Big Project September 2014

SEPTEMBER 2014

102 ALSO INSIDE A ROLE FOR THE QS MERGER MAYHEM JEWEL OF THE CREEK LOW-END HOTELS

power in your hands

Emerging technology and why the industry needs more joined-up thinkers

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CONTENTS

SEPTEMBER 2014 05 the big picture TwisT in The Tale of hyder Takeover Japanese firm gazumps Arcadis offer for consultancy

12 news AnAlysis Taking a hosTile approach big project Me looks at the on/off balfour beatty and carillion merger

16 MArket AnAlysis – hospitAlity The low-end Theory the hospitality sector is back to building hotels for the value-end of the market as it seeks to meet a variety of tastes and budgets

26 site Visit – Jewel oF the creek The Jewel in dUBai’s crown big project Me visits the Jewel of the creek project in Dubai, a huge mixed-use development on the banks of its most enduring attraction

32 in proFile – keo’s DonnA sultAn The proJecT ManageMenT shifT Donna sultan on how keo has switched focus during her 23 years

40 role report – QuAntity surVeying coUnTing The cosT big project Me looks at the evolving importance of the Qs

48 speciAl report – FAÇADesnTively More Than skin deep big project Me asks whether contractors are struggling with increasingly complicated façade schemes and designs?

54 eMerging technology planning for The fUTUre there’s more to emerging construction technology than just biM

60 coMMerciAl lighting lighTing The way leD lighting and the use of natural lighting point to an illuminated way of improving end-user experience

68 tenDers 5 saUdi Top Tenders the construction tenders you need to know about in september Big Project ME takes a cruise around the impressive Jewel of the Creek project in Dubai.

72 constructiVe criticisM drone-ing on 3D printing and autonomous construction is coming – but when?

SEPTEMBER 2014

MIDDLE EAST

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

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

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

I saw an increase in our sales immediately.

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

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

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

Al-Qahtani & Sons Khaled El Shatoury, Managing Director

Saudi Diesel Equipment Ahmed Alkooheji, Marketing Manager

Roots Group Arabia Abdulaziz Felemban, Brand Manager

Co-located with

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

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

EDITOR’s COMMENT

bigprojectMe.COM

Consolidation, now Be it the floor of the market collapsing or cranes suddenly being in short demand – when it comes to seismic shifts in economic fortunes, construction is the first to feel the repurcussions.

Group Chairman and Founder Dominic De SouSa Group Ceo naDeem HooD Group Coo Gina o’HaRa puBLiShinG direCtor RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471 editoriaL direCtor ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDiToRiaL

The fate of Hyder Consulting was firmly in the balance as Arcadis upped its offer to 730p per share or $470 million to out-bid Japanese rival Nippon Koei, as Big Project ME went to press. Hyder’s record in the Middle East stretches back further than a century; its recent work on projects such as Burj Khalifa and the – arguably even more important – infrastructure and water security works in Qatar may be seen as epoch-defining in years to come. The outcome will be felt in the Middle East whether it is fused with Arcadis’ project management firm EC Harris or used to expand Nippon Koei’s regional business.

Analysts were encouraging investors to look at Hyder in April when a profit warning was announced following delays to government spending in Australia, contract delays to its $700 million order book in the Middle East and a slow-down in public sector spending in Germany were undervaluing its share price at the 500p mark. It’s ironic that blips in construction markets that were once considered the most robust during the downturn have made the company vulnerable.

Balfour Beatty is one of Europe’s most famous builders and like Hyder is exposed to swings in infrastructure spending.

Governments spent big on roads and transport to stimulate their economies during the downturn but now they need the private sector to take-up the slack. That said, Balfour Beatty and Hyder are fundamentally strong businesses and relatively safe purchases as the cash will flow again: so if they are going to be bought, now is the time to buy. The legacy of the downturn is also a wider force at work here. In the first quarter of 2014 alone mergers and acquisitions jumped from $15 billion to $67 billion; and it’s a sign that companies with cash or long credit lines recognise that they need to move now to protect them from the next slump. Consolidation can mean a better deal for contractors and a more organised industry but it can also mean less choice for developers and narrower channels for the flow of money in1 the construction chain. Like the world, the industry is becoming a smaller place and you better be prepared for it.

Group editor STepHen wHiTe stephen.white@cpimediagroup.com +971 52 755 5184 deputy editor GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 aSSiStant editor neHa BHaTia neha.bhatia@cpimediagroup.com aDVeRTiSinG CommerCiaL direCtor micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 Senior SaLeS manaGer YaSin aLVeS yasin.alves@cpimediagroup.com +971 4 375 5496 SaLeS manaGer SanDRa SpenceR sandra.spencer@cpimediagroup.com +971 4 375 5473 maRKeTinG marKetinG manaGer LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 marKetinG aSSiStant BaRBaRa panKaSZ barbara.pankasz@cpimediagroup.com +971 4 375 5499 DeSiGn art direCtor Simon coBon Junior deSiGner peRciVaL manaLaYSaY ciRcuLaTion & pRoDucTion CirCuLation and diStriBution manaGer RocHeLLe aLmeiDa rochelle.almeida@cpimediagroup.com +971 4 368 1670 dataBaSe and CirCuLation manaGer RaJeeSH m rajeesh.nair@cpimediagroup.com +971 4 440 9147 produCtion manaGer Vipin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL diGitaL ServiCeS manaGer TRiSTan TRoY maaGma puBLiSHeD BY

Registered at impZ po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com pRinTeD BY printwell printing press LLc © copyright 2014 cpi all rights reserved

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MIDDLE EAST

Stephen White Group Editor

SEPTEMBER 2014

while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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the biggest PICTURE

tAkeover wrANgle Japan’s Nippon Koei has thwarted Acardis’ takeover bid of Hyder Consulting, consultant on the Burj Khalifa (pictured).

ArcAdis tAkeover of Hyder tHwArted by NippoN koei British consultancy accepts $451 million takeover offer from japanese giant despite recommending dutch offer to shareholders Hyder Consulting, the international engineering consultancy, has accepted a $451 million takeover offer from Japan’s Nippon Koei, despite having already recommended to its shareholders, a bid from Dutch firm Arcadis.

In a joint statement, Hyder and Nippon Koei said that the recommended cash offer would entitle Hyder shareholders to receive 680 pence in cash for each Hyder share, a 30 pence premium to the offer from Arcadis.

Speaking at the time, Ivor Catto, the CEO of Hyder, said that Arcadis’ cash offer “substantially recognised Hyder’s growth prospects and provided certainty, in cash, to shareholders”. Arcadis had offered $451 million as well. However, when announcing Hyder’s decision to walk away from the Arcadis deal, Catto explained that the 30p premium offered

by Nippon Koei had swayed the board.

“The Hyder board considers that Nippon Koei’s cash offer substantially recognises Hyder’s growth prospects

and provides certainty, in cash, to our shareholders today. The merged group should also provide further opportunities for our highly valued employees and clients,” he clarified.

Shares in Hyder have risen on the back of the bidding war between Arcadis and Nippon Koei, with Liberum Capital releasing a statement reaffirming their buy rating on shares.

A number of other analysts have echoed the positive sentiments about the consultancy.

Analysts are N+1 Singer reiterated their hold rating on shares of Hyder Consulting in a research note, while analysts at Investec reiterated a buy rating on shares.

“Consolidation has been a sector theme for a number of years and this event highlights the value that exists within the sector,” said N+1 Singer analyst Andy Brown in a Reuters report.

Liberum Capital added that it was likely that this latest development

Hyder Middle east revenue for 2014 n bahrain: $4.03 million

n Qatar: $68.1 million

n uae: $62.9 million

n saudi arabia: $13.4 million

sector revenue Break-down n transport: 50% of revenue

n property: 28% of revenue

n utilities: 22% of revenue

wasn’t the last of Acardis’ interest in the deal, suggesting that a further twist could emerge.

“While we mistakenly called the previous bid ‘likely a knock-out’, we are not sure that this one is! There is a possibility that Acardis returns, or that a new bidder emerges,” it said in a note.

In a statement, Arcadis said that it would consider its options and make an announcement in due course.

This has led to speculation that an improved bid may be forthcoming.

Should a deal between Nippon Koei and Hyder be finalised, the new company would have a market capitalisation of $863 million. The Japanese consultant, which was founded in 1946, has operations in 135 countries, including operations in Japan, Asia, African, Latin America and the Middle East.

It says that Hyder would operate as a standalone division and that operational changes to the British consultancy would be minimal.

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Big project me looks at the booming construction market for hospitality projects – Page 16 7

THE BIG PICTURE

bigprojectMe.Com

slowdowN KSA’s forecast award of $29.34 billion represents a decrease year-on-year.

indian ePc giant essar secures saudi araMco’s $54Mn contract construction and upgradation work to be undertaken at abqaiq plant in shaybah, saudi arabia The hydrocarbon business unit of Essar Projects, an Indian EPC contractor has been awarded Saudi Aramco’s project worth $54 million to upgrade a crude stablisation unit at Abqaiq Plant in Shaybah, one of the largest oilfields in the world.

saudi araBia slowdown as gcc project awards increase By 78% $200 billion-worth rail sector driving growth in the gcc Infrastructure project awards worth $86 billion are expected across the GCC in 2014, up 78% over 2013.

Projects worth $15.18 billion will be awarded in the UAE, almost five times the 2013 contracts, as per a recently released report by Ventures Onsite. Oman infrastructure awards are expected to reach $7.4 billion, up $5.5 billion on 2013.

Saudi Arabia’s forecast award of $29.34 billion – the highest in the region – represents a decrease year on year.

However, last year’s total awards of $33.6 billion included the $22.5 billionworth Riyadh Metro project.

Construction work has also slowed down in Saudi Arabia due to the impact of Nitaqat parameters on foreign employee allowances and lack of labourers.

Bahrain, which awarded contracts worth $382 million last year, is expected to award $3.4 billion this year.

Qatar is expected to award projects worth $26.2 billion as compared with its 2013 figure of $9.4 billion.

This is likely a result of the infrastructure preparation Qatar is undertaking in anticipation of the World Cup and to fulfil its Vision 2030 objectives. Major projects taking place include sports stadiums, metro networks and hotels.

Essar’s operations at the plant include engineering, procurement and construction of a crude tank, and the replacement of crude pumps and associated civil, pimping, electrical and instrumentation facilities.

“This contract is a reflection of our capability to undertake global projects from reputed clients in this region,” Amit Gupta, CEO of Essar’s hydrocarbon business unit said. “We will leverage the capabilities gained to enhance our foot print in other Middle East countries.”

Project completion is due within 29 months.

$54 millioN coNtrAct sigNed betweeN essAr ANd sAudi ArAmco

Qatar diar Begins work on tozeur project in tusinia technical team working with local authorities to begin launching field work for project Qatar Diar, the state-owned real estate company, has announced that it has started selecting consultants and engineers for a planned resort in Tunisia. Work on the Tozeur Resort in Tunis will begin soon, the CEO of Qatari Diar said.

Khaled Mohammed Al Sayed added that a company team was currently talking to Tunisian authorities about preparing to start work on the project, which is in the southwest of the country.

“Our technical team is currently coordinating with local authorities to prepare for launching field work for the project,” he told Qatar’s Arabic language daily Sharq.

“Our company is also selecting local and international engineers and consultants for various stages of the project, including planning and construction.”

Scheduled to open in 2015, the Tozeur Desert Resort will include 60 luxury suites, high-end health and spa components, retail outlets and

restaurants, state-of-the-art conference and business facilities, as well as an amphitheatre and other sports facilities, Diar said.

The Tunis-based Agora consultancy firm has been awarded the design contract for the luxury resort project, which will cost an estimated $80 million. luxury liviNg The Tozeur Desert Resort will include 60 luxury suites plus a high-end spa and retail outlets.

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Big project me visits the hlg project, jewel of the creek, on the dubai creek shoreline – Page 26

SEPTEMBER 2014

THE BIG PICTURE

cscecme awarded hospitality development contracts By arenco, skai awards are “another important march into the luxury hotel market.”

duBai marina’s tallest tower 80% complete, says sheffield holdings 425m-high marina 101 to be ready for handover in early 2015 Slated to be Dubai’s second tallest and Dubai Marina’s tallest-ever tower, the 425 metres-high Marina 101, its developers have announced, is 80% complete, with project handover scheduled for early 2015.

“Investment in projects near completion has proven that a fast ROI will occur by handover,” Abuali Malik Shroff, chairman of Sheffield Holdings said.

“We believe that it is an opportunity for investors to seize at this stage of construction and take advantage of this market practice model,” he added.

The tower will comprise of 420 hotel apartments, 60 residences, eight duplexes and one hotel.

saudi araMco to construct 11 stadiuMs across saudi araBia local consultancies excluded from design stage criticse aramco Saudi Arabia’s largest petroleum and natural gas firm, Saudi Aramco

Mock-ups of the hotel apartments and residential units have been released for viewing by investors and potential end-users.

“Visually, the tower will be a very distinctive mix-use tower in the midst of Marina,” Mohammed Jeilani, the project manager for Marina 101 said.

“We have completed a large part of the construction, with merely a few elements left.

Construction is well underway, with no delays to speak of.”

The tower will also include health clubs and swimming pools on different levels and other leisure facilities for both residents and hotel guests.

announced it will commence the construction of 11 sports stadiums across the country in January 2015.

Tenders inviting local and international contractors will be released soon.

Project completion has been set for 2017.

While Aramco has “given a chance” to local contracting

China State Construction Engineering Corporation (CSCEC) was recently awarded two contracts by the Dubai-based developer Arenco Real Estate to build two new hotels at Palm Jumeirah.

The five-star resort hotels are expected to span an area of 100,000sqm each, and will be built on adjoining plots. The scope of the contract includes the construction of a basement, 14 floors and a roof. Expected to take two-and-a-half years to complete, the CSCEC’s contract also includes civil works, MEP, external works and finishing operations.

CSCEC considers these project awards “another important march into the luxury hotel market”.

Dubai-based Skai Holdings Ltd. also appointed CSCEC Middle

East (CSCECME) a contract worth $54.5 million to undertake the construction of a 59-storey highrise tower. In January 2014, it was announced that SKAI Holdings had formed a special purpose vehicle with CSCECME, which is also the project contractor for the company’s Viceroy Dubai Palm Jumeirah project.

