SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT Construction WEEK NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST SEP 19–25, 2009 [288] An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM INSIDE NEWS ANALYSIS Can the metro boost infrastructure projects in the GCC? PAGE 14 SITE VISIT A trip to Sharjah reveals the progress of Al Wahda project PAGE 22 TOP 10 PROJECTS Leading healthcare projects in progress across the GCC PAGE 26 HOW TO Do you work safely at height? Pointers to avoid any trouble PAGE 34 TOP FIRMS OPEN UP OFFICES IN QATAR. SHOULD YOU? DOHA NOW
Transcript
SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
ConstructionWEEK NEWS, ANALYSIS, PROJECTS,
TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST
SEP 19–25, 2009 [288]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM
INSIDENEWS ANALYSISCan the metro boost infrastructure projects in the GCC?PAGE 14
SITE VISITA trip to Sharjah reveals the progress of Al Wahda projectPAGE 22
TOP 10 PROJECTSLeading healthcare projects in progress across the GCCPAGE 26
HOW TODo you work safely at height? Pointers to avoid any troublePAGE 34
TOP FIRMS OPEN UP OFFICES IN QATAR. SHOULD YOU?
DOHA NOW
CONTENTS
13 NEWS IN PICSTopical images with the latest news.
14 NEWS ANALYSISConstruction Week analyses the Dubai Metro and discusses whether it will defi ne the future of infrastructure.
17 EVENTSIndustry dates for your diary.
19 COMMENTChris Roux on the importance of project governance and project management.
20 LEGALMike Ankers discusses an alternative form of contract.
REGULARS2 ONLINE6 MAIL
FRONT7 100% FOREIGN OWNERSHIP SET TO BOOST CONSTRUCTIONIf approved, the new law could see more foreign developers and construction companies fl ocking to the UAE.
9 FALLING MATERIAL COSTS BOOST AJMAN CONSTRUCTION The slump in building material prices has produced an “effervescent” real estate market in the emirate of Ajman.
10 NEWS IN BRIEFHighlights of the week.
12 FACE TO FACEConstruction experts discuss the Dubai metro and what it holds for the future.
FEATURES22 ON SITECW fi nds out how Sharjah’s main road project is progressing.
26 TOP TENTop ten healthcare projects identifi ed.
28 SPECIAL REPORTCW discovers the importance of standards and certifi cates.
34 HOW TOA guide on how to work safely at heights.
BACK44 CITY UPDATEThe latest news and projects from Doha, Qatar.
46 CONSTRUCT SAFEThe industry’s very own comic strip on health and safety best practices.
48 DIALOGUEEmirates Green Building Council chairman discusses where the UAE is going in terms of green building.
SEPTEMBER 19-25, 2009 | ISSUE 288
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CONSTRUCTION WEEK SEPTEMBER 19–25, 20092
FEATURESPMV
IN TOTAL CONTROLA site in Abu Dhabi uses the latest in digital electronics.
FM
FM COMPANY WATCHRecognising the UAE’S custodians of the built environment.
Dubai Metro opened on 09/09/09 and is now the fi rst operating metro in the Gulf. VIPs and golden ticket winners got to enjoy the inaugural rides.See more images at www.ConstructionWeekOnline.com
IN PICTURES: DUBAI METRO: THE OPENING
ONLINEwww.ConstructionWEEKonline.com
Design
GOING UNDERGROUNDAs design jobs go, a metro system has to be among the most unique.
MEP
IMPACT OF REDUCED FLUSH VOLUMESDoes reduced fl ush volume have a negative effect on the performance?
MOST POPULARFIRST PICTURES: DUBAI METRO LAUNCHDAMAC CEO QUITS FIRMUAE LOOKING INTO INTER-CITY METROPOOR QUALITY MATERIALS CAUSED BUILDING COLLAPSESAUDI INVESTORS BEG FOR RETURN OF MONEY
TO VOTE IN THIS WEEK’S SPOT POLL GO TOwww.ConstructionWEEKonline.com
HAVE YOUR SAYHOW CAN WE PREVENT WORKER STRIKES?What steps should be taken to ensure workers don’t feel the need to strike?
JOBS OF THE WEEKProject delivery manager, Abu DhabiSenior interface co-ordinator, Abu DhabiEngineering manager, Abu Dhabi
ONLINE POLLNOW THAT THE DUBAI METRO IS OPEN, WILL YOU BE USING IT?
52.0%No. It’s not convenient
24.0%Defi nitely. I don’t have a car so this is the best option
24.0%Yes, I don’t think I’ll be using my car much now
CONSTRUCTION WEEK SEPTEMBER 19–25, 20094
MAIL
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles.
Mr Savage, can you please defi ne productivity and the conditions in which you need to achieve it? How well are you treating your workers? Will he say what he did to his own countrymen? This is exploitation of labourers from Asia. If anyone speaks for his rights they are considered as trouble makers and deported. MARK
losing business and losing projects everywhere, its staff is still getting bonuses and incentives. How is the company assessing their productivity? The poor workers are harassed.JOHN
RE: INVESTOR CASH AT HEART OF CASAMIA STAR ROWAll investors who have invested in this project want their hard earned money back. We do not care about your internal disputes. Moreover, remember one thing, God is watching you. Be careful of all the trouble being caused to investors - they are the reason you developers exist.IRSHAD SHABBIR
RE: POOR QUALITY MATERIALS CAUSED BUILDING COLLAPSEI believe that the cause of the collapse so far provided, has been very general.I have seen more trivial incidents where the minutest details have been disclosed. All should be more transparent so as to avoid this from recurring in the future as part of the lessons learnt.RAJI
RE: ON-SITE FATALITIES DROP 55%No work. Reduced fatalities. Improved statistics.AKHILESH
The number of LTIs may have dropped, but let’s not kid ourselves. These
Leighton Construction is pretending to be one of the competitive companies in more than three or four countries. There are many fl aws in the interim management and execution. Management of the company talks about the productivity measurement for the daily wages for labourers What about its staff? After
are only those that are reported. Many, many more go unreported due to the disregard many companies have for health and safety in the Middle East.TRACEY
RE: CRANE FIGHT FATALITY DRAWS BIG RESPONSEEven if the operator was right in opposing the instruction of the engineer, this does not give him the right to use inappropriate language, especially to a superior in rank. Whatever the other reasons, the operator is guilty of cold blooded murder and no excuses of self defence can lessen his crime.KRASSIMIR DELIRADEV
RE: ACC GETS PENTOMINIUM CONSTRUCTION CONTRACTThe reason it took so long was due to fi nancing and bargaining. The developers were even considering reducing the height. I guess with the current cost of construction, not to mention the contractors pricing, which was a lot lower than last year, it appears feasible.FUAD HASAN
RE: DAMAC CEO QUITS FIRMIt’s hard not to read more into this, given the recent shenanigans at Damac. It’s like the latest instalment in one of those soapies so popular over Ramadan.EWOUD
RE: HRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDEThe government should take some serious steps to monitor construction companies in terms of wage payments, labour amenities, productivity issues, etc. In most of the cases because of their infl uential nature, all these issues are brushed aside.
CLARENCE S LEWIS
The opinions expressed in this section are of particular individuals and are in no way a refl ection of the publisher’s views.
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The UAE economy minister, Sultan bin Saeed Al Mansouri, has revealed that all foreigners operating anywhere in the UAE could soon be free to own 100% of their companies.
Two draft laws, expected to be submitted to the government cabinet before the end of the year, propose a change to legisla-tion pertaining to the foreign ownership of companies outside of free zones, which is currently limited to a 49% stake. Compa-nies currently operating in free zones can be 100% held by foreign owners.
“We must create the right environment to attract foreign investors,” said Al Mansouri, who is known for his forward thinking.
“Industry is one of the sectors we are try-ing to attract to the UAE, and have it as a major contributor to our GDP. To do that, we need to create the right environment for these industries worldwide.”
The move could be a popular one with global contractors, suppliers and develop-
FRONT
100% FOREIGN OWNERSHIP SET TO BOOST CONSTRUCTIONBy Matt Warnock
UAE ECONOMY MINISTER SAEED AL MANSOURI [CENTRE] SAID THE COUNTRY. NEEDS TO CREATE THE RIGHT ENVIRONMENT TO ATTRACT FOREIGN INVESTMENT.
ers who are eager to make a mark in the region - many of whom are already operat-ing in the UAE through joint ventures with locally-based companies.
“The UAE is well-placed for emerging markets. Its location means that it should attract both Western and Eastern companies,” said UK-based Metro Design Consultants managing director Daniel Taylor.
“As an interior architecture practice oper-ating in Europe, Metro Design Consultants sees the UAE as an exciting opportunity with commercial businesses demanding high standards for their workspaces.” He also said that people will look for excellence in design to attract the best personnel.
“We still consider Dubai to be a hub for other major countries in the Middle East and in order to overcome the economic crisis, foreign investors should be encouraged to be present in the region,” said Sinan Ozkocer, general manager of Turkish construction company Sembol Construction.
“The vision the UAE has pre-sented to the world still offers a lot of opportunities to expand in the area.”Al Mansouri agreed: “We are looking at industries with large investments. The aim is to attract hi-tech [fi rms] with high value and at the same time, with good capital investment. “A lot of industries worldwide are very interested to move here, providing there are certain terms and conditions they would like to see in the industrial law.”
Seconding the minister Ozkocer said: “Defi nitely, we’ve been operating in Dubai for the past two years but we would also welcome any undertaking in regards to the expansion of foreign investment rules and regulations in the country.”
Al Mansouri concluded: “The draft law foreign investment is with the technical committee of the Ministry of Justice, and will be forwarded to the cabinet’s commit-tee on legal and legislation affairs within two months for further scrutiny.”
>Falling material costs boost Ajman construction 9>News in brief 10>Face to Face 12>News in pictures 13>Could construction now revolve around the Metro? 14
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Figures from the Statistics Centre of Abu Dhabi (SCAD) and the Abu Dhabi Government offi ce have revealed a slump in the prices of building materials, with cement falling by an average of 1.74% over the previous three months.
Aggregates and sand remained stable, but the cost of lime gypsum plummeted 5.3% month-on-month to US $340 (AED1251) a tonne, while wood products such as Malaysian red timber, concrete blocks and clay tiles held steady.
However, the fall in construc-tion costs has produced an effer-vescent real estate market in the emirate of Ajman, one contractor reported.
“The monitored drop in construc-tion prices will defi nitely boost the capacity of developers to continue the construction on their projects and, as the contracting company for one of the biggest community developments in Ajman, this pres-ents an excellent opportunity that we intend to capitalise on,” said Sweet Homes General Contracting (SHGC) managing director Fawad Sattar Dero.
SHGC, the in-house contracting arm of Sweet Homes Holdings, revealed that it has fast-tracked construction processes to leverage the favourable prices of building materials.
SHGC is currently working on
AJMAN BOOSTED BY DROP IN MATERIALS COSTSBy Matt Warnock
ON-SITE FATALITIES DROP 55% IN UAEBy Sarah Blackman
Build Safe UAE (BSU) – the not-for-profi t organisation aimed at raising health and safety standards throughout the United Arab Emirates – has revealed a 55% fall in construction site fatalities since September last year.
