy production and are responsible for 80% of CO2 emissions. To help manage energy and other resources in these urban environments, governments in the Middle East are looking towards smart city technology.
The International Energy Agency estimates that the population of the Middle East was 213 million in 2012 – up dramatically from 127 million in 1990. The Middle East is also highly urbanised; according to UN figures, 85% of the population of the UAE, for example, already lives in cities. This is expected to increase to 91% by 2050. City-dwellers consume over
Smart cities put intelligence inside the infrastructure. Software, connectivity, sensors, cloud solutions and M2M enable disparate infrastructure elements to share real-time data together and with management systems. This provides city authorities with the insights they need to stay in control and make their conurbations function efficiently. Such efficiencies can help manage scarce resources, such as
64 November 2015
Intelligence in the infrastructure
water or energy. Smart metering such as that offered by m20 city or available at PowerMatching City in the Netherlands can significantly reduce waste and help manage demands. Optimising energy and water is essential in these growing modern cities, and smart city systems play a central role in this process. Join the dots
As real-time data is gathered across city infrastructure, it becomes possible to develop innovative digital services that galvanise relationships with city residents and visitors while also improving lives. Connecting each city’s array of digital components demands robust networks to support them. A smart city
is all about digitisation. This smart city technology enables better management of nontraditional components that were not previously easy to maintain: car park automation, access and building control, CCTV and security functions. Scale
To achieve all of this requires the financial and political will that is present in the Middle East. “To create smart cities, it is necessary that city planners and governments have the vision to drive change, a strong overarching vision is ultimately required,” analyst Paul Doherty writes in a report on smart cities for McGraw Hill. Contrast this with Europe. A McKinsey review of 50 European
Comment
master systems integrator in these very complex ecosystems. World-class
smart city projects found nearly all were launched as pilot schemes. “For the most part, neither city officials nor technology vendors have been willing (or able) to risk investing in large-scale demonstrations.” There is also a big difference in scale between Middle East and European smart city projects. The city of Nice, France, for example, has put in some smart city components with very focused services. Projects are simply much bigger and more allencompassing in the Middle East. Greenfield vs brownfield
Smart city projects in the Middle East are not just about brandnew cities. Brownfield sites include Dubai, the UAE and Doha, which aim to become
“Greater tourism and travel demands are also driving smart city investment in the Middle East as it prepares to host huge international events”
‘smarter’ cities, while greenfield developments include King Abdullah Economic City in Saudi Arabia, Lusail in Qatar and Masdar City in Abu Dhabi. Greenfield sites provide the opportunity to interconnect the different services right from the beginning, which cannot be done in an existing city. For example, in Saudi Arabia, Orange Business Services has been working with the Al Ra’idah Investment Company for years to develop the King Abdullah Financial District (KAFD), the largest of four smart cities the country is building with an investment of $70 billion. Planners need a partner to help in assessing, designing, building and running smart cities, and playing the role of
Greater tourism and travel demands are also driving smart city investment in the Middle East as it prepares to host huge international events, such as Dubai and the UAE with World Expo 2020. More infrastructure is needed to support these events and to build innovative showcases for those travelling to them. With an urban population of around 99%, Qatar is set to host the World Cup in 2022. With this in mind, the country is spending over $120 billion on related projects, including developing clean energy solutions within smart cities. Dubai has launched an ambitious master plan featuring 100 smart city projects covering urban planning, transport, communications, electricity, infrastructure and more. It also spans boosting citizen and tourist engagement through smartphone app services. Part of the overall project, the Dubai Silicon Oasis Authority (DSOA) hopes to attract new business through provision of state-of-the-art smart city facilities, electric cars, remote controlled digital signage, free Wi-Fi and intelligent controls of water supply and consumption. The New Climate Economy Report 2014 claims cities will be home to around 60% of the global population by 2030, meaning most city planners will look to deploy smart solutions to realise the necessary efficiencies they provide as they struggle to sustain huge populations on limited resources. City planners in the Middle East may face similar challenges to those elsewhere, but the region benefits from clear visions and leadership that mean it will move well beyond other regions in the development of smart cities – and much faster. November 2015 65
Event review
Tee-off in the park
Region’s top firms come together at the Emirates Golf Club for the Big Project ME Golf Day - Consultants and Architects Cup 2015 The Emirates Golf Club again played host to a Big Project Middle East Golf Day on October 29, 2015.
