FOCUS ARE GCC-WIDE RULES NEEDED FOR SCAFFOLD SAFETY? SEPT 4-10, 2010 • ISSUE 334 NEWS • ANALYSIS • INTELLIGENCE • PROJECTS • CONTRACTS • TENDERS CONSTRUCTIONWEEKONLINE.COM AN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY Setting the pace EC Harris ME chief on embracing expansion Page 28 Recovery remedy Arabtec, ALEC money men say cash is still king Page 24 PORTS OF CALL The $50bn mega-projects transforming the Gulf into a global shipping hub
Transcript
FOCUS ARE GCC-WIDE RULES NEEDED FOR SCAFFOLD SAFETY?
4 OCTOBER CONTRACT AWARD FOR BAHRAIN HOUSING PROJECT Consortiums that have prequalifi ed for the project will fi nd out who has won the main contract next month.
8 NMDC UP AS CONTRACTORS SLIP The National Marine Dredging Company was the sole rising stock during August.
12 SKILLED TRADES SHORTAGE COULD STYMIE GLOBAL GROWTHSkilled trade positions are some of the hardest to fi ll in the world.
REGULARS
24 MONEY TALKS Part 1 of a CW series asking whether
the GCC construction sector is prepared for an upturn.
ANALYSIS
INTELLIGENCE
FINANCE
ROUND UP
FACE TO FACE
28 A CENTURY OF CONSULTANCY EC Harris ME regional managing director John Williams talks to Elizabeth Broomhall about the company’s diversifi cation.
34Expanding horizons
The massive Khalifa Port and Industrial Zone project set to escalate Abu Dhabi’s fortunes
TOP PROJECTS
42 Top 10 Port Projects A closer look at the top ten
port projects transformingthe GCC’s shipping industry.
ON SITE
34 HARBOURING OPPORTUNITIESCW journeys to the massive Khalifa Port and Industrial Zone to get the low down on development.
SAFETY
46 STRUCTURED PRODUCTS Quality equipment and early training
are the key to scaffolding safety, according to industry experts.
ANCY naging
ks to the
y.
NITIESe Khalifaget the
according to industry experts.
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 1
2 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
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4 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
October contract award for Bahrain housing project
Three consortiums have prequalifi ed to build the housing, according to Mott MacDonald.
INTELLIGENCE
Consortiums that have prequalifi ed for a 4,500-unit affordable housing project in Bahrain will fi nd out who has won
the main contract in October, according to the project’s technical advisors.
Speaking exclusively to Construction Week, Mott MacDonald’s divisional director John Seed said the main contract would be awarded to one of three consortiums who prequalifi ed for work earlier this year.
“Three consortiums have prequalifi ed for work on the project,” he said, but declined to name who they were.
“The government started the proceedings for this development towards of the middle of 2009. They’re at a critical stage of the tendering process at the moment, but are likely to announce the winner of the main contract this October.”
The project itself, which is being launched in response to a high demand for affordable housing in the region, will involve the construction of thousands of residential units across three sites in the north of the country, according to Seed.
To effectively manage a project of this scale, he explained how each consortium is made up of 10-20 companies, including developers, several contractors, funders, facilities management companies (that will manage the project for 25 years) and a design team including architects and quantity surveyors.
Other advisory teams to the development include Ernst and Young, the project’s fi nancial advisors, and Freshfi elds, the project’s legal directors. – By Elizabeth Broomhall
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 5
INTELLIGENCE
The tender details for the construction of the port in Jazan Economic City in Saudi Arabia are to be revised on the back of a change in plans for the Jazan oil refi nery.
Malaysia’s MMC, which is leading the consortium of developers on the JEC, informed investors of the decision by Saudi Aramco, the state-backed oil supplier, to change the upcoming refi nery’s location. “The port’s location will likewise be changed accordingly,” the company stated.
The tender was deferred in May in light of ongoing talks between MMC and Saudi Aramco as to the refi nery’s position. A change of location would affect on the port and utility infrastructure of the area.
Jazan Economic City will be located in the Province of Jazan, 60 km northwest of Jizan City, home to the Port of Jizan.
