ANALYSIS WILL RAIL PROJECTS BE THE GULF’S NEXT BIG GRAVY TRAIN? JULY 10–16, 2010 • ISSUE 329 NEWS • ANALYSIS • INTELLIGENCE • PROJECTS • CONTRACTS • TENDERS CONSTRUCTIONWEEKONLINE.COM AN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY Passive resistance Hold back fi re with designs and tests Page 44 Winning ways Al Arrab’s Ahmad Matar on KSA and Qatar’s Pearl Page 32 DUBAI LAGOON: PROGRESS AT LAST After permit problems, land cuts and contract terminations, the fi rst buildings are nearly fi nished
Transcript
ANALYSIS WILL RAIL PROJECTS BE THE GULF’S NEXT BIG GRAVY TRAIN?
CONSTRUCTIONWEEKONLINE.COMAN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY
Passive resistanceHold back fi re with
designs and tests Page 44
Winning waysAl Arrab’s Ahmad Matar on KSA and Qatar’s Pearl Page 32
DUBAI LAGOON:PROGRESS AT LAST
After permit problems, land cuts and contract terminations, the fi rst buildings are nearly fi nished
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4 CONSTRUCTION WEEK JULY 10-16, 2010
Contractors have until July 15 to submit bids for work on a schools project being developed by the Abu Dhabi Education
Council (ADEC).Several new private schools are to be built
across six plots of land measuring 18-22,000m2 each in Khalifa City B and Mohamed bin Zayed City, and are scheduled for completion by 2013.
Pre-qualifi cation applications are available at ADEC’s headquarters in Abu Dhabi until July 12, 2010 and should be submitted by 12pm on July 15.
ADEC welcomes open bids from companies who can demonstrate a capability and commitment to meeting its quality standards, as well as plans to open the schools by August 1, 2013, subject to ADEC inspections.
In a statement, educational advisor to the ADEC, Yousif Al Sheryani said: “ADEC has recently undergone its fi rst round of private school inspections, and we will be supporting
private schools as they embark on a continuous cycle of self-improvement initiatives.
“ADEC works closely with private school operators and we are dedicated to providing assistance, support, and incentives to encourage the development of high-quality private schools.”
The aim of the project is to meet a growing demand for private school places in the region, and to accommodate students from closing villa schools, some of which have been shut down due to severe breaches in health and safety.
ADEC’s director-general Dr. Mugheer Khamis Al-Khaili said: “ADEC research in the private school sector has shown that the demand for school places is expected to grow by 5% annually over the next few years.
“In accordance with ADEC’s 10-Year Strategic Plan, it is of highest priority for us to increase both quality and access to private schools in the Emirate.” – By Elizabeth Broomhall
Tenders of note School contracts open to bidders until July 15
The American School of Dubai is being developed in response to a huge shortage of school places in the UAE.
INTELLIGENCE
JULY 10-16, 2010 CONSTRUCTION WEEK 5
INTELLIGENCE
Companies are invited to tender for civil and track work on the fi rst phase of the UAE’s Shah Habshan railway project.
The Abu Dhabi Freight and Passenger Committee announced its extended invitation yesterday for the job, which will be based in the Western region and will comprise of 264 km of the total 1,500 km.
Shah Habshan, also known as Union Railway, will be a state-of-the-art network that will eventually link all GCC countries.
The prequalifi cation documents will be available for collection by 26th July 2010, for a fee of AED 30,000, and the deadline for submission will be 23 August 2010, said the committee. It is anticipated that tender documents will be issued during November 2010 and that the tender submission will be due within 7-9 weeks.
Drake & Scull Construction Saudi Arabia, the civil con-tracting arm of MEP giant Drake & Scull International PJSC, has won a $120m contract for Al Jawharah project in Jeddah.
Al Jawharah is a 42-storey building located on the Jeddah Corniche under development by Damac. It will include fi ve-bedroom penthouses as well as one, two, three and four-bed-room apartments spread across a built-up area of 87,000m2, with a building deadline of 28 months.
Saleh Muradweij, DSC’s executive director, said: “Being awarded this proj-ect and working with such a prominent developer such as DAMAC is a good indication that the newly-formed DSC KSA is off to
The Abu Dhabi Water and Electricity Authority (ADWEA) is days away from awarding the main contract for a landmark water storage project, a source close to the project has said.
The Strategic Water Storage/Recovery Project, which will create a three-month emergency supply for the Emirate’s one million inhabitants, will signifi cantly increase the drinkable water reserves of the UAE’s largest emirate.
Peter Menche, director or projects at GTZ, a German governmental organisation that plays an advisory role, said: “This is the world’s largest project of its kind, and the fact that it is executed in the harsh desert terrain and will make use of desalinated water mean that this is very much a landmark for the region.”
Tenders for UAE rail track and civil work
Drake & Scull Construction wins Saudi contract
Water storage project deal close
an excellent start in the Kingdom.”
DSC KSA was estab-lished to manage and control the company’s civil
contracting operations in Saudi Arabia. It will also drive civil construc-tion business develop-ment efforts as well as oversee operations of future civil projects and acquisitions.
Last year DSI PJSC acquired Passavant-Ro-ediger, a German global developer of wastewa-ter, water and sludge treatment technologies, and the Kuwait arm of DSI. This year the company established two new subsidiaries: Drake & Scull Water and Power, and Drake & Scull Construction, targeting regional civil contracting expansion in addition to the existing operations in Dubai and Abu Dhabi.
The Al Jawharah Tower will be 42 storeys, with a total built up area of 87,000m2.
For upto the minute tenders log in to constructionweekonline.com
TOP TENDERS
Construction of Yanbu Power and Desalination Plant Country: Saudi Arabia Closes: Sep 22, 2010 Category: Power & Water Issuer: Saline Water Conversion Corporation
Rehabilitation of All Fire Fighting System at Shuqaiq Plant Country: Saudi ArabiaCloses: Aug 22, 2010Category: InfrastructureIssuer: Saline Water Conversion Corporation
Construction of 380-kV Ras Al-Zour SubstationCountry: Saudi ArabiaCloses: Aug 21, 2010Category: Power & Water Issuer: Saline Water Conversion Corporation
Annual Maintenance of Track Roads in Al Dakhliyah RegionCountry: OmanCloses: Aug 2, 2010Category: InfrastructureIssuer: Ministry of Transport and Communication
Jaber Ahmed Al-Jaber Al-Sabah Bridge (Al Subiya Connection)Country: KuwaitCloses: Aug 8, 2010 Category: Infrastructure Issuer: Central Tenders Committee
Construction of 380-kV Ras Al-Zour SubstationCountry: Saudi ArabiaCloses: Aug 21, 2010Category: Power and waterIssuer: Saline Water Conversion Corporation
Housing complex, Phase 2 BuildingsCountry: Saudi ArabiaCloses: Jul 31, 2010Category: Residential BuildingIssuer: Saline Water Conversion Corporation
Housing Complex in Different Areas of Saudi Arabia - Phase 2Country: Saudi ArabiaCloses: Jul 31, 2010 Category: Buildings Issuer: Saline Water Conversion Corporation
Construction of New Ahmadi Hospital & Residential BuildingCountry: KuwaitCloses: Jul 27, 2010Category: IndustryIssuer: Kuwait Oil Company
6 CONSTRUCTION WEEK JULY 10-16, 2010
INTELLIGENCE
Sharjah Investment and Development Authority (Shurooq) has appointed two subcontractors to work on its new Al Majaz Park project, the construction of which started last week.
Sharjah Contract Company will complete the roadworks for the project, whilst Sharjah municipality will be handling the soft landscape, a source revealed to Construction Week.
One of the Emirate’s leading tourist attractions, the park will spread across an area of 3km2 between Jamal Abdul Nasser Street and the Khalid Lagoon Corniche.
Scheduled for completion in November, it will be built in two phases and will include a musical fountain on the Khalid Lagoon, restaurants, cafés and recreational areas overlooking the lake (Phase 1), plus more restaurants, landscaping and a children’s play area (Phase 2).
Engineering design consultancy Atkins has been appointed by Bahrain’s Ministry of Municipalities and Agriculture (MoMA) to implement the Kingdom’s National Planning and Development Strategy.
The plans for sustainable economic development will be carried out in four stages over 13 months. Atkins’ main responsibilities cover regional demographic and economic studies, and creating a ‘national land-use plan’, a basis for assessing transport and infrastructure needs.
Atkins resident director in Bahrain, Rob Ruse, said: “This groundbreaking initiative, led by His Excellency The Minister of MoMA, Dr Juma al Kaarbi, and General Director Sheikh Hamad, represents the fi rst time the Kingdom has taken a comprehensive look at planning and urban development. We’re delighted to be playing such a key role.”
Al Marjaz Park will be linked directly to Khalid Lagoon in Sharjah, which will become the waterfront of the park.
MATERIALS PRICE CHECK
$3.27Alum. profiles
Per kg
$748.67Beech wood
Per m3
$3.81CementPer bag
$32.67FF plywood
Per sheet
$4.36GlassPer m 2
$72.15MDFPer m3
$98Ready mix
Per m3
$721.45Red meranti
Per tonne
$14.97Scfldi planks
Per piece
$580 Steel
Per tonne
$10.88Steel props
Per piece
For upto the minute tenders log in to constructionweekonline.com
Sharjah appoints Al Majaz subcontractors
Atkins wins Bahrain development contract
Refurbishment of Several Pumping Stations - Phase 8Country: QatarCloses: Jul 27, 2010 Category: Power & Water Issuer: Public Works Authority
Construction of Royal Commission Public Housing Country: Saudi ArabiaCloses: Jul 25, 2010Category: Residential developmentIssuer: Royal Commission for Jubail & Yanbu
Supervision Consultancy Services for an IWPP in SalalahCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: SAOC
Upgrading of Khuwair South SubstationCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: SAOC
EPC for Upgrading Water Supply System at Kumzar PlantCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: SAOC
Bridge and Intersections in Yanbu Industrial CityCountry: Saudi ArabiaCloses: Jul 13, 2010Category: InfrastructureIssuer: RCJY
Installation of Package Sewage Treatment Plant at DaqumCountry: Oman Closes: Jul 12, 2010Category: InfrastructureIssuer: Ministry of Regional Municipalities & Water Resource
Construction of 24 Classrooms Al Ahnaf Bin Qais Country: OmanCloses: Jul 12, 2010Category: Educational facilitiesIssuer: Ministry of Education
TOP TENDERS
Higher in potassium- Perfect for cell level Hydration.Lower in sodium- When body acclimatize to the heat,sweat contain less salt. Salt safe product for mass uses(Specially for Hypertensive).Contain other electrolyte like Magnesium & calcium.Carbohydrates- 5.7%- ensures swift water absorption,refreshing taste & provides energy.
Enriched with Vitamin C.Good & Palatable taste.Natural flavors- Lemon & Orange.3 different packaging to suit yr needs.1280 gms pouchbag makes 20 liter/64 gms sachet makes 1 liter/32 gmssachet makes 500 ml electrolyte drink. Product From USA.
Hydralyte is assosiationwith Dubai MunicipalitySafe & Healthy summer
campaign 2010
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Tel:+971 4 3415176 Fax: +971 4 3415175
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Maintain Hydration With Water & HYDRALYTE Electrolyte Replacement Drink
Attn: Health & Safety Professional
Hydralyte is associatedwith Dubai MunicipalitySafe & Healthy summer
Campaign 2010
8 CONSTRUCTION WEEK JULY 10-16, 2010
FINANCE
Expert Views
The ‘fi rst and only tile manufac-turer in the Sultanate of Oman’ has enjoyed a good year so far, up 5.3% since the beginning of January.
Net profi ts for the fi rst quar-ter rose 11% from OR1.26 mil-lion in the fi rst three months of 2009 to OR1.43 million this year, with sales rising from OR4.096 million to 4.575 million during that period due to a 7% increase in production.
The company manufactures kitchen, fl oor and bathroom tiles, combining local raw mate-rials and designs from Europe, and distributes around the re-gion. It has a market capitalisa-
tion of OMR49.16 million. Stock analysts seem to be unifi ed in liking the look of Al Anwar Ceramic Tiles Company.
Bank Muscat SAOG’s Talal Al Zadjali declared the company a ‘buy’ on 9th June, and Ahmed Gad at EFG Hermes in Dubai had come to the same conclusion the month before.
Kanaga Sundar at Gulf Baader Capital Markets in Muscat advised stock pickers to ‘ac-cumulate’ in April, perhaps on the back of Q1 results. Finally, United Securities market also advised a buy, predicting a return of 13.9% to meet the benchmark.
THE VERDICTBUY: Al Anwar will continue the good form shown over the fi rst half of this year – portfolio man-agers have been warned.
Al Anwar Ceramic Tiles CompanyAl Anwar was one of the top share performers of the fi rst half of 2010, but is it a stock for the long haul?
Saudi Arabia construction stocks diveThe construction index of Saudi’s Tadawul has declined more than 11% so far this year, despite a rise overall for the GCC’s biggest trading venue compared to the fi rst half of 2009.
The bourse’s All Share Index closed at a level of 6,002.61 points on June 4, gain-ing 534.8 points – up 8.89% - over the close of the same period in 2009.
Of the SR19.739 billion in shares traded in six months across the sectors, the most frequent building stock was Saudi Cables Company, posting 154.3 million by trade volume at a value of SR3.251 billion. Dar al Arkan Real Estate is one of the biggest fallers, down 21% this year. For the cement index, which has fallen less than 1% this year, Saudi Cement Company topped its peers with SR1.3 billion worth of trades.