The increasingly popular annual event saw more than 70 players, chosen from the leading consultant and architectural firms in the region, face off against each other in allocated teams based on their handicap. This also afforded teams the opportunity to network together in a relaxed and fun-filled environment. Targeted at senior executives, this year’s event also included a number of new faces, which helped to mix up the teams and add fresh competition to the mix. In addition to the participants from the event’s sponsor companies, the Big Project ME Consultants & Architects Cup was attended by general
managers, directors, presidents and other senior figures from companies such as Skidmore, Owings and Merrill, WSP | Parsons Brinckerhoff, AECOM, Godwin Austin Johnson and many more. Michael Stansfield, commercial director of CPI Construction Division, told Big Project ME that the event was a huge success and he thanked both participants and sponsors for making it such a memorable day. “A special thank you is also due to our partners – Brookfield Multiplex, Geberit, CCS, Hill International, Stretch Ceilings, SOM, Nora and WSP | Parsons Brinckerhoff – they all provided an incredible amount of support for the event and made it a massive success that was enjoyed by everyone,” he added.
Thanks to all our sponsors
66 November 2015
November 2015 67
CONGRATULATIONS The 2015 winners of the Big Project ME Consultants & Architects Cup were: 1st place Tom Hoban WSP | Parsons Brinckerhoff Mark Farley WSP | Parsons Brinckerhoff Brian James WSP | Parsons Brinckerhoff Cameron Bowditch WSP | Parsons Brinckerhoff 2nd place Steven Batchelor Faithful + Gould Simon Millman Faithful + Gould Mohammed Garda Mott Macdonald Tamir Mohammed Mott Macdonald 3rd place Steve McFadden Nora Systems David Riley DSA Architects Frederick Anderson Flex Joint Marin Gerkes Plan Quadrat nearest the pin Rob Shakespeare Cracknell Longest Drive Simon Chambers Godwin Austen Johnson
68 November 2015
Comment
Ossama Tawfick
staying on course during market storms
Ossama Tawfick from AspenTech explains how technology can be a competitive differentiator for construction firms With the plunge in oil prices, big operators’ oil & gas capital spending is coming under increased scrutiny. Therefore, engineering and construction companies (E&Cs) have a greater need to be flexible, remain profitable and manage their business through market turbulence. To survive and thrive, contractors need to innovate dynamically across all aspects of their operations and deliver high-quality services in line with market forces. So how can E&Cs weather market storms and address both operational and commercial needs?
As the relationship between E&Cs and owner-operators changes, contract conditions need to be more closely aligned to the interests of both parties to 70 November 2015
ensure project scopes are clear and costs do not overrun. Also, when engineering expertise is tight, the workforce tends to be stretched to achieve more with fewer resources. Owneroperators consider standardised designs one option to minimise costs. Therefore, partnering with the right technology vendors with flexible business models can make the difference between success and failure during these uncertain times. Simplification and effective execution
The dynamics of the market reflect a paradigm shift as old plants are phased out in Europe and Asia, while new plants are built in the Middle East, China, Russia and the US Gulf Coast.