And, although these results may be affected by a signifi cant drop in man hours worked over the past two months, the BSU report shows that 450.7 million man hours were carried out between January and June this year, compared to 409 million in the same period last year.
Four labourers have died on UAE construction sites so far this year, compared to nine in the fi rst eight months of 2008, according to data submitted to Construction Week by BSU.
Falls from height remains the most common cause of workplace fatalities and one of the main causes of major injury, BSU group administrator Elias McGrath explained.
“If you fall from a height above two metres, the likelihood is that you will sustain serious injuries. In 2008, Build Safe UAE recorded eight out of 20 fatalities and 81 lost time injuries (LTIs) relating to falls from height,” he said.
The number of LTIs recorded from January to September has also dropped from 478 in 2008 to 329 LTIs this year.
“But there is still room for improvement,” McGrath warned.
“We have seen a signifi cant reduction in fatalities this year, which signals a sign of improvement. But one accident is an accident too many and we need to capture more data from more main contractors operating in this region, in order to measure more accurate industry trends.”
He also said that there is still a constant breach of regulations by unsafe construction stakeholders, which then leads to accidents and fatalities onsite.“These actions are truly appalling, unacceptable and discourage our efforts to promote a safer UAE construction market.”
DERO SAYS WORK IN AJMAN GETS BOOST.
$544.51STEEL
the $950 million Ajman Uptown community and, like other construc-tion fi rms, claims it will continue to take advantage of the opportu-nity offered by current economic conditions.
“As the market anticipates further reduction in prices due to global factors affecting the supply chain, our focus remains on the timely completion of all our current proj-ects,” continued Dero.
“With the support and backing of Sweet Homes Holdings and the opportunity presented by the current development in construction prices, we maintain an optimistic view of Ajman’s real estate market.
“We are hoping that this break continues and leads to the total recov-ery of the market as a whole.”
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ARTISTIC IMPRESSION OF AJMAN UPTOWN.
Last week This week Last week This week Last week This week Last week This week
CONSTRUCTION WEEK SEPTEMBER 19–25, 200910
FRONT
NEWS IN NUMBERS
The number of LTIs caused by
construction work has dropped from
478in 2008 to
329this year
Dubai has
42malls under construction,
according to latest industry studiesCarillion’s half-
year turn over from the Middle East has increased by
78%29% of UAE projects either on hold or cancelled
Housing project demand in Saudi
Arabia has led to a projected
5% to 7%growth in KSA’s
real estate sector
Work on
70Jumeirah Lakes Towers buildings
will be completed by
2010
HIGHLIGHTS
Kuwait
KUWAIT SIGNS US $2.65 BILLION POWER CONTRACTKuwait Ministry of Electricity and Water has signed a US $2.65 billion (KD759 million) contract with GE Energy to meet the growing power demand in Kuwait. GE Energy and Hyundai Heavy Industries will develop a new 2000MW power plant in Sabiya. The plant is set to raise Kuwait’s power capacity from current levels to around 11,000MW.
UAE
AL SALAM STREET RECORDS SAFETY MILESTONEAl Salam Street projects has completed 3 million working
hours without incurring any recordable days-away-from-work injuries among 1500 staff and workers since the start of May last year. The projects that are collaborations between Abu Dhabi Municipality (ADM), Urban Council, Department of Transport and Abu Dhabi Police, are part of Plan Abu Dhabi 2030. “Since the start, we have laid out a specifi c system to be strictly followed on a daily basis,” said ADM acting director of internal roads and infrastructure Eisa Mubarak Al Mazroui.
Iraq
BIDDERS PREPARE FOR BAGHDAD METROSeven international companies will submit bids
for the construction of the Baghdad Metro project in January 2010, a senior offi cial has said. “Seven companies have been selected to proceed to the bidding stage, given their experience in the fi eld,” Baghdad’s mayor Sabir Al Issawi told news agency Aswat Al Iraz. The companies have been given six months to offer their bids, he said.
UAE
UAE LOOKING FOR INTER-CITY METROPlans for an inter-city metro system, which will link up the other emirates in the UAE are being planned, the Roads and Transport Authority chairman Mattar Al Tayer confi rmed at the launch of the US $7.6 billion (AED28
billion) Dubai Metro on September 9. When asked if the Dubai Metro would link up the cities of Dubai, Sharjah and Abu Dhabi, Al Tayer told Construction Week that it was a federal issue in planning.
Saudi Arabia
PREMCO WINS US $26.7 MILLION CONCRETE JOBConcrete producer Premco has signed an agreement to supply 62,000m3 of precast concrete to Princess Noura University in Riyadh, KSA.The deal is valued at US $26.7 million (AED98 million) and will take 24 months to build.The precast concrete is required for the construction of the parapet, walkways, precast slabs, spine etc for the Princess Noura University.
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US $900billionvalue of UAE
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CONSTRUCTION WEEK SEPTEMBER 19–25, 200912
FACE-TO-FACE
I am not surprised at all. We’re talking about the largest fully
automated driverless metro system in the world. I believe it was a
totally sound decision by RTA to inaugurate the system on September
9 as planned, starting with 10 strategically located metro stations.
WHAT IS YOUR REACTION TO THE DELAY OF 19 DUBAI METRO STATIONS ON THE RED LINE?
WILL YOU USE THE METRO?
DO YOU THINK THE DUBAI METRO WILL BE A SUCCESS WHEN IT IS FULLY COMPLETED?
WILL IT MEET THE INFRASTRUCTURE NEEDS OF THE CITY?
DR SHERIFF HASHEMWSP Middle East Associate Director
SCOTT RICHARDSACW Holdings director of client services
WHAT MORE CAN THE GULF DO TO IMPROVE ITS INFRASTRUCTURE?
A soft-launch is a practical solution for an ambitious project and
given the scale of the Metro. The Septemper 9 decision to hold back
19 stations was an advisable decision. It does impact the usefulness
of the Metro at this stage but it clearly helped Dubai to get some
proverbial runs on the board locally and internationally.
I certainly intend to use the long awaited metro system. It is a
modern, reliable, safe, cost-effective and environmentally friendly
mode of transportation. The extent of such use, however, will
be affected by the ease of reaching metro station nodes from
residences and business points.
Certainly. With the remaining stations open it provides a nice arterial
reach to the malls and other regions of the emirate. I used the Metro
on September 10 and it was one of those experiences in Dubai where
they delivered expectations.
A completed metro network covering Dubai will certainly encourage
more commuters to go for public transportation in lieu of a car or taxi
based transport solutions. Changing transportation habits, however,
takes time; but the attractiveness and world-class operational service
of Dubai Metro will accelerate the process.
Yes. The Red and Green lines will serve a lot of Dubai. I would say
that the construction of the other lines are vital for the success of the
newer regions of Dubai, particularly along Emirates Road, where the
super-developments are being constructed.
Absolutely; after all, Dubai’s current and future map obviously needs a
modern integrated mass transit system with a modern metro system
in its core. A strong infrastructure serves as the backbone for the
development and expansion of world-class cities.
It will contribute to the relief of congestion on the roads. The metro is
just one part of a civic infrastructure, it offers a good-opportunity to
make the workforce more mobile, and increase people’s choices as
to where they live and work. It’s certainly a positive step towards the
maturation of the city.
In the context of the subject, I would think of activating the strategic
GCC railway system programme that has been under consideration
for quiet some time. Such internal systems could be complemented
with a rail link uniting the six countries. This requires a huge
investment, but the reward could be enormous.
The infrastructure here has evolved at a phenomenal rate. There are
clearly concerns around things such as electricity, sewage and waste
disposal. Civic infrastructure takes time, and the master-planned
communities have come about before that was in place.
BECAUSE OF THE DROP IN TRAFFIC THIS YEAR, IS THERE STILL A BIG DEMAND FOR ROAD PROJECTS?
I believe the demand for road projects will continue, however with
a new vision and strategy directing more funds and resources to
strategic long-term projects, rather than primarily to urgent projects
tackling traffi c congestion at rush hours.
The road projects here can seem diabolical in their complexity and
scale, but we have a road-capacity three times what we require for
several reasons: access, growth and international drivers.
METRO TALK
13SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
FRONT
ABOVE: Pearl Dubai has announced the completion of 50% of the foundation works at its Dubai Pearl project. The news follows the completion of the raft pouring in the South Tower, one of four buildings in the development. The South Tower has a foundation slab, which is 3.25m-thick and spreads across 3072m2. The second raft pouring on the project was completed in a record time of 30 hours.
RIGHT: Dubai’s Mirdif City Centre is soon to reach another milestone as work on its 272,000m2 car park is now 90% complete. The car park has a capacity to hold 7000 vehicles and is designed to offer access to Emirates Road and Tripoli Street. Once inside the car park, provisions have been made for 17 mall entrances to lead shoppers into the Mirdif shopping centre.
BELOW LEFT: Emirates Steel has awarded the next stage of its US $9 billion (AED33 billion) extension to the American Danieli Corporation, for EPC works for the entire phase. When completed in 2011, Emirates Steel will have the fi rst heavy rolling mill in the GCC making it the only producer of heavy sections in the Middle East, as well as doubling the mill’s capacity. The company claims current work on the extension is two moths ahead of schedule.
BELOW RIGHT: Stan Munro is an American artist with an unusual skill – the ability to construct models of real-world buildings entirely out of toothpicks. His Toothpick City II: Towers and Temples project is currently under construction and contains some of the most notable buildings in the Middle East, including the Masjid Al Haram in Makkah, Saudi Arabia (pictured) and a 5m tall model of the Burj Dubai.
NEWS IN PICS
> For more pictures log on to www.ConstructionWEEKonline.com
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CONSTRUCTION WEEK SEPTEMBER 19–25, 200914
ANALYSIS
Building along the linesARE FUTURE INFRASTRUCTURE PROJECTS DEPENDENT ON THE SUCCESS OF THE METRO?
By Matt Warnock
(RTA) has estimated that the Metro alone will drum up US $4.6 billion (AED16.9 bil-lion) over the next ten years through fares, advertising, retail and sponsorship.
An economist at Dubai International Financial Centre (DIFC), Fabio Scaccia-villani, believes the total fi nancial boost could be in the region of $7.6 billion over the next fi ve years. “Public spending on
After years of research, months of road works and much fanfare, the doors of Dubai Metro stations – ten of them, at least – have fi nally opened.
The implications are clear: quick, affordable transport. But will Dubai Metro succeed in being the save-all stimulant to an indus-try on which many hats have been hung? Dubai’s Roads and Transport Authority
infrastructure produces positive economic returns. Higher endowment of infrastruc-ture boosts the aggregate return on private sector capital investments,” he said, adding that the Metro could also save up to $1.4 billion a year in lost work hours.
But what does that mean for real estate and further infrastructure developments?