Al Hassan Ghazi Ibrahim Shaker Company has been added this year.
STOCK MARKETS
The Tadawul in Riyadh. Trade values, volumes and transaction numbers are all down so far this year.
5.800
6.000
6.200
6.400
6.600
6.800
7.000
A mixed half-yearBoth six-month and June fi gures show a volatile bourse.
5.900
6.000
6.100
6.200
6.300
6.400
Share price in USDJUNE 2010
Share price in USD2010
1 5 10 15 20 25 30 Jan Feb Mar Apr May Jun
JULY 10-16, 2010 CONSTRUCTION WEEK 9
FINANCE
TEN BIGGEST RISERSNational Marine Dredging Company: +8.57%Union Cement Company: +7.46%Kuwait Building Materials: +7.14%Fujairah Buildings: +5.98%Tabuk Cement: +5.11%Abu Dhabi National Company: +4.40%SIDC: +2.30%Southern Provincial: +1.12%Kuwait Gypsum: +1.00%Yanbu Cement Company: +0.94%
TEN BIGGEST FALLERSMushrif Trading: -18.75%Salbookh Trading: -15.79%National Ranges: -14.58%Specialities Gro: -13.45%Kuwait Portland: -10.94%Arabtec Holdings: -9.09%Arkan Building Mat.: -8.82%Ras Al Khaimah Cement Co.: -8.00%Gulf Cement Co.: -7.82%National Industries: -6.25%
Middle East Specialist Cables Company and Saudi Cable Company both experienced a diffi cult June and a fi rst six months to forget, amid volatile international prices for copper. The companies were the second and third most traded construction-linked stocks since the beginning of the year.
MESC has declined 42.5% in share value so far this year, starting 2010 at SR35 per share and trading at between SR21.5 and SR19.95 throughout June.
Saudi Cable Company experienced an equally dramatic and more recent down turn, trading at SR16.85 last Monday after a sharp drop off from SR23.55 that started 19th April. It began the year at SR24.45.
The two fi rms took up 28% of the total transactions for its 13-company sector in the month of June.
The Abu Dhabi National Energy Company, also known as TAQA, last week bought a 40% stake in Oman’s only aluminium manufacturer from the Abu Dhabi Water & Electricity Company (ADWEA).
Sohar Aluminium is a joint venture between Oman Oil Company, ADWEA and Rio Tinto Alcan and saw its fi rst shipment two years ago this month. It has the world’s longest single potline, the world’s highest known capacity ingot casters and also operates a 1,000 MW combined cycle power plant.
The deal represents an expansion of TAQA’s core industry of power generation to what its chief executive, Abdulla Saif al- Nuaimi, called such an “energy-intensive business as aluminium” in a statement to the press.
Saudi cable firm sees tough first half of 2010
TAQA snaps up 40% of Sohar Aluminium
PROJECT TITLE COUNTRY STATUS VALUE / VALUE RANGE (US$)
UPGRADING OF BIRKAT AL MOUZ - SAYQ ROAD Oman Construction 30,000,000
CONSTRUCTION OF HAMRAA AL DURUA LINK ROADS AT WILAYAT OF IBRI Oman Construction 6,500,000
CONSTRUCTION OF DOHA EXPRESSWAY - PACKAGE 7 Qatar Construction 438,000,000
DEVELOPMENT OF SEVERAL ROADS IN AL MUHARRAQ Bahrain Construction 2,000,000
CONSTRUCTION OF ROADS IN VARIOUS ZONES OF QATAR Qatar Construction 13,000,000
REHABILITATION WORKS FOR NIZWA - THUMRAIT ROAD Oman Construction 166,000,000
CONSTRUCTION OF TEMPORARY & PERMANENT ROADS: ZONES 56, 57 Qatar Construction 23,000,000
CONSTRUCTION OF TEMPORARY & PERMANENT ROADS: ZONE 76, 79 Qatar Construction 6,500,000
5TH RING ROAD WITH JAHRA ROAD INTERSECTION Kuwait Construction 75,500,000
CONSTRUCTION OF ROAD INTERSECTIONS IN AL-FAHAHEEL Kuwait Construction 96,000,000
10 latest road project updates
(Data accurate as of close 4 July 2010)
Sohar Aluminium:
fall in Omani commodity exports, Jan 2009 to Jan 2010
tonnes produced per year360,000
26%
Cable business:
decline in Tadawul All Share Building & Construction index since April
SAR value of contract won by Saudi Cable in Feb
100m15%
10 CONSTRUCTION WEEK JULY 10-16, 2010
MOST POPULAR
LATEST FEATURES
SPOT POLLWould you consider working in Iraq?
Singapore sandsNew terminal in India is country’s largest public building since 1947
Absolutely not. It’s still far too dangerous
60.5% 21.1%Yes. Early adopters get the best jobs.
18.4%Maybe. There’s a lot of lucrative work available.
0%Not sure. It’s tempting but it would dilute our efforts locally.
IN PICTURES
CW takes a look at Singapore’s Marina Bay Sands hotels and the mammoth hotel complex under construction
A new multi-billion-dollar airport terminal has been inaugurated at New Delhi’s Indira Gandhi International Airport, in time for the Commonwealth Games this October. The new terminal, which cost approximately US $3 billion to build, was overseen by a consortium of South India-based GMR Group, the Airports Authority of India, Germany’s Fraport and Malaysian Airports Holdings.
The building was opened after a week of religious ceremonies, involving 300 priests and some last-minute polishing of the 500,000 m2 of granite fl oors. Originally scheduled to start operations in mid-July, the state of the art hub was built in just 37 months, to handle 34 million passengers a year. Bigger than Terminal Four in Madrid and T5 at London’s Heathrow, the new steel and glass terminal in India covers an area of around 4km2 and involved as many as 40,000 people during construction. According to members of the consortium that led the project, it is currently the largest public building to be constructed in India, since the country’s independence in 1947.
As many as 40,000 people were involved in the construction of the new airport terminal in New Delhi.
ONLINE
AnalysisLost causeway – The Qatar-Bahrain Causeway is, for some, an illustration of the market’s upheaval
InterviewEngineering discipline – Hyder Consulting’s Wael Allan talks to Stuart Matthews about company changes
On siteSteady progress – Rufi Twin Towers in Dubai Sports City is a project toughing out current market conditions
For breaking news, analysis, interviews, tenders and projects, log on to constructionweekonline.com
1Shapoorji Pallonji wins QR676m Barwa City contract
2Arabtec CEO blames media for Aabar deal collapse
3Tenders invited for UAE rail track and civil work
4Construction industry boosted with government deal
5Al Jaber: Masdar City will not be scaled down
10th - 12th October 2010��������������� ���������������������
Budget boost to Kuwait’s construction spend: 66%Kuwait is to spend 66% more on construction and maintenance projects compared to the last fi scal year, accord-ing to the country’s latest budget.
The Ministry of Finance’s KD16.22 billion spending plan, approved by 39 members of Parliament though reject-ed by 21 last week, sees the allocation to the building sector increase from KD1.265 billion for 2009-2010 to KD2.1 billion, an increase to on its 2008-2009 allocation of KD1.664 billion.
The 2010-2011 Budget – which will run until next March – is up more than 25% on last year, which stood at KD12.1 billion. This year’s revenues are fore-cast at KD9.7 billion. Figures show that KD9.75 billion was spent last year of the allocated KD12.1 billion.
The projected spending for construc-tion projects was part of the develop-ment plan launched a month ago, explains Hettish Kumar, senior analysts at Global Investment House in Kuwait, but it is the budget that will fund it.
“It is $100 billion of development over four years and all the money will come from the budget. It was approved this year after a few years in which it wasn’t approved, as the majority of the projects are GCC wide, such as the development of the railway which will link all the GCC countries,” he said.
“The development plan will benefi t some construction companies.”
Four of the top fi ve companies that have outperformed the GCC stock mar-kets this year were from Kuwait, led by Kuwait Portland Cement Company.
Kumar pointed out that as the market price for building materials has stayed fl at for most of the year, KPCC’s growth is down to a strong investment portfolio. “We have a cement index, and though the Kuwait index has done pretty well, the rise in share price is down to the company’s investment, its huge number of shares [in which it has invested] regardless of the price of ce-ment,” he said.
In Quotes
BUSINESS
ROUND UP
“Some owners are jeopardising the return on their investments by not adequately accounting for depreciation on MEP equipment.”MAZEN FALHOUT, general manager, MAGme Property Solutions
“Our ties are strong and there are close bonds between our people and our businesses.”DAVID CAMERON, British prime minister, on the UAE
“I do believe there will be more growth in the Middle
East, and it is probably the best place to be.”WAEL ALLAN, regional
managing director, Hyder Consulting
nting for ciationPment.”LHOUT,nager,
Big budget: Finance Minister Mustafa al-Shamali.
our nesses.”AMERON,rime minister, AE
East, and iprobablybest placbe.”WAEL ALLAN,
managing direcConsultin
JULY 10-16, 2010 CONSTRUCTION WEEK 13
ROUND UP
514
2
3
Galfar Engineering & Contracting SAOG, an Omani construction company, won a contract to build the harbour and road network at Al Halaniyat Islands worth OMR39 million. The Muscat-based fi rm made the announcement to the stock exchange last Monday. The harbour will serve as a new maritime gateway and a vital link in the economic development of the remote islands, as well as for the wider Sultanate.
Korea’s DongAh Geo-logical Engineering Co has created a 777m under-ground ‘span’ linking two manholes – part of a mas-sive project commissioned by the Doha Public Works Authority on its new sew-erage system. The span is part of the Doha North Sewerage project that includes a wider 33km of uninterrupted sewerage line. Work began in 2008. The main contractor is Ul-tra Construction, with KEO and Stanley Consultants controlling on site provid-ing consultancy.
A total of 40 projects have been shortlisted for the fi rst phase of the Dubai Land Department’s initia-tive to offer developers and investors a ‘government guarantee’. Details of Tayseer, which effectively guarantees fi nance and completion of the selected projects, have been re-vealed by offi cials. The fi rst phase of the initiative is aimed at boosting liquidity in the market and bolster confi dence in the sector, Sultan bin Butti bin Mejren, director general of the Land Department, said.
The King Fahad Cause-way Authority overseeing the project linking Bah-rain with Saudi Arabia is to spend another BHD2m on improving facilities for motorists. It adds to the BHD2.5m committed to the revamp of two tower restaurants on each side of the bridge.
Jeddah city offi cials have issued warnings to the owners of 348 dangerous buildings that they may be forced to tear down or repair their properties. The municipality has also urged occupants to vacate the buildings immediately over fears that the structures could fail at any point, injuring or even killing some residents. Khalid Zaini, co-coordinator for the committee overseeing uninhabitable buildings, told Saudi newspaper Arab News that notifi cations had been sent to building surveyors to ascertain whether the 348 buildings should be demolished or repaired.
Around the GCC
1. KSA
Jeddah warns owners over derelict buildings
2. QATAR
DongAh creates manhole span
3. OMAN
Galfar harbours OMR39mn win
5. DUBAI
40 projects up for Tayseer deal
4. BAHRAIN
BHD2m added to Causeway pot
“Success has been the result of our foresight, strong strategies, and the value for money.”RIZWAN SAJAN, chairman, Danube Building Materials
YASS
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14 CONSTRUCTION WEEK JULY 10-16, 2010
ROUND UP
In Numbers
number of abandoned Sharjah workers helped by charity
million value (Saudi riyals) of contract won by Drake & Scull Construction last week
billion price (US$) of Ghandi International Airport's new terminal 4004503
PROJECT
Al Jaber: Masdar City will not be scaled down Masdar City, the carbon neutral residential and busi-ness project, will continue to be developed and will not be scaled back, according to the
head of the Abu Dhabi Future Energy Company (Masdar). Sultan al-Jaber, chief ex-ecutive, told Emirates News Agency that work would con-tinue on the AED80.8 billion project, which is to be Abu Dhabi’s fl agship in the drive towards the use of renewable energy. Masdar City has been designed to use solar power among other sources, and has built a research institute to advance the use of such power. It has experienced de-lays and a revised master plan is said to be imminent.
CONTRACT
Shapoorji Pallonji wins QR676m Barwa City deal Barwa Real Estate, the Qatari developer, has awarded a con-tract to Shapoorji Pallonji Qa-tar WLL to build the Phase I Amenities at Barwa City worth QR676 million. The Barwa City complex will stretch 2.7 million m2 in Musameer, just outside the centre of Doha, and will comprise of 128 apart-ment buildings, 6,000 fl ats and 1024 studio units housing 20,000 families.
Abu Dhabi Ports Company is close to completing the fi rst phase its Taweelah offshore port as the emir-ate’s industrial expansion gathers pace.
Newspapers reported that Khalifa Port and Industrial Zone is weeks away from a landmark fi rst stage after spending two years dredging the area to create a deep draft, and reclamation of the offshore port island which will cover a 275-hectare area. The port is an 2.7 km2 island, part of an industrial zone that grow to as much as 450 km2 .
The development will provide the import and transport network that is part of Abu Dhabi’s 2030 economic vision, which will also see the fi rst part of the Union Railway – which will link to the zone – and the redevelopment of the city’s capital district.
In April ADPC awarded a AED300 million procure-ment and construction contract to Larsen & Toubro, which will include the design, construction, testing and commission-ing of the electrical power supply via a 33 kV power cable network.