This brings great opportunities for E&C companies. Managing risk is key to decreasing uncertainty and ensuring project estimates track to project performance. Many E&Cs have limited resources. As projects unfold, companies need to do more with less to complete them on time. By improving the bid process, E&Cs can win contracts with more accurate estimating and project execution performance. Project managers can reduce risk and uncertainty by tracking estimates against performance. By simplifying execution, global teams can contend with resource shortages. However, this can only be done by partnering with vendors who can reliably help throughout the project lifecycle, while
maintaining quality standards. E&Cs that can diversify operations from the oil & gas sector to other markets, like chemicals and mining, will capitalise on delivering highquality, reliable services to meet client objectives. With the optimism in emerging markets and the positive effect of technological advances, E&Cs see infrastructure development as pivotal to growth. Projects are diverse, from transportation systems, including rail, road, air and shipping networks, to design and supply of direct fired heaters, complex construction projects for chemicals and refining and project execution expertise in the minerals and metals sector. A recent PwC Global
risk mitigation Construction software and technology give engineers and project managers control over changes, which is essential in mitigating risks.
Comment
33% are concerned about the speed of technological change, compared to 47% overall.” Competitive differentiator
“CEOs see technological advances as the top trend which will transform their business. Many called some aspect of technology the ‘next big thing’ to impact their business”
Construction Report predicts that “the volume of construction output will grow by more than 70% to $15 trillion worldwide by 2050” and that “the most attractive country for major projects in the MENA region is UAE, seconded by Saudi Arabia and Qatar”. According to the same study, “Engineering and construction CEOs see technological advances as the top trend which will transform their business. Many called some aspect of technology the ‘next big thing’ to impact their business, citing everything from new applications for formwork to techniques to better manage and utilise data. Most engineering and construction CEOs are optimistic about their ability to keep up – only
E&Cs compete on a global basis, bidding and executing on complex, large-scale projects. By having an integrated software environment, companies can produce optimal plant designs quickly and efficiently, incorporating highly accurate cost estimation technology. In addition, these projects require software that enables significant internal collaboration with owner-operators. For engineers and project managers, control over changes to specifications or projects is essential in mitigating risk. Engineering projects need to maintain maximum flexibility early in the project cycle. Technology should be seen as a competitive differentiator and not simply a cost of doing business. Advances in areas like process optimisation software help E&Cs broaden their global footprint and strengthen their competitiveness in highgrowth, emerging markets. Many companies have adopted AspenTech’s aspenONE Engineering software suite to optimise process designs for energy use, capital and operating costs and product yield through the use of activated energy, economics and equipment design during the modelling process. The software tools enable E&C companies to bid on and carry out projects with lower cost and company risk. In addition, the aspenONE licensing model brings significant commercial benefits to E&Cs, as companies have access to all products in the aspenONE suite and can use a wide range of software tools on a ‘check out – check in’ basis
to track usage while adjusting when and where the software is used, based on their changing business requirements. As business priorities evolve, this flexible software model transforms the way companies conduct business. Whether the software is installed on premises or in the cloud, customers have access to the full range of innovative software applications to meet project demands. Innovation and business growth
The engineering design and construction industry is rapidly changing against a backdrop of fluctuating oil prices and intense competition. Today, the markets are open to global trade, allowing capital investment, skills and technology to move freely across borders and increase business opportunities. Agility is essential to respond quickly to change, and being flexible requires organisations to build long-term partnerships with technology vendors to meet demand and support customer needs. Crucially, with the right software tools, E&Cs can successfully achieve a competitive edge. The biggest capital project opportunities worldwide exist in the midstream and upstream, including gas production, oil production and gas processing. This requires better and more efficient ways of executing projects. As the market continues to show signs of turbulence, flexibility in the engineering of facilities is extremely important. Business is becoming more complex. If E&Cs are to weather the storm in the energy markets, access to a flexible and scalable software model is vital, to help E&Cs compete and survive while capitalising on growth opportunities in established and emerging markets alike. November 2015 71
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Comment
Craig Gibson
Marriages, Lost opportunities and ForMuLas
Craig Gibson, senior manager at Omnium International, outlines the damage caused to a contractor when a project is delayed It starts off with such good intentions: a new partnership, the honeymoon period, various bonds and guarantees as to performance. However, the older we get the more we see linger on longer than the parties wanted.