SKAI’s new ‘Suites in the Skai’ project will comprise of a 4-star hotel with 234 hotel rooms, 234 hotel apartments and 30 penthouses, retail, specialty restaurant, and relevant hotel amenities, facilities and support areas. The development will be located at Jumeirah Village Circle, at the junction of Dubai’s key highways, Al Khail Road and Sheikh Mohammed Bin Zayed Road.

mArket mArtcH CSCECME says that its latest project on the Palm Jumeirah is another step into the luxury hotel market.

companies looking to compete with their international counterparts to work on this project, stadium designs were undertaken solely by international consulting firms.

The Saudi Council of Engineers has protested Aramco’s decision.

“Saudi architects should have a role in building their country’s stadiums,” Hamad Al-Shaqawi,

president of the organisation said.

“At least 200 Saudi engineers should benefit from these projects,” he added, according to Arab News.

He also commended the designing capability of Saudi architects.

Delays are expected on the stadium project since some governorates of the total 11 are yet to hand over plots to Aramco for construction.

SEPTEMBER 2014

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Big project me speaks to donna sultan, ceo of keo international consultants – Page 32 9

The Big Picture

bigprojectMe.com

Network Goal

Simon Cowley, viCe preSident of global teChniCal Support for CommSCope, explainS why developing the network infraStruCture for a Stadium iS a CruCial part of the ConStruCtion proCeSS plaNNiNG the future The capacity of current generation network systems should be future-proof.

How does tHe development of network infrastructure contribute towards tHe overall efficiency and experience of stadiums?

In particular for stadium environments, there are a host of technologies that come into play to provide the core networks – which connect all of the essential IT processes, such as everything to support the media, the points of sale, the ticketing, the advertising, the scoreboard – you name it.

The technology is also there to support all the intelligent building aspects like HVAC, building access control, lighting and if it’s a closed stadium – the control over the roof.

To support all these things, as well as the things that the fans are looking to do, all of that really revolves around cellular connectivity and it requires a really high bandwidth and core network that supports all sorts of applications over both the traditional copper and the newer fibre infrastructure.

When you look at cellular systems, you have a single system that supports what the fans are looking for, but also has separate channels for fire, for police, for ambulances. It’s able to pinpoint something that is going on in the building,

whether that’s a network issue, or whether that thing is a safety concern for the fans.

How early in tHe construction process sHould network tecHnology providers get involved?

The earlier we’re involved, the better. Especially with the way stadiums are designed these days.

I’ve seen about a dozen designs for the 2022 World Cup and you don’t want this technology to be obtrusive. It needs to be invisible, so the earlier we get involved, the better.

Typically, the technologies we bring to bear are necessitated by the materials being used in the design of the building. In a venue like a stadium, materials do play a role.

They can be unnecessarily inhibitive and they can cause undue design constraints on other aspects of the stadium.

So these systems need to be relatively tuneable so that you can adapt them after the building has been constructed so as to really optimise how the individual sections of the building are covered. can you outline tHe approacH you take wHen planning out network infrastructure?

It’s a two-fold approach. One is working with the customer to really understand what they’re trying to accomplish. What expectations do they have as far as their backroom operability is concerned?

Trying to plan with key players is critical.

The second is to have a system that has the capacity to migrate with technology.

If you look at both cellular systems and the internal network, having a migration path planned is at the forefront.

Today’s technology has the capability to support a 10GB backbone, but it can migrate gracefully to where the standards are for 40GB, 100GB or even 400GB. We’re involved in the processes and standards, developing what the architecture looks like and what the types of media are. All of that has to be factored into the design upfront to give you that migration platform.

It’s about understanding what engineers and consultants are trying to do with the systems. We’re not going to try and push these engineers into a specific direction. It’s up to us to work with them and to understand their design and then guide them into what is the right media, the right application to support their needs for today and into the future.

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big projeCt me asks what is to become of the role for the Quantity surveyor? – Page 40

SEPTEMBER 2014

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NEWS ANALYSIS

bigprojectMe.com

CoNStruCtIoN catfight As Carillion and Balfour Beatty squabble over a proposed merger, Big Project ME examines the complicated situation behind the deal

L

ast month it emerged that two of the biggest construction companies in the world were caught in the midst of an almighty takeover tussle as they looked to secure the futures of one of the most well-known names in the industry.

At the time of writing, Balfour Beatty has rejected a second merger approach from Carillion after talks had broken down initially over the sale of Balfour’s US-based consultancy unit, Parsons Brinckerhoff. Carillion were adamant that it not be sold, and remain part of the merger, but Balfour disagreed.

In the wake of the latest failure in talks, Balfour Beatty has said that there was ‘no strategic logic to a combination, other than to enhance the combined group’s earnings’. It added that it thought that the risks were significant.

Carillion’s revised proposal included a final dividend payment for Balfour shareholders and the covering of ‘appropriate costs’ for Parsons Brinckerhoff bidders. Carillion also requested for a deadline extension to 28 August, 2014 to make a formal bid.

“In our board’s judgement, it wasn’t a credible proposal that was going to fix all the risks for Balfour Beatty shareholders,” Steve Marshall, executive chairman, Balfour Beatty, told reporters.

“For example, if bidders (for Parsons Brinckerhoff ) were not prepared to carry on and if the merger then didn’t go through, Balfour Beatty is basically left with a failed merger transaction and damage to Parsons Brinckerhoff,” he said.

In response, Carillion said that it would consider its position and make a statement in due course.

However, as speculation continued, The Times revealed that Carillion is refusing to walk away from the rejected $5 billion deal.

In a statement released on 14 August, 2014, Carillion said that as a result of the merger, it was confident that the cost-base of the combined group could be reduced by at least $292 million per annum by the end of 2016.

It added that earnings would consequently be significantly enhanced from that year onwards. These cost savings would represent a capitalised value of more than $2.50 billion before any re-rating.

“Substantial synergies have been identified across the following areas,” the statement said.

“Businesses and Functions: back-office, head office, business and support function savings as well as from applying Carillion’s business operating model to Balfour Beatty’s UK business.Supply Chain: utilising Carillion’s category management and demand planning

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“To BEnchMaRk a SERiES of ThEoRETical coST REducTion oPPoRTuniTiES, REPRESEnT ThEM all aS SynERgiES, and fuRThER, To REPRESEnT ThEM aS incREMEnTal valuE cREaTion diREcTly aRiSing fRoM ThE MERgER PRoPoSal iS incoRREcT”

SEPTEMBER 2014

NEWS ANALYSIS

“oThER PoTEnTial BiddERS May viEw BalfouR BEaTTy aS ‘in Play’. ThE SalE of PaRSonS BRinckERhoff iS on TRack and alThough ThE liST of BiddERS iS gETTing ShoRTER, wE BEliEvE ThaT ThE PRocESS iS coMPETiTivE” of the stated synergy number and believes that it creates unacceptable operational and financial risks. In contrast, Balfour Beatty has clear plans for developing rather than partially eliminating the UK Construction Services business, including achieving future cost savings where 100% of the benefits achieved would accrue to Balfour Beatty shareholders.

“Carillion continue to require Parsons Brinckerhoff to remain part of the potential combined business, without providing any strategic or value related logic for its retention, other than for financial presentation purposes.

“Balfour Beatty has been clear that Parsons Brinckerhoff has not provided synergistic benefits for the Group over five years of ownership, and this has not been disputed

by Carillion. Their proposed approach would result in the likely termination of the Parsons Brinckerhoff sales process.

This risks damage to that business, as well as eroding its competitive position, and potentially resulting in a loss of value to our shareholders,” the construction giant added.

Stephen Rawlinson, analyst at Whitman Howard, told Reuters that Balfour’s decision to go it alone was a ‘brave move’, and that Carillion’s management would have brought ‘great benefit’ to Balfour.

These have been troubled times for Balfour Beatty, as it reported that pre-tax profits for the first six months of 2014 had halved to $36.68 million. The British firm had built the aquatic centre at London’s Olympic Park and is tasked with revamping the Olympic Stadium ahead of West Ham United taking over the tenancy.

Despite having operations in 80 countries, the construction giant has struggled in the wake of the financial crisis.

A lack of building work in the UK and the cancellation of jobs in Australia has seen the company cut hundreds of jobs in 2013.

The contractor remains determined to sell off Parsons Brinckerhoff as it had ‘not delivered the material competitive advantage it had expected from being able to service

SEPTEMBER 2014

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solution, and through purchasing and procurement efficiencies.Information and communications technology (ICT): utilising Carillion’s outsourced back-office solution, and through standardisation of systems and processes. Property: consolidation of the two groups’ property portfolios in overlapping areas, including head office and finally, other: agency labour, fleet, insurance and general overhead savings, including through the application of Carillion’s lean operating structure,” the statement explained. “The Board of Carillion expects that it would deliver these synergies progressively, anticipating that 40% of them would be achieved by the end of 2015 and the full 100% by the end of 2016 (assuming, for these purposes, that completion of the merger occurred by 31 December 2014),” it elaborated.

“It is expected that the realisation of the identified synergies would result in one-off exceptional cash costs of approximately £225 million, largely incurred in financial years 2015 and 2016.”

In response, Balfour Beatty said that the statement from Carillion did not address the significant risks set out in its initial concerns.

“To benchmark a series of theoretical cost reduction opportunities, represent them all as synergies, and further, to represent them as incremental value creation directly arising from the merger proposal is incorrect,” a Balfour statement said a rather tersely worded response to Carillion.

“Several key business plan assumptions suggest an analysis based on the integration of businesses smaller than Carillion’s, rather than one that is substantially larger. In particular, the substantial rescaling – possibly by up to two thirds – in the revenue of Balfour Beatty’s UK construction business would eliminate future earnings recovery potential. It would also incur cash outflows of many hundreds of millions of pounds of restructuring costs and working capital,” Balfour asserted.

“As a result, the Board of Balfour Beatty has serious reservations as to the achievability

13

NEWS ANALYSIS

design and build contracts.’ This is despite admitting that the consultancy had performed well and grown under Balfour’s ownership.

Joe Brent, head of research at Liberum Capital, told Big Project ME that he believed that a deal now looked less likely than ever, given the stances between the two parties. However he expressed a note of caution as the magazine went to press.

“Carillion could still go hostile, although that’s unlikely. Other potential bidders may view Balfour Beatty as ‘in play’. The sale of Parsons Brinckerhoff is on track and although the list of bidders is getting shorter, we believe that the process is competitive,” he said.

“Balfour has recently failed to win contracts in its own backyard, such as the Northern Line extension and track renewals. However, a number of exciting opportunities are appearing on the horizon, such as HS2, Thames Tideway and Power. The key is clear margins rather than volume,” Brent explained further.

Although he pointed out that UK and US construction was recovering, Brent admitted that short-term risks existed as legacy contracts are worked through.

bigprojectMe.com

“in ouR BoaRd’S judgEMEnT, iT waSn’T a cREdiBlE PRoPoSal ThaT waS going To fix all ThE RiSkS foR BalfouR BEaTTy ShaREholdERS”

Elsewhere, including the Middle East, it is addessing issues regarding operations and its ability to compete for new work.

“The group has re-focussed operations in the Middle East back to Dubai following cost overruns on some M&E building projects.

Delays in Australian tender opportunities and withdrawal from a significant PPP rail tender due to risk has prompted the group to no longer bid for new rail contracts in the region,” he said.

14

MIDDLE EAST

TunnEl viSion The two companies would form a strong multi-disciplined entity.

SEPTEMBER 2014

Meanwhile, the consultancy firm at the heart of this continued to see significant progress in its future, the researcher explained to Big Project ME. “The sale of Parsons Brinckheroff is well advanced. Round three bids are expected very shortly, with completion before the end of the year. We still expect a headline valuation of $1.16 billion but significant friction costs. We expect a buy-back of $333.8 million. Together, we expect 20% dilution, and a similar size dividend cut to reflect the reduced size of the business,” he added.

It remains to be seen what happens to Balfour Beatty. Despite being the larger company, it remains vulnerable to the more stable Carillion. As such, there is a long ‘to-do list’ for it to complete, as Brent explains.

“They need to refocus the group to reduce complexity and risk. They also need to conclude the Parsons Brinckerhoff sale and then restore their UK construction operations to peer group margins. Then they need to recruit a new CEO and re-focus as a UK-US construction business, with other regional joint-ventures retained subject to being value accretive.”

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SPECIAL REPORT HOSPITALITY

SEPTEMBER 2014

bigprojectMe.cOm

SPECIAL REPORT HOSPITALITY

affoRdaBlE luxury Are local investors finding value in building budget hospitality units in the city? Big Project ME finds out

less than eight hours of flying time and the city’s aviation infrastructure billed among the world’s best, addressing the hotel requirements of a fast-growing segment of travellers will significantly boost our tourism sector.

“Dubai Inn offers a smart environment that delivers comfort and convenience at great value for guests,” Meraas’ group CEO added. “The locations have been selected to provide easy access for travellers to the city’s prime business and leisure destinations.”

Mohamed Alabbar of Emaar Properties echoed Al Habbai’s views. “With more than 66.4 million passengers passing through the Dubai International Airports in 2013, and the number expected to cross over 100 million by 2020, Dubai must more than double its current hotel room capacity to meet the growing demand from business and leisure travellers.

“The new generation of travellers demand smart lifestyle choices that also offer all the functionality that they expect. Designed to meet their aspirations and needs, Dubai Inn will be a game changer for the hospitality, aviation and tourism industry of Dubai by offering unmatched value for the guests.”

According to figures released by Emaar, five-star hotel rooms account for up to 62% of the total branded hotel inventory in Dubai, and 50% of the upcoming

“mArkEt ANAlysis suGGEsts two ANd tHrEE stAr HotEls coNtributE APProximAtEly 22% of room NiGHts iN tHE uAE. two ANd tHrEE stAr HotEls iN tHE uAE HAvE ExPEriENcEd HiGHEr occuPANciEs tHAN four ANd fivE stAr HotEls”

SEPTEMBER 2014

MIDDLE EAST

i

n May 2014, Dubai Inn, a joint-venture by Dubai-based giants Meraas Holding and Emaar Properties launched its first project, which will be undertaken in the Zabeel area. Due for completion by 2015, the Dubai Inn will be followed by the construction of an “additional four properties” aimed at adding: “1,750 new hotel rooms and serviced residences to the hospitality sector.”

Put simply, the big boys have officially entered Dubai’s cut-throat budget accommodation market.