ADPC closes in on fi rst phase of Taweelah port
COLOMBIAN PRESIDENT ALVARO URIBE, Panama foreign minister Juan Carlos Varela, Italian prime minister Silvio Berlusconi, Panama president Ricardo Martinelli, Guatemalan president Alvaro Colom and Honduran president Porfi rio Lobo, pose during the inauguration of the construction project of the third set of locks that form part of the extension of the Panama Canal in Gatun, 100 km north of Panama City.
PICTURE PERFECT
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ARTI
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/ AFP
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es
JULY 10-16, 2010 CONSTRUCTION WEEK 15
Phase I will cover 1.4 million square metres, with the work consisting of 6,000 residential units as well as utilities and infrastructure features includ-ing a district cooling plant, and the biggest liquid petro-leum gas network in Qatar.
BUSINESS
Bin Haidar leaves Union Properties Mohammed Omar Bin Haidar has resigned as a board member of Union Properties, the second high-level resignation for the developer this year. The company accepted the resignation and notifi ed the Dubai stock exchange last week. The news comes almost three months after the resignation of Anis Abdullah Al Jallaf, a former chairman, who stepped down on 2nd March. Union Properties’ portfolio includes a number of residential projects, including villas in Al Satwa, Al Loze, Jumeirah Park Villas and Al Wasl, as well as the 38-fl oor Control Tower in Dubai’s Business Park Motor City and Uptown Motor City. Union Properties' stock price closed at 37 fi ls at deadline, having started the years at 70 fi ls.
FINANCES
RWN Trading creates three-way linkA Dubai company specialising in LED lighting has entered into a tripartite alliance with Takasago Thermal Engineering, Japan’s largest HVAC specialist, and Fugu-energy, an environmental audit consultancy. “We are looking at doing business in a slightly different way than what is the norm in Dubai, but we think it is the way forward at the moment,” said RWN Trading marketing director Carol Prince.The advantage of the tripartite association for customers is it has inherent fl exibility to cater for a broad spectrum of needs and specifi cations.
CONTRACT
Dubai fi rm in tie-up with HVAC expertA Dubai company specialising in LED lighting has entered into a tripartite alliance with Takasago Thermal Engineering, Japan’s largest HVAC specialist, and Fugu-energy, a fi rm focusing on energy-effi ciency solutions.The advantage of the tripartite association for customers is it has inherent fl exibility to cater for a broad spectrum of needs and specifi cations. Takasago is also hoping to apply its Japanese business model to Dubai. Naohiro Yamamoto, senior manager from the
technical department of the company’s Dubai branch, explains the company will assist with fi nancing solutions for companies wishing to introduce energy-saving initiatives. RWN Trading’s Carol Prince says the major stumbling blocks for sustainability at the moment are changing the prevailing mindset towards looking at long-term benefi ts as opposed to initial once-off payments, and getting potential customers to appreciate the critical importance of energy saving and the civic obligation it imposes.
CONTRACT
Offi cials ink Boubyan Islands port dealKuwaiti government offi cials are expected to sign a contract that will see the development of Boubyan Island’s port. Boubyan, Kuwait’s largest island, is located in the north eastern part of the country and is separated from the mainland by the Subbiya Channel. Plans to turn the island in to a burgeoning sea port were announced six years ago, and Minister of Public Labor and Minister of State for
Municipal Affairs Dr. Fadhel Safar sign a contract covering the second half of the fi rst phase of development last Wednesday. Works covered by the contract include studies, data gathering and inspecting the marine bed of the navigation canal.
PROJECT
Union Properties close to hotel saleDubai’s Union Properties is close to sealing a deal over the sale of its Ritz Carlton hotel and has also received an offer from an investor to take a major stake in its subsidiary, Emirates District Cooling (Emicool). Chairman Khalid bin Kalban told Bahrain’s Gulf Daily News that the company, which had put the hotel on the market for AED1.6bn, had received two offers for the hotel in the Dubai International Financial Centre – one from Saudi Arabia and one from within the UAE. Union Properties posted AED50 million net profi ts for the fi rst quarter of this year.
ROUND UP
% fall in share price this year of Arabtec, the UAE construction contractor41 Contract value, in millions
of US$, won by GE for the Salalah IWPP
The number of millions of containers Taweelah port will be able to receive annually 30015
16 CONSTRUCTION WEEK JULY 10-16, 2010
COMMENT
My building’s front door has been broken for more than a year. It’s a relatively small annoyance that leaves my building open to anyone
24 hours a day. As a result, every day, the corridors are littered with marketing detritus from every takeaway service within a 50km radius. The hawkers, beggars, freelancing maids and DVD pirates, all have free and easy access to my small slice of Dubai.
There was an initial attempt at repair about a year back. The result saw me joining a cluster of other residents, all locked out at 2am in the morning. Since then it just hasn’t worked at all.
When the issue was raised with Nakheel, at an owner’s association meeting, the company’s representative said the door was not just broken, but was in fact suffering from a manufacturing fault. Many doors, it seemed, were enjoying an equal state of dysfunction.
Now, since it was a manufacturing fault, the problem apparently lay with the contractor who had fabricated and installed the doors. Fixing them was the contractor’s responsibility and not that of the community maintenance team.
It seems, after all this time, the contractors have been reluctant to come round and sort out the issue. Rumour has it this was because they had not been paid, but this may all be changing.
A number of contractors have spoken publicly in recent weeks about the start of payments from Nakheel, which is beginning to address its outstanding debt, a little at a time. Anyone owed under AED 500,000 can expect to get everything they are owed, those awaiting more would get
an initial AED 500,000. Then came a company statement, reported by Bloomberg, saying a 40% cash payment to its biggest creditors was in process. A Nakheel spokesperson at the time said 75% of trade creditors had accepted the agreement in principle and that payments to them were underway. Last month, Nakheel also met with senior members from the UAE-based Contractors’ Association in an attempt to ensure settlement of claims to these trade creditors.
The developer has also announced its intention to ‘fulfi ll its obligations to customers through the prompt completion of near term projects’, having received US $1.5 billion from the Dubai government through the Dubai Financial Support Fund to help achieve this.
For small operators, if they still exist, this cash may bring welcome relief from the web of bad debt entangling contractors in the Gulf. For larger organisations, better cash fl ow will be welcome, as will a bottom line boost.
Contractors will hope this is not a position they ever fi nd themselves in again. One construction executive told me recently that his outfi t had sharpened its payment collections practice, with direct benefi ts to his organisation’s fi nancial performance. It was an area where they had been a little loose in the past, but having come to arrangements with clients who were in a pinch, the company now did its best to be fair but fi rm, when it came to overdue accounts.
I’m hoping to see some practical performance benefi ts too, though it may take a while for the trickle-down effect to make it to my building. In the meantime, my door is always open.
Practical benefi tsNakheel has started payments, but is it enough cash to be translated into action on outstanding jobs?
For small operators, if they still exist, this cash may bring welcome relief from the web of bad debt entangling contractors in the Gulf.
STUART MATTHEWS
Come on in: a manufacturing fault has left some Discovery Gardens’ buildings open to all.
18 CONSTRUCTION WEEK JULY 10-16, 2010
COMMENT
ORLANDO CROWCROFT
Arabian sightsLuxury flats and glass towers may not be what Saudi Arabia needs
THE BOOST IN WEB TRAFFIC that follows a story from Saudi Arabia on Construction Week Online proves conclusively that
in 2010, Saudi sells. While other GCC markets are expanding
fast, Abu Dhabi and Egypt among them, it is the KSA that our readers are most interested in, and taking a look at turnout at Cityscape Jeddah last month would only re-affi rm this view. The vast majority of fi rms not already in the kingdom, are on their way in, and there were as many designers and architects at Cityscape as there were developers, if not more.
The projects on display in Jeddah would have the eyes of anyone in the construction industry watering – millions of square meters of offi ces, vast reconstruction projects, metro lines, airports and malls. Cities from Al Khobar to Mecca are growing, and more often than not, the government is fronting the cash.
When you ask people why Saudi Arabia is such an attractive market, the reply usually involves the fi gure 27 million, which is the expected population by the end of 2010, and is quickly followed by the number 80, the percentage of the population under the age of 39. But above all, it is the kingdom’s dire need for housing that is most often cited as the reason Saudi is the place to be in 2010.
The perception is that once the country actually draws up and passes its long awaited mortgage law, a massive number of
young Saudis will go out and buy their fi rst home and developers will be inundated by cash-rich young families. Designers and contractors, for their part, will be drafted in their droves to make their client’s plans reality, and everyone, everyone, will get fi lthy, stinking rich.
At least that’s the plan. The reality is, as always, somewhat more complicated. Firstly there is a signifi cant mismatch between the kind of properties that developers are working on in the kingdom, and the kind needed. Saudi’s 80% do not need luxury penthouses in shiny glass towers, they need affordable family homes. Developers are ever willing to sing from the rooftops about the needs of Saudi’s young population, while erecting housing that none but the richest will ever be able to buy.
In an excellent article last month, a journalist from the Saudi Gazette, a Jeddah-based newspaper, went stand to stand at Cityscape asking exhibitors how much of their developments were put aside for affordable housing – not one of them could give an answer, and most admitted that ‘it was not that kind of development’.
In fact, only one stand at Cityscape Jeddah had anything to do with solving Jeddah’s housing problems, and that was the Jeddah Development and Regeneration Council, which has outlined a four-phase plan to redevelop the city’s slums, home to an estimated one million people. This scheme should be commended for its recognition, at
last, that Saudi’s coastal hub has a problem, and proposing a solution to it. At the same time, the JDRC’s plans are so pie in the sky it is diffi cult to imagine it achieving even a tiny percentage of the development in the next two decades – by which time Saudi will have more luxury apartments than it could ever possibly need.
The fact of the matter is that, like certain other Gulf markets, the emphasis on luxury developments in KSA is unsustainable, and justifying these developments with Saudi Arabia’s housing shortages is not just shortsighted, it’s dangerous. As designers, developers and contractors pile into the kingdom with their luxury projects, they should bear in mind what has happened to other countries where housing stock did not match the needs of the population.
And this is the real challenge for Saudi Arabia, one that international fi rms looking to operate there should think about. How can the country house the vast majority of its population, who cannot afford to live in luxury apartments? How can it effectively repair the infrastructure in run-down cities like Jeddah? How can it renovate its beautiful architecture without bulldozers and dynamite? This kind of design may not be glamorous, it may not make anyone a millionaire, but it is what Saudi Arabia really needs – and surely that has to count for something.
Orlando Crowcroft edits Middle East Architect.
20 CONSTRUCTION WEEK JULY 10-16, 2010
COMMENT
LEONORA RIESENBURG
Dispute boards: the missing link?Are dispute resolution boards all they are made out to be?
AFTER THE DISPUTE REVIEW Board (DRB) Foundation and Society of Construction Law (Gulf ) met to discuss dispute
boards and their function in the local market, many praised the ‘checks and bal-ances’ proffered by the mechanism.
The rationale behind the dispute board is simple. The DRB provides a non-binding recommendation to contracting parties that have appointed a board of three independent experts, intended to comb out diffi culties either prior to the offset of, or in answer to, a problem. A similar principle applies to the Dispute Adjudication Board (DAB), save that the DAB’s decision has interim-binding force.
Dispute boards have been given tour de force by the active support of the Dispute Board Federation, the Dispute Resolution Board Foundation, ICC, and standard-form contract authorities including the International Federation of Consulting Engineers (FIDIC).
This form of independent regulation has had a warm welcome in the West. Interestingly though, collaboration contracts such as NEC have been tested in territory, most notably by Abu Dhabi’s Aldar Properties in the early phases of Al Raha Beach Development, and failed to take fl ight.
Creating valuable opportunities for periodic review is fi ne in theory. In practice, however, it is rare that two
parties’ agendas will be aligned in such a way as to capitalise on the opportunity. Competing interests are a particular concern when more than two parties are involved. Returning control to the employer and the contractor is only worth the paper it is written on to the extent that the employer and contractor play ball.
In the case of long-term appointments, a day rate, allowances and disbursements customarily need to be shouldered for all three board members, over the course of the life of the project, however lengthy. The cost implications can be staggering.
The fact of the matter is that employers will never want to pay above a budgeted fi gure for the contracted services, and service providers will be bent to do their utmost to secure their minimum margin. The equation only ever balances if the margin for error is not eroded. Commercial reality dictates that errors are made and a price tag is attached to each of them. It is the allocation of these risk events, and in turn its cost, that is the bone of contention among contracting parties. The effectiveness of an independent administration, in the form of dispute boards, in the context of this tension, is questioned.
The UAE has been slow to apply FIDIC 1999, calling for the appointment of a DAB as part of its dispute process. If and when adopted, the standard conditions
are often heavily modifi ed and reinstate the engineer’s traditional role as a de facto ‘dispute manager’. Further the language of contracts in territory is slow to entertain the admissibility of recommendations or resolutions in any subsequent arbitration or legal suit. When legal fees are calculated on a percentage fee basis, irrespective of complexity, the mathematical exercise rapidly dwarfs the fi nancial benefi ts attributed to the DB.
The Abu Dhabi Municipality has moved the markers further afi eld with its Municipality Construction Contract, essentially a heavily modifi ed form of the 1999 FIDIC Contract for Construction, by making it mandatory for a ‘standing’ DAB to be appointed once a dispute has arisen. A ‘standing’ DAB is in effect a half-way house. Where the Municipality Contract gives on one hand, it takes on the other: the engineer’s role in dispute resolution is re-assigned to the employer.