We are gathered here today to consider an omnipresent issue across the various interlocutory marriages present on a construction project. The complexities of construction projects are widely accepted. However, there is a propensity for the industry to accept that a building contractor on a delayed project is probably entitled to some damages, but to not really care to understand the mechanisms for assessing and understanding any entitlement. This article will focus on loss 74 November 2015
suffered and expense incurred by a building contractor’s head office resources, due to a project being delayed. When a contractor tenders for a new project, it submits a tender sum based on that project taking ‘n’ days to complete. This price includes both site and head office overheads and profit. Should the project take longer to complete, the contractor is entitled to seek damages from the client. Note three salient considerations of this article: 1. Project overheads are different from head office overheads; we are focusing on the head office overheads of the contractor; 2. We are not discussing liquidated damages of the client; in the UAE this is
usually a prescribed daily figure (AED ‘x’) in the contract, so the calculation is simply the number of days delay multiplied by AED ‘x’ (subject to Article 390 (2) of the UAE Civil Code); 3. Aside from (ii) above, this article considers damages, that being the cost incurred by the contractor; this cost should not include mark-up for profit. The Three Gates
The first gate for a contractor to pass is establishing the period of delay for which it is entitled to redress. A delay analyst can opine on compensable delay, allowing for concurrent delay and so on. The second gate involves demonstrating that it is
reasonable to believe the contractor would have secured work elsewhere if the delay on the project had not occurred (for example, if the contractor was going bankrupt, it may be unlikely that it would have secured further work). The third gate to pass regards demonstrating that the overhead and profit allowance in the contract was reasonable (while simultaneously deducting the profit in order to only claim damages). Notably, many large building contractors would be content with 3% company-wide profit from the array of high-value work they carry out. However, most building contracts in the UAE include a diluted head office and project office overhead and
Comment
the actual cost problem The actual cost approach requires the contractor to demonstrate the actual loss suffered due to delays, which is not easy.
opportunity claims rely on the success of the contractor in demonstrating that it would have profited by moving its resources from the delayed project onto another project. The contractor was held back from making ‘AED y’ elsewhere, thus it is reasonably entitled to that ‘AED y’ from the client. The actual cost approach requires the contractor to demonstrate the actual loss suffered by its head office as a result of the delay. That is not easy. Resultantly, contractors tend to prefer the lost opportunity approach as it is simply calculated, using a formula. This is less time-consuming and usually produces a higher figure than actual cost. There are three formulas commonly used to calculate the head office overhead: 1. Hudson formula 2. Emden formula 3. Eichleay formula Hudson formula
“A contractor needs adequate records to pass the three gates considered earlier, so remember the mantra “records, records, records!”
profit mark-up of 10-15%. Owing to resource availability, potential lack of understanding or strategy, most contractors understandably claim for the full percentage mark-up, at least at first. In turn, an astute client contests the probable disparity between what the contract says and what the auditable head office accounts prove, as a way to block this third gate and quash this claim. If the parties accept the principle that the contractor is entitled to damages, the discussion moves on to calculating the entitlement. Loss of Opportunity or Actual Cost
The contractor can calculate this entitlement based on loss of opportunity, or by demonstrating actual cost incurred. Loss of
Office overheads % 100
×
C(∑) C(Days)
× T
The Hudson formula relies on the percentage agreed in the project contract as the factor for considering entitlement. However, in reality this percentage may bear no resemblance to the contractor’s actual head office overhead cost. This is a primary criticism of the Hudson formula, but also a major reason why this formula is often a contractor’s first choice. To be more accurate, this formula should be adjusted to account for the likelihood of the contractor securing work elsewhere in a timely manner, inefficiencies and the like. Insofar as this factor is not based on auditable calculations, it is
still subjective. Therefore, to do so would defeat the purpose of using a simple formula. In the UAE, this formula is generally used as a ready reckoner or starting point when looking to settle a claim. Emden formula
In light of the Hudson formula attracting criticism for being too simplistic, Emden’s Building Contracts and Practice published an alternative, the Emden formula. Head office overheads due to project delay = Total overhead cost (profit) × 100 Total turnover