“It took some 30,000 workers, fi ve big contractors and 150 other contractors to complete and make it possible to launch the project on schedule,” said RTA chairman and executive director Matter Al Tayer.With 19 more stations to be completed on the Red Line by February, and the Green Line following in June 2010, clearly many
THE METRO HAS THE POTENTIAL TO RAISE THE VALUE OF LAND, IN AREAS OF THE COUNTRY THAT HAVE, UNTIL NOW, BEEN WRITTEN OFF AS “TOO FAR.”
15SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
> For the latest analysis log on to www.ConstructionWEEKonline.com
contractors will remain in the service of Dubai’s mass transport system.
Developers too will continue to be involved; Nakheel Harbour and Towers Station has already opened and other Nakheel stations are to follow. Emaar will provide fi nancing for the Burj Dubai Metro station, while many other developers, such as the Majid Al Futtaim Group and Limitless, will fund stations and roads to link their projects with the Metro.
“We’re sure Dubai Metro will be a big hit with travellers. We’re looking forward to the opening of the Jafza/Limitless station at Downtown Jebel Ali in early 2010,” said Limitless corporate media relations man-ager Rebecca Rees. Limitless is far from
alone in these positive feelings towards the Dubai Metro project.
“We welcome Dubai Metro at Nakheel, as many of our communities are linked to the system, providing them with easy and convenient access to the rest of Dubai,” said a company spokesperson.
“Dubai has always been at the helm of positive change and such an achievement should contribute to the growth of the city as a tourism and business capital that is on par with any major global city. The avail-ability of a reliable and strong mass trans-port system is a must for any major city and Dubai realised this, ensuring it delivered a strong solution.”
The commitment from devel-opers – as well as other com-panies, banks and services – has been a fi ne example of private funding of public services; the Dubai Metro and its routes have long fi gured in the plans for companies considering which patch of land to buy up and develop. Jebel Ali, for instance, suddenly feels much closer to the rest of Dubai.
“We are currently focusing on our Down-town Jebel Ali project, which is served by the Dubai Metro,” added Rees.
The groundswell of support and encour-agement is undeniable, but can the Metro really change Dubai’s fortunes? There’s an awful lot of hope resting on those nar-row-gauge tracks.
“The Dubai Metro will make the city’s business, residential and commercial centres more accessible, boosting business activi-ties,” added RTA’s Al Tayer.
“Property development has started to spring up along the metro lines and eco-nomic generation will be induced,” he added, noting that property and land prices around Dubai Metro stations had seen increases in the region of 30%. Rents too are expected to rise with units served by Dubai Metro seeing a 10% hike.
Although rent rises will be controlled by the Real Estate Regulatory Agency (Rera) rental price index in the future, increased demand means higher rents; higher rents means more demand from buyers and that in turn, eventually means a thriving real estate and construction industry. The same goes for commercial real estate too.A recent study carried out by AMRB for
Limitless revealed that Dubai residents rated living near to the Metro more important than having a good view. Being walking distance from a station was a priority for 40% of those surveyed.
“Our research sends out a clear message: people want to walk more and try alternative transport, to the extent that it infl uences where they live and how much they are willing to pay,” said Limitless CEO Saeed Ahmed Saeed. The second part of that quote is key: Dubai residents are willing to pay a premium for properties located near Metro stations. For a real estate market that has been in freefall for some months now, anything that brings
extra value can only be positive.
The logic is fl aw-less but, in reality, it’s too early to know whether the Metro will turn things around, according to CB Richard Ellis
Middle East associate director of research, Matt Green.
“It’s really a wait-and-see to what level of impact the Metro will have. At the begin-ning it will be minimal, but its usefulness to Dubai will increase when more stations are up-and-running and connectivity to Metro stations is improved,” said Green.
He added that areas previously blighted by traffi c congestion, such as Bur Dubai, would benefi t from the Metro and this could see an infl ux of savvy developers and investors in search of new opportunities.
“It’s a good bit of PR for Dubai during a time when things are diffi cult, and hav-ing that kind of investment in your infra-structure is always going to help attract outside investors who are looking at the Dubai market,” he added.
Of course, the long-term knock-on effects of the Dubai Metro could be monumental for development companies. Abu Dhabi is watching closely, as tenders for its own Metro system are soon to be announced. The UAE recently set up the Etihad Trains Company to link up all parts of the country.
The Metro is being used as a barometer for the potential success of such networks and should these come to fruition, tenders for massive infrastructure jobs will be up for grabs, while as-yet-untouched areas of the country will turn ripe for development.
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17SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
EVENTSEvent: Building Sustainability into the Middle EastOverview: Construction Week has merged the Building Sustainability into the Middle East conference, and the GreenBuilding training series in order to offer strategic insight and practical learning in one exhibition. Date: October 25-26Venue: Crown Plaza Hotel, Abu DhabiPhone: +971 4 435 6127Email: [email protected] Website: www.constructionweekonline.com/conferences
Event: MEP KuwaitOverview: This conference aims to shine the spotlight on Kuwait and will discusses the challenges of engaging with Kuwait developers; future opportunities; the technology required now and in the future; and the long-term plans for the country and how these will impact on operations. Strong desings coming from architects offer an incentive for MEP companies to relocate or set up offi ces in Kuwait.Date: October 28Venue: Radisson SAS, Kuwait CityPhone: +971 4 435 6127Email: [email protected] Website: www.constructionweekonline.com/conferences
Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate.Date: November 3Venue: Raffl es Hotel, DubaiPhone: +971 4 435 6127Email: [email protected] Website: www.constructionweekonline.com/conferences
Event: Construction Week Awards 2009Overview: In its 5th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in 15 key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Award categories include project manager of the year, construction manager of the year, sustainable project of the year and developer of the year among others. Date: November 4Location: Grand Hyatt, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/cwawards
Event: Construction Week India ConferenceOverview: This event is designed to equip individuals to identify project risks and implement risk mitigating processes that can be easily and effi ciently integrated into the entire construction process which will be essential in
the transformation of Indian cities.Date: November 11-12Location: New DelhiPhone: +971 4 435 6127Email: [email protected]: www.constructionweekonline.com/conferences
Event: CID Awards 2009Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers. Date: November 15Venue: Park Hyatt, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/cidawards
Event: MEP Awards Date: December 9Venue: The Westin, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/mepawards
Event: Construction Week North Africa Conference.Overview: This Construction Week conference will provide a fi rm basis for all interested parties to come together and share their experience of the economic renaissance in North Africa. Date: December 17Venue: Intercontinental Hotel, CairoPhone: +971 4 435 6127Email: [email protected]: www.constructionweekonline.com/conferences
Event: Cityscape DubaiOverview: International property and development event.Date: October 5-8Venue: Dubai International Exhibition CentrePhone: +971 4 332 1000
Event: International Symposium on Architectural MembranesOverview: The workshop will address the theoretical bases for structural analysis necessary for computer implementation. Date: October 14-15Venue: American Univeristy in DubaiWebsite: http://isam-dubai.web.offi celive.com/about.aspx
Event: The Big 5Overview: Big 5 is the annual meeting place for all industry professionals. Over 58,000 key buyers and decision makers from the public and private sectors attended the 2008 event.Date: November 23-26Venue: Dubai World Trade CentreWebsite: www.thebig5exhibition.com
Build Smart 2009 will present solutions, new technologies and best practice for improving effi ciency and productivity during project development. But, the main focus at the event will be the offi cial launch of new association, Building Smart Middle East. It will demonstrate that by establishing standards for the construction industry, Building Smart can facilitate improvements in profi tability and sustainability in the region. Building Smart will eventually operate throughout the Middle East, as well as North Africa, as a not-for-profi t organisation. �
Event focusBUILD SMART 2009
DATE: NOVEMBER 15-16VENUE: YAS HOTEL, ABU DHABIWEBSITE: WWW.ITP.NET/EVENTS/BUILDSMART
Event: Middle East Architect Awards Overview: The Middle East Architect awards are an opportunity for the
industry to come together and toast exceptional performance in architecture, engineering and design. The awards recognise both regional and international architects and engineers who have made signifi cant contributions to
the development of the Gulf. Award categories include overall project of the year, restoration/conservation project of the year, green project of the year, mixed- used development of the year and infrastructure project of the year.Date: September 30Venue: The Westin, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/meaa
19SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
> For the latest news and comments log on to www.ConstructionWEEKonline.com/comment
COMMENT
The global economic collapse, like an outgoing tide that reveals once unseen reefs and wreckage, brought to the world’s attention an assortment of exposés about scams and high-risk speculations around the globe that have horrifi ed and fascinated both professionals and the general public.
Their stories are made public knowledge largely because of the severe fi nancial and human cost they reportedly caused, and tend to share very little about the decision making processes involved.
Somewhere between projects that have been cancelled or put on hold, and those that were overexposed to business uncertainty, are the better geared investments now con-fronted with new conditions demanding changes to the variables and assumptions in their feasibility model.
The changes in market conditions present both opportunities and new risks, which have to be factored into the feasibility reviews. This assumes, of course, that some decision making framework and models existed in the fi rst place.
Models vary from simple Net Present Value calculations based on discounted future cash fl ows, to highly complex Real Options models applying multiple sources of uncertainty and managerial choices regard-ing future payoffs.
Whatever model is applied in determining the type of a strategic investment, unless a robust system of continuous project gov-ernance is in place to oversee the delivery, the process of managing investment risk becomes more diffi cult. Project governance is deliberately mentioned here as opposed to project management, which is a neces-sary, but not suffi cient, determinant for investment success.
Good project management is essential for the successful delivery of an investment
decision, while project governance applies across the full span of its life cycle.
Undoubtedly, the cause of most investment failure is the absence of both responsible project governance and good project man-agement. Project governance can be seen as the managerial system responsible for the sum of all decisions that determine the ratio between the real worth of an investment and the cost of having it, which includes capital, operating and opportunity costs.
Much of the responsibility of project gover-nance is delegated downwards through the project management process but account-ability for the project’s ultimate success remains with the directors of the investing company. Good project management can highlight inadequate project governance and if engaged at a suffi ciently early stage, can signifi cantly improve the probability of investment success through methods such as risk management, value engineering, confi guration control, and alternative pro-curement and construction strategies. These are important functions, however devalued they have become, in a competitive market that often reduces project management to mere construction supervision.
It is the primary role of a project gover-nance system within a fi rm to continuously study external and internal uncertainty and dynamics, and diligently manage the process of decision making throughout an investment project’s life, in order to achieve the pay-off it was chartered to yield. Project governance in turn, is only as effective as it is structured and allowed to act by the directors of an enterprise. There is an old maxim that management cannot improve poorly evaluated ventures and that at best it can then only deliver the wrong strategy.
The function of project governance is to ensure that this does not happen.
Project governance and investment riskCHRIS ROUX TAKES A LOOK AT THE IMPORTANCE OF PROJECT GOVERNANCE AND PROJECT MANAGEMENT AND HOW THEY CAN ULTIMATELY BE RESPONSIBLE FOR A PROJECT’S SUCCESS
“GOOD PROJECT MANAGEMENT IS
ESSENTIAL FOR THE SUCCESSFUL DELIVERY
OF AN INVESTMENT DECISION”
Chris Roux is the business development manager for
Coffey Projects in the UAE. He has a long history in
the delivery of investment undertakings beginning with
contracting. Roux did an eight year stint with consulting engineers, followed by 13
years in project management in South Africa. He holds an MBA and a PhD in strategic
management, with emphasis on project management as a method of strategy
implementation.