One would not need to go into any further detail to entertain that dispute boards, particularly given their limited application in territory, are not a means to an end. There is no real replacement for proper internal administration coupled with continuous sound legal counsel and guidance to complement to the day-to-day workings of commerce.
Leonora Riesenburg is a senior legal consultant with Galadari & Associates.
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22 CONSTRUCTION WEEK JULY 10-16, 2010
LETTERS
tions conducive to the climatic conditions of the Middle East.DONALD
RE: Owners blast Nakheel over Disc. Gardens poolsI have a fl at in Mogul, Discovery Gardens. It is a very terrible building. Mogul has been neglected totally by Nakheel and I would love to know the reason. Isn’t Mogul part of the vision? Sandy pools, dry plants, trees and cracks in the ceilings make it a very dangerous area to live in if it is not properly maintained. There are also no lights at night, making it unsafe. Only one road exists from Discovery Gardens and groceries are only found in Zen. It’s as if Mogul is not part of DiscoveryGardens at all! This is not acceptable and I hope that Nakheel can transform Mogul into the paradise that was promised.OWNER IN MOGOL
RE: Big 5 sees positive signs for upturnI have been regularly visiting this event over the last fi ve years and it has defi nitely grown. Last year’s event was the best. I wish BIG 5 team all the best for Nov 2010.MURTAZA SAKARWALA
RE: Charity helps 400 abandoned Sharjah labourersThis plight of these workers is pathetic. Dumping them back in their home country looks like a cunning way of cheating them.PRIYA
To submit a letter, write to [email protected] or by post: Construction Week, PO Box 500024, Dubai, UAE. Please provide your full name and address. Letters may be edited for space and style. Submission constitutes permission to use. You can also log in to www.ConstructionWeekOnline.com to join the conversation.
RE: LEED rankings 'bogus': Frank Gehry
future generations benefi t from this impressive project. The wealth and jobs generated will also ensure that the country will be more sustainable for the socio-economic growth envisaged.GEOFF BOTTOMLEY
RE: 50 Most Admired: Archi-tects/engineers/consultantsI worked for KEO from 1982 to 1986. Then it was one of the three largest offi ces in Kuwait. I am glad to hear it has risen to be one of the best in the area. I think the strategy change from
RE: Shapoorji Pallonji wins QR676m Barwa City contractExcellent work securing this contract! The job will surely give the construction company a remarkable name in the city. Let’s hope this successful trend continues. A big congratulations to the entire team. ANON
RE: ADPC closes in on first phase of Taweelah portThis is truly a magnifi cent move forward in Abu Dhabi’s 2030 vision. This will be the hub of the country and will ensure
Frank Gehry is an architect and a very good one. He is not a building engineer who translates his art work into solid mass. He made a contentious remark, I believe, in order to get people thinking and talking about the subject. Many, so-called ‘green’ buildings are, as he quite rightly states, not as green as publicity departments would like to tell us. There are many ways in which a ‘green’ building can be made. Yes LEED standards do need to be updated, and yes, a company must consider at the life-span of a building. Though the technology has been around for about 100 years, we have a little way to go before we can build skyscrapers.JOHN MITCHELL
mainly designers of residential and offi ce buildings, to design-ers of infrastructure and architectural buildings, has defi nitely helped KEO gain this reputation.DR. OSAMA DAOUD
RE: Sharjah environmen-tal expert blasts LEEDWhy not use the Estidama System as used in Abu Dhabi as the Gulf Region standard? It’s already being used as the model for sustainable and energy-effi cient design and is set up to be a model for condi-
24 CONSTRUCTION WEEK JULY 10–16, 2010
ANALYSIS
Friends with benefitsSaudi fi rms have benefi tted as international organisations seek local partners, but are partnerships more than marriages of convenience? Orlando Crowcroft reports
LOCAL PARTNERSHIPS ARE AN ESSENTIAL part of doing busi-ness in Saudi Arabia, and as a result local engineering and design fi rms continue to ben-
efi t from the kingdom’s thriving construc-tion industry.
Like many emerging markets, Saudi law requires international fi rms to either go into partnership with a local consultant, or set up their own offi ce in the kingdom with a Saudi representative, a state of affairs that has played out well for local businesses in Saudi Arabia.
It is no secret that these relationships have a reputation for being little more than marriages of convenience, as non-Saudi consultants design the projects, and their
local partners rubber stamp them. As one fi rm using a local partner told CW: “Our partner did the photocopying, not much else. Even when we asked them for some numbers they told us to look for them ourselves on the internet.”
But Yasser Hejazy, director of Saudi Arabian fi rm Yasser Hejazy Consulting Engineers, said that these examples are rare in Saudi Arabia, and that far from taking a backseat role, local partners are increasingly keen to learn from their international counterparts. At the same time, Saudi fi rms have a lot more to offer their foreign partners than a rubber stamp.
“We need each other, it is a two way benefi t,” Hejazy told CW, in Jeddah just last month.
ANALYSIS
TAKE YOUR PARTNERS
Partnerships in Saudi Arabia
are an oppor-tunity for both
parties to learn, whether it’s
about design styles or busi-
ness styles.
JULY 10–16, 2010 CONSTRUCTION WEEK 25
ANALYSIS
For upto the minute analysis log in to constructionweekonline.com
YHCE has just signed a partnership agreement with DEP, a Lebanese engineering company, with offi ces in Paris, Dubai and now Jeddah. Hejazy explained that partnerships help to bridge the gap between international consultants and a new, quickly emerging market.
“International fi rms can often be unfamiliar with Saudi Arabian culture, as well as the way that people think in the kingdom and the way they do business.
“Joining with a Saudi fi rm helps shorten the distance between the two cultures, and when a fi rm understands Saudi culture they are much more likely to be able to penetrate the market,” Hejazy said.
Saudi fi rms, meanwhile, can benefi t from the relationship through experience
and training. “They also learn to think outside of the box,” he said.
For Zuhair Fayez Partnership Consultants, Saudi Arabia’s largest architectural practice, working with international fi rms has become a regular part of business life.
Founded in Jeddah some 30 years ago and now employing upwards of 3,500 people, Zuhair is currently working on some massive projects in Riyadh and Jeddah, including palaces, government buildings and major residential and commercial developments.
Ammar Al-Sabban, head of landscape architecture at Zuhair, said that rapid change has occurred in the Saudi market, leading to many fi rms, who ten years
ANALYSIS
26 CONSTRUCTION WEEK JULY 10–16, 2010
ago were working on small, individual projects, suddenly getting involved with major developments.
“A long time ago when we used to work it was just the Saudi fi rms operating here, all the international fi rms were based in their own countries,” he said.
“But with what happened with the economy and globalization, the world just became like a small city. So now clients of ours are looking to mix up the talent, to look at some new looks for their projects. At the same time, we’re trying to diversify our employees even more. We have a team of 3,500 people from different areas and different countries.”
Al-Sabban said that international fi rms also benefi t from getting an on-the-ground understanding of how to do business in Saudi Arabia, a place which can be quite different to what they are used to at home, or even elsewhere in the Gulf.
“The Saudi fi rms are giving them more knowledge of the market itself. The trends in the market, how to deal with our clients, how to work in this environment, because we have a lot of areas people who come from outside the country do not know how to deal with. How to get your pay, what the client really wants, and how to get that message across,” Al-Sabban said.
Hejazy went further. He said that a local fi rm’s knowledge about design and Islamic architecture is an asset to an
But Al-Sabban believes that while local design knowledge is valuable, architectural styles in Saudi Arabia are changing, and the days when the architecture in Riyadh, Jeddah and the east are drastically different is likely over.
“We were established in Jeddah, but we are doing projects in Dammam, in Riyadh, in Sudan and in Dubai, so we’re taking that same kind of style, our mentality and applying it to our designs. We have an international team anyway, they combine together and we have a school of design,” he said.
In the end, Al-Sabban added, it is the person who is paying the bills that is ultimately the boss.
“If a client wants a modern design we do a modern design, if he wants something that refl ects the region, then we do something that refl ects the region,” he said.
Even if attitudes to what constitutes Saudi Arabian architecture change as the country grows, Hejazy believes that the next generation of architects will be keen to be more involved in designing the buildings that will defi ne their cities – as local architects’ experience grows, they will be ready to step up to the plate alongside international fi rms.
“The sky is not the limit. We are gaining expertise, my thinking is that there is a new generation coming up. My daughter is studying architecture, so I am not thinking only of myself. I’m trying to build something for the next generation,” he said.
international fi rm that is new to the region. This is particularly true in Jeddah, where a unique ‘Hejazi’ strain of architecture has evolved quite differently to Riyadh, or the eastern provinces.
“The architecture of the area has a mixture of different cultures, because of Islam. Even before Islam, pilgrims used to come to this area from all over the world. So you have a mixture of cultures – India, Turkey, Russia, Europe and Africa – you can see a mix of these cultures comes out in the Hejaz area,” Hejazy said.
“And there are also the environmental conditions: when you look at the courtyards, and the mashrabiyas, they provide privacy but they also provide a space that people can use to sit in. The narrow pavements create some shade and air movement. A lot of people don’t notice that the new modern buildings do not create the same feeling. When you go down into Jeddah you can feel the air and it improves the environment.”
ZFP’s plans for a mosque at the new King Abdulaziz International Airport in Jeddah.
ZFP’s propposal for the SUDATEL Offi ce Building.
“Saudi fi rms can gain experience, learn about the industry and also learn to think outside of the box.”
28 CONSTRUCTION WEEK JULY 10–16, 2010
ANALYSIS
Still on trackFirst tenders for the Union Railways project will keep this growing sector rolling. By Ben Roberts
IN THE FINAL WEEK OF JUNE Abu Dhabi Freight and Passenger Committee opened its doors to prequalify for civil and track work for the fi rst phase of the country-wide Union Railway
project, among other contracts. Construc-tion and engineering fi rms that have an expertise in railways are likely to have taken note, and the wider market might also have remarked that it is a mega project in the UAE that is going ahead.
The Union Railway project, also known as Shah Habshan, will eventually make the country seem a much smaller place. The state of the art network will enable the rapid transport of passengers and freight, opening up new trade corridors and journey opportunities by connecting the seven emirates. It is part of the AED304.4
billion the biggest emirate has earmarked for transport infrastructure investments.
The planned system will be managed under the auspices of Union Railway Company, which was set up last July. Its board – which comprises representatives from Abu Dhabi, Dubai and Sharjah including Dr Abdullah Belhaif Al Nuaimi of the Ministry of Public Works and Dr Nasser Saif Al Mansoori of the National Transport Authority – held its fi rst meeting in October.
The railway will be a dual-track line stretching from the Ruwais oil and chemicals centre in Al Gharbia, the ‘western region’ of Abu Dhabi, to Fujairah, the eastern-most emirate. It will also connect emiratis with Saudi Arabia via Ghweifat city and Oman via Al Ain in the east. The total investment for the project is estimated to be
between AED25-30 billion, spread over fi ve to seven years.
Such a project – just the start of the eventual plans for a GCC-wide railway system – is solid proof that the region’s countries would not cut back their investment in railway projects, unlike other parts of the world.
Suppliers to railway projects, including those selling track design software such as Bentley Systems, are confi dent that this is the start of something big. “The whole railway system across the region is happening,” believes Nader Raslan, regional sales director. “Possibly some parts of the region will lag behind in their parts of the [GCC-wide] railway, but I don’t think the UAE will be waiting around. My gut feeling is that, even if it is not connected around the
TICKET TO RIDE
Railways could be the region's next big-ticket
expense, as it looks to de-
velop transport infrastructure.
JULY 10–16, 2010 CONSTRUCTION WEEK 29
ANALYSIS
For upto the minute analysis log in to constructionweekonline.com
region, then it certainly will be within the country.”
It leaves Bentley Systems, whose main software product for this sector is Bentley Rail, well placed. “Designers need to have the tools to capture all information for a proposed corridor and all the things that need to be taken into consideration. This can include the optimal route of the railway, and all considerations around what the objective of the route is, whether it’s for freight or passengers and so on,” explains Raslan, who says the National Transport Authority had, to a degree, endorsed Bentley Rail.
Plans for railway projects across the Gulf have been resilient in the last year. Egypt, for example, has a transport infrastructure stimulus plan aimed at setting up basic
Track back
Tenders and dates: Union Railway
The UAE and China signed a railway industry-based MoU on the 18th May 2010 that will cover various aspects of the industry, including safety, regulations, standards, training, research and development and technology, and agreed to regular joint meetings and exchange of working visits. The MoU was signed by HE Sheikh Hamdan bin Mubarak Al Nahyan, Minister of Public Works and Chairman of the National Transport Authority (NTA), Liu Zhijun, China's Minister of Railways.
Advanced works tender:20th July - pre-qualifi cation documents issueJanuary 2011 – anticipated award
Civil and track work tender:26 July - Pre-Qualifi cation Documents IssueMarch 2011 – anticipated award
infrastructure in major cities beyond Cairo.A report by Kuwait Financial Centre in
January said GCC nations plan to invest a total of AED 400.2 billion on rail projects in the next 10 years as a solution to congestion. It added that investment in railway projects would increase dramatically in the region over the next decade.
Further research across the region emphasizes the importance of a country’s transport infrastructure to its overall economic development.
In a paper, Transportation & Logistics 2030 Volume 2: Transport infrastructure — Engine or hand brake for global supply chains? PricewaterhouseCoopers analysts wrote: “Transport infrastructure is a pre-requisite for an economy’s success, alongside other competitive criteria…
395.2 bn
304.4 bn
31Amount, in dirhams, the GCC will spend on rail projects in the next 10 years (Kuwait Financial Centre)
Abu Dhabi’s expenditure, in dirhams, on infrastructure projects over the next 20 years
Percentage of people in rural areas who do not have access to reliable transport in KSA.