This formula divides the total overhead cost of the contractor’s organisation by the total turnover. This results in a percentage based on the contractor’s actual head office overhead, instead of one contained in an isolated contract. This is advantageous. The Emden formula received judicial support in England and Wales. It was widely used until a loss of opportunity approach fell out of judicial fashion, in favour of trying one’s best to demonstrate actual loss. This downfall was largely attributable to the (non-construction) case of Tate & Lyle vs Greater London Council (1983). Following this lull, loss of opportunity claims have resurfaced as a result of the difficulty in demonstrating actual loss; judges are growing more understanding of this difficulty. I state the stance in the England and Wales jurisdiction as background, but one must remember concepts formed in Common Law jurisdictions should be treated with caution in the UAE, where Emden’s formula is not as commonly used except in arbitral proceedings, November 2015 75
Comment
mainly because contractors are reluctant to disclose auditable head office overheads. Ironically, this is the greatest advantage of Emden’s formula. Eichleay formula Allocable overhead Number of days of contract performance including delay days = Daily allocable overhead rate
Depending on the strength of the circumstances, a contractor may recognise that it cannot prove loss of opportunity, and therefore an actual cost approach is required. The Eichleay formula may be useful in this case. Keeping track Contractors need to keep detailed records to back up claims and allow them to exit a partnership with minimal complications.
76 November 2015
The Eichleay formula compares the value of work carried out in the contract period with the value of work carried out by the contractor as a whole for the contract period. The contractor can then be apportioned a share of head office overheads using the same ratio, to provide a lump sum. The allocable amount of head office overheads to the given project is divided by the contract period, which can then be multiplied by the number of days delay to provide a total sum claimed. Is the End Formulaic?
Industry professionals will advise on a case by case basis,
“Notably, many large building contractors would be content with 3% companywide profit from the array of high-value work they carry out”
but using formulas to calculate damages due to a contractor is a widely accepted industry norm. The circumstances of the project and the dispute resolution forum inform whether a simple formula like Hudson’s is appropriate to demonstrate loss of opportunity, or whether Eichleay’s formula is more prudent to demonstrate actual loss. A contractor needs adequate records to pass the three gates considered earlier, so remember the mantra “records, records, records!” Keep detailed records in order, and these interlocutory marriages of construction projects will be simpler to conclude, in the event they do last longer than planned.
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Big Project ME speaks to Andre Mikaeili, general manager at Pozzolan International FZC, about how the manufacturer of plastic spacers for reinforced concrete covers can help contractors
78 November 2015
What does Pozzolan do, and how can it help its clients achieve optimum results on projects?
We may be regarded only as a manufacturer and a supplier of plastic spacers for reinforced concrete cover, but I need to stress that it is our policy to always take one step further for our clients. As a manufacturer, we have the capability of designing special moulds, and in so many cases we have done it. We have quite few moulds in our main manufacturing facility which were only used for certain items in projects. We make our clients our first and utmost priority. Pozzolan International FZC might be a newly established company in the UAE market, but as a brand we have been
present in the UAE and GCC market for the last seven years, and we have done a lot of work to raise awareness within the industry about using plastic spacers on construction projects. As you know, it is a competitive market, but for us price has not been the only issue. For a long period we have not increased the price of our products, only for the sake of nurturing and fostering the aforementioned culture. Our vision makes us responsible for the quality assurance of our products and service; therefore, we are always in close contact with our clients to make sure that they are satisfied with the quality. We always listen to them for suggestions
Helping you make the smartest decisions
One-time use Most of Pozzolan’s products are designed for one-time use, thereby saving contractors the cost of having to replace them.
regarding modifications in the products for easier usage. How do Pozzolan products help manage contractor workloads and reduce costs?
Well, the majority of our products are only for one-time use. We are lucky, you may say, but we also have to try our best to keep the prices quite low as well. Also, we do care about our products being environmentally friendly. The raw material that we use is 100% recycled. It corresponds to the relevant schemes of LEED and other similar certification, which is a benefit to the contractor and the developer. How can Pozzolan’s products be adapted to individual projects
“We have been present in the UAE and GCC market for the last seven years and we have done a lot of work to raise awareness about using plastic spacers on construction projects”
and improve efficiency?