It is difficult to look past luxury when in the land of Atlantis and Burj Al Arab. Pockets of the city, such as Bur Dubai and Deira have long been famous for the inexpensive hotel options they offer. In contrast, Zabeel is where the Ruler’s Palace stands. Abdulla Al Habbai, group chairman of Meraas Holding and Mohamed Alabbar, chairman of Emaar Properties explain the rationale behind the seeming juxtaposition of constructing inexpensive residences in a locality that is often considered to be prime real estate in Dubai.

“Dubai Inn is a smart hospitality brand that complements the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum to further drive the growth of Dubai,” Al Habbai said at the time of the launch. “With two-thirds of the world’s population within

17

SPECIAL REPORT HOSPITALITY

inventory is also in the upscale category.

Dubai Inn hotels, according to Emaar, “will be a preferred choice for delegates who attend the year-round conferences and exhibitions happening in the city.”

Dubai knows a thing or two about conferences. As Big Project ME goes to print, the city’s construction sector alone is gearing up for three exhibitions that will keep the Dubai World Trade Centre and building professionals busy until December 2014.

According to Filippo Sona, head of hotels for real-estate company Colliers International’s MENA operations, Dubai has the highest demand for hotels in the UAE. In 2013, Dubai registered 18.1 million room nights, followed

by Abu Dhabi with five million room nights.

“Market analysis suggests two- and threestar hotels contribute approximately 22% of

bigprojectMe.cOm

room nights in the UAE,” Sona tells Big Project ME. “In Sharjah, two- and three-star hotels contribute approximately 39% of room nights.

“Two- and three-star hotels in the UAE have experienced higher occupancies than four- and five-star hotels,” Sona reveals.

“With the expected increase in the number of visitors in the region, two- and threestar hotels can expect a similar increase in demand in the coming years.

The most active hotel operators in this segment are Accor, IHG, Wyndham, Whitbread and Rotana. 48% of hotel supply in this segment is either locally or internationally branded.

“A two- or three-star hotel would usually offer only hotel rooms, with limited or no F&B, gym, or pool facilities. A property offering strictly apartment units is not considered a hotel, and would be classified

exHiBit 1: Hotel rooM nigHts in tHe uae and gcc 2013 Destination

laurent A. Voivenel Ceo, hospitality Management holdings

Managing on Budget: HMH grouP “when developing two- and three-star hotels, we consider a totally different approach and concept as compared to four- and five-star hotels. these are products catering to two different market segments, and there is a massive difference in terms of quality, standards, facilities and services.

hotel room nights (Millions)

dubai

18.1

abu dhabi

5.0

Sharjah

1.3

fujairah, Rak, uaQ, ajman

1.9

total uAe

26.3

kSa*

51.0

Bahrain

1.9

oman

2.4

Qatar

3.5

total gcc

85.0

“Typically speaking, mid-budget hotels require lower construction and operating costs as well as give a faster and higher return on investment. This in turn dictates our work tactics, which are defined based on the needs of the market we serve. we are not looking to provide luxury here; rather our focus is on value for money, affordable quality and standards. The product is more functional with less emphasis on high-end luxury and facilities. “at the same time, the product has to meet the expectations of the target market. So if one is looking to attract mid-market chinese travellers, one must ensure some basics such as twin beds, chinese dishes on the menu, Mandarin speaking staff, chinese Tv channels and so on.”

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MIDDLE EAST

Source: ScTa, dTcM, adTca, RakTda, BMoc, oMT, QTa, 2014 *kSa data is from 2012 figures as 2013 is yet to be dissiminated.

SEPTEMBER 2014

SPECIAL REPORT HOSPITALITY

bigprojectMe.cOm

exHiBit 2: 2013 occuPancy % and occuPancy growtH % 2009-2013

30 OCTOBER 2014 EMIR ATES GOLF CLUB

2-3 star occupancy 2013

% chance 2009-2013

4-5 star occupancy 2013

% chance 2009-2013

dubai

83.0%

23.9%

81.0%

12.5%

abu dhabi

75.0%

27.1%

67.0%

28.8%

oman

49.0%

8.9%

59.0%

7.3%

kSa

84.5%

18.9%

64.6%

16.8%

Destination

Source: dTcM, adTca, oMT, QTa, 2014

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MIDDLE EAST

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SEPTEMBER 2014

as a serviced apartment or a furnished apartment, as they are known in Saudi Arabia. These are an entirely different category of hospitality establishment and often have a different classification criteria from the government,” he explains.

Chris Service, operations manager at Khansaheb Civil Engineering reveals his concerns about two- and three-star hotel construction in a chat with Big Project ME. “Khansaheb is known for its portfolio of construction work with some of the best hospitality brands in the UAE. We carried out fit-out work worth $46.5 million on the Sofitel Resort at Palm Jumeirah, which, if you ask me, is one of the best top-end hotels in Dubai.

“We have a responsibility when working on prestigious four- and five-star hotel projects,” Service says. “A lot of these high-end units are designed by respected designers from the industry, and it is our prerogative to scan their designs to point out any potential risks or errors we might encounter at a later stage.”

Service concedes this sense of accountability may diminish when building lower rated hotels.

“The responsibility is still there, but some contractors or subcontractors may practice value engineering, thereby jeopardising the quality of materials used in the project.

When you have the best designer working on your project, you want to ensure the quality of work matches his designs.

“But the risk of importing poor quality materials, which may reduce your cost and look the same, yet don’t provide good functionality, can certainly compromise the structure’s overall value,” he says.

Is Service suggesting he would much rather not work on the budget side of the hospitality spectrum altogether?

“No. The two- and three-star hotel segment tends to be very competitive, but there’s a lot of work in the premium sector too at the moment.

“You still have a market for five-star hotels; there is definitely space in the broader market to accommodate two- and three-star hotels.

But if you can get full occupancy in a five-star hotel, then why would you build a three-star?”

Service’s question resonates with Nikhil Rajan, acting general manager for Panorama Group of Hotels.

Seated in a room at the end of a long hallway in Panorama Hotel Bur Dubai, Rajan

Justin wells director, studio hBa Middle east

tastefully feasiBle: studio HBa “we work with clients to ensure our designs are contextual and tell a story. the idea is really to instil a sense of being in the Middle east, and that should not be compromised based on the rating of the hotel. the whole process is about treating every project as distinct as possible. working on retrofits is a relished opportunity.

There are certainly some time and design constraints, but it’s exciting as an activity because it requires us to creatively design. we have a huge market at the moment for retrofits, largely due owing to the readiness people are showing in the market. They want to get a hotel ready and out into the market. we’re getting a lot of enquiries on buildings that can be converted into a hotel and it’s an indicator that dubai isn’t going to slow-down over the next 6-8 years.”

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“wE’rE GEttiNG A lot of ENquiriEs oN buildiNGs tHAt cAN bE coNvErtEd iNto A HotEl ANd it’s AN iNdicAtor tHAt dubAi isN’t GoiNG to slow-dowN ovEr tHE NExt 6-8 yEArs”

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MIDDLE EAST

tells Big Project ME about the challenges of operating a two-star hotel in the city.

“It isn’t easy, and if the group builds more hotels, I hope they’re no lower than fourstar ones,” Rajan candidly says, when asked whether capitalising on the nascent two- and three-star hotels niche is on the cards.

“Getting approvals from various authorities like Dubai Municipality, DEWA and the Dubai Department of Tourism and Commerce Marketing (DTCM) is very difficult when you’re as small a business as we are. They regularly tell us to install new carpets or bedding in the rooms, but given the small profit margins we operate within, it’s difficult to consistently account for the operational costs and still have a decent turnover.

“Our room rates can go anywhere from $54.5 to $408 per night, depending on what time of the year it is. We do really well in the winter months, or during exhibitions like Cityscape (Global) and Gulfood, when exhibitors and visitors from Europe or China find us on travel websites,” Rajan beams.

“The Sri Lankan restaurant downstairs is our USP, and even residents often visit the place.

This is a small set-up and we do our best to provide the services we can within our range.”

No clear definition exists about the services typically offered – or not – by two- and threestar hotels. The ambiguity regarding what their total ‘value offering’ comprises of is compounded in the Dubai market, where luxurious hospitality is the starting point, not an end-target. But if Andrew Barley, partner at GAJ Architects is to be believed, then the definition of ‘value’ is undergoing

SEPTEMBER 2014

exHiBit 3: Hotel Market rooM nigHts 2013 & % exPectedannual growtH till 2018 hotel room nights (Millions)

% expected Avg. yoy growth to 2018

total uAe

26.3

15%

kSa*

2013

51.0

5%

Bahrain

1.9

4%

oman

2.4

8%

Qatar

3.5

3%

total gcc

85.0

8%

Source: dTcM, adTca, ScTda, RakTda, ScTa, BMoc, oMT, QTa,BMI, Euromonitor International, colliers International, 2014 *kSa demand is for 2012

SPECIAL REPORT HOSPITALITY

russel sharpe Coo, Citymax hotels

looking aHead: cityMax Hotels “citymax will launch three new hotels in Dubai and ras Al khaimah by 2017. 120 rooms will be added in Al barsha, 400 in business bay and 200 in ras Al khaimah. the latter is certainly growing as a tourist-friendly spot in the country, and it fits well into our strategy because tourists are our largest customer segment. we’re building the three new hotels for the next decade, and we’ll design them keeping with the feedback we have collected from our customers. we haven’t decided on any consultants or contractors we’d like to work with on this project; the designs are currently being drawn up through

a revamp, as he tells Big Project ME. “Apple and Microsoft became ‘cool’ because young people started the companies. The youth has some of the greatest ideas and that’s relevant to the hotel industry because operators are understanding these are the real travellers today,” Barley says. “The next generation of three-star hotels won’t have a reception per se; you’ll book your room online and be greeted by a steward and an iPad at the entrance.

“You may not get fresh fruit or a free pen in your bedroom, but you’ll have 24x7 Wi-Fi access and all your functions will be controllable via an electronic device. The transition is towards cleaner and sleeker hotel experiences.”

Dubai Inn hotels by Meraas and Emaar will feature “self-service facilities to provide an effortless guest experience, including self-check-in, gym and mini-cars or electric cars provided through an external agency.”

Furthermore, an “informal dining experience” will be created across the hotels to satisfy “guests from Europe, Africa, China, Southeast Asia and the Indian Subcontinent.” Colliers’ Sona looks at the historical data and says that this strategy could serve Dubai Inn well in the future.

“The two- and three-star hotel market in the UAE mainly attracts corporate demand from Southeast Asian countries and Arab states such as Egypt, Jordan and Kuwait.

The leisure market has been growing too, as more price-sensitive visitors from Asia, Eastern Europe and Commonwealth of Independent States (CIS) countries prefer staying in Dubai on a budget.”

in-house capacities. But we will certainly look at

faster downloading speeds. The rooms will also feature interactive television systems. The idea is to create an environment where our customers can feel comfortable. That’s why we’ve taken their suggestions, such as the inclusion of more drawers and larger cupboard spaces, and will implement them in the new hotels.

The Gcc’s budget hotel category will be very competitive in the upcoming years. we’ll continue to

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dimensions and the bedding will be made more

visitors to maximise their use of gadgets with

NOVEMBER 18, 2014 CONRAD DUBAI

PL AT I N U M SP O N S O R

The hotels will feature bigger rooms than typical

a technology hub in the hotels, enabling our

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working with external interior design agencies.

comfortable. we’re even looking at including

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C ATE G O RY SP O N S O R

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trim the costs and redirect savings to guests without

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sacrificing comfort, design and functionality.”

23

Site ViSit – Jewel of the creek

26

SEPTEMBER 2014

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Site ViSit – Jewel of the creek

Waterfront Splendour

Project name

Jewel of the Creek

Project type

Mixed-use development

Investor/Owner

Dubai International Real Estate

Architect

Kling Consult

Main contractor

Al Habtoor Leighton Group

Waterproofing subcontractor

BMC Emirates

SEPTEMBER 2014

MIDDLE EAST

Big Project ME visits the Jewel of the Creek, a massive mixed-use development being built along the Deira shore of Dubai Creek. Gavin Davids reports

27

Site ViSit – Jewel of the creek

bigprojectMe.com

MixEd uSE dEvEloPMEnT The site will house a hotel, serviced apartments, offices and retail outlets.

F

28

MIDDLE EAST

or the last two years, residents in the Dubai district of Deira have been watching with interest as a mammoth excavation has been going on alongside the Dubai Creek. Situated between the Floating Bridge and Al Maktoum Bridge, the Jewel of the Creek project has become one of the more eye-catching of Dubai’s projects due to the sheer size of the construction site.

The 123,955sqm site will be home to an array of mixed-use facilities, such as a four-star hotel, residences, offices and retail outlets.

Early in the summer, it was revealed that the locally based Habtoor Leighton Group had signed a $395 million contract with Dubai International Real Estate to deliver Package #8 of the Jewel of the Creek project in Port Saeed.

Although the deal was only announced in July, the contractor has in fact been working on the project since 2012, when it was awarded

SEPTEMBER 2014

a $130. 68 million contract for Package #7.

This included the construction and completion of substructure works for four basement levels and ground floor slabs on the waterside site. The initial scope of the deal meant that HLG was responsible for the construction of all rafts and four-level basement slabs, the construction of the project’s ground floor slabs, the embedded MEP works (first fix) and miscellaneous earthworks.

Furthermore, the construction team will also focus on re-anchoring diaphragm walls, pile cutting and trimming, waterproofing works and reinforced concrete works.

As part of its remit for Package #8, the contractor will include the construction and completion of five hospitality buildings, ranging between 15 and 19 floors. These will feature a hotel and serviced apartments, a ballroom and an attached café.

Site ViSit – Jewel of the Creek

HLG will also construct a marina, which will include four footbridges and one vehicular bridge. Hard and soft landscaping works will also be carried out by the firm, says Hassan Slim, project director for Habtoor Leighton Group.

“The Jewel of the Creek is being delivered in line with the vision set forth by His Highness Sheikh Hamdan Bin Rashid Al Maktoum. Geographically, strategically, technically and commercially, it is one of the most significant projects under construction in Dubai,” he tells Big Project ME during an interview about the mega-project.

Unlike the majority of major projects in Dubai, the Jewel of the Creek isn’t a highrise building. Given its huge footprint and location, there are a number of factors, which are not typical of vertical buildings, to take into consideration during the planning, design and construction process, Slim points out.

“Due largely to the project’s location between Baniyas Road, two bridges and the water, logistics and resource management rank high as the site’s biggest challenges – with preparation and planning being the keys to success,” he explains.

“One example of this is that heavy transport is not permitted on the bridges, therefore several temporary access points have been specifically prepared to move material from the mainland to the project site.”