30 CONSTRUCTION WEEK JULY 10–16, 2010
ANALYSIS
Indeed, an effi cient transport infrastructure is a crucial prerequisite for local businesses and foreign investors to operate successfully. Poor transport infrastructure or low public investments increase costs for fi rms and decrease attractiveness for investors.”
The high-speed Haramain rail project in Saudi Arabia is perhaps the stand out development. Its key component is a 450km track to connect Makkah with Madinah, via Jeddah and King Abdullah Economic City. This will also connect to the Landbridge and the North-South rail lines, Saudi’s two other major rail projects, linking the country’s population centers with industrial zones and the new economic cities.
In February this year the Saudi Railway Organisation agreed to extend its tender deadline for phase two from February to April, on the back of requests from the bidders. In all, fi ve alliances led by China
Construction, Al Arrab Alliance, Azmeel Alliance, Nesma & Partners Contracting Co and Al Mabani General Contractors were in the running by the time of the submission deadline in May.
The Saudi Landbridge Project is an extension to an existing network by constructing a 950km railway line between Riyadh and Jeddah, allowing cargo to be transported directly to and from Jeddah, to Dammam and onwards to other GCC countries, as well as Iran.
The entire project, around SR18.7 billion in value, includes the construction of a 115km line between Dammam and Jubail, a connection to the new Riyadh-Jeddah and Dammam-Jubail lines, a 610km railway line between Riyadh and Hudaitha at the border post with Jordan. It will eventually deliver both passengers and freight, and allow an increase of cargo volumes by 19.5% to 30 million tonnes.
The North-South Railway, a US $2.8 billion project, will link bauxite and phosphorus mines in the north of the country with processing and export facilities at Ras Al Zour.
Last April, Saudi Binladin Group and the French defence fi rm Thales signed a SAR 2 billion contract to build signaling systems for a 1,800km section. The contract for the 600km section linking Riyadh with Al Zubairah in the north that includes a passenger line, is still up for grabs.
The development, part of an extraordinary investment spree by the Kingdom, might be well-timed: PricewaterhouseCoopers research found that 25% (1.1 million) of Saudi citizens in rural areas have no access to rural transport (by total population and its RAI index).
Chinese companies are likely to be in the frame for consideration. Last February, China Railway Construction Company was hired to develop a light rail system to link the holy sites of Makkah, Mina, Arafat and Muzdalifah. At an estimated cost of SR6.65 billion, the new network aims to alleviate congestion during Hajj, and will reduce journey times to just half an hour, compared with the fi ve-hour car journey between Madinah and Makkah. CRCC is working on the project with the Al-Rajhi construction group and French fi rm Alstom.
Railway Construction, Al Rajhi Group, Al Shoula Group, Saudi Bin Laden Group, and Al Badr Group submitted bids.
At the same time it released its tender documents for the construction of the stations. Consortia fronted by Al Safwah, Saudi Bin Laden Group, Saudi Oger, Kier
Rail projects around the region will transform travelling for tourists, residents and freight.
"Possibly some parts of the region will lag behind in their parts of the [GCC-wide] railway, but I don’t think the UAE will be waiting around."
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Rail projects across the Gulf1 Haramain High Speed Rail Project – phase 2Client: Saudi Railways OrganisationValue: US$2 billionMain consultant: Scott Wilson Co Ltd (Project Manager)Country: Saudi ArabiaDuration: Q4 2010 to Q1 2013 (both estimates)Schedule: Bids for the main construction contract are already submitted. Bids are under evaluation.
2 Princess Nora Bint Abdulrahman University Monorail (Riyadh)Client: Ministry of FinanceValue: US$320 millionMain contractors: Saudi Binladin Group, Ansaldo STSMain, AnsaldoBredaCountry: Saudi ArabiaDuration: Q32009 until Q32012Schedule: A consortium of Saudi Binladin Group, Ansaldo STS and AnsaldoBreda was awarded the main construction contract in 2nd quarter of 2009. Contract duration is three years.
3 UAE Rail NetworkClient: Etihad Railways CompanyValue: US$8 billionDuration: Q42010 until Q42015Schedule: After the tenders seen already this year, the execution is set to begin at the end of 2010.
4 Makkah MetroClient: Ministry of Transport, Higher Commission for the Development of Makkah and Madinah, the Saudi Arabian General Investment AuthorityValue: US$1.8 billionMain contractors: China Railway Construction Corp., Westinghouse Platform Screen Doors, Siemens WLL (power supply), Lloyds (safety), Changchun Railway Vehicles CompanyMain Consultant: WS Atkins Global, Systra Consulting Co. Duration: Q12009 until Q12011. Schedule: Phase 1, including the infrastructure, is already complete.
5 Riyadh MetroClient: Arriyadh Development AuthorityValue: US$1.8 billionMain Contractors: CAF (Train Cars Provider)Main Consultant: Main Consultant: SemalyMain Consultant: Dar Alhandasah for Designing & Technical ConsultantsDuration: Q1 2011 until Q1 2015 (both estimates)Schedule: Prince Salman Bin Abdul Aziz, Emir of Riyadh region announced that plans are under way to build Riyadh Metro. Routes, detailed designs and engineering for Riyadh Metro are ready and awaiting budget allocation.
32 CONSTRUCTION WEEK JULY 10–16, 2010
FACE TO FACE
BUILDINGS FROM THE
INSIDE OUTAhmad Matar, head of the electromechanical
subsidiary of contracting giant Al Arrab Contracting, talks to Ben Roberts about the company’s moves into Qatar and Saudi Arabia and the importance
of top quality internal systemsPhotographs by Shruti Jagdeesh
A NY COMPANY THAT LAUNCHED in Dubai in 2006 would have since experienced something of an exciting start, given the market fl uctua-tions between then and now. But in June of that year KSA-based Al Arrab Contracting Company launched its electromechanical business, Al Ar-
rab Electromechanical Engineering (AEME) in the UAE, to cap-ture the market opportunities for electrical, mechanical and tele-communication systems.
AEME is a good example of Al Arrab Contracting Company’s strategy, in which new subsidiaries are quickly set up where there is suffi cient business to create a pocket of expertise and compete with specialist rivals. At the helm is Ahmad Matar, chief executive, who is into his fourth year at the company and his 13th in Dubai.
“We do everything electromechanical,” says Matar, “including lighting, power supply, standby generators, evacuation systems, lightning protection systems, as well as drainage, water supply, air conditioning, plumbing, heating and ventilation.”
Market conditions have not been the only change for AEME and Matar. In the last quarter of 2007 the company already established an offi ce in Qatar – a move which now seems astute given the shift in big business toward the gas-rich state.
By the middle of 2010, the company has a substantial business line in the country, most notably seven of the Porto Arabia Tow-ers in the nascent Pearl Qatar development, located offshore from Doha’s West Bay area. The contract for the construction of the fi rst three towers had been won by the parent company in November 2006. Two of the seven have been handed over, so far.
The Pearl Qatar is a familiar concept to any who followed the development of Dubai’s Palm Jumeirah, though with elements of unique design and layout. The island, developed by United Devel-opment Company, will house 35,000 people and will contain three large bays, ten precincts as well as shops, schools and restaurants.
The differences between the projects go further however. To an extent the latter project has learnt from the former, which was built in the haste of an overheating property boom. It is a question
JULY 10–16, 2010 CONSTRUCTION WEEK 33
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33 CONSTRUCTION WEEK JUNE 5–11, 2010
FACE TO FACE FACE TO FACE
34 CONSTRUCTION WEEK JULY 10–16, 2010
FACE TO FACE
of a better process, Matar explains, and central to this, is the timing in which dif-ferent companies are brought in to do their portion of the work.
“The two projects have a similar philoso-phy as ‘island’ projects,” he says. “Perhaps the fi rst suffered technically as they started the infrastructure at the same time as the compaction and backfi lling.
“In Qatar, it’s more organised and sched-uled, as there is the fi nishing, the back-fi lling, then the infrastructure, then the building. The project has learned from the experience of Palm Jumeirah, and in doing so it has added value.”
He adds that when he visited the site to start construction, the compaction and backfi lling had been fi nished – “so it was a lot less of a headache for us.” AEME will have fi tted out a number of the towers in Business Bay in Dubai when the area becomes a thriving centre.
ELECTROMECHANICAL IS ONE OF 5 AL ARRAB CONTRACTING CO. BUSINESS UNITS
FACE TO FACE
JULY 10–16, 2010 CONSTRUCTION WEEK 35
FACE TO FACE
For AEME’s specifi c line of work there are a number of intricate details in the tow-ers, in particular a fi re alarm system that includes a voice evacuation system, heat detectors, speakers, sounders and an emer-gency light system with a central battery.
Launching in Qatar was not without its initial challenges, however, and Matar’s ex-perience shows just how varied the maturi-ty of the different Gulf states had been just a few years ago – and also how swiftly they can develop to level the playing fi eld.
“When we started in Qatar in 2007 there was a big problem with sourcing materials,” he says.
“Most had to be bought through Dubai. Three years ago about 50% of materials came from local sources. In 2008 that was up to 70%.
• 19% - GROWTH RATE OF MEP SERVICES IN THE GCC OVER THE LAST THREE YEARS
“At the time this caused delays, along with problems of the availability and also you need to meet the delivery period.
“But now the situation is improving. Now the materials are at a very competitive price, with fl exibility in payments. Qatar is just now investing a huge amount in infra-structure, and the government support for construction is very strong.”
Today, copper and steel – two of the most volatile and scrutinized metals – make up most of the company’s material costs.
The company’s UAE-based projects are progressing and are spread across a number of the emirates. This includes the Bel Rashid Tower in Sharjah, a 32-storey residential building that requires a chilled water system of fi ve chillers, six chilled water pumps and a grey water treatment system. On the electrical side it will fea-ture six transformers and six low-voltage panels, along with CCTV, a TV system and intercom. It is also fi tting out the Gulf Pearl Tower in that emirate for client M/s Al Wa-tan Properties Development.
The company also works on factories. In Ras Al Khaimah it is providing MEP, test-ing and commissioning for the production hub of UNIPODS, a bathroom pod manu-facturer which expanded into the country a few years ago.
The owners of the factories can be par-ticularly effi cient customers, Matar com-ments, as unlike residential developers that can make money in advance of a project’s completion through pre-sales, only a fi n-ished building can produce a return.
“A factory may take around 12-15 months for us to do the work. It is not like working on a residential project as it is typically the owner of the factory who is employing you – they will want 100% fi nish and then it will be looking to recoup money.”
But Dubai has been central to AEME’s business in the country since the compa-ny’s inception, and the company dug out a competitive market share when new tow-ers were being planned every week. Prime Tower, Regal Tower 1 and Silver Tower in the nascent Business Bay, the Al Jawza Building in International City, and the Im-
“Qatar is just now investing a huge amount in infrastructure, and the government’s support for construction is very strong”
36 CONSTRUCTION WEEK JULY 10–16, 2010
FACE TO FACE
achieved this, and despite the clamour for a shrinking amount of contracts, Matar says you still need to scrutinize your counter-parties. “Today the approach to projects is different. Now you have to think two, three or four times about a project, in the private sector. You have to think about who you will be working with, especially if they are new to you. Most of our work is repeat business,
perial Residence Tower are all develop-ments currently being transformed from the inside by AEME. Its completed projects include labour accommodation and ware-houses in Umm Al Quwain and the 132-apartment Tawhidi Building in Sharjah.
But it’s worth reiterating that this fl urry of projects was from what now seems like a different economic age for Dubai.
“In the UAE you can say there is the ma-jority of our work, though now we are fo-cusing on Abu Dhabi,” he says, where the company is currently providing MEP work for Time Tower, a part-commercial, part-residential twin structure joined by two fl oors, located at the Najmat Abu Dhabi on Reem Island. “In 2010 there have been very few tenders in Dubai – in a way it is a harder year than 2009. So we wanted to set up early in Qatar, while the market in Dubai still needs time to recover.”
AEME has, in recent years, also been recruited by its parent. It recently won a contract for more than two years’ work fi t-ting out the Kingdom’s Ministry of Defense & Aviation land forces headquarters in Ri-yadh, a 108,000 metre2 area to be complet-ed in two phases.
Matar sees many opportunities in Saudi Arabia – noting in particular the 10 univer-sity projects that form part of the country’s recent drive – and will stay close to the de-velopment of Al Arrab Contracting Com-pany, to see where it might secure further work. AEME has been in the market since the middle of 2009.
He reminds CW that Al Arrab Contract-ing won the US $6 billion contract for the fi rst phase of the Haramain rail system in Saudi Arabia, and added that if the contrac-tor won the project for the development of one of the fi ve stations – which comprise of Madinah, King Abdullah Economic City in Rabigh, King Abdulaziz International Air-port, Jeddah and Makkah – then Al Arrab Electromechanical would be keen to work on the project too.
Repeat business from a handful of clients and partners has been the key to steady progress beyond survival, as markets slowed for many companies. AEME has
US$22.44 BILLION ESTIMATED MARKET VALUE OF MEP IN 2013 [FROST & SULLIVAN]
Abu Dhabi, Saudi Arabia and Qatar are three hotspots for the company, says Matar.
AEME is involved in the completion of residential towers on the Pearl Qatar.
such as with Tameer, with which we have worked with for four projects.”