As manufacturers, we have the design capabilities to manufacture unique items for individual clients, and as I explained before, we are in close contact with our clients to make sure that they are satisfied with what we deliver, and to take on board their suggestions when it comes to modifying products for specific usages. What new products are in the pipeline, and what are Pozzolan’s hopes for them?
At the moment, we are developing a new product in our R&D department, which I hope we will be able to showcase during The Big 5 2015, which will help to improve efficiency by eliminating the
use of tie wires. A huge effort in marketing is required to present the innovations and bypass the old-school biases. Can Pozzolan’s products be tailored to highly specific projects, such as airports and other major infrastructure and transport projects?
Yes. Pozzolan has two specific products, Stool double rebar chair spacer and Eifel double rebar chair spacer, which were developed mainly for the purpose of being used in the aprons [the parking area of airplanes]. Also, we have other heavy-duty items such as pile cage spacers, and also PVC pipe spacers and roll plugs, which are used in roads and bridges, telecommunication and railways respectively.
November 2015 79
Tenders
Top tenders Hyatt Palace Hotel Project Budget $100,000,000 Project Number WPR013-SA territory Jeddah 21563, Saudi Arabia client Abdulelah Mohammed Ali Maghrabi Commercial Establishment (Saudi Arabia) address Building No 6, Al Hada Street 31, Al Faisaliya District 2, Madina Road Phone (+966-12) 639 1515 Fax (+966-12) 639 4101 Website www.maghrabiest.com Description Construction of a hotel comprising 182 guestrooms, in addition to a number of food and beverage options, including complimentary hot breakfast for guests, a 24/7 gallery menu serving made-to-order entrées and appetisers round the clock, and a full service restaurant. Status New Tender tender categories Construction & Contracting, Hotels tender Products Hotel Construction
Description Construction of two towers comprising 500,000 square feet of retail space housed within a bridge connecting the hotel and residential towers. Status New Tender tender categories Hotels, Leisure & Entertainment, Prestige Buildings tender Products Hotel Construction, Residential Buildings, Retail Developments
Industries Company (ORPIC) address Sohar Industrial Port Area Phone (+968) 2685 1000 Fax (+968) 2685 1211 Website www.orpic.om Description Construction of a major bitumen production unit featuring a pair of reactors with capacity of 516 tonnes per day each. Period 2017 Status Current Project tender categories Industrial & Special Projects tender Products Chemical Plants
cairo moNorail Project BitumeN ProDuctioN uNit Project – SoHar Port Budget $315,000,000 Project Number WPR724-O territory Sohar 322, Oman client Oman Refineries & Petroleum
Budget $1,500,000,000 Project Number MPR1477-E territory Cairo, Egypt client Ministry of Housing & Infrastructure (Egypt) address 1 Ismael Abadha Avenue Period 2018
Status Current Project tender categories Public Transportation Projects tender Products Railways
matlaa local marketiNG DePot Project Budget $798,000,000 Project Number MPP2819-K territory Safat 13001, Kuwait client Kuwait National Petroleum Company (KNPC) address Imad Commercial Centre Phone (+965) 2244 7477 Fax (+965) 2244 7492 / 2240 2269 Website www.knpc.com.kw Description Engineering, procurement and construction (EPC) contract to build a local marketing depot at Matlaa. Status New Tender tender categories Refineries tender Products Storage
Gate toWerS Project – DuBai Water caNal DeveloPmeNt Budget $2,000,000,000 Project Number WPR777-U territory Dubai, United Arab Emirates client Meydan LLC (Dubai) address Meydan Racecourse, Al Meydan Road, Nad Al Sheba Phone (+971-4) 327 0000 Fax (+971-4) 327 0007 Website www.meydan.ae
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
80 November 2015
Tenders