The opinions expressed in this column are of the author and not of the publisher.
CONSTRUCTION WEEK SEPTEMBER 19–25, 200920
LEGAL> For more legal advice log on to www.ConstructionWEEKonline.com/comment
The opinions expressed in this column are of the author and not of the publisher.
“MAJOR RISKS THAT WOULD NORMALLY REST WITH THE EMPLOYER ARE PLACED FIRMLY WITH THE CONTRACTOR”
Ankers is a senior quantity surveyor currently assigned to the Government of Abu Dhabi Claims Committee Team as part of a multi-disciplined team, tasked to review and make recommendations on outstanding contractual claims that cannot be resolved in-house by the Abu Dhabi Government’s various Works Departments. His responsibilities include the detailed analysis of contractual entitlement, causation and damages on Abu Dhabi Public Works infrastructure building and civil engineering projects.
Risk allocation in the Silver BookMIKE ANKERS DISCUSSES AN ALTERNATIVE FORM OF CONTRACT, WHICH PLACES RISKS AT THE HANDS OF THE CONTRACTOR RATHER THAN THE EMPLOYER
UNSUITABLE CONDITIONSIn line with the revised risk allocation
under the Silver Book, Fidic has indentifi ed
four situations where the Silver Book is
considered unsuitable. These are:
• If there is insuffi cient time or information
for tenderers to scrutinise and check the
employer’s requirements, risk assessment
studies and estimating
• If construction will involve substantial work
underground or work in other areas which
tenderers cannot respect
• If the employer intends to supervise closely
or control the contractor’s work, or to review
most of the construction drawings
• If the amount of each interim payment is to be
determined by an offi cial
The Fidic “Silver Book” is a signifi cant departure from typical risk allocation contained in the other Fidic forms of contract. This change of risk allocation is designed to give employers an alternative to the standard form when a pre-determined fi xed fi nal cost is the most important factor for the employer; even more so than obtaining the lowest price for a project.
For certain employers there is a need to know the cost from the beginning of the project and how this is achieved is not the primary concern. Fidic recognises this need and rather than having employers heavily amend the existing standard contracts, has set out to produce a contract specifi cally to fi t this need.
The Silver Book achieves greater price certainty in a simple way; major risks that would normally rest with the employer are placed fi rmly with the contractor.
The Silver Book is a design and build type contract where the contractor produces a design to satisfy the employers require-ments. In a normal contract, the employer is responsible for the correctness of the employers requirements and the contrac-tor is responsible for his own proposal and detailed design. With the Silver Book, the contractor is responsible for checking the employers requirements, as well as the con-tractors proposal, whilst making sure that both are correct. Any errors found in the employers requirements are to be corrected by the contractor at the contractor’s cost.
Other risks, which the Silver Book places with the contractor rather than the employer, include unforseeable shortages of person-nel and materials.
Changes to risk allocation under the contract do not extinguish these risks, but merely move responsibility to the contractor.
With the Silver Book risk allocation, the contractor must determine the potential
likelihood of the risk materialising and the cost that may be associated with that risk. The contractor needs to make the com-mercial decision on the risk allowance to be included in his tender. In this way, the employer pays for the risk whether it occurs or not, and the contractor can either benefi t from an additional profi t if the risk does not occur or loses if he underestimates the risk. It should also be borne in mind that risk allocation in the Silver Book construction, is not a risk free enterprise. Fidic still leaves certain risks with the employer, such as employer variations and delays caused by the employer. Standard forms of contract will not protect the employer from additional costs caused by his own actions.
Fidic recognises that it is for employers and contractors to decide whether the conditions are appropriate for a particular project. It is for the parties to decide what is best for their own particular circumstances. The original standard form of contract provides a universally recognised starting point.
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CONSTRUCTION WEEK SEPTEMBER 19–25, 200922
Al Wahda Street is classed the main artery that runs through Sharjah, heading off towards the emirate. Last year this vital corridor,
from Al Falah Plaza to Cultural Square, was closed to traffi c so that construction of one of the biggest road projects the city has seen could begin.
It comes as no surprise that the closure has caused a hot topic of discussion among Sharjah residents and those traveling in and out of the city.
But, as any project goes, there has to be a little disruption before there can be con-struction. And, according to Halcrow, the developer on the project, Al Wahda Street was in much need of a revamp.
“Traffi c was heavy before and there were temporary bridges over all junctions that were put in place in the 1980’s,” says Halcrow chief resident engineer Steve Hodgkins.
WAHDA RELIEFTHE MAJOR INFRASTRUCTURE PROJECT THAT IS AL WAHDA STREET IS SET TO BE FULLY OPENED THIS TIME NEXT YEAR, MUCH TO THE DELIGHT OF SHARJAH RESIDENTS AND COMMUTERS. BUT THE JOURNEY TO THIS STAGE IN THE PROJECT HAS NOT BEEN TAKEN WITHOUT FACING A FEW BUMPS IN THE ROAD, AS CONSULTANT HALCROW EXPLAINS
By Sarah Blackman; Photos by Khaled Termanini
“These bridges just couldn’t cope with the sheer volume of traffi c so they had to be replaced with proper designed junctions. Obviously it has taken a long time for the design to be prepared and implemented in the fashion that it has.”
The entire project involves the redevelop-ment of 6km-long road consisting of four major interchanges - Cultural Square, Fly-ing Saucer roundabout, Yarmouk junction and Abu Shagara.
The project is due to be fully completed in September, 2010.
Last month, the two former interchanges were opened to the public six days ahead of schedule.
The cultural square interchange now consists of an underpass along Al Wahda Street, passing below cultural square round-about and leading traffi c to and from Sheikh Mohammed bin Saqr Al Qassimi Road.
The ramp portion of the tunnel is around 500m-long on either side with a closed tunnel of length around 175m, while the interchange at the fl ying saucer junction is grade-sepa-rated with a viaduct around 550m-long and an at-grade signalised junction.
When it comes to Al Wahda Street, Halcrow has handled everything from concept design through to construction management. And, although the fi rst phase of the road project has been launched successfully, there were a few twists and turns before the building process could even begin.
In April 2006, Halcrow was awarded the contract to take on the major road project and soon realised that it would be no easy
HODGKINS SAYS TRAFFIC WAS VERY HEAVY IN SHARJAH BEFORE THE AL WAHDA ROAD PROJECT BEGAN.
“THE FIRST YEAR WAS DEVOTED ALMOST ENTIRELY TO ALTERNATIVE TRAFFIC ROUTES”
task. Al Wahda Street runs from the southern emirates through to the northern emirates – a route for traffi c but also a route for all the major utilities.
“We have had to divert them all,” said Halcrow senior resident engineer Mike Johnston. “Also, we have had to layer all the services because there wasn’t room to put them all side by side.”
Utilities such as a 2.2 diametre water pumping main, as well as 132KV cables and 30 inch gas pipelines ran through the tight corridor.
Further, the developer had to take into account how traffi c could fl ow without the use of Al Wahda Street and thus needed to create alternative routes.
Halcrow improved all roads, which were use to divert traffi c to and developed them into three-lane roads. The company also improved roundabouts and junctions, such as Kuwait Square.
“We have had to keep local access, which is a nightmare because Al Wahda is the main commercial road,” explains John-ston. “We turned nine roundabouts into signalised intersections.
We widened nearly 20km of road to ease the traffi c fl ow and all of this was done in advance to keep traffi c moving.”
23SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
“The fi rst year was devoted almost entirely to alternative traffi c routes and investigating the services that had to be diverted and that took over a year before we could consider closing Al Wahda Street in the form that it’s closed today,” reports Hodgkins.
Once the road was closed, there was an agreed opening schedule of the various junctions to allow the people of Sharjah to get back the use of Al Wahda Street.
“Hopefully [the launch of Al Wahda Street] will tie in with other events like the comple-tion of King Abdulaziz, which is a separate project in itself,” Hodgkins adds.
King Abdulaziz is the other main road in Sharjah that Halcrow wanted to create, which passes through industrial areas before crossing over Al Wasit Road towards Al Wahda Road, and stretching out towards the Al Qasimia area via Abu Shagara.
This route didn’t exist fi ve years ago and is expected to be fi nished between 2010 and 2011.
“The plan is to extend it still further across the creek so King Abdulaziz will become the main artery in and out of the port, run-ning through to the east coast and other emirates.”
Another challenge faced by the developer during the improvement of Al Wahda Street
was the critical issue of Sharjah’s water table, located just below, and in some cases no more than 1m below the surface.
“This is an issue for all construction in Sharjah, which is why the emirate fl oods all the time it rains and every time you build something you have to dewater in order to go down any distance at all,” explains Hodgkins.
Not only is Halcrow responsible for con-structing a major project that is not just a want but a need among several thousands of people but they have been doing this all under the watchful eye of Sharjah’s ruler.
This caused a slight problem when improv-ing Al Wahda Road at Cultural Square.
AL WAHDA – FAST FACTS:
CONSULTANT Halcrow International Partnership
CLIENT Directorate of Public Works, Government of Sharjah
PROJECT MANAGER In-house
ARCHITECT In-house
MAIN CONTRACTOR Sharjah General Contracting Company
PILING WORKS Al Marwan General Contracting Company
LIGHTING DESIGNER Sharjah Electricity and Water Authority
VIADUCTS AND UNDERPASS
China Harbour Engineering
VALUE US $228.7 million
TENDER DATE April 4, 2006
START DATE November 25, 2006
EXPECTED COMPLETION September 26, 2010
“The ruler’s offi ce is there and, of course, [from there] he can see the Qur’an located in the centre of the Cultural Square round-about. He didn’t want to spoil any of that so we built and underpass leading underneath the round about,” says Johnston.
“Generally that isn’t too much of a problem but the he watched everything we did and we got phone calls from the ruler himself when he saw something he didn’t like.”
But despite a few stop signs along the way, Halcrow has kept moving on and is currently running on track and on time.
The second phase of the project includes the construction of Abu Shagarah under-pass, which will be around 534m-long, and
ABOVE: LABOURERS WORK ON THE FLYING SAUCER ROUNDABOUT.
RIGHT: THE MAP SHOWS AL WAHDA AND KING ABDULAZIZ ALONG WITH DIVERTED TRAFFIC ROUTES.
is expected to be open by September 26 next year.
Meanwhile, a 1.5km-long viaduct is being built between King Faisal Interchange and the Gold Centre intersection. This is set to open on April 30, 2010.
To speed up the process of this section, for the benefi t of Sharjah residents, Halcrow switched from an in situ concrete bridge to precast beams and has created a casting yard and batching plants.
This is one factor that has caused the cost of the entire contract to rise by approxi-mately 76% since the project started.
“The quality will still be the same when using precast,” added Johnston. “There is pressure to complete the project. We were told that the road could be closed for no more than two years.”
The original contract price was US $130 million (AED477 million) in 2006 and has now been revised to $229 million.
“The original tender was very basic and they [the client] put it out in a hurry,” explains Johnston.