Jazan Eco-City port tender delayed
For up-to-the-minute tenders log on to constructionweekonline.com
TOP TENDERS
Construction of Yanbu Powerand desalination Plant Country: Saudi Arabia Closes: Sep 22, 2010 Category: Power & Water Issuer: SWCC
Construction of roads in Al Shuwaikh & Al AhmadiCountry: Kuwait Closes: Sep 28, 2010 Category: Infrastructure Issuer: Central Tenders Committee
Roads and infrastructure works, North SabhanCountry: Kuwait Closes: Oct 12, 2010 Category: Infrastructure Issuer: Central Tenders Committee
Civil works for facilities & roads of Kuwait UniversityCountry: Kuwait Closes: Sep 28, 2010 Category: Infrastructure Issuer: Central Tenders Committee
Construction of 11/132/400-kV Al Funaitees substationCountry: Kuwait Closes: Oct 10, 2010 Category: Power and Water Issuer: Central Tenders Committee
Construction of 38 housing units and mosque at Al-HawiyahCountry: Oman Closes: Sep 27, 2010 Category: Buildings Issuer: Ministry of Housing
Construction of 33 housingunits and mosque, OrabCountry: Oman Closes: Sep 27, 2010 Category: Buildings Issuer: Ministry of Housing
Supply of portable boring machinesCountry: Oman Closes: Sep 27, 2010 Category: Infrastructure Issuer: Oman Drydock Company
Temporary power services, Oman Main Interconnected SystemCountry: Oman Closes: Sep 27, 2010 Category: Power and Water Issuer: Oman Power & Water Procurement Company
Installation of 11-kV overhead lines on wooden poles Country: UAECloses: Sept 30, 2010Category: Power and WaterIssuer: DEWA
Construction fi rms will soon be able to bid for work on an AED 2.83 bil-lion mall in Egypt.
Currently in its design phase, the 160,000m2 Mall of Egypt located in Cairo will be open to tender from November this year, developer Majid Al Futtaim has said. London-based architects RTKL is
Mall of Egypt open to bidders from November
due to fi nish the design by October. The project is set to be one of the biggest shopping centres in North Africa, with 350 stores, a 17-screen cinema complex and an indoor ski facility ‘Ski Egypt’ similar to that in the Mall of the Emirates in Dubai.
In an interview with the daily, the mall’s develop-
ment director and MAF Properties senior vice president of develop-ment Richard Reid said: “It’s only been in the last two years that the retail market looked quite seriously at Egypt.”
He added that he expected the project to employ as many as 7,000 Egyptian labour-ers through a local contractor, and the mall retailers them-selves to hire “thou-sands of people”.
Architectural fi rm BDP’s internationaldevelopment director and chairman of BDP MENA David Cash told Construction Week that the company has identifi ed Egypt as an important future market.
Majid Alm Futtaim was behind Dubai’s Mirdif City Centre mall.
Al Jaber gets US$300m for Shah Gas projectThe energy project division of Al Jaber Group has secured US$300 million to fi nance the Shah Gas project in Abu Dhabi from the emirate’s top Islamic bank.
Abu Dhabi Islamic Bank announced the payment to Al Jaber Energy Services, according to ADIB in a note to the Abu Dhabi Stock Exchange.
The contractor is in the middle of early work on the Shah plant on behalf of Abu Dhabi National Oil Company. Work includes the grading and leveling of the site and construction of a four-lane carriageway among other tasks.
The contract value is US$299.2 million and work is to be completed by next August. The project was awarded by Abu Dhabi Gas Development Company and is part of a US$12 billion development.
6 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
INTELLIGENCE
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 up-to-the-minute tenders log on to constructionweekonline.com
Supply of pulse type selfcleaning inlet air fi ltersCountry: UAECloses: Sep 30, 2010 Category: Power and WaterIssuer: Dubai Electricity and Water Authority (DEWA)
Maintenance and operating services for Sultan QaboosSports ComplexCountry: OmanCloses: Oct 11, 2010Category: BuildingsIssuer: Ministry of Sports Affairs
Electrifi cation distribution works to feed Flem villageCountry: OmanCloses: Oct 11, 2010 Category: Power & Water Issuer: SAOC
Supply and installation of 2x20 MVAR capacitor banksCountry: OmanCloses: Oct 11, 2010Category: Power and WaterIssuer: SAOC
Proposed offi ces building at Bausher Airport HeightsCountry: OmanCloses: Oct 11, 2010 Category: Buildings Issuer: SAOC
Construction of 30 HousingUnits at DibbaCountry: OmanCloses: Oct 11, 2010 Category: Buildings Issuer: Ministry of Housing
Rehabilitation of Boiler (A) at Aziziah PlantCountry: Saudi ArabiaCloses: Sep 26, 2010 Category: Power & Water Issuer: SWCC
Vocational Association Buildingat Airport HeightsCountry: OmanCloses: Sep 27, 2010 Category: Buildings Issuer: Ministry of Social Development
TOP TENDERS
Dubai-based interiors contractor Depa Ltd has more than tripled its stake in the Singaporean fi rm Design Studio Furniture Manufacturer Ltd for AED295 million.