DAMAC Properties, Atkins and Salam International are among the companies it has worked with.
Steady progress and a gradual expansion have allowed Matar to think about new lines of service that can be offered, particu-larly in the fi nishing of buildings.
JULY 10–16, 2010 CONSTRUCTION WEEK 37
“Today the approach to projects is different. Now you have to think two, three or four times about a project, in the private sector. You have to think about who you will be working with, especially if they are new to you.”
FACE TO FACE
• AEME CURRENTLY HAS 13 ONGOING PROJECTS ACROSS THREE COUNTRIES
STARTING NEW BUSINESS LINES
Al Arrab Electro Mechanical & Engineering is typical of the Al Arrab Contracting’s approach to expansion. Samer Arafa, group executive vice president, says when the Mada Group for Industrial & Commercial Investment, owned by the Al-Rajhi family, acquired a majority stake in 2004, it forged a new outlook and partnership between the former and current owners to develop the new busi-ness lines.
“The operational model would develop by adding a module for a complete region,” says Arafa. The same goes for new business lines, whether they are for water projects, hospitals, or infrastructure. This is a company expanding in a practical, reliable way. Much business of the core is given away to the subsidiar-ies. The partnership with Al Rajjhi Holdings Company, as a big group, opens new horizons.
“The board of directors makes the guidelines and new develop-ments. Once it is decided a new venture is a good business interest then the decision is implemented very quickly.
“Sustainability is along the lines of a deep belief in a solid economy, in KSA and the other Gulf states, particularly with the massive amount of infrastructure projects. I think this has been a very wise decision by the government to be developing the infrastructure, the time is right in terms of income, revenues and the growing popula-tion; along with the growing stress on roads, for example, or water, and systems of communication.
“There is still a need to further penetrate the market [in terms of] speciality and geography. You can-not expect one company that works in one way to be able to manage multiple markets. You need mod-ules and specialities.”
“There’s an opportunity for offering facilities management services,” he says. “Originally, when a building is constructed, there would be a one-year maintenance pe-riod. But if, in future, the market remains quiet, then there is a chance that we might bid for a facilities management contract.”
That said, Matar concludes the interview by returning to AEME’s core business. It’s a business, he says, where there has been a marked increase in awareness among clients regarding the cost and energy savings that can be achieved with smart engineering.
“For the last two years we have seen clients focus more on the electromechani-cal side. The best electromechanical work adds to the maintenance of the building to produce less trouble in the systems.
“It’s easy to complete a tower, but if your contracted company is not qualifi ed, the lifetime of the building is defi nitely shorter. It doesn’t matter if a building has the best of materials.”
For upto the minute analysis log in to constructionweekonline.com
200922,000
132.5 bn
The year AEME set up operations in Saudi Arabia
Value, in US dollars, of the Pearl Qatar project in total
Square metres of UNIPODS factory
Number of completed projects in UAE since 2006
38 CONSTRUCTION WEEK JULY 10–16, 2010
ON SITE
F OUR YEARS after it was launched, the notorious 529,500m2 Dubai Lagoon project is at last making good progress. Characterised by
a series of delays, contract terminations and bad feeling between developers and inves-tors, one might say the project got off to a rough start.
Today, with its three main contractors work-ing cooperatively, but separately, across four ‘Zones’, Dubai Lagoon looks more like a con-struction site. Materials are delivered by the tonne. Manpower on site is increasing. Towers are beginning to rise.
“Cooperation is key,” says Schön Properties’ project manager Walid Ahmed. “Everyone has to work together to facilitate access, loading and movement on site.”
Incidentally, Belhasa Contracting and Engi-neering Company, Bin Sabt Building Contracting Company and Commodore Contracting have never worked together before. However, the three companies, which replaced the original contractor Powerline Group, seem to be get-ting along just fi ne.
“Initially there were some logistic issues that arose from having three contractors working on one plot,” says Belhasa’s senior project man-ager Talha Alvi. “It was diffi cult to maintain the access roads and access at the entrance gate. But now, through the coordination of Mr Ahmed, we are using a pass system to
access the site, which is well controlled and working nicely.”
According to Ahmed, the developer appointed three main contractors so as not to “put all their eggs in one basket”, and to speed up the delivery of the project. Bin Sabt is working on Zone 1, while Commodore handles Zones 2 and 4 and Belhasa oversees Zone 3.
Zone 1As the fi rst part of the project to be handed over, Zone 1 is scheduled for completion before the end of the year. Its eight residential towers, the thrust of a 46,076m2 total built-up area, will provide 442 residential apartments to patient investors. A lagoon will sit in front of the towers, creating a scenic view for residents at the top. “Each tower will consist of a single basement, ground fl oor, another eight fl oors, plus the roof,” says Ahmed.
Bin Sabt’s managing partner Ahmed Suliman, whose team only joined the development as contractors a year ago, is optimistic about the Zone’s progress. “The super structure works, i.e. the reinforced concrete and block works, are almost complete and the fi nishing works will soon be in full swing,” he says. “The MEP works have begun and the order for the eleva-tor has been placed with Al Arabia (Sigma, South Korea).”
Certainly construction of the Zone appears to be on schedule, with total man hours standing
at 1,296,000. Executives at Bin Sabt confi rmed they had cast 35,062m3 of concrete supplied by Safemix, and gone through 4,642,472 kgs of steel provided by Gulf General Steel.
But with the hand-over date just months away, it is important the developer does not wait too long to appoint new subcontractors. Still to be awarded are contracts for the alu-minium and GRC works, the ceramic supply, joinery work, marbling and false ceiling work. As more subcontractors are appointed, the number of men on site is expected to increase from 200 to 1,200 at any one time.
Adding to the pressure is the fact that upon delivery, Zone 1 will have its own ETS (Electri-cal Thermal Storage) room, linked to a chilled water system, to provide air conditioning for the project. Located in the basement of the mosque or ‘Zone 9’, it must be put in place for the Zone to be handed over on time. “We will probably start construction in about six weeks and fi nish in October,” says Ahmed. Alongside the main contractor, Emirates District Cooling company will be the district cooling service provider for the ETS Room, with an MEP contractor yet to be assigned.
According to the developer, the lagoon, (one of several planned for the project) is also sched-uled for completion “in time for the Zone’s delivery”. Supplied by the Chilean fi rm Crystal Lagoons Company, it will rely on patented ‘crystalline lagoon technology’, which involves
Lagoon low-downFinally Schön Properties’ infamous Dubai Lagoon project gets underway, with the fi rst four Zones scheduled for handover by 2012By Elizabeth Broomhall
JULY 10–16, 2010 CONSTRUCTION WEEK 39
ON SITE
JULY 10–16, 2010 CONSTRUCTION WE
40 CONSTRUCTION WEEK JULY 10–16, 2010
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extraction of water from the ocean, to create a pool of clear water, which is then re-circulated and replaced as per predefi ned parameters. Extremely energy-effi cient compared with conventional pool systems, the lagoons may make up for a lack of energy-effi cient technol-ogy in the residences themselves.
Zone 2With an estimated completion date of December 2012, Zone 2 can afford to be a bit behind. Having only just fi nished the concrete blinding, and with 40% of the waterproofi ng still to go before the contractor can add the protective concrete layer, managers at Commodore Contracting anticipate it will take two months before the raft foundation will be completed. Nevertheless, the Zone appears to be making excellent progress, the steel reinforcement already delivered to site and a large proportion of it laid down in preparation for casting. “The blinding concrete layer is done, and we have started laying down the steel, so we shall start casting the fi rst part
5,191m2
1,017,9005.1million676,40m2
Total man-hours for Zone 2
Kgs of steel used so far for Zone 4
Zone 3 total built up area
Zone 1’s pilot lagoon will cover an area of 5,191m2 and require close to 3.5m gallons of water.
ZONE 3Belhasa has fi nished block works on the basements and will soon start work on the super structures.
of the reinforced concrete some time in July,” says Commodore’s project director Salah Yatim. “We have 200 workers across the two Zones, which will peak at around 750. Add that to the 250 subcontractor workers, and we’ll have 1000 workers across the two sites.”
As it happens, there are seven subcontracts still open on Zone 2, including those for the MEP, fi nishing and elevator works. “We will be fi nalising the other packages with Schön in the near future,” confi rmed Yatim. “One or two subcontractors will be required for each set of works, depending on the size of the company and whether they can cope with work across two Zones.” Speaking about the timescales for inviting bidders, Schön Properties’ vice president Danial Schön says: “We will be inviting companies to bid for the additional subcontracts for the Zones in the next three to four months, depending on the market conditions.”
Already awarded are the contracts for the steel supply, (won by BRC), waterproofi ng
ZONE 3Belhasa has fi nished block works on the basementsand will soon start work onthe super structures.
JULY 10–16, 2010 CONSTRUCTION WEEK 41
ON SITE
works, (awarded to BMC) and the concrete supply, (won by Ghaladari).
On completion, the 425,24m2 built-up area will accommodate 491 residents across fi ve towers. To make this possible, the contrac-tor has already gone through 5,129,226kgs of steel, 47,000m3 of concrete and 1,017,900 man hours.
Zone 3Zone 3 is somewhere between 1 and 2. Main contractor Belhasa has awarded all of its subcontracts, bar the fi nishing works, and completed the block work required for the sub-structure/basement. With a view to completing in 2011, it will begin the block work for the super structure in four months. “M/S Sensaire is contracted to do the MEP works and Al Arabia will most likely supply the lifts,” says Alvi. “We have 250 people on site now but that will to go up to at least 300 when we start on the super structure.”
With the aim of providing 688 residential
units, Zone 3 is the biggest section under con-struction, with a total built-up area of 676,40m2. In contrast to the other Zones, the two largest buildings will divide into two from the sixth fl oor upwards to provide rooftop apartments. Also unlike other Zones, the fi rm is getting its steel from three suppliers - Emirates Rebar, Al Gurg Building Services and G2 Interna-tional. Safemix and SS Lootah are providing concrete, and Helios was responsible for the waterproofi ng.
Alvi, who seems happy with the progress the Zone is making and pleased that the project is fi nally picking up after so many delays, said: “To date we have used 4,457,155kgs of steel, cast 35,644m3 of concrete and used 1,515,969 man hours.”
Zone 4Identical to the buildings in Zone 2, Zone 4 is also being handled by Commodore Contracting. With the hopes of providing 497 apartments across a built up area of 425,24m2 by the end
ZONE 4Zone 4 is one month
behind Zone 2 but may be completed earlier due to
ease of site access.
of 2012, contractors have made a good start on the excavation and backfi lling work in order to even out the ground levels.
Concrete blinding is set to begin soon, increasing the amount of steel used, concrete cast and man hours, which respectively stand at 5,129,226kgs, 47,000m3, and 1,017,900. Though it has a lag period of one month behind Zone 2, contractors believe it will take less time to complete construction on Zone 4 due to its location and ease of access to the site.
Commodore branch manager Shadi Khuzam says: “Zone 4 is moving faster due to logistic reasons – it is easier for workers, machinery and materials to access the site.” He adds: “At the moment we have 170 workers across both sites but we expect that to increase, especially when we start the block work and masonary work for the Zones.”
To speed up construction, he refers to use of a post-tension system. Faster than the conventional system, it will allow work to speed up and money to be saved.
ZONE 4Zone 4 is one month
ON SITE
42 CONSTRUCTION WEEK JULY 10–16, 2010
ON SITE
42 CONSTRUCTION WEEK JULY 10–16, 2010
INSIGHT • Building permitsOne of the biggest challenges followed the formation of the Roads and Transport Authority (RTA). Having conducted a traffi c impact study, the authority ruled that Dubai Investment Park developers must obtain building permits. It took Schön two months to submit its application, and the master developer three times as long.
But the real delays arose when trying to obtain the permit itself. In February 2007, Schön’s application was rejected. In June, the RTA froze development of Dubai Lagoon for a road widening project. “When we bought the land in 2005 there was no big plan for it,” says Danial Schön. “Then the RTA decided to build a metro station nearby, asking us to cut our land back by 45m down one side.
“We negotiated, but it took time. In the end we agreed 30m, but had to cut our
land back by 10% and re-design the whole project, which was expensive. We received no compensation and had to reduce the sellable area.”
During this time, Schön obtained permits for clusters of buildings, but failed to acquire a permit for the entire project until May the next year.
• Financial crisisThe fi nancial crisis made matters worse. Not only did it impact upon the developer’s ability to pay contractors and suppliers, slowing down construction, but meant Schön’s original promise of a seven year payment plan for investors was no longer feasible. “When we invested in this project,” explains Jamal Sirhi, a spokesman for the Dubai Lagoon Investors’ Committee, “it had an attractive payment plan where we could pay 60% up to completion and
the remaining 40% over fi ve years. It was a great idea for us, with 50% of investors signed up.
“Towards the end of 2008 everything changed. People on that payment plan were told it wasn’t feasible any more, because the banks were no longer lending and because delays had affected Schön’s profi tability and cashfl ow.”
Not wanting to lose their homes, investors were forced to negotiate a deal. Unfortunately, lack of payment meant several investors were terminated, though most have now been reinstated.