“Also, we have had changes in design – the bridge from Yarmouk is now twice as long as it was initially planned to be.”
Since the improvement of Al Wahda Road began, Halcrow has eaten slept and breathed this project. But, was it all worth it? Accord-ing to the developer, the answer is yes.
Once the work is complete and the entire road is fi nally opened, the time it takes to head all the way through Al Wahda Street and to the emirate’s airport will be radi-cally reduced.
“It will be free fl ow,” says Hodgkins. When Dubai traffi c enters Sharjah you will be able to drive the whole length of Al Wahda Street all the way along airport road without having to go through traffi c lights.
“If you did this route six months ago, at the wrong time of day, it literally could take hours. But, if you take the journey [after the entire project is completed], it could take around 15 to 20 minutes from the border of Sharjah up to the airport,” he added. �
SENIOR RESIDENT ENGINEER MIKE JOHNSTON EXPLAINS THE COMPLEXITIY OF THE ROAD PROJECT.
“WE WERE TOLD THAT THE ROAD COULD BE CLOSED FOR NO MORE THAN TWO YEARS”
As the largest event of its kind in the Middle East, The Big 5 provides an unrivalled platform for architects, engineers, contractors and developers from the public and private sectors to network, source and specify the latest building and construction products and services.
Featuring National Pavilions from all major exporting countries of the world, The Big 5 provides the most comprehensive product offering for the building and construction industry.
The Big 5 will also be bringing together an impressive line-up of added value elements including a Key Buyers Programme, Product Seminars, a Conference Programme and the acclaimed Gaia Awards.
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AN EXPERIENCE WHICH IS TRULY...‘BEYOND EXCEPTIONAL’
CONSTRUCTION WEEK SEPTEMBER 19–25, 200926
SIDRA MEDICAL AND RESEARCH CENTRELocation: Qatar
Value: US $2.3 billionClient: Qatar Petroleum (client representative for Qatar Foundation)Schedule: A joint venture between OHL Construction and Contrack International was awarded the main construction contract in 2008. Construction is in progress and expected to be completed in early 2012. Keo
International Consultants is managing construction, while Pelli Clarke Pelli is the design architect.Scope: The project calls for construction of Sidra Medical and Research Centre in Qatar. The capacity of the hospital is 380 beds. The centre will include
parking for approximately 2000 vehicles and will become home to 350 resident nurses.
TOP 10 HEALTHCAREPROJECTS IN THE GCC
JABER AHMED AL JABER AL SABAH HOSPITALLocation: KuwaitValue: US $1 billion
Client: Ministry of Health; Ministry of Public Works Schedule: The Ministry of Public Works has received bids for the main construction contract. The lowest bidder is Arab Kuwait Contractors Company. Construction is to begin in the fi rst quarter of next year and expected to be completed in the fi rst quarter of 2014. The main consultant is Gulf Consults and Langdon Wilson International. Scope: The project calls for the construction of Jaber Ahmed Al Jaber Al Sabah Hospital in Surra, Kuwait. The total built up area is 270,000m². The hospital provides a comprehensive range of medical services and comprises diagnostic and treatment services, a trauma center and casualty services, outpatient services, dental services, Ob/Gyn services, inpatient care services, VIP suites for the visiting heads of states and also another wing for VIP suites.
Hospitals in this feature are listed in value order.
CONSTRUCTION WEEK TAKES A LOOKS AT TEN HOSPITALS, HEALTH CENTRES AND CLINICS IN THE GULF THAT ARE SET TO BE COMPLETED IN THE NEXT FEW YEARSBy Conrad Egbert and Lutfi Qaraman
CLEVELAND CLINIC HOSPITALLocation: UAE
Value: US $1.9 billionClient: Mubadala Development Company Schedule: The application deadline for technical bids for the main construction contract was last month, while the deadline for commercial proposals is October 21. Companies involved with the project so far are Arabtec Construction, Aktor and Driver Consult. Construction is expected to be completed in Q4 2011.Scope: The project calls for the construction of Cleveland Clinic in Al Sowah Island in Abu Dhabi. The hospital includes 324 specialised clinics and 360 beds. The total built up area of the project is 417,000m² with a car park, which can hold 3100 cars.
27SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
> For more top 10s visit www.ConstructionWEEKonline.com
AL MAFRAQ HOSPITALLocation: Abu Dhabi, UAEValue: US $871 million
Client: Abu Dhabi Health Services CompanySchedule: The hospital is still in the design stage and the main contract is expected to be awarded by the end of this year. Construction is expected to start in the fi rst quarter of next year and is set to be completed in 2013.Scope: The new hospital is being designed to triple the number of treatment rooms to 690 beds and it will span an area of 306,803m² with a built up area of 246,118m². The hospital is among the oldest in Abu Dhabi and is to be replaced with a new building, which
will incorporate environmentally friendly and energy-effi cient designs - it will recycle waste water, reduce electrical use
with fi bre optic interior sun lighting and incorporate the use of solar panels.
AL JALILA BINT MOHAMMED BIN RASHID AL MAKTOUM HOSPITALLocation: UAEValue: US $370 million
Client: Dubai Health AuthoritySchedule: In July this year, UAE vice president and prime minister and ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, laid the foundation stone of the hospital. The project is expected to be completed in the second quarter of 2011.Scope: The hospital will be located near Al Wasl Hospital in Garhoud. The 200-bed hospital dedicated for children will have sub-specialties in pediatrics.
DANAT AL EMARAT WOMEN & CHILDREN’S HOSPITALLocation: UAE
Value: US $150 millionClient: United Eastern MedicalSchedule: Construction began last week with a ground-breaking ceremony. The project is expected to be completed in 2011. Al Ghurair Arabian Foundations Engineering was selected for the fi rst phase of construction and the contracts for the second and fi nal phases are still to be tendered. Singaporean healthcare operators Parkway Health will manage the facility.Scope: The project includes a 200-bed women and children’s hospital, a network of primary care and specialty health centers and Abu Dhabi’s fi rst Medical Spa.
AL KHOBAR HOSPITALLocation: Saudi ArabiaValue: US $55 millionClient: Ministry of Health
Schedule: Al Kifah Construction Equipment Company was awarded the main construction contract in March 2008 with construction beginning in May of the same year. Construction is in progress and expected to be completed in May next year.Scope: The development calls for construction of Al Khobar Hospital in Saudi Arabia. The hospital is located in Al Khobar city with a capacity of 200 beds.
SAUD BIN JALWAEI HOSPITALLocation: Saudi ArabiaValue: US $55 million
Client: Ministry of HealthSchedule: Al Kifah Construction Equipment Company was awarded the main construction contract in March 2008. Construction began in January this year. The duration of the project is 24 months.Scope: The project calls for construction of Saud bin Jalwaei hospital in Al Ahsa. The capacity of the hospital is 200 beds.
BAYAN PALACE HEALTH CENTRELocation: KuwaitValue: US $54 million
Client: Ministry of Public WorksSchedule: Al Amiah Contracting Company was awarded the main construction contract in July 2008. Construction started in August 2008. Project duration is 17 months.Scope: The project calls for the construction of a health centre at Bayan Palace in Kuwait.
AL MOKOWAH HOSPITALLocation: Saudi Arabia
Value: US $24 millionClient: Ministry of HealthSchedule: Saeed Al Mobti and Partners Company for Contracting was awarded the main construction contract in March 2008 with construction beginning in May that year. The project is expected to be completed in May next year. The capacity of the hospital is 100 beds.Scope: The construction of a hospital in Al Mokowah.
CONSTRUCTION WEEK SEPTEMBER 19–25, 200928
The collapse of an eight-storey build-ing in Deira in mid-August hit the headlines across the region. The fact that it was a new built prop-
erty and there was no immediate reason for the collapse, such as a fi re, heightened concern over why it had happened.
The results of an investigation by Dubai Municipality into the collapse are expected to be announced within the next few weeks. However, initial statements from the inves-tigating committee have confi rmed that aspects being included within their scope are whether suitable building materials were used in construction; whether the design of the structure was fl awed; and the operational aspects of the project. One of the main ways to gauge all of these factors is whether they met approved standards and certifi cations.
But what does gaining recognised cer-tifi cations actually mean and are the authorities likely to increase the strin-
STANDARD OPERATIONSTHE RECENT COLLAPSE OF A NEWLY CONSTRUCTED BUILDING IN DUBAI
HAS BROUGHT BUILD QUALITY TO THE FORE AND IN PARTICULAR THE ADHERENCE TO RECOGNISED STANDARDS AND CERTIFICATIONS. WHAT IS EXPECTED OF CONSTRUCTION
FIRMS AND IS THIS LIKELY TO CHANGE? CONSTRUCTION WEEK INVESTIGATES
By Alison Luke
HOW TO GET CERTIFIED• Identify the relevant certifi cation body
that works best for you
• Contact the relevant local authorities to
establish what certifi cations are required
• Contact the certifi cation body to
determine their requirements
• Appoint an individual to oversee the
implementation of the standards
procedures
• Submit any required materials to the
issuing body and/or allow access for
any inspections needed prior to gaining
certifi cation
gency of their requirements following this latest incident?
STANDARD PRACTICEThere are a wide number of standards and certifi cations applicable to fi rms operating within the construction industry. Those that must be adhered to by law vary according to discipline and the local authority regulations, however, certain standards are now recognised globally and widely used throughout the industry.
“From a certifi cation perspective, I would say that ISO14,001 for environment; OHSAS 18,001 for occupational health and safety; in addition, ISO9001 for quality [are among the main standards that must be adhered to in GCC countries],” states BSI Abu Dhabi general manager Ahmad Al Khatib.
In general, the certifi cation of fi rms to such standards shows that they adhere to recognised methods of working that have been set out within the listed standard. The aim of doing so is to improve performance, effi ciency and safety, with the certifi cations demonstrating the fi rm’s achievements to outside parties. Although standards are voluntary and separate from legal and regu-latory systems, they can be used to support or complement legislation.
Some of the other standards that are appli-cable within the industry relate to specifi c materials or products. “For reinforcing steel the product standard mainly used is the British Standard BS 4449: 1997,” explains UK Cares executive director Ben Bowsher. “The standard requires either steel supplied by a company that has a valid accredited product certifi cate, which is normally sup-
“THERE IS STONG DEMAND AND NEED FOR INTERNATIONAL BEST PRACTICES AND STANDARDS”BSI ABU DHABI GENERAL MANAGER AHMAD AL
KHATIB RECOMMENDS ISO9001 FOR QUALITY.
WHY WE RECOMMEND GETTING CERTIFIED• Win contracts – being able to prove that
your fi rm operates to internationally
accepted standards and certifi cations can
win you contracts
• Top Quality – operating to the methods
given in accepted standards and
certifi cations will ensure a better quality
end-product
• Better H&S - health and safety standards
both within the fi rm and on projects on
which it is working will be improved
• Higher productivity – effi ciency of
operations and productivity increase
when there are set and accepted
standards under which to work
• Better assessments – benchmarks can
be set to enable continuous improvement
of the fi rm’s operations to be accurately
assessed
• Easier global expansion - it is easier
to expand operations geographically
if the fi rm is working to internationally
recognised standards that are valid in
many regions
29SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
> For more special reports visit www.ConstructionWEEKonline.com
plied by Cares, or there should be a product testing regime applied, which approved each batch of steel from a non-certifi ed source,” he adds.