Slim adds that work on Package #7 is now complete and the project team is now focused on achieving their targets for Package #8.

Due to the project’s location, the movement of building materials and equipment in and out of the site poses a major challenge to Slim and his team. With seven tower cranes on-site, there is obviously a massive amount of material to be moved around.

At present, there is significant scaffolding work underway, as the project team prepares to begin above ground work construction. It is important that this begins and completes on schedule as there are a number of other aspects of the project that are dependent on it.

“The focus remains on completing the structural work on time as construction of the canal cannot commence until structural construction is complete, and the cranes have been removed,” Slim explains.

To achieve this, the project team is

Package #7 data n Contract Value: $130 Million

n Commencement: 2011

n Completion: 2013

Package #8 data n Contract Value: $395 million

n Commencement: 2014

n Completion: Q3 2017

consultant services n Consultant: Kling consult

n Partner: Kieferle & partner

n MeP engineering: ian banham

n Period: 2005 - 2015

n Client: Dubai international real estate (Dire)

n estimated Cost: $1.3 billion

SEPTEMBER 2014

MIDDLE EAST

“GEoGRaPhically, STRaTEGically, TEchnically and coMMERcially, ThE JEwEl of ThE cREEk iS onE of ThE MoST SiGnificanT PRoJEcTS undER conSTRucTion in duBai”

29

Site ViSit – Jewel of the creek

bigprojectMe.com

STRucTuRE dEadlinE Work on the canal cannot be completed until the structural work is finished.

utilising a construction crew of 500 people, including staff and labour. Once construction is at peak, it is expected that this number will jump to more than 1,800 people.

Work on the site is expected to pick up in the coming months, with the team pencilling in September for an upswing in productivity as that is when the summer work restrictions will be loosened. At present, the labour crews break from mid-day till late afternoon.

The recent Holy Month of Ramadan also necessitated a further slowdown in the progress of construction, as crews were allowed to work half days in deference to the holy month.

Slim insists that the health and safety of the construction crew take priority on the site, and says that HLG has established clear guidelines to ensure that labourers are kept hydrated and safe.

“Establishing clear occupational health, safety and environment principles, policies and

procedures remains a priority for the Group, and there are weekly training and education workshops underway to ensure continued focus, which cover both general subject matter, and also more specific topics – relevant to the location and proximity to water,” he explains.

With construction work on the project expected to be completed by the third quarter of 2017, the HLG team faces a tight construction schedule to ensure that the $816.7 million project is delivered on time.

However, Hassan Slim remains confident that the project will be finished on time, ensuring that Dubai will have another high profile landmark to showcase.

“Upon completion, it is envisioned that the Jewel of the Creek will be one of the most sought-safter addresses in Dubai,” he assures Big Project ME, as he brings the tour of this remarkable site to a close.

Protecting the Jewel the Sika group was appointed to waterproof the basement levels of the jewel of the creek, which is being built alongside the Dubai creek.

Basement construction of the project includes an area of 125,000sqm, with four storeys of parking. as such the area to be waterproofed covers an area of 170,00sqm. this waterproofing process will be crucial to the success as a canal structure will be constructed across and cover the entire basement complex. therefore, the basement structure demands 100% watertightness against the salty ground – and creek water. as such, Dubai international real estate, the investor, and Kling Consult, the consultant, opted for Sika due to its proposal of loose laid Sikaplan WP 1100-20HL sheet waterproofing membranes, which would be combined with the use of

30

MIDDLE EAST

“hEavy TRanSPoRT iS noT PERMiTTEd on ThE BRidGES, ThEREfoRE SEvERal TEMPoRaRy accESS PoinTS havE BEEn SPEcifically PREPaREd To MovE MaTERial fRoM ThE Mainland To ThE PRoJEcT SiTE”

SEPTEMBER 2014

Sika Waterbars, as with which the entire waterproofing area is compartmentalised. each compartment is installed with injection ports, which will allow the injection of sealing resin into compartments in case of leaks at any time during the project’s service life.

In PRofIlE donna sulTan

bigproJectMe.CoM

STayInG power

Veteran CEO Donna Sultan talks about KEO International Consultants’ journey to becoming one of the world’s biggest construction services firms

t

32

MIDDLE EAST

he answer to where KEO International Consultants is making a name for itself may not be in the title. Indeed it celebrates its 50th year with almost two-thirds of its workforce servicing its burgeoning project management business, says the long-serving person at the helm.

While KEO offers many different disciplines from its nine offices based worldwide – such as architecture and engineering – Donna Sultan, the 23-year veteran CEO of KEO, reveals that project management accounts for the majority of revenue, with 60% of staff dedicated to it.

“Project management has grown steadily, certainly in the last eight years,” she reveals. “A lot of our architects have moved into this field.”

KEO was recently ranked as the 87th biggest design firm in the world by industry authority ENR; for a company that was created in mid-1960s Kuwait it is a remarkable rise.

Sultan recalls her first introduction to the company she would lead a decade later as a management consultant in 1982.

“In the early 1980s, I was invited to do some management consultancy for KEO on an assignment basis,” she says. “I was very impressed, even then, with the sophisticated level of organisational thinking from their management. I can only describe it as visionary.

“I was then offered a position in their management team and over time I developed a total passion for ‘everything KEO’ – what it did and achieved as an organisation,” she explains. “I’ve been privileged to have been entrusted with the CEO position since 1991 and the opportunity to carry on the vision of KEO from its previous leadership.

It’s been a lot of years of learning about the business and what makes a good consultant. I developed a passion and I found my place.”

With KEO celebrating its 50th year Sultan can look back at the many highlights

sEPtEmbEr 2014

she has experienced along the way.

“There have been some pretty outstanding milestones – mostly when we concluded some world-class jobs such as the Emirates Palace and we can say ‘well done’,” she remarks.

“A moment that stands out for me was, many years ago, when I first saw KEO being officially ranked among the top international firms in the world. For me that was a validation that there was absolutely no reason why a regionally-spawned consulting firm could not reach the ranks of the best of the best.”

Sultan admits that there have been some trying times, particularly during the years of 2007 and 2008.

“The most challenging part of my job was making decisions to keep the firm financially viable, while not compromising the level of service we must provide. It’s been a very tough time, not just for KEO but for all consultants and all business to survive the downturn.

While many will say there is an upswing, there remains very strong competition for

“oNE of tHE most ENjoyAblE PArts of my job is PArticiPAtiNG iN AN ActuAl ProjEct ANd bEiNG PArt of A crEAtivE ProcEss witH A tEAm – it’s just sucH A HiGH to bE AmoNGst tHEsE AmAziNG tAlENts”

work and the marketplace is extremely price driven, not always for the benefit of projects.”

This upswing has helped to improve the situation in Dubai, with KEO’s operation going through a regrowth mode in the emirate in the last two years.

“We went from a large to a small to a medium-sized office populated with architects and engineers. There’s been an increase in requests for proposals on a regular basis now and that’s great to see. Some of them are impressive and very large scale, so I’m bullish again about work there. It’s been a jolt in the arm to all of our folks because people enjoy doing projects in Dubai.”

While the UAE and Qatar are high on KEO’s priority list, the firm retains its emotional and physical attachment to Kuwait, the country where it was founded and based. “Kuwait will always remain important to KEO – our roots are there,” says Sultan. “Recently we’ve been awarded some hospital work in Kuwait and we look forward to participating and playing a role in the delivery. The market has been quiet and there are definitely opportunities here in Kuwait in the short term.”

Currently a key sector for the company, like many other regionally operating firms, is rail. “We’ve had some worthy success in the delivery of rail projects in the region in the past five years and we’ve established important strategic relationships with global experts,” continues Sultan. “We see this as our new frontier for expanding our services. Those programmes are clearly priorities in most GCC countries today. They are unfolding right now.”

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In PRofIlE donna sulTan

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When it comes to new project launches, the firm recently celebrated the opening of the Hamad International Airport in Doha, for which it provided project management services. Other key upcoming launches include Cleveland Clinic in Abu Dhabi and Doha Zoo. Sultan reveals that KEO is also launching an independent design boutique for planning and landscaping architecture.

“We’re excited about this. We took our time over the last five years to recruit some of the brightest and most exciting professionals in planning and landscape architecture and we think we have now built a very exciting team.”

Maintaining a high-powered job, with its remit of decision making, presiding over new ventures and constant international travel is undoubtedly demanding. According to Sultan, a strict daily routine – involving an hour of exercise starting at 4:30AM – helps to maintain her energy. “I try to keep to a somewhat consistent routine in my life. I particularly like going outside in the morning, in my hotel, or on our farm at weekends,” she says.

“To keep your mind and body healthy is paramount. For me, a daily routine of exercise – walking, biking, or swimming – is absolutely key and helps to boost my energy. Of course, you also need a solid sleep to maintain a high octane life.”

As one might expect, the CEO of a large multi-disciplinary consultancy, with a global footprint, is unlikely to be sitting in the same office, day in day out. “I’m based in an airplane,” jokes Sultan. “We have so many offices in the Gulf that I’m constantly roaming around to all of our operations. I’m always on the road, but technically I’m based in Kuwait.”

Born in France, Sultan was raised in Boston yet – despite her North American twang – primarily identifies herself with the Gulf region. “I find living here an adventure till this day, being out here for more than 37 years. It is a global experience with so many nationalities working in the region.”

Sultan may be one of the few female CEOs in the regional construction industry, but points out that the situation is similar throughout the rest of the world.

“If you look at our construction industry, especially the architectural, engineering, consulting world, it’s really male-dominated,” points out Sultan.

“In the US, women make up less than 10% of those in the construction industry, so it’s not really surprising that regionally we would

sEPtEmbEr 2014

bigproJectMe.CoM

PErsoNAl HiGHliGHt The Emirates Palace project is one of Donna Sultan’s personal highlights during her time at KEO.

ANNivErsAry yEAr KEO is celebrating its 50th anniversary this year.

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HiGH Priority The UAE and Qatar are high priority markets for KEO, Sultan says.

sEPtEmbEr 2014

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sEPtEmbEr 2014

MIDDLE EAST

NEw HorizoNs Donna Sultan says that KEO is on the cusp of launching an independent design boutique.

see a similar pattern, compounded by a lesser pool of qualified female professionals. Yet I’m pleased to say that women make up 16% of KEO’s population, and 25% of our executives.

She adds that the industry gender bias is steadily changing across the region.

“There are more women entering architecture and engineering,” Sultan states.

“And I’ve personally seen over the last few years far more women in our profession, especially on the client-side taking on major roles in project delivery. Some of them are very good at what they do.”

The 2014 Social Progress Index, by Harvard Business School, ranked the UAE as number one globally for ‘women treated with respect’, with Kuwait fourth in the list.

Sultan says that she is not surprised by these findings: “I think there has been an explosive evolution in the last decade, with a greater respect and opportunities being given to women in the work environment.

It’s now becoming quite the norm to see women in very powerful positions.”

When asked about the most enjoyable aspects of her job, she replies: “That’s really easy to answer and I’ll tell you the three most enjoyable parts. The first is when I actually get to participate in an actual project and be part of a creative process with a team – it’s just such a high to be amongst these amazing design, engineering and management talents.

“Another enjoyable part is mentoring the professional growth of individuals to fulfil their own potential. I feel that is now something I need to concentrate on, as the whole organisation benefits from being able to provide professional growth. Also, the sheer joy of winning new work after hard efforts against very tough competition.”

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39

QUANTITY SURVEYING

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QUALITY OVER QUANTITY

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The evolution of quantity surveyors has been driven by spirited developers, modern technology and the need to differentiate the role from cost consulting, Neha Bhatia finds out

SEPTEMBER 2014

QUANTITY SURVEYING

S

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Greater influence Quantity surveyors now have greater influence on construction projects in the GCC region.

ince Dubai’s victorious Expo 2020 bid was announced late last year, the UAE construction industry, led by the government sector, has made significant inroads into demystifying the role of quantity surveyors in the country.

In November 2013, Abu Dhabi Finance (ADF), a branch of the Abu Dhabi government, signed a memorandum of understanding with the Royal Institute of Chartered Surveyors (RICS) to improve market transparency and promote investor confidence in the UAE. More recently, Dubai Land Department (DLD), the Dubai Government’s property regulatory arm announced in April 2014 it will adopt International Property Management Standards (IPMS) to enhance its property measurement techniques.

RICS’ involvement in the currently-bullish UAE property sector is not incidental; Dubai’s real estate market has seen phenomenal highs and petrifying lows in the run-up to the market crisis of 2008/2009. The Abu Dhabi property market is also quietly and steadily forging ahead, on the back of developments by property giants such as Aldar Properties and the emirate’s government. While reminiscent of the months leading to the previous boom-bust cycle, the fast-paced growth of the UAE’s markets this time around looks set to be shouldered by the various construction quantity surveyor and cost consulting firms in the country.

“Clients these days take more notice of us and our cost advice than they did in the past,” Ralph Hodgkinson, managing director of Trafalgar Technical Services (TTS) tells Big Project ME. “Developers are now more cost-conscious than they were before.”

Hodgkinson’s colleague, Richard Taylor, senior quantity surveyor at TTS, adds to this sentiment: “We were just a bank figure earlier. The client wanted to build; he would find a builder who could do it for him, and everyone else was in the background.

“But we’re listened to a lot more now, and some of the clients we work with really engage with us as against setting us into a corner as was the case back then. We have a lot of knowledgeable clients who understand where we’re coming from. This approach was missing previously,” Taylor recollects.

“America still struggles with fully understanding what a quantity surveyor does, but thankfully, we have overcome that hurdle here.”

It wouldn’t be unfair to challenge Taylor on that statement, however. Defining the actual

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QUANTITY SURVEYING

QS EngagEmEnt “The Dubai market for quantity surveyors has changed a lot over the last decade. Clients have begun to understand that we have an internationally recognised method of operating which should not be altered. For instance, we prepare a bill of quantities (BoQ) after the final design has been approved. However, clients in the past were accustomed to altering designs while the BoQ was being prepared, leading to abortive works and increased costs. Clients are more engaged nowadays.

“Small-sized developers can tend to be easier to work with because they see the bottom-line results, which is not something a large-sized developer might immediately consider. Quantity surveyors can act as middlemen between the various construction parties to ensure that the project targets are met.” – Richard Taylor and Ralph Hodgkinson, Trafalgar Technical Services

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role of quantity surveyors is a topic as hotlydebated as the justified – or not – belief that their functions are the same as cost consultants’.