• Investor relationsOf course, slowed construction and renegotiated payment plans were never going to go down well with trusting investors, and it was inevitable that developer-investor relations would be
The challenges behind Dubai Lagoon… The Dubai Lagoon project was launched in 2006, scheduled for completion in 2008. A number of challenges led to a long 20-month delay in construction progress
42 CONSTRUCTION WEEK JULY 10-16, 2010
ON SITE
JULY 10–16, 2010 CONSTRUCTION WEEK 43
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JULY 10–16, 2010 CONSTRUCTION WEEK 43
affected. “We were promised the Dubai dream and meant to be getting our homes in 2008. This didn’t happen, for a lot of reasons, but the main problem was poor communication, we didn’t know what was happening,” he says. “We kept being promised that construction would start but nothing happened. Schön only got permission to build in 2008 but this was never communicated to us.” He adds: “The distrust meant we started shouting and screaming through the media. If we had just been informed from the beginning, we wouldn’t have reached this point where we were angry and didn’t believe a word that came out of the developers’ mouths.”
Recently the two parties had a meeting and ruled out media intervention. After a full explanation from Schön as to the challenges of the project, and a huge effort by the developer to improve
communications, the two parties have fi nally reached an understanding. “What we have learnt is that to survive in this market there must be transparency and constant communication,” says Danial Schön.
• Contractor disagreementsGrievances with contractors were another big issue. After a JV agreement between Daewoo DSME Construction Company and Sunjin Civil and Architecture did not materialise, Schön replaced the companies with Powerline Group. Powerline later raised concerns about man-power and contracts. Schön revised contracts and agreed to bring more man-power on site, but later terminated the contract on account of non-performance and negotiations failing. The main contractors on site today are considered to be working quickly and effi ciently to fi nish the project.
JULY 10-16, 2010 CONSTRUCTION WEEK 43
FIRE
44 CONSTRUCTION WEEK JULY 10-16, 2010
I N THE EARLY DAYS of the operation of Tom Bell-Wright’s testing consul-tancy, a client brought in a steel door and said it would hold back a fi re for
four hours.The qualities of the door had to be put to
the test, to achieve the required fi re rating. The test was set up, with the doors built into a gas powered furnace. Once the fi re began, the door lasted just 11 minutes, somewhat short of its four hour target.
“They had completely underestimated what was required,” said Tom Bell-Wright, who acts both as CEO and chief technical offi cer. “It was not the steel that failed, but the seals around the windows and lock.”
Once the fi re penetrated the window and lock area, the door’s integrity was destroyed and the rest was history. The underestima-tion is important: people’s ideas of what will work in a fi re count for nothing until they’ve been put to the test.
Bell-Wright’s operation is formally ac-credited for fi re testing through the Emir-
ates National Accreditation Service (ENAS), plus the UK Accreditation Service (UKAS). When the ENAS accreditation was awarded late last year, Bell-Wright’s hope was that the presence of the testing furnace would make it easier for those in construction to comply with regulations.
Speaking at the time the Minister of En-vironment and Water and chairman of the Emirates Standardisation and Metrology Authority (ESMA), Rashid Ahmed Bin Fa-had, said: “Accreditation of this laboratory provides confi dence in the market and fur-ther enhances the infrastructure of quality for assuring safety and conformity of prod-ucts and services.”
Most consulting work the company does comes through architects, project managers, or directly from developers. The company does façade consulting and curtain wall testing too, but the fi re testing side has been busy over recent months, with Bell-Wright believing the testing furnace to have given local manufacturers some added impetus.
Passive protectionA passive approach to fi re safety can save the day, or at least buy time, when fi re breaks out reports Stuart Matthews
FIRE
JULY 10-16, 2010 CONSTRUCTION WEEK 45
“I think it stimulated local manufactur-ers,” he said. “Before we had the fi re testing, a manufacturer would have to send doors to Europe, by providing the testing on site here it becomes much easier for them to get certifi ed.”
While testing is becoming more the norm in the region, Bell-Wright believes some projects still look to save money by waiving tests, whether for fi re, facades or curtain walls.
“This is pretty misguided,” he said. “Waiving testing is very short-sighted, but sometimes contractors see testing as an inconvenience.”
“While the big architecture companies set the standards for how this work is done and are hired by developers because they want a certain standard, that’s only a proportion of the jobs in the region.”
“Waiving testing is very short-sighted. Sometimes contractors see testing as an inconvenience.”Tom Bell-Wright
FIRE
46 CONSTRUCTION WEEK JULY 10-16, 2010
A short-sighted approach to passive fi re safety can ultimately cost money and lives, if the worst happens. Investment up front can save a much greater amount of cash and lost opportunity further down the line. Passive fi re protection can be key to reducing the odds of a fi re occurring and to minimise any damage through containment.
“There is defi nitely not enough attention placed on the importance of passive fi re pro-tection,” argues Mark Lavender, sales and marketing director for Promat Fire Protec-tion. “A lot of attention is focused on active systems like alarms and fi re extinguishers but an integrated approach with both active and passive systems working together to protect an asset would be more successful.”
Furthermore, the real benefi t of passive fi re protection lies in maintaining the struc-ture of building in the event of fi re and pre-venting collapse.
“Maintaining compartmentation can stop the spreading of a fi re from building to build-ing, as we have typically witnessed in heavy built-up locations like industrial zones,” says Lavender, pointing to the case of Dubai In-dustrial City which fell victim to one of the
biggest fi res to hit the region two years ago. Starting as an explosion in a fi reworks
warehouse, the fi re spiralled out of control and engulfed more than 80 neighbouring warehouses in its wake. With scenarios like this, it is not surprising that fi re protection specialists feel frustrated by complaints about the cost of fi re protection systems.
“After all, how expensive is the total loss of your business?” Lavender points out. “The cost of passive fi re protection systems are minimal in the overall construction cost and are only a minor expense in comparison.”
Raising awareness about safety and cost implications in these situations is one of the tasks ahead of Anand Raghavan, area sales
Durasteel can be used to build protective barriers around essential equipment. The barriers can be moved or altered to allow easier access if maintenance is required.
“Maintaining compartmentation can stop the spreading of a fi re from building to building.” Mark Lavender
manager for Invicta Durasteel, a fi re resis-tant partition system.
“People talk about fi re rating of four hours, but there are two things you need to consider in the case of a partition,” he said. “One is integrity, the other is insulation.
“Integrity refers to the fi re being allowed to spread to the other side of the partition. Insulation means that even if temperature of the fi re is 1500 degree on the fi re side, on the other side its not more than 180 degrees.
“This is a very important factor, because even if there’s no fi re, without insulation, something could melt or explode.”
Durasteel is made from fi bre reinforced cement sandwiched between two punched steel sheets. The product has been in the market in Dubai for about a year and a half and like other organisations introducing something new, the company is doing the contracting work itself. Over the last 18 months it has completed around 10 projects, including installations for Dow Chemicals and at the Jebel Ali Power and Desalination Plant ‘Project M’.
There the company prepared under-ground tunnels and cable routes to connect
FIRE
JULY 10-16, 2010 CONSTRUCTION WEEK 47
buildings. In order to isolate these tunnels from fi re hazards, and limit the spread and damage caused in the event of a fi re occur-ring, the client decided fi re walls were need-ed within the tunnels, to provide effective compartmentation.
On the same site, the company also de-signed and is installing four generator fi re walls. The generators are located adjacent to each other and each one is surrounded on three sides by concrete walls. However, due to the fact the generators need to be moved outside of the building for periodic mainte-nance, one side around each generator had to be left open. With a road set to run along the unprotected open side of the generators,
an explosion occurring would have a devas-tating effect on the facility located opposite.
To prevent this, the company designed removable Durasteel fi re walls for the open side of each generator, to contain any explo-sion from spreading out of the building.
“Our people are coming from the UK to do the installations and our main job now is to promote it to consultants,” said Raghavan. “We see huge potential in the region.”
As regulations continue to develop, testers and manufacturers of high-specifi cation products will be hoping the rules get tough-er. This will encourage greater application of effective passive measures and improve the long-term safety of buildings.
A fi re test in progress at Tom Bell-Wright International Consultants (top left); a Durasteel fi re test (bottom left); and a Durasteel installation on the Dubai Metro.
What is accreditation?Accreditation by UKAS means that testing and calibration laboratories, have been assessed against interna-tionally recognised standards to dem-onstrate their competence, impartiality and performance. The ability to distin-guish between a proven, competent evaluator that ensures the selection of a laboratory is an informed choice and not a gamble. UKAS accreditation means the evaluator can show that it has met the requirements of interna-tional accreditation standards.
Source: UKAS
48 CONSTRUCTION WEEK JUNE 26-JULY 2, 2010
ares
IT DOESN’T TAKE A STRUCTURAL EN-GINEER or a project consultant to work out that ambient tem-peratures in the GCC during the summer months are horrendous.
And, with modern building designs relying on a mix of large glass panels, large alumin-ium sheets and steel, external cladding and underlying insulation plays a huge part in ensuring occupants are able to live and work in relative comfort.
Calls for more thermally effi cient de-signs have had a direct impact on demand for specialist cladding services. By ensur-ing that buildings are adequately sealed and free from thermal bridges, (where the ambient exterior temperature meets cool air inside a building, creating condensa-tion) cladding specialists play an impor-tant role in helping to reduce a building’s operating costs.
“We’re at a bit of a crossroads in the way buildings are designed,” said Andy Dean, lead advisor, Facade Technology and Advi-sory Services at Al Futtaim Exova.
“In Dubai, there’s a cultural contradic-tion in the way we build currently, and how things were done historically. Traditional building designs included slots at ground
Thick skinInterest in innovation in facade design and construction has risen out of the recession, as clients with a long-term view look for greater quality. Carlin Gerbich reports
CLADDING AND FACADES
48 CONSTRUCTION WEEK JULY 10 - 16, 2010
level to let light in, which would refl ect off the fl oor and illuminate the room. Now, we build with a lot of fl oor to ceiling glass pan-els that let in a tremendous amount of heat and light – 15 times more than in the UK.
“But we’re seeing the start of a migration back to buildings that aren’t fully glazed here in the Middle East. That makes it a lot easier for designers to deal with heat build-up that comes from large glazed ar-eas,” he said.
“Dual skin facades, while not new in Eu-rope, are being pioneered by a few contrac-tors in the UAE too. They control heat by creating an air-conditioned space between two layers of facade material. It works very well, and very effi ciently,” Dean said.
Demand for cladding services through-out the UAE and GCC is on the rise after a diffi cult start to the year for some contrac-tors. Dubai-based Alumco, one of the UAE’s largest architectural facade specialists, says the effects of the global economic slow-down fi nally fi ltered through to its services this year but, with a number of high profi le projects completed in Saudi Arabia and several more under development, Alumco’s activities outside Dubai have kept the com-pany buoyant.
JUNE 26-JULY 2, 2010 CONSTRUCTION WEEK 49
CLADDING AND FACADES
JULY 10 - 16, 2010 CONSTRUCTION WEEK 49
The Burj Khalifa uses EJOT fasteners at its uppermost reaches.
“Actually, 2009 was our best year, for glass at least,” said Alumco’s commercial man-ager, Glass Division, Ehab Haddadin. “The start to this year has been quite slow but it has picked up and it seems we will have a busy two or three months ahead. Sales have been good, but margins are down. It’s not about making a lot of money this year – it’s just about getting through and making sure we’re still here when things turn around.”
Contracts with Saudi Arabia’s Princess Noura bint Abdul Rahman University for Women in Riyadh, and high profi le proj-ects include the Yas Marina Hotel with its 14,500m2 glass panels, the new Dusit Thani hotel and the Adnec Tower, for which Alumco supplied the glass canopies and panes for the link tower, plus its numer-
ous other projects, have given the company enough to keep its factories running.
“We’re not at capacity, but we have enough to keep us going. The next two months should be better,” Haddadin said.
While there have been localised slow downs in the construction industry, some projects throughout the GCC continue to forge ahead at an encouraging rate. Plan Abu Dhabi 2030 and its ambitious targets for several mega projects in the UAE capi-tal has created lots of opportunities for contractors and suppliers. Rapid expan-sion plans in Qatar and Saudi Arabia, cou-pled with a steady fl ow of projects from Kuwait, Sharjah and even Libya means cladding specialists are in demand.
Marlon Exner, general manager of Sharjah-based EJOT Middle East, said his company’s concentration on key projects during the recession meant it wasn’t af-fected by the economic slowdown.
EJOT specialises in high strength fas-teners for steel, glass and aluminium fi x-ing applications, covering “everything that you would need to secure the building en-velope; the roofi ng, cladding, curtain wall and glazing.” Their products can be found on the Burj Khalifa, Abu Dhabi’s Ferrari World and throughout the impressive King Abdullah University of Science and Tech-nology in Saudi Arabia.
“Saudi Arabia, of course, is a very strong market for everyone, but Qatar is emerg-ing as an important market. There are a lot of projects being worked on there, and there is a lot of potential for contractors,” he said.
“Dubai is still an important market for the cladding industry. It’s still a hot spot for key projects, and many of the construc-tion industry’s bigger players are still based here,” Exner said.
While the construction industry had slowed down, Exner said that wasn’t nec-essarily a bad thing. Clients, he said, were now interested in better value for their money – and if that meant paying a little more for a product that would outlast its rivals, they were willing to consider that as a real option.
“I think the focus is now on better quality and making sure that everything is done to a far higher standard,” he said.
5389165,000m2
26,000
Number of pivoting diamond shaped panes in the Yas Marina Hotel
Area of external roof cladding secured to the roof of Abu Dhabi’s Ferrari World
Number of exterior glass panels used in the cladding of the Burj Khalifa
PROJECT UPDATE
WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email: [email protected]
ON SITE CW reviews a collection of its most recent site and plant visits to keep you up to date with project progress
50 CONSTRUCTION WEEK JULY 10-16, 2010
With four 73-storey towers planned, the Dubai Pearl project is a massive under-taking that has taken several years and some false starts, to finally get a solid start. Piling was completed in 2009 along with the raft pouring. The towers are just starting to grow, with a 600-strong work force moving from building to building, as each one progresses at a similar pace. The project is aiming for LEED Gold certification.