Such stringent quality control over products is imperative in the construction of build-ings. The absence of approved and properly installed products can create major issues warns Passive Fire Protection Federation (PFPF) chair David Sugden: “[In the case of passive fi re systems] you can’t test the installed system you need to have the prod-ucts tested in a lab in a test rig. But unless you install the materials and products in a building to the same standard as they were in the test rig then they won’t perform in the same way,” he warns.
CONTROLLED STANDARDSJust how strictly are the application of standards and certifi cations enforced in the region and are fi rms complying? Again this appears to vary between countries, disciplines and the size of fi rms involved.
“In specifi c sectors like construction some of the standards are regulated,” assures Khatib. “In Abu Dhabi, for example, the government started an initiative this year on regulating HSE implementation for the build and construction sector,” he explains.
“I understand that, in the main, steel from Cares-certifi cated sources are used although
UK CARES’ BOWSHER SAYS DON’T CUT CORNERS.
“IN THE CURRENT CLIMATE, THERE WILL BE MORE TEMPTATION TO CUT CORNERS ON QUALITY”
it is apparent that sometimes this is not the case,” reports Bowsher. “I have seen steel from sources of dubious origin supplied to reinforcement fabricators in this way, when in the UAE,” he warns.
In general, the international fi rms comply with such standards as a matter of course and also seek certifi cations from any sub-
out within guidelines is essential in order that the fi nal building produced can be used. “Currently, before we can pour a [con-crete] slab on site we have to get the work inspected by the municipality; they have to be convinced that the supporting structure is correct,” states the spokesperson. “The municipality has to sign off the slab pour and we must show these documents before can get an occupation notice on completion of the building,” he explains.
So with the Deira building collapse fresh in everyone’s minds, are the regulations for the region’s construction industry likely to become stricter?
“Not necessarily,” stated Al Khatib. “This issue is more related to companies adhering to the local law and construction guidelines imposed by the local authorities rather than not having the right law in place. Never-theless, it might raise a need for better or stronger specifi cations and standards.”
“The need for standards and best practices is increasing due to the nature of high-profi le, huge, extremely expensive projects in the
contractors they employ. A spokesperson from a major construction industry con-tractor comments: “We take services and materials from companies that are regis-tered to certain ISO systems; also, from subcontractors we want to see health and safety discipline.”
There are several reasons cited by major contractors for following internationally recognised standards that are not specifi -cally required by law. These include the ability to standardise the company’s pro-cesses and services to increase effi ciency; plus the ability to bid for work in markets that require the additional standards such as the oil and gas sector, municipalities and government departments.
And for those standards that are legally required, ensuring that all work is carried
SUGDEN SAYS SOME PRODUCTS WILL WORK ONLY IF INSTALLED IN BUILDINGS OF THE SAME STANDARD.
“WARRINGTON FIRE HAS A ROLE WITH THE CIVIL DEFENCE DEPARTMENT OF DUBAI IN SETTING STANDARDS”
31SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
Middle East region, there is a strong demand and need for international best practices and standards,” adds Al Khatib.
Economic circumstances also play a part in any tightening of and adherence to standards, making the current situation a signifi cant issue. “In the current economic climate, where costs are being driven down, there will be more temptation to cut corners on quality,” warns Bowsher.
Enforcement of the standards is made by different local authorities throughout the region. “In the UAE, for example, Abu Dhabi Municipality is in charge of enforc-ing HSE (14 and 18) implementation and certifi cation to the build and construction sector of Abu Dhabi,” reports Al Khatib. “PFPF member fi rm Warrington Fire has a role with the Civil Defence Department of Dubai in setting and maintaining stan-dards,” adds Sugden
Penalties for non-compliance vary according to the severity of the consequences that this would invoke and could involve a warning notice, fi ne, removal of trading license or,
in the event of a death on site, the people deemed responsible can be jailed.
And aside from potential legal consequenc-es, operating without applying recognised standard procedures can create even more serious issues. “The penalty for occupants if a passive fi re system is not properly installed is death,” stresses Sugden.
So what more can be done to ensure that buildings are constructed to international standards and standards-certifi ed products are used on projects?
“Create national building regulations, design codes and product standards and enforce their use,” suggests Bowsher.
Ensuring that the message reaches a wider audience is also vital. “Establish-ing forums where experts and end-users can get together to discuss several related issues and share ideas and working with the local authorities on regulating many of those standards,” he adds.
> For more special reports visit www.ConstructionWEEKonline.com
INTO THE FUTUREOne of the major forthcoming events due to take place in the standards sector is the introduction of Eurocodes. These structural codes are scheduled to come into force in March 2010 and the fl exibility of their design has meant that several countries outside of Europe have already committed to adopting Eurocodes reports the BSI.
BSI is currently working to identify exist-ing regulations for construction.
The introduction of the Eurocodes has several objectives, including the provision of common design criteria for mechanical resistance; to form a common basis for research and development, in the construction industry; and to enable the preparation of common design aids and software. They are also intended to provide a common understanding
regarding the design of structures between designers, manufac-turers and contrac-tors of construction products. �
OTHER CERTIFICATIONS AND STANDARDS
ISO 9001ISO 9001 outlines the requirements for a
quality management system (QMS) ie a
framework around which an organisation
can control its processes in order to
achieve set objectives including customer
satisfaction, regulatory compliance and
continual improvement.
First published in 1987, it was thoroughly
revised for the third edition, which was
introduced in 2000; changes included new
requirements and a sharpened customer
focus. The fourth and latest edition, ISO
9001:2008, does not require any specifi c
reassessment for certifi cation.
ISO 14001ISO 14001 sets out the requirements for an
organisation’s environmental management
system (EMS). It applies to those aspects
over which an organisation can be deemed
to have control or infl uence over. First
ductility of the three grades of steel approved
for use on the reinforcement of concrete.
LEEDDeveloped by the US Green Building
Council, the Leadership in Energy and
Environmental Design (Leed) rating system
is used to establish the environmental
accreditations of new construction
or major renovation projects. There
are six categories in the Leed system
- sustainable sites; water effi ciency;
energy and atmosphere; materials and
resources; indoor environmental quality;
and innovative design – each of which has
a number of options. An environmental
designer or Leed Accredited Professional
(Leed AP) uses these categories to
determine what environmental features the
project can incorporate given its geography,
goals and budget and assigns a certifi cation
level which range from certifi ed to platinum.
published in 1996, it has since been updated
several times.
OHSAS 18001OHSAS 18001 provides specifi cations for
Occupational Health and Safety (OH&S)
Management Systems. It is intended to
enable an organisation to control its health
and safety risks and ensure a continually
improving performance trough ongoing
measurement and setting of targets.
Registration to OHSAS 18001 by an
independent, third party, certifi cation body
demonstrates a commitment to implement,
maintain and improve the way in which you
manage your health and safety system
BS 4449BS 4449 is the specifi cation for carbon steel
bars used for the reinforcement of concrete.
The standard lists the characteristic yield
strength, tensile properties and
There are numerous standards and certifi cations that can be applied to construction fi rms and their operations throughout the GCC
countries. Some of the most widely recognised and followed are as follows.
“THE DEIRA COLLAPSE MIGHT RAISE A NEED FOR BETTER AND STRONGER SPECIFICATIONS AND STANDARDS”
CARES Product Certification
• Verified compliancewith British Standards
• Assurance of on-going compliance ofevery delivery
• No need for further testing
• No need for certificates
• Avoid unnecessary site delays
• Full traceability of steel from steelmill to site
• Full backing of CARES in cases of
complaints to suppliers
For further information about CARES and an up-to-date list of manufacturers and suppliersholding CARES certification please consult the CARES website: www.ukcares.com
Alternatively, contact the office:-
UK Certification Authority for Reinforcing Steels,
• That non-CARES approved steel willnot have been fully assessed to theBritish Standards
• That traceability of steel from sourceto site is non existent
• That the steel will not consistentlymeet the requirements of the BritishStandards
• That processing of non-conformingsteel may result in damage topersonnel or the structure
?
Confidence in Steel for
Concrete Construction
Why take the RISK?
CARES is a UK based, internationally recognised certificationbody fully accredited and operating independently for the benefitof all key sectors of the supply chain for construction materialsand products. The key products covered by CARES arereinforcing steels, prestressing steels and associated products, fortheir manufacture, processing and stocking and distributionincluding installation against defined product standards anddesign codes. The CARES certification schemes ensure thatproducts supplied to the construction industry consistently satisfythe customer’s requirements.
Compliance with product standardsAll products covered by the CARES schemes are tested againstproduct standards or specifications both by the manufacturer and atintervals for verification by CARES. The efficient use of constructionalsteels is dependent on these having the specified product propertiesand also being properly processed and installed.
The importance of the CARES approved processor or installerThe CARES approved processor or installer is the vital link betweenthe steel producer and the construction site and ensures that:
• The steel or the construction product satisfies the customersrequirements and therefore of the product standard or specification.
• The steel and associated products are not damaged duringprocessing or installation.
• Traceability has been maintained and all steel and products used arefrom a CARES approved supplier or those acceptable to CARES.
• Processing or installation are performed by suitably trained andqualified personnel.
TraceabilityA key element of the CARES certification schemes is traceability ofthe manufacturer and of the product and processing details.CARES approved manufacturers and processors must keeprecords of material and products used and when required thesecan be produced. As a result it is not necessary for contractors to
require additional testing of material or products or for copies oftest certificates to be sent with products to site.
Avoidance of site delaysContactors receiving material from a CARES approved processoror stockist can use the materials or products with confidence andtherefore do not need to carry out further tests in order to ensurecompliance. Alternatively, failure to specify CARES approvalplaces the onus of compliance fully on the shoulders of thepurchaser which in turn may result in further testing resulting in theaddition of significant cost and often site delays. Material thatdoes not comply with the standard or specification in all respectsincreases the risk that the structures in which they are used will notperform as specified.
Monitoring of Scheme performanceThe CARES certification schemes require that records ofcomplaints relating to compliance of the product made againstapproved firms are properly addressed and that details of thesecomplaints are returned to CARES at regular intervals. Furtheraction may be taken by CARES against the approved firm ifrequired. CARES acts as a point of reference when theperformance of one of its approved firms casts doubts on theeffectiveness of the relevant certification scheme.
CARES list of approved firmsCARES regularly updates a list of approved firms which ismaintained on the CARES website (www.ukcares.com ). Eachfirm’s entry gives the scope of the CARES certification as well asother key details of the firm. Occasionally firms make spuriousclaims regarding CARES approval. This may relate to approval ofthe firm itself or of the products and services for which they mighthold approval. If there are any doubts concerning the approvalstatus of a firm, then the CARES list of approved firms should beconsulted or alternatively the CARES office should be contactedfor verification.
Why take the RISK?