Erland Rendall, director for Currie & Brown’s operations in Dubai, plays myth buster. “’Brick-counters’ is the most common generalisation of a quantity surveyors’ function,” Rendall says. “Indeed, even clients and occupiers/users have strong views of construction, with the two main parties – designer and constructor – recognised for either having created the design or enabled its construction.

Quantity surveyors are viewed as secondary and perhaps adding little value to the end product.”

Rendall argues for quantity surveying to be recognised as a professional discipline.

“Surveying is undertaken to manage all costs relating to building and civil engineering projects, from the initial calculations to the final figures,” he says. “Quantity surveyors seek to minimise the costs of a project and enhance value for money, while still achieving the required standards and quality. They lead in the process

of procurement, tendering and contract award.

“The role will then move into the post-contract stage which, dependent on contract form, will either administer the contract or support the employer’s representative or engineer in the administration of the contract,” Rendall adds.

How different is this role and its functions from those of a cost consultant? Not very, if you ask James Parker, projects director for Mott MacDonald and RICS Valuation Professional Group member for the MENA region.

“The functions are similar in many ways; prediction, control, forensics and the production of information to enable decision making,” Parker says.

“However, determining the true benefits case and driving out the value proposition of the asset and long term potential ‘in-use’ savings is more associated with cost consultancy.”

Parker points out that the interchangeability of the terms can be attributed to the many similar activities between the two disciplines.

“Cost consulting seeks to advise clients

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“cost consultinG seeks to advise clients about the cost of their proposed asset throuGhout its lifetime. Quantity surveyinG, by its connotation, is much more related to project development, determination of capital expenditure and construction contract administration”

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QUANTITY SURVEYING

about the cost of their proposed asset throughout its lifetime. Quantity surveying, by its connotation, is much more related to project development, determination of capital expenditure and construction contract administration,” he emphasises strongly.

The distinction between cost consulting and quantity surveying has also blurred over the years due to surveyors aiming to enhance the market perception of their services. “Individuals and businesses have looked to rebrand themselves as construction cost consultants rather than pure quantity surveyors,” Rendall says, “evidencing the enhanced portfolio of services that are offered whilst seeking to remove a traditional label and ensure a more attractive and contemporary image. The functions do overlap, with quantity surveying providing the foundation skillset and expertise.”

However, asserts Rendall, there are nuanced differences between the two functions. “In contemporary construction environments, the demand is generally for cost consultancy; quantity surveying forms a part of that overall

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specialist advice Quantity surveying is a specialised field that offers clients greater insight into their projects, experts say.

SEPTEMBER 2014

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service and provides the core discipline and skillset on which cost consultation is then built.

“The addition of specialist strategic advice; business and financial planning; optioneering; value and risk management; specialist procurement; contract and legal advice as well as project delivery and operational aspects of project costs result in a subtle but clear differential between the two service offerings,” Currie & Brown’s director of Dubai operations says.

As is the case with most disciplines in the UAE’s construction industry, technology is playing a pivotal role in advancing and altering the services provided by quantity surveyors in the country. Parker highlights the significance of BIM in this regard: “Increases in computing power, in terms of applications and data volumes; and the use of BIM mean that far more information can be created and possible design options analysed beforehand.

“Furthermore, ‘big data’ capability is now allowing for more information to be captured; therefore, cost modelling

Quality SurvEyorS “Quantity surveyors’ role in a dispute is significant as most disputes result in commercial consequences. Irrespective of whether design, specification or construction issues progress to a dispute, time and cost are of consequence; both are core areas of expertise for quantity surveyors.

“Ideally, surveyors will be able to resolve most issues prior to a dispute. However, where ambiguity appears, the ability to assess objectively the performance of any party, within the terms of the contract, sits squarely with the surveyor. Quantity surveyors generally sit centrally between the client, designer and contractor. Therefore, the surveyor has a unique role in arbitrating or reconciling differences of view, thus providing a facilitation role. This is built off both, experience and expertise; and the core professional training of the QS in all commercial and legal aspects of a construction project.” – Erland Rendall, director, Currie & Brown (Dubai)

QUANTITY SURVEYING

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“Quantity surveyinG, by its connotation, is much more related to project development, determination of capital expenditure and construction contract administration”

SEPTEMBER 2014

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has the capability to become far more structured and predictable,” Parker adds.

Rendall agrees with Parker’s views on BIM. “It is now a key trend due to the ability to sequence time and cost into the digital model prior to actual physical construction taking place.

“The requirement, then, for workflows to operate effectively within the digital environment is a pre-requisite,” Rendall continues. “With new methods of designing and constructing including robots, 3D-printing etc., the continued development and evolution of the quantity surveying and cost consulting industry will be maintained in a Darwinian type fashion,” Rendall continues.

“Advances in technology and service offerings mean the development of quantity surveyors into cost consulting and then across the whole asset life, has enabled surveyors to form a new lead role which is respected and valued across the whole life of a project.”

CliEntS nEEd CoSt ConSultantS “At the end of the day, a client is not a technical person. He or she may be surrounded by an army of technical experts for support, but generally, most specialised aspects of a project are outsourced to the right experts from relevant fields.

“The client has to arrange his priorities to ensure project clarity; the role of value engineers ends here, however. A cost consultant is involved in the intricacies of the construction processes. For instance, a cost consultant could recommend alternate product options which could reduce costs by, say, 25%. In my opinion, that is the role of the cost consultant, and their significance in a project, on a scale of one to ten, is a very high 7.5.” – Benoy Kurien, general manager, Al Hamra Real Estate Development (Ras Al Khaimah)

Special Feature FAçADES

bigprojectMe.com

FaÇades Smarten Up

Can innovative facades change how our buildings perform?

Neha Bhatia investigates how science is improving the functionality of façades

G

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CC construction markets are riding high in anticipation of the two global megaevents coming to the region within the next decade. Energy efficient practices are now leading the construction industries in the region and sustainability targets are now being implemented for every element that goes into the creation of a structure.

Technology has crept into the workings of the construction industry, and façades have greatly benefited from this advancement.

“The skin of a building has a profound effect on its performance. Simply put, an intelligent façade uses physics to control and make the best of what’s given by Mother Nature,” Matt

SEPTEMBER 2014

Kitson, regional director for Hilson Moran’s operations in Qatar tells Big Project ME. “The façade’s performance impacts the mood of the people living or working in the building; a good façade can even promote energy efficiency in the building.

“In the early days, you had things like soft coatings on double-skin glass to cut out 70% of the heat from entering the building or allow 50% of the sunlight in,” Kitson recollects.

“Projects in Germany introduced me to double-skinned façades. Each of these techniques were clever at the time, but the market has changed since the time.”

Change there has been, indeed. Intelligent

façades are now becoming the first-choice for some environmentally-conscious pockets of the GCC’s construction markets, and traditional façades are being made to adapt to the local climate conditions in the region.

“A derivative of nanotechnology which has been around for a while has now been licensed in Qatar, and we’re currently testing it out on one of our projects,” Kitson reveals. “It entails the use of paint, which is manufactured

by Japanese research labs working for their national space agencies to protect the nozzle of their rockets from externalities such as dust and deflect sunlight too.

“The paint is basically applied on the tip of

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Special Feature FAçADES

Giorgio Buffoni associate, Façade engineering, arup

IntellIGent or responsIve? “An intelligent façade is one which reacts to the external and internal environment and modifies its performance any time of the year according to factors including location, orientation, and other user requirements. “the façade becomes even more interesting when form and function work in close harmony, as in the al Bahar towers, which uses a responsive façade system.

“It is important that we find the right design balance and compromise between divergent factors, such as solar gains versus daylighting penetration, transparency and view through versus thermal performance.

“Challenges are mainly related to the durability of the various components of any possible

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movable part.”

SEPTEMBER 2014

bigprojectMe.com

rockets, and we’re now using canisters of that paint to coat the buildings we’re working on,” Kitson proudly continues. “The whole process employs a really cool science, but in reality is as simple as some paint in a tub being used innovatively. We’re yet to see how it impacts the overall building performance, whether it’s available in other colours and other such factors, but this idea could have a huge impact on the industry, especially for residential projects like small buildings and villas. It is quite commercially viable, I can tell you that.

“Another technology we’re keen on bringing into the Qatari market is electro-chromic glass, which contains photo voltaic cells that enable the transition of a façade’s appearance and rate of sunlight deflection,” Kitson reveals. “We’re working with our partners here to hopefully use this glass on some of the World Cup 2022 projects too. It is a very relevant alternative for sectors which comprise of high-rise towers with glass façades, and it is also becoming very economical by industry standards now.”

However, enhancing energy-efficiency through façades will require more than just such simple solutions. Agnes Koltay is the founder of Koltay Façades Engineering, a consultancy she launched in 2011 after 15 years of experience with multinational firms in both, Europe and Dubai. Speaking to Big Project ME, Koltay insists the definition of an ‘intelligent’ façade is more complex than it is currently viewed as in the local construction market.

“In my definition, every façade is intelligent if designed with awareness of the local climate and solar conditions, and suitably implemented,” she says. “The same, simple glazed façade can provide very good energy efficiency, natural light conditions, air and water sealed enclosure,” Koltay says. “It depends on how the façade is designed, built, oriented, framed, placed, interfaced and combined.

“Otherwise, intelligent façades are either climate adaptive (responsive) façades, where solar or thermal conditions may trigger a change; or façades with a secondary function designed in, such as energy creation or heat exchange or ventilation.”

One such façade system, according to both, Koltay and Kitson, is the one created for Al Bahar Towers in Abu Dhabi, UAE. Giorgio Buffoni, an associate in the façade engineering department of Arup briefs Big Project ME on how the Al Bahar façade was put together.

“Whilst working on Al Bahar Towers, one of the references we frequently used was the movable shading system installed at Medina in Saudi Arabia, made of big umbrellas installed a few years ago and still perfectly functioning,” Buffoni reveals. “One of the first interesting examples of intelligent and adaptive building is the Institute of Arabian Affairs in Paris, designed by Jean Nouvel. A more recent example is the MediaTIC in Barcelona, by Enric Ruiz-Geli.

Special Feature façades

“A fully functional 1:1 scale prototype was built and tested in a wind tunnel facility and in a climatic chamber,” Buffoni adds. “More than 30,000 opening/closing cycles were simulated at different temperature ranges, applying sand and salted water on all the critical joints. This process was essential to demonstrate that the concept was feasible.”

Buffoni’s revelation about how Al Bahar’s façade system was created sheds light on the need to put offbeat and unconventional methods to test. In a region where building tall is a natural instinct, it is critical to consider the safety aspect of those installing façades onto the towers spanning dizzying heights.

“Intelligent façade installation does not necessarily need extra skills, but needs the collaboration of a number of different skillsets,” Koltay opines. “This means people need to closely coordinate and collaborate to achieve a complex and integrated end product.

“The same goes for façade design:

façade engineering combines structural, architectural, fire safety, acoustic, material science, building physics, electrical and other such disciplines,” she says.

“My background in construction lies in MEP engineering,” Matt Kitson adds. “I gradually moved to façade engineering when I found the amalgamation of disciplines it requires.

“Sometimes, you come across clients who are more aware of the ‘intelligence’ aspect of façades and other such units. The lower you move down the food chain, you’re less likely to find such awareness,” he continues.

“Unfortunately, solid communication channels are rarely established between the main contractor and other project parties.”

Kitson explains the communication breakdowns which may plague an ambitious project in the region.

“For instance, the architect and engineer may have been procured through a tender released separately from one

for the main contractor. Furthermore, architects and engineers are rarely in charge of on-site supervision.

“In such a scenario, they may find that their project designs have not been implemented as required, either because the subcontractor was not adequately explained about the project demands, or the builders undertook ‘value engineering’ without prior approval.

It’s a shame when this happens,” Kitson rues.

Buffoni echoes these opinions, attributing the success of Al Bahar Tower’s façade systems to the project’s developers, the Abu Dhabi Investment Council. “All the different parties need to be fully committed and ready to start a ‘journey’ together. This includes first of all the client – Al Bahar Towers was possible thanks to an enlightened client team,” Buffoni says.

“The design team, the main and the specialist contractors all need to be trained, and they need to have the required skills to collaborate with the design team at each stage

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MIDDLE EAST

“EvEry façadE is intElligEnt if dEsignEd with awarEnEss of thE local climatE and solar conditions, and suitably implEmEntEd. thE samE, simplE glazEd façadE can providE vEry good EnErgy EfficiEncy, natural light conditions, air and watEr sEalEd EnclosurE. it dEpEnds on how thE façadE is dEsignEd, built, oriEntEd, framEd, placEd, intErfacEd and combinEd”

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Special Feature FAçADES

of the process,” Buffoni continues. “If it is true that all projects are different, this is even truer for dynamic and adaptive buildings.

Most of the time, they are based on unique and innovative concepts, and they need to be approached with this spirit in mind. A ‘copy and paste’ from something designed by someone else would never work.”

The local construction market in Dubai and the rest of the UAE has often been criticised for being technologically backward when compared with its European counterparts.

Koltay, however, refutes this belief,

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“thE façadE’s pErformancE impacts thE mood of thE pEoplE living or working in thE building; a good façadE can EvEn promotE EnErgy EfficiEncy in thE building”

SEPTEMBER 2014

bigprojectMe.com

appealing for a more holistic and organic view of the local markets and their operations.

“I don’t think the Dubai market is behind Europe at all,” she exclaims. “The problems in Europe are very different; theirs is not an extreme environment. It isn’t predominantly marine or dusty, and their systems are made to work for those environment conditions.

They’re therefore more likely to use doubleskin façades, since their motive is to increase natural lighting in their buildings.

Electricity is also far less affordable there than it is in, say, Dubai,” Koltay explains.

She contrasts this with the Dubai and Middle Eastern construction environments.

“The biggest challenge in the region is dust.

Fine sand can block movable parts easily,” Koltay says. “Even for fixed features, dust would collect and necessitate more frequent and thorough cleaning. You can often see buildings with dust collecting on the external shading elements or dusty, non-accessible glazing behind such shading. The necessity of cleaning and maintenance access is often neglected until the last phase of the project, when it may be too late to develop an optimal strategy.

Other challenges here are the corrosive marine environment combined with high UV exposure and high surface temperatures.

“You can’t copy everything European designers are doing,” Koltay warns, “else you could end up with much worse results than accounted for.”