Middle East tenders UAE ExEcutivE tErminal ProjEct â&#x20AC;&#x201C; Dubai WorlD cEntral aviation District budget $120,000,000 Project number WPR637-U territory Dubai, United Arab Emirates client name Dubai World Central (DWC) address Bldg 1, 5th Floor, Emaar Business Park, Jebel Ali, Sheikh Zayed Road Phone (+971-4) 321 4040 Fax (+971-4) 363 8119 Website www.dwc.ae Description Construction of a new terminal comprising dedicated facilities for customs, immigration and police, separate drop-off and executive lounge areas to ensure full privacy, as well as walkable, direct access to the apron. status Current Project main consultant GHD
Global Pty Ltd (Dubai) mEP consultant GHD Global Pty Ltd (Dubai) main contractor Khansaheb Civil Engineering (Dubai)
tender categories Airport, Construction and Contracting tender Products Airports Development and Management
mEtroPolitan HotEl Project budget $100,000,000 Project number WPR778-U territory Dubai, United Arab Emirates client name Al Habtoor Group LLC (Dubai) address Near Metropolitan Hotel, Sheikh Zayed Road Phone (+971-4) 394 1444 Fax (+971-4) 394 9990 Email habtoor@emirates.net.ae Website www.habtoor.com
Description Construction of a four-star boutique hotel comprising 334 rooms and suites. Period 2016 status Current Project main consultant Khatib & Alami Consolidated Engineering Company (Dubai) Design consultant Khatib & Alami Consolidated Engineering Company (Dubai) cost consultant Calgary Project Consultants (Dubai) main contractor Sun Engineering & Contracting Company LLC (Dubai) mEP contractor Al Hani Gulf Contracting Company (Dubai) tender categories Construction & Contracting, Hotels tender Products Hotel Construction
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
82 November 2015
Tenders
Saudi Arabia Bayat Plaza mixeD-uSe toWerS Project Budget $50,000,000 Project Number WPR621-SA territory Saudi Arabia client Name Manazil (Saudi Arabia) Website www.manazil.co Description Construction of two towers offering 272 luxury apartments, including duplexes and penthouses. Period 2016 Status Current Project main consultant AlKhojah Engineering Company (Saudi Arabia) main architect AlKhojah Engineering Company (Saudi Arabia) Design consultant Sefton Horn Winch Ltd (Dubai) main contractor Afrina Establishment for Construction & Urban Development (Saudi Arabia) meP contractor Afrina Establishment for Construction & Urban Development (Saudi Arabia) Foundations, Enabling & Piling contractor Zetas Arabia Foundation Technology (Saudi Arabia) tender categories Leisure & Entertainment, Prestige Buildings tender Products High-rise Towers, Residential Buildings, Retail Developments
Kuwait 360 mall exPaNSioN
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Phone (+965) 246 8881 Fax (+965) 246 8882 Website www. tamdeenrealestate.com Description Carrying out expansion of a shopping mall comprising a luxury hotel, new shops and a 7,600-seat tennis arena. Period 2019 Status New Tender tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Hotel Construction, Retail Developments, Sports Complexes
Oman
Phone (+968) 2450 4436 / 2448 5590 Fax (+968) 2450 4469 email bunyan@omantel.net.om Description Construction of a commercial and residential building comprising a basement level, ground floor, 5 additional floors and a roof. Period 2016 Status Current Project main consultant Rana Engineering & Associates (Oman) main contractor IACOVOU GCC Construction (Oman) tender categories Construction & Contracting tender Products Commercial Buildings, Residential Buildings
al BuNyaaN toWer Project Project Number PR784-K territory Kuwait client Name Tamdeen Real Estate Company (Kuwait) address Souk Al-Kuwait city Safat 13079
Budget $10,000,000 Project Number WPR776-O territory Ruwi PC 112, Oman client Name Al Bunyaan Trading LLC (Oman)
Dar al zaiN reSiDeNtial DeveloPmeNt Project â&#x20AC;&#x201C; PHaSe 5 Budget $15,000,000
Project Number WPR720-O territory Muscat 100, Oman client Name Zain Property Development (Oman) address Moosa Abdulrahman Bldg, 2nd Floor, Al Noor Street, Ruwi Phone (+968) 2478 0202/ 20 Fax (+968) 2470 8800 email info@zainoman.com Website www.zainoman.com Description Development of a residential scheme involving construction of 21 villas, including several facilities for residents such as separate swimming pools and gymnasiums for men and women, a football field, tennis court, child care zone, childrenâ&#x20AC;&#x2122;s park, an entertainment centre, multi-use cinema hall, mini market and a coffee shop. Period 2017 Status Current Project Design consultant D&A Interior Design (Oman) main contractor Abjar Trading &