Confidence inSteel for Concrete Construction
For further information about CARES and an up-to-date list of manufacturers and suppliersholding CARES certification please consult the CARES website: www.ukcares.com
Alternatively, contact the office:-
UK Certification Authority for Reinforcing Steels,
You don’t have to be a construction specialist to know that working at height means working at any place above ground level, where if precautions are not taken, a person could seriously injure themselves.
So far this year, there have been 329 lost time injuries (LTIs), according to statistics compiled by Build Safe UAE (BSU), a non-profi t organisation aimed at raising health and safety standards in the country.
This statistical data, submitted to BSU by 31 main contractors between January and August, shows that 40 of the LTIs were caused by falls from height – the number one cause of injury on a construction site. Slips and trips have been the second main cause of injury onsite this year with 36 LTIs recorded.
Earlier this month, a Bahraini labourer died when he fell down a three-storey lift shaft when working on a project for Skyline Building Construction. And, in March, a 28-year old construction worker from India was killed instantly when he fell from the 14th fl oor of the Twin Building Project in the Bahrain capital of Manama.
So why is it that so many accidents happen on site?
“We are witnessing a constant breach of regulations by unsafe construction stakeholders,” explains BSU group administrator Elias McGrath. “These actions are truly appalling and discourage our efforts to promote a safer UAE.”
Bruce Shahabi, director of operations for Combisafe Gulf, a developer of safety solutions for construction sites, adds:
“The number one cause of injury when working at height is the perception of the management team that safety is a cost, which during these
economic conditions can be eliminated.” The main causes of falls from height
include the lack of adequate exclusion zones – these must be set up before work commences and should be enclosed with physical barriers.
“Hazard warning tape is not acceptable as a means of demarcating and preventing people entering exclusion zones,” states the latest Best Practice Guidelines for Working at Heights, also compiled by BSU this year.
But, it’s not only falls that cause injuries when working at height. Materials and tools are likely to fall onto workers during activities such as erecting scaffold or formwork systems, if proper precautions are not taken.
Protect workers from injuryWith so many high rise buildings being developed across the Gulf it is essential that necessary safety measures are put in place.
CONSTRUCTION WEEK TAKES A LOOK AT HOW TO PREVENT AN ACCIDENT WHEN WORKING ABOVE GROUND AND HOW LABOURERS CAN BE PROTECTED IF THEY SLIP OR FALL
By Sarah Blackman
Harnesses are common items, which are worn to prevent a fall and protect a person, should they fall.
A harness must be designed to hold a person both during and after a fall in such a way that his/her head remains in an upright position with no more than a 50° angle compared to the vertical, according to All Safe, a lifting and fall
arrest solutions provider in the Middle East.Lanyards are devices,
which connect the harness to an anchorage point, and must be
designed to support a load. “Prior to use, safety harnesses, its
lanyards, shock absorbers and hooks should be inspected by a competent
person,” says All Safe corporate sales manager Hugo Laverdin.
It is also vital that safety systems must comply with internationally
recognised standards. For example, if an
AN EXAMPLE OF SAFE CONSTRUCTION PRACTICE.
“PRIOR TO USE, SAFETY HARNESSES SHOULD BE INSPECTED BY A
COMPETENT PERSON”
MAIN CAUSES OF FALLS FROM HEIGHT• Trip hazards
• Oil or grease on the fl oor
• Strong blustery winds
• Lack of signage
• Poor lifting or rigging techniques
• Poor material storage
TIPS TO AVOID ACCIDENTS AT HEIGHT• Look for the hazards
• Identify who might be harmed and how
• Evaluate the risks and decide whether
the existing precautions are adequate
• Record your fi ndings
• Review your assessments
PREPARING YOUR WORKFORCE• Provide daily task briefi ngs
• Use international signage and barriers
• Test their medical fi tness
• Provide safety news alerts
• Offer monthly internal and
external training
�
operator falls, they will absorb a shock impact that can lead to injury but, if the anti-fall device has a shock impact equal or lower than 600 Deca Newtons, then injury or even death can be prevented.
The newton is the unit of force required to accelerate 1kg at a rate of 1m per second.
Prevent on-site accidentsIf contractors wish to create a safe work environment, labourers need not only be protected, but injuries need to be prevented.
“The best approach to working at height is to avoid exposing the workforce to exposed edges in the fi rst place,” reports Shahabi.
“This can be achieved by pre-fabrication of permanent works, pre-installation of edge protection or designing out the risks by working closely with the consultant. If this cannot be achieved fall prevention systems are the best approach.”
These systems must take into account the fall of objects, as well as workers, from the edge especially in severe wind storms, he says.
Barriers include guard rails and safety netting.
Put safety into practiceOmran is one construction company that has complied with safety regulations and, as a result, completed 3 million
man hours without LTIs during the development of the Asian Beach Games site in Oman.
“We achieved this by implementing risk analysis for critical jobs, HSSE meetings and daily tool box talks,” explains Omran vice president for construction Nasser Al Maqbali.
Arabian Construction Company (ACC) is also aiming to create a safe working environment during the development of what will be the tallest residential building in the world, The Princess Tower.
“We train our workers by holding weekly tool box talks and make sure the appropriate equipment is used,” says ACC senior project manager, Bill Parker.
This year, it seems that more contractors are taking into account safety regulations as the number of construction site fatalities has dropped by 55% since September 2008.
And, the number of LTIs recorded from January to September has also dropped.
But there is still a lot of room for improvement.
“One accident is an accident too many and we need to capture more data from more main contractors operating in this region to measure more accurate industry trends,” adds McGrath. �
EXAMPLE OF UNSAFE CONSTRUCTION PRACTICE.
> For the latest analysis log on to www.ConstructionWEEKonline.com
SPECIALIST SERVICES40 Building materials41 Construction chemicals/concrete42 Education & training/fl ooring43 Recruitment/steel
CITY UPDATE44 Doha, Qatar
DIRECTORY
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK 37
TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE
CONSTRUCTION WEEK SEPTEMBER 19–25, 200938
�TENDERSFREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRYTO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO [email protected]
To in
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TEN
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S �
BAHRAIN
Issuer: Bahrain Electricity and Water AuthorityTender No: 226/2009/5310Description: Supply an underground 11KV power cable.Closes: September 30Fees: BHD50Bond: BHD5000Contact: www.tenderboard.gov.bh
Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09Description: Supplying spare parts for Al Door Substation.Closes: September 30Fees: BHD15Contact: www.tenderboard.gov.bh
EGYPT
Issuer: Potable Water and Sanitary Drainage Company Description: Companies specialised in waste water solutions to design lifting stations at villages within Kafr El Sheikh Governorate.Closes: October 7Fees: EGP5000Bond: EGP500,000Contact: Potable Water and Sanitaty Drainage Company, opposite the court yards complex, Tanta
OMAN
Issuer: Oman Tourism Development Company Tender No: 249/2009Description: Consultancy services for Oman convention centre.Closes: September 21Fees: OMR1000Contact: www.tenderboard.gov.om
Issuer: Muscat Electricity Distribution CompanyTender No: 250/2009Description: Provide distribution Scada system for Muscat Electricity Distribution Company.Closes: September 21Fees: OMR1500Contact: www.tenderboard.gov.om
Issuer: Oman Tender Board Tender No: 262/2008Description: Construction of new Salalah Airport.Closes: September 21Fees: BHD1500Contact: www.tenderboard.gov.om
Issuer: Majan Electricity CompanyTender No: 251/2009 Description: Construction of a new 2x10MVA 33/11KV substation in Tarrif Makhmra, Shinas province.Closes: September 21Fees: OMR323Contact: www.tenderboard.gov.om
QATAR
Issuer: Public Works AuthorityTender No: PWA/GTC/048/07-08/R2Description: Construction of a service building in Um Salal. Closes: September 29Fees: QAR1000Contact: Contracts department, Public Works Authority
Issuer: Qatar PetroleumTender No: GT09109900Description: Irrigation, landscape maintenance and refurbishment works at Qatar Petroleum locations.Closes: October 4Fees: QAR500Contact: Qatar Petroleum, PO Box 3212
SAUDI ARABIA
Issuer: Royal Commission for Jubail and YanbuTender No: PIC G-1589D Description: Construction of housing units for bachelor medical staff at Haii Al Nawa 3 at Yanbu Industrial CityCloses: September 28Fees: SAR1000Contact: Director, Purchasing and Contracting Department, PO Box 30031, Yanbu Industrial City
Issuer: Royal Commission for Jubail and YanbuTender No: 325-S13Description: Operation and maintenance of infrastructure including roads, storm drainage, material handling facilities in Jubail Industrial City.Closes: October 12Fees: SAR12,500Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City
Issuer: Holy Makkah MunicipalityTender No: 4/00/00/296/1/2/19Description: Construction of pedestrian facilities in several areas of Makkah.Closes: October 24Fees: SAR5000Contact: www.holymakkah.gov.sa
UAE
Issuer: Dubai Electricity and Water AuthorityTender No: CE/0239/2009Description: The supply of 11KV power cables.Closes: September 24Fees: AED5000Contact: www.dewa.gov.ae
Issuer: Dubai Electricity and Water AuthorityTender No: CE/0408/2009Description: Supply, installation, testing and commissioning of 132/11KV substations.Closes: September 24Fees: AED5000Contact: www.dewa.gov.ae
ONE TO WATCH
Qatar General Electricity and Water (Kahramaa) is the sole transmission and distribution owner, and operator for the electricity and water sector in Qatar. It was established in July 2000 to regulate and maintain the supply of these utilities to its customers. Since its inception, Kahramaa has operated as an independent corporation on a commercial basis with a total capital of US $2 billion (QAR8 billion).
The organisation is also the client for the Qatar Power Transmission System Expansion Project. Phase nine of this project is expected to start in Q4 of this year and the scope of work includes the construction of 22 substa-tions and three underground stations; upgrade of eight existing substations; and the supply of 375km of cables at the 400KV, 220KV, 132KV and 66KV levels. The main construction contract award is yet to be announced. �
Tender focus
QATAR GENERAL ELECTRICITY AND WATER
KAHRAMAA DISTRIBUTES AND TRANSMITS ELECTRICITY IN QATAR.
Issuer:Issuer: Qatar General Electricity and WaterQatar General Electricity and WaterDescription:Description: Construction of 22 substations and three Construction of 22 substations and three underground stations; upgrade of eight existing underground stations; upgrade of eight existing substations; and supply of 375km of cables at the substations; and supply of 375km of cables at the 400KwV, 220KV, 132KV and 66KV levels.400KwV, 220KV, 132KV and 66KV levels.Award date:Award date: UnknownUnknownProject value:Project value: US $1.5 billionUS $1.5 billionContact:Contact: PO Box 41, Doha, State of QatarPO Box 41, Doha, State of Qatar
� PR
OJECTS To
list you
r pro
jects in th
is section
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etails to ed
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�PROJECTSA QATAR DATABASE - BUILDING PROJECTS FOCUSTO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO [email protected]
Construction on the US $5.5 billion (QAR20 billion) Lusail development began in the fi rst quarter of 2006 and is expected to be completed by the beginning of 2018. Lusail is a new coastal city located in the north of the Qatari capital of Doha and will cover 35km² of land.