Matt Kitson Qatar director, Hilson Moran

CommerCIalIsInG IntellIGenCe “Electrochromic glass is known to effectively respond to the sun, and alter its solar and light properties based on how the sun moves around the building. “the technology involves electric currents running through the cells, which enables the glass to respond to the environment; this is enabled by the photovoltaic cells in the glass, which carry enough voltage to power the transition of a façade over four to five levels. the glass can regulate the entry of sunlight into the building between 2% and 60%, depending on the sun’s placement at a given time of the day. It is developed by Sage Glass in the USa, which has now launched a new manufacturing plant to produce large-sized panels, which is what the industry prefers. It’s getting more affordable now and I suspect within three to five years, it will be highly cost-effective as a façade that responds to solar properties.”

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Special FocuS Technology

SEPTEMBER 2014

bigprojectMe.com

Special FocuS Technology

Synced-up Thinking

Big Project ME explores how certain companies have begun taking the next step in the evolution of construction software and technology, the implications of which could be ground breaking for the industry technologies are now looking to explore the limits of existing technology. The focus of software providers has shifted from the present to what can be done in the future.

“For 30 years, the industry has been very focused on the architecture and engineering part of AEC and a lot of it was trying to describe form and function, but not really getting into any details about how you make things,” says Amar Hanspal, the senior vice-president of the IPG Product Group at Autodesk.

“I think that the adoption of BIM by contractors has (been a big shift). It’s moved the whole conversation from ‘What’ to ‘How?’ for the whole building industry. In some ways, I think that there’s a lot of power there, both in terms of savings and quality that has shown up as a result of BIM adoption by contractors.”

This shift in focus has led to contractors and developers moving away from the traditional use of BIM as a modelling tool and implementing it across the complete project lifecycle. Furthermore, companies are looking to integrate the different streams of technology and create something that is entirely new.

“We’re exploring different technologies,” says Doctor Amr El Sersy, group manager of CCC’s Knowledge Management Division.

“We’re the department that incubates new technology, tries it out and see if it works. We

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B

ack in the 1990s, construction in the GCC was still a fairly simple business. If you were an architect, you did your drawings, you calculated your angles and you laid it all out on paper. If you were a contractor, you made your plans, you consulted the information given to you and you mapped out your construction schedule.

Of course, there was some computing involved, with complex calculations done on desktop computers no more powerful than the latest smart phone. In general though, the industry relied on its traditional strengths of brainpower and experience.

It was only towards the end of the 1990s that the region’s construction industry began to be convinced of the benefits of adding computing power to their arsenal. Those initial steps soon gathered pace and became a flourishing sub-sector of the industry as more and more companies began to see how construction technologies could benefit their work.

Most recently, this culminated in the introduction of a mandatory law from Dubai Municipality which stated that BIM would be used on large-scale projects in the Emirate. While this is a positive move for the market, the development and refinement of technology and technique never really stops.

As a result of the continued push for advancement, BIM and other construction

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Robot technology Robotic Total Stations coordinate automatically with BIM models to update information on site.

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MIDDLE EAST

then move it into job sites and projects.”

“What we’re looking into on the BIM side is more about the inter operability and to make sure that the different platforms – REVIT, ECOSYMS, Tekla systems and so on – can talk to each other in a way that is intelligent. There are challenges that we face in this area, so we have to work with the software suppliers, as well as internally, and come up with solutions. We’re expanding BIM to be much more than being just for coordination and (project) take off,” Dr El Sersy explains.

“We’re trying to integrate all project information, whether it’s planning, budget, progress monitoring, quality control or hand over and commissioning data. We developed an inhouse system called C3D and the main objective of this system is to integrate these different data sources and bring them together in a logical way – which we called Work Packaging Approach.

“If I’m going to work over the next three weeks

SEPTEMBER 2014

on certain activities, I would like to make sure that these activities are my first priority. So I need to integrate them into the schedule to ensure that I’m working on the right priorities. Secondly, I want to make sure that all the prerequisite activities are in place. Are the drawings ready?

Are the materials required for the project ready? Do I have the right resources?” he asks rhetorically. “Fetching this data from a different system and making it easy and available for the user requires us – when we’re preparing BIM – to make sure that it isn’t only the scheme and data that is used to link sources,” Dr El Sersy asserts.

Someone who is extremely well-versed in bringing together various facets of information and creating a cohesive whole is Phillippe Forestier, executive vice president, Global Affairs and Communities, Dassault Systems.

He tells Big Project ME that Dassault Systems have long used 3D modelling for engineering,

“When you WoRk With 3D moDels, you have to unDeRstanD What all the pieces Relate to anD When you’Re looking at the 3D moDel, you have to unDeRstanD hoW it Relates to the global enviRonment”

Special FocuS Technology

Printing Out a Building As researchers move further into the development of 3D printers, contractors are already looking at how the technology can help them complete projects on time, at low cost and with minimal manpower.

The implications for 3d printing technology are huge for the construction industry, as dr amr el Sersy explains.

“We’ve bought 3d printers and we’re experimenting with them and it’s a good tool, but so far we’ve only used it for producing mock ups and not for permanent structures. They’re becoming rather affordable now as a piece of equipment, but it’s not yet where i hope it will be.

“With the advances we’ve made in construction materials and in building equipment, we’ll one day have the ability to build a room using 3d laser printers. We’re not there yet, but with the modularisation of construction and with the advancement of new construction material, we’re taking baby steps towards knowing how to build a model that will be friendly with the printer,” he explains.

aviation and even on space missions. He says that he saw that the natural progression of this technology was into construction, given the similarities it shares with the other industries.

“As a company, we’re opening up to 12 new industries, including architecture, engineering and construction. We think that the construction industry is suffering from the same issues as the ones we faced for years (in the aviation and engineering field). We can provide value in terms of collaboration, in terms of productivity across the lifecycle. That means that we have two axes in our AEC division. One is BIM and the other one to talk about is Smart Cities. That is not just about the building, but it’s about the grid and how we manage the intersection between citizens, cars, transportation, the environment and the buildings themselves,” Forestier explains.

“We’re not just about automating some individual processes, it’s about automating the complete project lifecycle. That means starting with the initial idea, through to design, construction and management across the lifecycle of the project itself.

“It’s the same way we deal with aerospace providers or suppliers. Our purpose is to focus

on the complete lifecycle and the complete organisation. It’s not just about ‘automation’, it’s not just about the ‘tools’ for one type of person working on the projects, it’s about comprehensive organisation on both axes,” the Dassult Systems executive asserts.

“It means that you’re developing projects and data along the lifecycle. When we worked on air planes that could be for 30 years, it could even be for 50 years. So that’s a lot of data. For construction, that’s exactly the same. When you work with 3D models, you have to understand what all the pieces relate to and when you’re looking at the 3D model, you have to understand how it relates to the global environment.

“So therefore, the data has to be up to date whenever you look at the model, whatever the model is,” he adds, pointing out how this technology comes into use when designing road works within a city as it allows designers and engineers to understand the impact from a variety of standpoints, including noise and wind, right alongside the traditional impact studies.

What is also changing in the construction industry is how engineers collect their data.

While they were previously reliant on physically

“it’s really taken off in the last five years,” amar Hanspal adds, “and that’s mainly because of material science. There are more and more materials that you can send down the 3d printing nozzle. it used to be only plastic, then there was metal and now there’s stone, wood and all these kinds of things. people are now fooling around with concrete, so you can start imagining the possibilities,” he muses. “at the university of Strathclyde and the university of Southern california, there are professors who have constructed these rigs where you basically have a nozzle that pours concrete into layers, like a 3d printer would. it’s all done at the right speed and they’ve figured out the right materials so that it’s not drying too quickly or too slowly,” Hanspal reveals. “i think that is the big experiment. a lot of material science has been focused on product manufacturing, but as more research is done on materials for construction, i think

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you’re going to start seeing that applied.”

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Special FocuS Technology

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collected measurements, the industry is rapidly moving towards automation and is developing technology that allows for the immediate transfer of information back to a central hub.

“We’ve tried what we call Robotic Total Stations,” says Dr Amr El Sersy, “and we’re trying laser scanning and photo-geometry,” he adds.

“Robotic Total Stations are total stations and to set them up is very quick and they read your points very quickly. There is a concept called BIM to Field and Field to BIM, where you basically go first into the BIM model, identify the points you need to be measured on site and assign it into the model. You then upload this into the Total Station which will then shoot the actual locations and report back,” he explains.

While the software available for this technique is still in its infancy, and Dr El Sersy concedes that there are still kinks to be worked out, initial results are very promising.

Laser scanning is another technology he’s keen for his team to work on. Having already been used extensively on oil and gas projects, there is a wealth of experience to learn from.

“It’s excellent, but it takes some time to process the data. We’ve had good experiences over the last five years, particularly in oil and

SEPTEMBER 2014

bigprojectMe.com

gas, as well as for testing on some buildings.

For O&G, you have no problems because you can do laser scanning from above – you sit on a platform and can do it in all directions.

But if you use it on buildings, you have to do the scanning quickly, before other objects are built which block your view – or you can do laser scanning every few days, which I’m not sure is very feasible,” he points out.

Obviously, with all this data is the need to store in a safe and secure space. Construction companies have traditionally been very cautious about who they let see their data. After all, a multi- million dollar contract can hinge on the slightest misstep or leak of information.

As such, they’ve tended to rely on secure physical servers. However, this method isn’t necessarily very conducive to the trends

developing in the industry, where more and more companies are looking to amalgamate all the disparate streams of information. There are only so many servers one can have, after all.

Therefore, software providers such as Autodesk have been pushing their clients towards the ‘Cloud’.

“Cloud is more than just modelling. It’s about getting the information out to people. I think in the AEC industry, it’s particularly useful because there are so many companies that need to come together to make a particular building or piece of civil infrastructure. We don’t find too much push back from people for using cloud and mobile in construction applications because of that idea,” Amar Hanspal says.

“We can get into national policies on using data and all of that, but the industry, by and large, loves the idea of taking these hundreds of companies and getting them onto a single backbone and giving the right information to the right person.”

“I really think that the cloud is the next step.

In the industry, we talk about ‘Big Data’ all the time and driving insights from the information.

Right now there’s too much focus on changing the way design and engineering is done using BIM. The long-term play is actually about driving insights, where you’ll be able to predict the next time (you do things),” Hanspal adds.

“Imagine that someone is about to make a design or engineering decision and the system is able to say, ‘I don’t think you should use this material’ or ‘this corner is too tight’,” he says, hinting at a fascinating future where construction software becomes a fullyfunctioning entity that will help achieve new heights in the way we design and build.

“Right noW theRe’s too much focus on changing the Way Design anD engineeRing is Done using bim. the long teRm play is actually about DRiving insights”

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special feature lighting

bigprojectMe.com

A Bright future Following the Dubai Roads & Transport Authority’s decision to introduce LED-powered traffic signals, Neha Bhatia charts the growth of LED in the GCC

D

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ubai Roads & Transport Authority (RTA) is expected to save as much as $245,011 per year following its recently-announced decision to implement sophisticated LED lighting systems across the emirate.

The RTA will replace traffic lights with halogen bulbs using “state-ofthe-art” LED technology which can optimise power consumption by 55%.

“It (the new lighting system) has the ability to provide lighting for longer periods with the least maintenance requirements, besides minimising power consumption,” Maitha bint Udai, CEO of the RTA’s Traffic and Roads Agency says.

“The lifecycle of these units extends to about 10 years coupled with reduced faults; which in turn will improve the level of periodic, preventive and corrective maintenance,” she adds.

SEPTEMBER 2014

RTA’s decision to implement LED is an indicator of how the technology is catching on in the UAE. The steady rise in the commercial affordability of LED units means they are now available as off-theshelf alternatives for energy-conscious consumers. This positivity is also expected to further the industrial demand for LEDs. Kumar Ramesh, associate director of environment and building technologies for Frost & Sullivan’s MENA offices believes

LED’s growth in the GCC will continue its pattern of exponential growth.

“LED market revenues will grow from $140 million in 2013 to $350 million in 2017,” he says. “Intense competition means local companies will have partner with international companies and establish strong networks.

With increased oil revenues, government spending will expand, and the demand for lighting products will surge in the region.”

According to Ramesh the UAE,

“WhEn LED WaS fiRST invEnTED, iT WaS LikE an ExPEnSivE caR; iT WaS nEW, anD noT EvERyonE couLD haRnESS iTS EnERgy”

special feature lighting

DynaMic DESign The Yas Viceroy Abu Dhabi Hotel features an LED Grid Shell incorporating 5,389 pivoting diamondshaped colour changing LED panes.

A light-emitting diode, or LeD, is a compound semiconductor device that converts electricity into light.

One or more leDs combined with a driver, housing and other components create a complete leD system. leDs offer significant energy savings [up to 90% compared to incandescent in traffic signals] and last for up to 50,000 hours.

n 70% Saudi Arabia and UAe

n 30% rest of the Gcc

source: frost & sullivan

Saudi Arabia and Qatar will be “highly attractive” markets for LED lighting.

Ramesh remains optimistic about the market and local lighting experts in the UAE are focused on increasing awareness and education about LED systems in the country.

“The challenge is LED,” Sakina Dugawalla, lighting consultant for Linea Light GCC (Middle East) tells Big Project ME. “The world has gone mad on this technology, and there are many experts who are wholly for it, partially or even – in some rare cases – opposed to it.

“When LED was first invented, it was like an expensive car; it was new, and not everyone could harness its energy. When left to a select few, who had to custom order equipment to make LED fixtures, (manufacturing) it was expensive,” she admits.

“The challenge is trying to break this myth.

When you buy a car, yes, you look at what you can afford, but the general question is ‘how long will it last, and how often will it break down?’ If the consumer could accept a similar ideology where LED was concerned, it would make a lighting expert’s life easier.”

Siddharth Mathur, design director for Dubai-based Studio Lumen says LED has been a game-changer for the lighting industry.

“The development of LED as a light source has been the single biggest influence on lighting design in the last five years or so. With the recent innovations, the size of the lighting equipment has become smaller, with a much higher light output than previously witnessed,” he explains.

What is LED?

Mathur further elaborates on the myths and misconceptions held of lighting designers in the region: “In my opinion, the most common mistake in lighting design in this region is over design. It is not uncommon to see spaces that have just too much lighting, with absolutely no thought given to factors like contrast and balance.

“This obviously results in an increased use of energy and overall light pollution. In lighting, less is more, but that does not seem to be followed in this region. While the general perception of lighting is changing very quickly, there is still a lot of work to be done in terms of educating the end-users,” Mathur rues.