DUBAI PEARL
LocationDubai
VisitedJune 2010
The Rufi Twin Towers project involves the construction of two towers with G+18 floors, in Dubai Sports City. The towers will be joined at roof level by a distinctive sky bridge. Emirates Belbadi Contracting is the main contractor. The company has worked to make sure the project makes steady progress and has agreed a year-long extension with its client, to accommodate a slow down on the job.
RUFI TWIN TOWERS
LocationDubai
VisitedJune 2010
Al Muneera is being developed by Aldar as part of the expansive Al Raha Beach project in Abu Dhabi. The proj-ects is made up of two distinct areas, with an island and mainland divided by a canal. A total of 16 residential towers are under construction, along with an offi ce tower, 11 villas and 148 townhouses. Al Futtaim Carillion is the main contractor, with Drake & Scull providing MEP works.
AL MUNEERA
LocationAbu Dhabi
VisitedJune 2010
148Townhouses
in Al Muneera
JULY 10–16, 2010 CONSTRUCTION WEEK 51
PROJECTS
The Saudi Binladin Group for Industrial Precast operates out of Jeddah, a city with a whole street full of offices for the company and on the outskirts there are enormous factories and holding yards. The plant is supplying a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh and the King Abdullah University for Science and Technology.
SAUDI BINLADIN GROUP FOR INDUSTRIAL PRECAST
LocationJeddah
VisitedMay 2010
The King Abdullah Financial District is one of the most challenging and intricate projects currently under development in Saudi Arabia. A total of 77 buildings are expected to be built in six zones across the entire site. Saudi Bin Laden Group is building four of the first 10 towers as part of the initial construction packages. The company is targeting Leed ratings for the buildings when complete.
KING ABDULLAH FINANCIAL DISTRICT
LocationRiyadh
VisitedJune 2010
Central Sharjah is moving closer to a transformed road system to meet today’s traffic volume, following the latest milestone in Package 5 of the redevelopment of King Abdul Aziz Road. The latest completion of note, officially announced on 30th April, is the opening of the viaduct on the west side of Al Wahda Street. The viaduct crosses King Abdul Aziz Road at a 90 degree angle, itself a major project.
AL WAHDA STREET
Location Sharjah
Visited May 2010
36Townhouses
in the first part of the
project.
Concrete waste, from construction and demolition projects, now has an alter-native place to go, other than straight to landfill. The recently opened recycling facility in Al Dhafra, on the outskirts of Abu Dhabi, is crushing waste concrete into aggregate for use in road building. The plant will be able to produce up to 7000 tonnes a day, using crushers, con-veyors, screens and magnets to break the raw material down to size.
CONSTRUCTION AND DEMOLITION WASTE RECYCLING PLANT IN AL DHAFRA
LocationAbu Dhabi
VisitedMay 2010
7000tDaily
production capacity
52 CONSTRUCTION WEEK JULY 10-16, 2010
PROJECTS
Dubai was thrown back into the limelight when the US $10 million Dubai World Cup kicked off at the new Meydan Racecourse in Nad El Sheba. The enormous 18.6 million m² project consists of four separate areas including the development’s central feature, the Racecourse with Meydan Hotel. Meydan City Corporation has announced plans to build an equestrian city in China’s Tianjin province.
MEYDAN
Location Dubai
Visited March 2010
In 1997, way before the construction boom really took off, Dubai Invest-ments’ management took it upon themselves to lay foundations across 24 million m2 of desert and start building a mixed-use city from scratch. In March, the developer announced the launch of the final phase of development, which is set to become a hub for logistics services spread across 500,000m2. Construction was due to start in May.
DUBAI INVESTMENTS PARK
Location Dubai
Visited March 2010
24Million m2 of
desert is what DIP started
with
UAE-based Alec was awarded the main contract to build the US $816 million Mirdif City Centre in September 2007, with construction getting under way almost immediately. Developed by Majid Al Futtaim Properties, more than 16000 jobs were created at the peak of the design and build stage. The team behind the mall are hoping for a Leed Gold rating, to reflect the work they did to make the building sustainable.
MIRDIF CITY CENTRE
Location Dubai
Visited April 2010
Bavaria Gulf’s flagship Sandoval Gar-dens project has been an interesting mix of German and Arab expertise, and its townhouses are near to completion. The 36 townhouses are the first part of an AED260 million twin-development of the overall Sandoval Gardens. All town-houses conform to TUeV, a standard of quality that is a common benchmark, which means all construction and finishing is assessed by a third-party.
SANDOVAL GARDENS
Location Dubai
Visited April 2010
JULY 10–16, 2010 CONSTRUCTION WEEK 53
PROJECTS
Infinity Tower, located in the Dubai Marina, is set apart from its neighbours by its rotating structure and is spiraling into the sky at a fast pace. Each slab plate rotates 1.08 degrees around a fixed cylinder core. Once the tower is complete, the 73 floors will add up to a cumulative 90 degree angle. There are no pillars in the building; instead it is supported via a complex concrete column structure.
INFINITY TOWER
Location Dubai
Visited February 2010
Central Market was named Abu Dhabi’s safest construction site just prior to Construction Week’s visit. The project combines three super-tall towers with an Arabian Souk and covers 5.2 million m2. With more than 6000 men on site at any time, the contractor, Arabian Construction Company is proud of its safety record and the measures it takes to keep all of its workforce safe on the massive site.
CENTRAL MARKET
Location Abu Dhabi
Visited January 2010
6000Number of men on site at any one
time
Business Bay's U-Bora towers is being built by Korean firm Bando, the project features a podium with a curved residence building, which has a roofline that sweeps from 12 levels at one end, up to 16 at the other. The build was started back in 2007, initially with Simplex acting as subcontractor. The subcontractor left site in September 2008, leaving Bando both as developer and lead contractor.
U-BORA TOWERS
Location Dubai
Visited March 2010
4Levels of
difference in U-Bora
towers
Construction of Ocean heights tower began in August 2007. The US $175.6 million (AED645 million) main contract was awarded to Arabtec. As it rises, the tower’s floor plates reduce in size, allowing the rotation to become even more pronounced. At the peak of construction, there were 30 contractors and 2000 people on site. On December 23, 2009 – 23 days ahead of schedule – the building was topped off at 310m.
OCEAN HEIGHTS
Location Dubai
Visited March 2010
54 CONSTRUCTION WEEK JULY 10-16, 2010
TIPS FOR JOB SEEKERS
Apply for the right positionApplying for a new job is not just about impressing potential employers, it’s also about not annoying them. One of the best ways to avoid this is to ensure that you are qualifi ed for the job you are applying for, and that you have the necessary experience. After a recession, it is likely that recruiters will receive around 100 applications for one single job, and the last thing they want to be doing is wasting time sifting through inappropriate applications. However, there is nothing wrong with aiming high, so if you think you may be in with a chance for a specifi c job, ring the HR department fi rst to see whether it is worth applying.
Look aheadWhen looking for a new job, it is worth considering the long-term prospects of being in that posi-tion. If you are looking for a tem-porary role, try to fi nd a job which could open up opportunities in the future. If you are applying for a long-term position, consider whether you could see yourself at that company in a year’s time. If you are not that committed to a job, this will come through in an interview, and you are unlikely to get job satisfaction if you can’t see yourself in a job for a year. If you like the sound of a specifi c company, it may be worth applying for a lower-level job and working your way up to something more suitable.
Korean-based conglomerate Doosan Infracore Construction Equip-ment - best known for the Bobcat compact equipment range - has appointed Scott Nelson (pictured) as the new President for the Europe, Middle East and Africa region. Previously, Mr Nelson was CEO of Doosan Infracore International where was able to lead the
successful integration of the DICE operations in North America. Nelson succeeds Alberto Fornaro, who, in addition to his position as CFO of the group, has served since the beginning
of the year as president of the EMEA region. Meanwhile, Mohammed Omar Bin Haidar has resigned as a board member of Union Properties,
the second high-level resignation for the devel-oper this year. The company accepted the
resignation and notifi ed the Dubai stock ex-change last week. The news comes almost three months after the resignation of Anis Abdullah Al Jallaf, a former chairman, who stepped down on March 2 this year.
Shuffle
Europe, Middle East and AfrCEO of Doosan Infracore Int
successfuin NorthFornaroof the g
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APPOINTMENTS
3 TOP JOBSFor more details visit: www.constructionweekonline.com/jobs Please apply directly to the listed consultants.
Role: Project ManagerAgency: Randstad
A major construction and civil engineering contractor in the Middle East has secured a high-rise tower project in Jordan. For this, the company will require a project manager with a Bachelors degree in Civil / Architectural Engineering and a minimum of 20 years experi-ence working with contrac-tors. The candidate must have worked as a project manager previously, handling presti-gious, high quality and complex high rise building projects worth more than US $150 mil-lion each, where an interna-tional consultancy company was involved. He or she should be familiar with the ISO 9000 requirements, and preferably have some experience in the Middle East.
Role: Cost Engineer Agency: Randstad
A leading petrochemical company which operates major plants across Saudi Arabia is currently seeking a cost engineer. The candidate’s main duties will involve budget de-velopment for a major projects capital program, establishing work breakdown structures for all budget items and tracking progress against committed and actual costs. Candidates need to have a BSc Degree in engineering or equivalent, 10 years experience in project costs and contract management on large scale petrochemical EPC projects fi rm and project cost experience with lump sum turnkey contracts. Good understanding of EPC business and its implementation process is important.
Role: Planner- healthcareAgency: Randstad
An individual with in-depth knowledge of large scale hospital planning is required by a leading provider of dispute avoidance, dispute resolution and consultancy services to the construction and engineering industries. Having held senior posi-tions within project teams, the right candidate will have substantial experience de-veloping C1 14 programmes with logic, resource and cost loading. They will have the ability to defend logic and demonstrate why they are the best applicant. Addition-ally, they will need to identify and manage change and delay in the programme, maximising the return for the client where possible.
For directory information visit constructionweekonline.com/directory
I recall, not that long ago, when the sites I worked on were busy round the clock.
How things have changed. I know we’ve all got used to working at a slightly less frantic pace, but a crew I saw on the job this week took things too far. I was helping out a friend with a tricky lift job, on a site where a large pre-fabricated structural element was being gently eased into position. The lift was scheduled for the start of the afternoon shift – post midday break, before you all write in – and kicked-off a little late, thanks to some last minute welding from the main contractor.
Things were progressing well enough, when this same contractor’s foreman called time, in the middle of the job. It was 6:30pm, their day was done and nothing was going to stop them downing tools. My mate was absolutely furious as he was, quite literally, left hanging, with about an hour’s work to go and just enough daylight to get the job done. It’s clear these blokes had been given the hard word about overtime, either that, or there’s not enough room on the bus back to camp.
Round the clock
FOREMAN
Hard labourI’m always amazed at how some contractors fail to get to grips with the labour issue. I’ve been infuriated by the way 400 workers in Sharjah were just dumped by their former employers and left to rot. Most of the men have not been paid for six months or so. One even managed to survive a year without pay, with no real hope of ever receiving it.
Conditions at the camp were appalling, apparently, with overfl owing sewage causing a lot of these guys to fall ill. Things are a lot better now though: the sick men are on the mend ,after medical treatment, and embassy staff and employment agencies have been helping them to fi nd work, or return home.
I read that one of the directors of the company involved has already been jailed and the police are hot on the trail of his partner in crime.
This chap got a seat: the race for the bus home left one project manager hanging this week, right in the middle of a big lift.
Fountain of knowledgeHas anyone else noticed an increase in the number of park projects and landscape developments? Lagoons here, grassy banks there, and before you know it, Sharjah Investment and Development Authority is prioritising Al Majaz Park for a complete refurb. They’ve been a bit hush-hush with the contractors though – only saying that Sharjah Municipality is doing the soft landscaping and that Sharjah Contract Company will be looking after all of the roadworks.
Guys on my site say the main contractor is sure to be announced this week, and that they’ve defi nitely appointed the architects and engineers, even though they’ve not let on who they are yet. The most interesting thing though, is that the company doing the fountain – apparently a musical fountain on the lake, very nice – has previously been listed in the Guinness Book of World Records for building one of world’s biggest fountains. I guess they must be pretty good at what they do hey?!
Tough gameI know business can be hard to come by, but I’m still struggling to keep up with some of the latest tender releases. The rail sector seems to be set to express right now, with schools and sewer works close behind. I’m glad I’m not in piling though, despite it being one of the fi rst jobs to get going on site. It’s such a tough market right now, and I know from mates in this industry that it’s hard to break even when you have a really simple tower, which leaves little room for innovation, and you’re being squeezed by material costs. Mind you, those who got in with the King Abdullah Financial District probably would have made a tidy amount. This just reinforces my view about the opportunities in KSA, particularly since it has so many big cities. I’m a fan of Qatar, sure, but is anything coming out of that country that isn’t based in or around Doha?
07/2
010
en Load-bearing tower Staxo 100The extra-high-capacity, safest load-bearing tower on the market
Build on formwork expertise
Staxo 100 provides safe support for slabs at heights of more than 9 metres in the area of 1055 m².
Project: Sewage Treatment BOOT (ISTP1)Contractor: Kharafi National