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
84 November 2015
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Tenders
Contracting Company (Oman) tender categories Construction and Contracting, Leisure & Entertainment tender Products Villas Construction
Bahrain
tonnes a year of aluminium slabs. Period 2017 Status Current Project Financial consultant Ahli United Bank BSC (Bahrain) main contractor Fives FCB (France) tender categories Industrial & Special Projects tender Products Steel Mills
re-melt Facility Project Budget $50,000,000 Project Number WPR722-B territory Manama, Bahrain client Name GARMCO (Gulf Aluminium Rolling Mill Company) â&#x20AC;&#x201C; Bahrain address Sitra Industrial Area Phone (+973) 1773 1000 / 1773 4600 Fax (+973) 1773 0542 email sales@garmco.com Website www.garmco.com Description Engineering, Procurement and Construction (EPC) contract to build a re-melt facility with production capacity of 120,000
kiNG HamaD cauSeWay Project Budget $3,000,000,000 Project Number MPP2596-B territory Manama, Bahrain client Name Ministry of Transportation & Communications (Bahrain) Phone (+973) 1732 1105/ 1732 1055/ 1753 4534 Fax (+973) 1753 0243 Description Build-operatetransfer (BOT) contract for the construction of second causeway. Status New Tender
Specialist consultant SNCLavalin Inc (Canada) tender categories Public Transportation Projects, Roads, Bridges & Infrastructure tender Products Railways, Roadways
Egypt SHarm el-SHeikH airPort exPaNSioN Project Budget $671,000,000 Project Number MPP2899-E territory Cairo 11776, Egypt client Name Egyptian Airports Company address Airport Road Phone (+20-2) 267 7610/7613
Fax (+20-2) 418 2972 Description Carrying out expansion of an airport which will provide capacity for 10 million passengers a year, bringing the total capacity to 18 million a year. closing Date October 27, 2015 Period 2019 Status New Tender tender categories Airport, Construction and Contracting tender Products Airports Development and Management
Qatar WyNDHam GarDeN DoHa Hotel Project
86 November 2015
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Budget $50,000,000 Project Number WPR036-Q territory Doha, Qatar client Name Al Siddiqi Holding (Qatar) address Gate No 74, Street No 38, New Industrial Area Phone (+974) 4466 3361 / 4466 3362 Fax (+974) 4466 6584 email reception@sig.com.qa Website www.alsiddiqiholding.com Description Construction of a four-star hotel comprising 153 rooms, offering flexible meeting space as well as a fitness centre and pool facilities. Status New Tender Design consultant RMJM (Dubai) tender categories Construction & Contracting, Hotels tender Products Hotel Construction
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
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BAZ GHARIBI HEAD OF TRANSPORT PLANNING
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Last word
Why paint is more than just a choice of colours Hempel’s PureEarth range incorporates the latest coatings technology in a bid to create a healthier, more hygienic environment
W1 2 3 4 5 henever we build something, whether it’s renovating an existing building or constructing a new one, we make choices. These choices not only have a significant impact on construction cost but also influence the health and comfort of the people who use the building, as well as the wider community and the environment. A green building is the result of numerous sustainable choices, notably the way in which the building uses energy and the materials used. Our five-point strategy is aimed at developing sustainable and ecofriendly products, because these small changes add up – and every choice helps to ensure a healthy and sustainable future.
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