Energy-efficiency has been the key selling point of LED units globally, and the recent

“SoLaR EnERgy haS PRovEn iTSELf in MoST inDuSTRiaL MaRkETS aRounD ThE WoRLD, anD i Think ThE coMMERciaL MaRkETS WiLL gRaDuaLLy oPEn uP To iT Soon Too”

sustainability initiatives undertaken by governments in the GCC will ensure that the popularity of LED will continue to thrive.

“The recent regulation by the UAE’s Emirates Standardisation and Metrology Authority (ESMA) prohibits traditional energyinefficient incandescent bulbs from being imported into the country,” says Ramesh.

“They will be replaced by the more energyefficient light sources such as Compact Fluorescent Lamps (CFLs) and LED.” Ramesh calculates that this move will save approximately $200 million a year and cut energy usage by almost 500 megawatts: “Following the footsteps, a similar move is expected by the neighbouring countries especially, Saudi Arabia and Qatar.”

The oldest-known source of lighting is also returning to the fore in the GCC’s industries – governments across the region are investing in solar power capacities to generate electricity in an environment-friendly manner. The lighting industry has not missed this development.

“The UAE is a sun-rich country; this makes solar energy an ideal way of encouraging increased natural lighting designs here,” Sonam Lama, area manager at Lightcraft Lighting Solution says. “Solar energy has proven itself in most industrial markets around the world, and I think the commercial markets will gradually open up to it soon too.

“That isn’t a comment on how natural light can be – or is already being – applied in designs around the UAE and the GCC; that decision is the designer’s and developer’s. However, solar

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GEnEraL iLLumination LiGhtinG markEt rEvEnuEs

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special feature Lighting

power definitely has the potential to capture commercial market share too,” Lama adds.

Dugawalla believes that the region, despite its obvious preference for glitzy lighting arrangements in its malls, has not forgotten the importance of natural light in its designs.

“It wouldn’t be fair to say the region fails to adequately use natural light,” she continues.

“We have new developments coming up and the concepts are out of this world, but we are a young region, and lighting is even younger.”

She advocates the need for independent research to be undertaken in the region, which is prone to extreme weather conditions, such as sandstorms, rainfall, heavy winds and humidity.

bigprojectMe.com

“There is a warehouse in Qatar that does not have high-bay artificial luminaires; instead, it has fixtures that are entirely translucent, and the material acts as a diffuser.

Daylight is harnessed through these diffusers to provide adequate lighting,” Dugawalla says.

“This is leaps ahead of the current market expectation. However, as with anything new, there is a downfall; these fixtures need to be cleaned every month and in event of a sandstorm, much more often.

“Research will need to be conducted on any given material – and its individual quality in dealing with fine sand particles – before we can completely embrace daylighting as an inherent design element. The same

“WhEn LED WaS fiRST invEnTED, iT WaS LikE an ExPEnSivE caR; iT WaS nEW, anD noT EvERyonE couLD haRnESS iTS EnERgy”

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MIDDLE EAST

LighTing uP ThE gcc The lifecycle of LED units extend to be about 10 years, along with reduced faults, ensuring cost savings and improved performance.

SEPTEMBER 2014

issue occurs on our high-rise buildings that need constant cleaning,” Dugawalla continues. “A dirt-encrusted window will diminish the amount of light required, and regular cleaning is a cost that should be considered when designing with daylight.”

Clearly, the transition of lighting from traditional systems to modern ones, such as LED, is a gradual process, and in an industry which technologically grows as rapidly as does lighting, it is easy for lighting measures to be labelled ‘outdated’ within a matter of months.

“You can’t say a mall developer or building owner installed the wrong lighting equipment in his structure five years ago; he or she most likely used what was available at the time.

“As lighting professionals, we are meant to listen to the project leader, be it the lead consultant or the developer,” Lama continues.

“Each party wants to ensure the best system is installed in the project. Conventional systems, which were once relevant, are now viewed as outdated because LED has grown. Such advancements take time and patience, and the lighting sector in the GCC will continue to adapt and progress as it has so far.”

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laid very strong specifications and

undertook the first major

reach 50°C. It is therefore important

enough to meet every need in the

requirements for the development of

lighting installation in Mecca

to look at LED not only as a lighting

urban lighting space, like it does with

LED in the country. It is encouraging

in 1973. The years of experience

alternative, but as part of a total

the Jumeirah project. The versatility

to see regional governments taking

have enabled us to understand the

solution, ranging from lighting design

of the ModulLum range, with its

practical steps and implementing

market and service it well through all

and distribution to control systems,

different modules for CCTV and

policies to achieve energy savings

the technological advancements the

as well as attending to critical factors

public address system integrations,

through the implementation of

construction industry has undergone.

such as thermal management, local

guarantees a perfect match between

efficient lighting solutions, such

specifications and lighting levels.

the architectural environment and the

as LED and solar lighting.

The big revolution in the lighting sector now is LED. It is getting

In January 2012, His Highness

functional integration required for a

a big push from all sides of the

Sheikh Mohammed Bin Rashid al

project in an urban environment. The

market because the government

Maktoum, Vice President and Prime

installation is expected to enhance

offers a value proposition when

Minister of the UAE and Ruler of

visitor experience to the corniche, as

the carbon footprint is reduced or

Dubai, announced the launch of ‘UAE

well as facilitate future integration

energy efficiency is improved.

Strategy for Green Development’, a

with smart city projects. The UAE

national long-term initiative aimed at

aims to save nearly $517.2 million

LED, has significantly helped the case

developing a green economy in the

(AED1.9 billion) in street lighting

for increased sustainability. The energy

UAE. Dubai’s Roads and Transport

costs, which could equate to 75%

consumed by street lighting alone

Authority (RTA) has embraced this

reduction in its carbon footprint and

has a considerable impact on the

initiative with open arms, and the

up to 60% in energy consumption.

total carbon footprint and electricity

installation of LED lighting solutions

costs. Therefore, LED can definitely

to reduce power consumption and

region which is equally geared up

benefit the market, government

enhance urban visuals has been

and is achieving momentum in the LED

spending and the environment.

driven by their adoption of LED.

lighting arena. Saudi Arabia, with a

The advent of technology, such as

LED is electronic, unlike CFL or

To support this vision, we have

We should not omit the rest of the

clear mandate being led by Riyadh

halogen lamps. Hence like all other

worked actively with the support of our

Municipality, will soon install more

electronics, it comes with an array

partner BMTC to provide the state-of-

than 14,000 Schréder LED light fittings

of challenges when exposed to the

the-art ModulLum solution, which is a

across its projects, while the vision

environment. The biggest challenge

multi-functional column comprising of

of the Abu Dhabi Executive Council

with LED technology is to efficiently

a system which provides LED lighting

too will see the installation of 18,000

bring it into a country which is hot and

with aesthetic coherence. This has

Schréder LED Light fittings in the UAE’s

humid, with heaving condensation at

been used for the new jogging track

capital soon. With the arrival of the

times. Electronics may not work well in

at Jumeirah Beach in Dubai. Due to

FIFA World Cup 2022, Ashghal (Public

SCHRÉDER KARIM BOUTAOUR IMEA REGIONAL MARKETING LEADER SCHRÉDER GROUP ABU DHABI OFFICE: +971 2 554 44 48 DUBAI OFFICE: +971 4 4380633 info@Schrédergulf.ae w w w.Schréder.com

SEPTEMBER 2014

MIDDLE EAST

S

chréder has been in the

63

COMMENT Driver Consult llC

bigprojectMe.Com

chrIstIan Merrett

The importance of an integrated project Master Baseline Programme In the first part of a series of three, Christian Merrett outlines why the development of a well-coordinated master baseline programme is crucial to a project’s success

F

ailure to plan is planning to fail, it’s a fact! From the smallest group of planned tasks to large multidisciplinary complex mega projects the consequence of failure is inevitable. The majority of contracts in use particularise – to varying degrees the obligation of the contractor to produce a construction programme. From this the employer (usually through the engineer) will monitor the performance of the contractor and assess the progress of the works. The contractor will similarly use it for progress and reporting purposes but will also monitor costs, risk and identify key stages in the works to initiate key activities. Often the programme is only issued for acceptance once the contract has been awarded and the focus is on the contractors undertaking the works and not the project as a whole.

This article is part one of a three-part series that considers the following.

• The importance of developing a functional and well-coordinated master baseline programme; • The significant part the employers’ management team have in that process; • The problems that arise in the absence of such a programme. So many times

64

MIDDLE EAST

"It Is not necessary for the Master BaselIne PrograMMe to Be of PartIcularly hIgh detaIl But as a MInIMuM It should reflect and IdentIfy all the Project stakeholders and the key MIlestones showIng handover/delIveraBle stages"

SEPTEMBER 2014

projects fail as a result of being reliant on the contractor’s programme and in the case of multi-contract projects; very little consideration is given to the integration of individual ‘package’ contracts into the whole project delivery until it is too late.

Imagine a large infrastructure project where due to its scale and complexity there is a requirement for several large contractors to undertake the works. Each of the contractors is engaged under an (EPC) contract to carry out its own portion of the works.

It is therefore reasonable to assume that critical processes such as design submissions and approvals, long lead for the delivery of specialist equipment could potentially have a significant impact upon the completion of a section of the works but more significantly, failing to meet a particular date is likely to have recurring effects upon other contractors.

Employers often get caught into the trap of thinking that the contractors will all fall nicely into line with little or any intervention from the project management team. Unfortunately not!

Right at the preconstruction and tender stage the contractor(s) should be made aware of their duties in respect to coordination between the consulting engineer and the other parties. Similarly the employer’s management team must also be in a position to not only be aware of this but have the tools to manage and monitor the process.

Typically the Employer itself must develop the Master Baseline Programme by considering the following the simple yet essential areas.

• Bid and scope interface – Work Scope for each contractor must be clearly and precisely defined as quite often the ‘thing’ that is forgotten is often the ‘thing’ that causes the

COMMENT Driver Consult llC

employer's preferential design changes; and so it goes on. These periods can compound and be responsible for very large delays.

• Bid negotiation periods – These often fall foul of extension to incorporate several rounds of queries and meetings.

It is not necessary for the Master Baseline Programme to be of particularly high detail but as a minimum it should reflect and identify all the project stakeholders and the key milestones showing handover/deliverable stages. Furthermore the process must be clearly communicated and managed throughout the project and not assumed that the contractors are always adhering to these principles.

Part Two of this series will be published in the next edition of Big Project ME and will further explore this topic by presenting detailed scenarios of the typical problems encountered when a properly constructed Integrated Master Baseline Programme is not present.

Driver has been recently involved in several complex mega-projects whereby failure in providing an Integrated Master Baseline Programme has proven problematic for all parties when managing the works and in subsequent claim scenarios.

On all these occasions Driver promptly and successfully identified these issues and undertook the process of reconstructing an integrated Master Baseline Programme in order to properly assess and evaluate delay claims.

In situations such as these we strongly advise our clients to engage a planning consultant at the earliest possible stages of the project so as to significantly reduce – if not eliminate - the likelihood of these scenarios taking place on a construction project. n Christian Merrett is an Associate Director for Driver Consult LLC. For more information please see www.driver-group.com

SEPTEMBER 2014

MIDDLE EAST

problem, regardless of size. Don’t assume that someone else will take care of it.

• Timing and details of critical information exchange – It is important not only for the Contractor to demonstrate his knowledge of his critical programme issues but also the Master Baseline Programme must take this into consideration and reflect this.

• Periods of review and approval – Something that is very much open to abuse.

Quite often all parties consider that they are entitled to more time than agreed or than is reasonable in the absence of clear agreement. The employer feels as though there are so many comments to make on a submission due to what is perceived to be an issue of non-compliance, that any additional time taken is the fault of the contractors and that a prolonged review period is therefore justified. Similarly, contractors feel they need more time to factor in the

65

DIARY SEPTEmBER

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HAPPENING THIS MONTH... september 2014

organiser: MEED Events

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CENTRE DOHA, QATAR

the construction industry gathers

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plans from the market, so as to

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MIDDLE EAST

66

and future projects in the Kingdom.

an opportunity to look at entering

DOHA CONVENTION

SEPTEMBER 2014

44 NEW HOLLAND

FUtUre iNteriorS QAtAr

SUMMER IS OVER The event calendar is back up and running after taking a break during the summer months.

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

Published: 15 1st Januar y 20 adline: Advertising de 1st December 2014

Print run 10,000 copies E-version N

nd New Holla

and and innovation, innovation, which which has has brought brought aa consistently consistently wide wide and and loyal loyal customer customer base base around around the the world. world. CNH CNH Industrial Industrial can can count count on on 64 64 manufacturing manufacturing plants, plants, 49 49 research research & & development development centres, centres, 895 895 million million euros euros invested in R&D, present in invested in R&D, present in over over 190 190 countries, countries, 68,000 68,000 people people working working around around the the world. world. ItIt also also operates operates ten ten New New Holland Holland plants plants in in North North and and Latin Latin America America and and in in Europe.

Europe.

New New Holland’s Holland’s investments investments in in research research and and development development focus focus on on continuously continuously renewing renewing its its product product range range and and developing developing the the innovations innovations to to match match the the evolving evolving needs needs of of customers, customers, providing providing them them with with productive productive performance, performance, fuel fuel efficiency, efficiency, intuitive intuitive operation, operation, the the highest highest levels levels of of operator safety and comfort, and low operator safety and comfort, and low environmental impact, together with the environmental impact, together with the most competitive cost of ownership. most competitive cost of ownership.

For example its Skid Steer Loaders provide For example its Skid Steer Loaders provide best-in-class breakout force and dump height, best-in-class breakout force and dump height, superior machine stability and the widest cab superior machine stability and the widest cab in the industry on skid steer loader. Its vertical in the industry on skid steer loader. Its vertical lift models provide maximum dump reach and lift models provide maximum dump reach and height that allow loading high-sided trucks just height that allow loading high-sided trucks just from one side, this means saving a lot of time. from one side, this means saving a lot of time.

New Holland machınes are workıng New Holland machınes are workıng on road constructıon projects ın Qatar, on road constructıon projects ın Qatar, New Muscat Aırport ın Oman, as well as New Muscat Aırport ın Oman, as well as housıng and socıal ınfrastructure projects housıng and socıal ınfrastructure projects (schools, hospıtals, universities) in KSA. (schools, hospıtals, universities) in KSA.