The project will contain 18 different districts and will include a lagoon with two marinas, 25,000 residential units, retail areas, two golf courses, 22 schools, as well as a hospital and holiday resorts. Al Jaber Group was awarded the main construction contract for the infrastructure pack-age in 2008 and is expected to complete the work by the second quarter of 2011. Parsons International Company is the project manager on the development. �
Project focus
LUSAIL DEVELOPMENT
THE NEW CITY OF LUSAIL WILL COVER AN AREA OF 35KM².
PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR
VALUE(US$MN)
STATUS
QATARAL RAYYAN RESIDENTIAL TOWER Sheikh Mishaal Bin Hamad al-Thani/Maryam GHD Global Al Darwish Engineering 59 project under construction
AL SADD OFFICE TOWER Sheikha Nela Sadd M Al Misned Cansult Maunsell HBK Contracting 44 project under construction
AL ATTIYAH OFFICE BUILDING Sons of Abdulla bin Hamed Al Attiyah Arab Engineering Bureau
Construction & Recon-struction Company
27 project under construction
AL WAKRA HOSPITAL Public Works Authority GHD Global Joannou & Paraskev-aides Overseas
508 project under construction
AL REFAA RESIDENTIAL TOWER Sheikh Mishaal bin Hamad Al Thani GHD Global Al Darwish Engineering 31 - 100 project under construction
MODEL SCHOOL AT NAJMA - SCHOOL NO: 23 Public Works Authority In House Inshaa Contracting Company
11 project under construction
4 SHOWROOMS ON SALWA ROAD Nasser bin Khaled & Sons Group Consulting Engineering Group
Imperial Trading & Contracting Company
36 project under construction
AL MAJID RESIDENTIAL TOWER Ahmad Mahdi Ali Al Majid Arab Engineering Bureau Al Seal Contracting 57 project under construction
SIDRA MEDICAL & RESEARCH CENTRE Qatar Foundation Cesar Pelli & Associ-ates/Ellerbe Becket
OHL/Contrack International
2400 project under construction
LIBRARY FOR QATAR UNIVERSITY Qatar University Arab Architects Group Tadmur Contracting & Trading Establishment
69 project under construction
RESIDENTIAL BUILDING IN FOX HILLS Buzwair Real Estate/QDREIC Faim Design Not Appointed 2.5 - 15 project under design
APARTMENT BUILDING AT AL SADD Nasser Abdul Aziz Nasser Al Nasser Consulting Engineering Group
Not Appointed 16 - 30 award awaited for the main contract
PALM TOWERS Dar Investment & Development Company MZ & Partners Al Seal Contracting 218 project under construction
151 VILLAS IN AL RAYYAN Sheikh Naser Faleh Al Thani South West Archi-tecture
Imperial Trading & Contracting Company
110 project under construction
BUZWAIR HEADQUARTERS BUILDING Buzwair Real Estate A4 Zublin International 13 project under construction
RESIDENTIAL TOWER IN PEARL QATAR - PARCEL 8A The Land/UDC Callison Architects/KEO International
Al Arrab Contracting 31 - 100 project under construction
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
CONSTRUCTION WEEK SEPTEMBER 19–25, 200940
�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL [email protected]
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ES �
Al Wataniya, a concrete manufacturer, was established in May 2005 under the umbrella of Al Jaber Group, a major Middle East developer. The company is based in the west bay area of Doha, Qatar, but has seven branches distributed across cities in the GCC state including Ras Laffan, Mesaieed, Ras Abu Fontas and Al Khor. The company is currently working on increasing its production and reforming the company, but is waiting for its home-country to recover from the downturn.
For now, Al Wataniya Concrete’s products are available locally, but the company is looking to expand into the UAE. Al Wataniya Concrete, which employs 700 staff, has tried to see the downturn as an oppor-tunity to reform, reorganise and change strategy. In addition, the manufacturer has used this period to test new systems.
Al Wataniya has its own precast production facility located in Mesaieed Industrial City, as well as several ready mix concrete mixing plants, a cement grinding mill and
Supplier focus
AL WATANIYA CONCRETEMANUFACTURER OF CONCRETE
BUILDING MATERIALS
a fabrication facility. Due to the high temperatures in the Gulf, which created the necessity of maintaining a moderate tempera-ture for concrete, Al Wataniya has partnered with international fi rms to create cooling systems to help prevent built structures from cracking and to preserve concrete quality. �
AL WATANIYA CONCRETE HAS SEVEN BRANCHES DISTRIBUTED ACCROSS THE STATE OF QATAR.
41SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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DEWATERING
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43SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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CONSTRUCTION WEEK SEPTEMBER 19–25, 200944
CITY UPDATEDOHA, QATAR
Infrastructure appears to be the name of the game in Doha. Still buoyed by considerable oil and gas revenues, the Qatari capital is increasingly looking at ways in which those revenues can be used for
projects providing greater access to the rest of the world.
One of the major projects scheduled to begin next year is the Qatar-Bahrain ‘Friendship’ causeway, designed to create a road link between the two nations, shav-ing off four hours’ travelling time and the need to pass through Saudi Arabia. The project, worth US $3 billion (AED11 bil-lion), was supposed to begin in May 2008 but has been delayed.
“Negotiations are still underway regardingthe cost and are expected to be fi nalised by the end of the year, but initial esti-mates hover around the $3 billion mark. Bahrain and Qatar have already allocat-ed a budget of $500 million to start the project,” said Bahrain’s Works Minister Fahmi Al Jowder.
He said a detailed design of the causeway, which incorporates a 13m-wide railroad bridge, was currently being developed.
Work will start on the motorway and then in 2012, work will begin on the railway bridge, with rail tracks being added later.
The 40km-long causeway (22km bridge and 18km embankments) will be the world’s lon-gest marine causeway when complete.
It will connect the west coast of Qatar near the Zubara fort to the east coast of Bahrain, south of its capital Manama.
Opening the doorLINKING TO THE REST OF THE WORLD IS INCREASINGLY A PRIORITY FOR DOHA, WITH LUCRATIVE INFRASTRUCTURE CONTRACTS DRAWING CONTRACTORS TO QATAR
By James Boley
QATAR IS CONSTANTLY REINVESTING REVENUES FROM ITS OIL AND GAS SECTORS, BACK INTO THE ECONOMY.
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Moving inAs Doha expands its links to the world, it also seems that the world is trying to move to Doha. Construction giant Carillion is looking to expand on the success it has had in the UAE, with a view to expand into Qatar during 2010.
Meanwhile, Al Habtoor Leighton is increas-ingly expanding with Qatar, forming its second largest market. The company has just signed a $244 million water station deal and is chasing contracts worth a total of $3 billion.
However, it’s local developers who are really making an impact. Barwa Real Estate has built Barwa Village, which has been designed to provide homes for those dis-placed by the Heart of Doha project. “It’s a big development that was valued at $412
KHALID ABDULLA AL HITMI TALKS CONSTRUCTION.
TOP PROJECTSNew Doha International Airport $11 billionLusail $5.5 billionDoha Metro $3 billionBarwa City $1.35 billionDoha ConventionCentre and Tower $1.5 billion
“IN QATAR THE QUALITY OF CONSTRUCTION IS GENERALLY MUCH BETTER THAN OTHER PLACES”
DOHA’S BARWA VILLAGE IS A BIG DEVELOPMENT.
million,” explains Barwa Village project manager Khalid Abdulla Al Hitmi.
“It’s a mixed residential and commercial development and is like one of those gated communities you have in Dubai and other places in the Gulf. The project has all sorts of amenities including an international stan-dard school, nursery, park, public plaza, playground, shopping centre, mosque, and administration building,” he continued. “The quality of construction is also very
good, but then in Qatar the quality of the fi nish and construction is generally much better than other places,” he adds.
Qatar-based construction company Marbu was the main contractor for the 400,000m² Barwa Village. �
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CONSTRUCTION WEEK SEPTEMBER 19–25, 200946
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Introducing the Construct Safe lead characters (from Left to Right)
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If you have a health & safety or environment issue that you would like to see addressed through this comic strip email your ideas or comments to [email protected]. Alternatively, log onto www.ConstructionWeekOnline.com to see the comic strip.
SPONSORED BY: Kone solutions
CONSTRUCTION WEEK SEPTEMBER 19–25, 200948
DIALOGUEDAVE STOREY
There has been a drop in the number of available construction jobs since the downturn. Has this situation turned around in recent months?It’s important to mention that the slow down is not consistent across all industries. Obviously the banking, construction and property specifi c markets have slowed down considerably since October 2008. However, the public infrastructure sectors have remained in line with the previous two to three year growth phase. Since June this year, we have seen more confi dence in the construction market but less in property or real estate. The contracting market remains buoyant due to the fact that many projects are currently in completion stages. Resourcing for construction companies has been less this year, however, it is refreshing to see that companies are looking for either specialists in the market or executive construction completion experience, rather than having a quantity or volume driven focus.
When do you predict the construction jobs market will pick up again?The construction jobs market is slowly picking up again in Dubai and has remained solid in areas such as Abu Dhabi and Doha. With an increased level of confi dence from our clients, and the costs of raw materials standing at a reasonable level, the market will, continue to improve and remain a key region to expand ones career.
How signifi cant is the difference between the number of people you placed into jobs this year compared to last year?Defi nitely signifi cant - like any business aligned to the markets, which have been affected, our business is based on executive demand from our clients. This demand has wavered lower than last year as per global market pressures. Fortunately, as a group, we have been partnering with our clients at a regional level not domestic level, and therefore our partnerships within the construction sector in these more remote, yet robust, markets have increased.
Climbing the ladderDave Storey, director of international recruitment agency Michael Page explains how careers in construction are slowly becoming more accessible
By Sarah Blackman
What is your general opinion on the current state of the construction market - in terms of recruitment?Michael Page construction and real estate business units have appointed more executives into roles across the region over the past three months than the fi rst two quarters of 2009 and we expect this demand to continue. Personally, I believe we will only have a true indication on the construction marketplace in Q2 2010 as there are many projects coming offl ine on a mega scale. Therefore, it will be important to see what new projects come online. In addition, our clients are now more selective about the talent they attract, and the recruitment decision making process is more extensive than before (i.e. it is more in line with mature markets.) This ensures greater quality, process and retention strategies.
In which areas of construction have you had the most success in having people placed in jobs? We have a signifi cant executive global talent reach across the infrastructure and public sector markets and this has been a core focus in the GCC marketplace. Currently, projects aligned to highways, roads, bridges, tunnels and utility sectors are experiencing considerable growth. Other niche sectors in construction, which have required strong international understanding, are airports and port works across the GCC.
How have the requirements of construction employers changed since the downturn? Specialist expertise coupled with an understanding of the local GCC market is highly important now for employers. They are also critically assessing the achievements of candidates, prior to offering them a position. For example, employers question whether an employee has completed a construction project successfully; if they have worked globally and coupled this experience in the local marketplace; if they have experience working in a multicultural environment; and if they are looking solely for a salary rise or if they are joining due to the vision of the fi rm, challenge and diversity of the projects.
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