Look Look out for: out for: Whee led Wheeled excav ators excavators for: Best knownn for: Best know loade rs,LOCAL PRESENCE steer loaders, Skid The Middle East is a major focus for New steer Skid The Middle East is a major focus for New LOCAL PRESENCE loaders, New Holland Holland machınes Whee Holland and and further further expansion expansion ıs ıs planned planned Holland machınes Wheell loaders, New and are currently workıng TLB and will will be be executed. executed. ItIt ıs ıs happenıng happenıng on on are currently workıng TLB two fronts, first through openıng of new on road constructıon two fronts, first through openıng of new branches branches of of its its dealers dealers to to ıncrease ıncrease coverage coverage and and provıde provıde better better support support to to our our customers. customers.

Secondly Secondly through through the the planned planned expansıon expansıon of of CNH’s CNH’s presence presence wıth wıth increases increases ın ın the the number number of of company company functıons functıons located located ın ın the the regıon regıon including including aa focus focus on on parts parts and and service support – complementıng the service support – complementıng the above above mentıoned mentıoned moves moves by by our our dealer dealer network. network.

Geographıcally, Geographıcally, itit ıs ıs present present throughout throughout the the Middle East providing a full-line of equipment.

Middle East providing a full-line of equipment.

While While traditionally traditionally itit may may have have had had aa stronger stronger foothold foothold ın ın compact compact equipment, equipment, buyers buyers in in the the region can benefit from a robust and balanced region can benefit from a robust and balanced selection of both heavy and light equipment. selection of both heavy and light equipment.

All New Holland products undergo All New Holland products undergo vıgorous tests durıng the R&D phase and are vıgorous tests durıng the R&D phase and are not launched until proven fully operatıonal ın not launched until proven fully operatıonal ın all types of condıtıons prevaılıng ın specıfıc all types of condıtıons prevaılıng ın specıfıc regıons. For example, its new range of skıd regıons. For example, its new range of skıd steer loaders was tested ın the Arizona steer loaders was tested ın the Arizona and Australian deserts – two territories and Australian deserts – two territories with similar temperatures to those in the with similar temperatures to those in the Middle East – prıor to their launch ın the Middle East – prıor to their launch ın the regıon. It is plannıng to move even closer regıon. It is plannıng to move even closer to the Middle East ın the near future, and to the Middle East ın the near future, and plans to brıng prototype machınes to be plans to brıng prototype machınes to be tested here durıng theır R&D phase. tested here durıng theır R&D phase.

CONTACT CONTACT

CNH Industrial Regional Representative Office CNH Industrial Regional Representative Office DAFZA – Dubai Airport Free Zone DAFZA – Dubai Airport Free Zone West Wing 4, Floor 6 West Wing 4, Floor 6 PO Box 54588, Dubai, UAE PO Box 54588, Dubai, UAE Telephone: +971 4 299 4935 Telephone: +971 4 299 4935 www.newholland.com www.newholland.com www.cnh.com www.cnh.com

on road constructıon projects in Qatar, Oman projects in Qatar, Oman and KSA. and KSA.

Four page company profile Second edition

45 45 NEWHOLLAND HOLLAND NEW

HOLLAND NEWHOLLAND NEW

42 42

HOLLAND NEWHOLLAND NEW

43 43

KRZNARICC

DRAGAN DRAGAN KRZNARI S Iveco, CNH’s EAST BUSINES innovation of of Iveco, CNH’s BUSINESS MIDDLE MIDDLE EAST CE of technological gical innovationtoday among the are R, CNH CE among the in Pennsylvania, vania, of technolo DIRECTO and FPT, who who are today industries.

DIRECTOR, CNH New Holland born in Pennsyl brands Holland was born ew brands and FPT, ew Holland was the years, New Holland ve industries. their respective Holland “Over leaders in in their respecti es, proven “Over the years, built an in 1895. New global New Holland USA global leaders tion has built an the resourc USA in 1895.is today a global, Construc resources, proven bringing together ction today a global, Construction has of reliabilit yy together the gical By Constru expertisee of of By bringingand record ve Construction is ction Equipment technolo impressi gical expertis ent ve record of reliabilit ce Equipm technolo Constru impressi has and experien ction line al ce full ent experien full line Constru ction equipm ies CNH Industri al has New innovation.” and three compan ies CNH Industri the constru ction equipment and innovation.” the of taking Brand the three compan use capable taking New Brand the construthe heritage,, a powerho use capable of heights. created that brings together together the heritage created a powerho brand brands to new new heights. of brand that brings de coveragee of and its sister sister brands to is built Holland ce and worldwi worldwide coverag this Holland and its of equipment experien is built the history of of this experience and full offering of equipment productivity, Its that have shaped ivity, shaped the history Its full offering rs’ needs for global brands brands thatishave al, global the custome rs’ needs for product CNH industrial, around . It part of ance and of CNH industri around the custome bring industry ental perform industry. It is part performance and platform,, that environm that bring goods ed safety, environmental capital specialis four goods platformPowertrain safety, sed top includes capital speciali and four y, ain Fiat top and efficienc y, and includes such as Powertr fuel Iveco, CNH CNH and Fiat to create an fuel efficiencindustry together sectors, such as an together Iveco,(FPT Industrial) for key industry sectors,resident ial lines ogies (FPT Industrial) to create or ial lines for keyinfrastru with a Technol se Technologies commercial enterpri se with a cture, or resident on, infrastructure, de demoliti al and commercial enterpri and demolition, partners with its worldwi industri worldwide and industrial and focus, financiall solidity hip with itscustome . In partnership rs building s strategic focus, financia tosolidity rs the building. Indealers, clear clear strategic supports custome of dealers, itit support realise the necessary to realise network ent. independence necessary vehicles,, network oflife the of their equipm ent. cycle the indepenldence ction the full cycle of their equipm its commercial rcial vehicles for Constru and potentia l of for the full lifeyears, New Holland ent, of its comme full Construction equipm ent, and full potentiaand ction the New Holland y Over equipm constru years, ction reliabilit the ral of Over ses. constru agricultu ive record of reliabilit y busines agricultural and powertrain built an impress ive record ain businesses. has al and marine marine powertrthe rich heritage has built an impress industri heritage industrial andal is building on rich the Industri is building on CNH CNH Industrial

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

TENDERS

bigprojectMe.com

tOP teNdeRS

buildings of the National Library, National Archives and National theatre

status New tender

Project dubai theMe ParkS develoPMeNt ProjeCt Budget tba reGIoN dubai, uAe clIeNt Name Meraas development address emaar Square Postal/ZIP code 123311 PhoNe (+971-4) 511 45 00 emaIl info@meraas.ae WebsIte www.meraas.ae descrIPtIoN development of five different theme parks to promote tourism

status Current Project Project Sheikh Zayed NatioNal MuSeuM – Saadiyat iSlaNd Budget $1,000,000,000

clIeNt Name Saudi Arabian Oil Company (Saudi Aramco) address dhahran, Saudi Arabia Postal/ZIP code 31311 PhoNe (+966-13) 872-0115 emaIl webmaster2@aramco.com WebsIte www.saudiaramco.com descrIPtIoN Construction of 11 stadiums,

reGIoN Abu dhabi, uAe clIeNt Name tourism development & Investment Company – tdIC (Abu dhabi)

address Sheikh Zayed Bin Sultan Street Postal/ZIP code 126888 PhoNe (+971 2) 406 1400 emaIl info@tdic.ae WebsIte www.tdic.ae descrIPtIoN Construction of seven permanent galleries, including a library, an education centre, a theatre, shops and a cafe

each having capacity of 45,000 people

PerIod 2016 status New tender

Project oMaN Cultural CoMPlex CoNStruCtioN ProjeCt Budget $250,000,000

status Current Project

Project StadiuMS CoNStruCtioN ProjeCt Budget tba reGIoN Madinah; eastern Province; Northern Border Province; Hail; tabuk; Al-Jouf; Baha; Najran; Jazan; Asir; Qassim, Saudi Arabia

Project juMeirah beaCh hotel exPaNSioN ProjeCt - PhaSe 5 Budget tba reGIoN dubai, uAe clIeNt Name Jumeirah International Postal/ZIP code 73137 PhoNe (+971-4) 366 50 00 emaIl info@jumeirah.com WebsIte www.jumeirah.com descrIPtIoN Construction of an ultraluxury resort comprising 350 hotel rooms, including spas, elevated tennis courts, a sports complex and food and beverage outlets

PerIod 2018 status New tender

reGIoN Muscat, Oman clIeNt Name Ministry of Heritage and Culture address Post Box 668 Postal/ZIP code 00 PhoNe (+968) 2 464 1300 emaIl info@mhc.gov.om WebsIte www.mhc.gov.om descrIPtIoN Construction of Oman cultural complex in Muscat comprising

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SEPTEMBER 2014

TENDERS

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Middle eaSt teNdeRS sPoNsored by

ProvIded by

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

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

saudI arabIa scIeNce colleGe coNstructIoN Project

budGet tBA reGIoN Saudi Arabia clIeNt Northern Borders university Postal/ZIP code 1321 PhoNe (+966-4) 664 40 14 WebsIte www.mohe.gov.sa descrIPtIoN Construction of a sciences college for girls in Arar status New tender

uae

clIeNt National Holding LLC

marrIott edItIoN hotel Project

PhoNe (+971-2) 657 70 00

budGet $60,000,000 reGIoN Marina Bloom development, Abu dhabi, uAe

Postal/ZIP code 111966 descrIPtIoN Construction of a five-star hotel building comprising a ground floor and six additional floors status Current Project

Gems amerIcaN academy Project

PhoNe (+971-4) 347 77 70

budGet $8,000,000 reGIoN Al Barsha, dubai, uAe

status Current Project

clIeNt Premier Schools International LLC Postal/ZIP code 30178

descrIPtIoN Construction of an academy comprising a ground floor and three additional floors

etIhad raIl NetWork Project - Phase 2 (PackaGe e - coNtract s0201)

budGet tBA reGIoN Abu dhabi clIeNt etihad Rail Company Postal/ZIP code 989 couNtry uAe PhoNe (+971-2) 499 99 99 emaIl communications@etihadrail.ae WebsIte www.etihadrail.ae descrIPtIoN Construction of depots,

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

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SEPTEMBER 2014

TENDERS

Project - shaqaya reNeWable eNerGy PlaNt

passenger stations, freight facilities and marshalling yards status New tender

reGIoN Shaqaya, Kuwait

abu dhabI medIcal rehabIlItatIoN ceNtre Project

clIeNt Kuwait Institute for Scientific Research (KISR) PhoNe (+965 -2) 483 61 00 descrIPtIoN Construction, completion and maintenance of facilities for the renewable

budGet $180,000,000 reGIoN Abu dhabi, uAe

energy plant

clIeNt Abu dhabi Health Services

status New tender

Postal/ZIP code 1365

uPGrade Project - caIro INterNatIoNal aIrPort

PhoNe (+971-2) 410 20 00 descrIPtIoN Construction comprising 2 basement levels, a ground floor and 4 additional floors

budGet $400,000,000 reGIoN Cairo, egypt

descrIPtIoN Carrying out renovation and upgrading of terminal 2 at Cairo International Airport to make it capable of handling up to 7.5 million passengers a year

status Current Project

clIeNt egyptian Holding Company for Airports & Air Navigation - eHCAAN (egypt)

status Current Project

eGyPt

address Airport Road, eHCAAN Building

kuWaIt

termINal 2 reNovatIoN &

PhoNe (+202) 241 753 94

FacIlItIes coNstructIoN

Iraq south tIkrIt statIoN exPaNsIoN Project

reGIoN tikrit, Iraq clIeNt Ministry of electricity PhoNe (+964-1) 740-7316 WebsIte www.moelc.gov.iq descrIPtIoN design and processing, installation, testing and expansion of 132kV gIS station run to South tikrit status New tender

jordaN quWeIra PhotovoltaIc PoWer PlaNt Project

reGIoN Quweira, South Jordan budGet $150,000,000 clIeNt Ministry of energy & Mineral Resources PhoNe (+962 6) 586-3326 WebsIte www.memr.gov.jo descrIPtIoN Construction of a photovoltaic power plant with capacity of 65MW-75MW status New tender

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SEPTEMBER 2014

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Company PJSC (SeHA)

71

CONSTRUCTIVE CRITICISM cRITIcISm

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GAVIN DAVIDS

Eyes on the Future Gavin Davids says that the global construction industry has already begun taking steps towards achieving the dream of self-building buildings, but the process of how we get there is hugely important

72

MIDDLE EAST

As A construction journalist, i often find that a lot of my inspiration for articles comes from sources far outside the normal spectrum of construction. i’ll often read or watch something on the internet and i’ll start wondering how that information could lead to an interesting article. i’ll then go bother my long-suffering group editor and see if we could do something with that information. Very often, the answer is no, usually accompanied by a weary sigh and ‘why me?’ expression, because, if i’m honest, some of my ideas tend to a little to the left of ‘far-out’.

However, this time around, whether it was by catching him in a good mood or by him simply losing the will to argue with me, i was told i could finally work on a feature that’s been bubbling over in my brain for a while. it all started when i happened to stumble across a tED talk by an Mit researcher known as skylar tibbits. in it, he talks

SEPTEMBER 2014

about his work on self-assembly, which as he defines it, is the idea that instead of building something like a skyscraper, we can create materials that build themselves. tibbets compares this to the natural world, where strands of DnA basically zips themselves together, creating complex structures that combine to create even more complex structures that are continuously adapting and restructuring according to their needs and their environment. in essence, what he hopes to do with his project is mimic this process and create building materials that are intelligent and reactive to the environment around them. this set off every single geek and nerd alarm in me, and as such, i decided to follow this up. While my efforts to get in touch with skylar tibbits has so far proved to be unsuccessful (which doesn’t mean i’m about to stop trying), i managed to get in

touch with some of the leading minds in the region and internationally, and discuss the concept of future technology with them.

What those conversations led to was a gradual awakening of a realisation that we’re in the midst of a huge revolution in the global construction industry, and for the most part, we’re not even really aware it’s happening.

With so many rapid changes going on in the world’s technology, it’s perhaps inevitable that the construction industry would begin to absorb these changes. therefore, we’re starting to see a gradual shift towards cloud based computing, greater functionality of Building information Modelling and the early steps towards implementing 3D printing into construction.

While this means is that skylar tibbits dream of a building that will build itself is still a long way off, we’ve already started walking down that road. Already contractors are using robotics and self-controlled machines to help them do their work better, so the question is, how do we use these hugely exciting developments to our advantage? it’s a question that requires careful consideration.

The closer you look, the better we get.

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