Depa has increased its original shareholding bought in 2006 from 24.7% to 90.5%. The acquisition values Design Studio at AED449 million, a statement said.
Depa CEO Mohannad Sweid said the acquisition was part of the company’s long-term diversifi cation plan, which includes further inroads into southeast Asia.
Design Studio is a product and fi t-out interiors specialist company, active principally in Southeast Asian markets.
In 2008, Depa and Design Studio launched DDS Contracts & Interior Solutions Pte Ltd, with Depa holding 55%.
Depa ups Design Studio stake to 90%
Depa provided the fi t-out for the Burj Khalifa, the tallest tower in the world.
Mott MacDonald progresses on ArzanahMott MacDonald is progressing withan US$18 million project from theZakum Development Company (Zadco) Abu Dhabi to replace diesel gensets on Arzanah Island.
Phase one will see the installation of two new diesel gensets with 13.8 kV and 60 Hz terminal voltage inside a custom-designed engine room, with Mott MacDonald providing design and engineering workas well as cost consultancy.
Part of Zadco’s Satah oil fi eld off Abu Dhabi’s coast, Arzanah Island has water injection facilities as well as utility and accommodation loads, and requires 3.5 MW to 4 MW of power. As natural gas is not available on the island, power turbines are operated on diesel.
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SURPREME BUILDINGTECHNOLOGY
FINANCE
8 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
Expert Views
Industries Qatar has a market capitalisation of almost QR56 billion and is one of the region’s biggest steel producers along with its other major lines in fertilisers, petrochemicals and additives. Revenue for the fi rst six months was almost QR1 billion higher than the equivalent period in 2009, though net profi ts were at similar levels.
Its share price so far this year looks a little like a roller coaster, peaking at QR119 on 13th April before a dramatic slump to QR95 on 25th May. Last week it was simmering around the QR100 mark, and its gradual growth in the last quarter – and strong fun-
damentals - may be the reason why analysts have been looking on the stock favourably. On 5th August, Egypt-based Ahmed Shams El Din of EFG Hermes rec-ommended the stock be bought, expecting a target price of QR115. Sriharsha Pappu of HSBC Bank Middle East in Dubai decided to stay neutral a few days later. But Ankit Gupta at Bahrain-based Se-curities & Investments Company declared a ‘buy’ on the company on 11th August, posting a target price of QR129. Digvijay Singh at Credit Suisse labeled it ‘outper-form’ on 20th August, though Scott Darling at Nomura advised a reduced position.
VERDICTBUY: The company has had a steadier 12 months, and most analysts recommend it.
Industries QatarIt’s one of the Gulf’s biggest companies – but is its stock heading for growth?
NMDC up as contractor peers slipNational Marine Dredging Company was the sole rising stock among contrac-tors during August as thinner summer trading volumes saw investors turn away from project-based companies.
The Dubai-listed company saw its share price rise 8.5% from AED7.83 at the start of the month to AED8.5 by 25th August. The company has posted promising fi nancial results this sum-mer that include an increase in contract value of more than AED400 million for the six months of 2010. Arabtec Hold-ings slipped from AED1.75 to AED1.67 between 1st and 29th of August. Makkah Construction & Development Com-pany lost almost SR3 on the Tadawul in Riyadh over the same period.
Mohammad Al Mojil Group, the oil and gas project specialist, also saw its share price shed more than SR2 to close at SR15.75 on 29th August.
STOCK MARKETS
National Marine Dredging Company secured more than AED400 million in contracts in six months. Picture illustration only.
In fair watersNational Marine buoyant after solid half year; Tadawul rebounds after late August dip.National Marine Dredging Company’s share price performance this year (AED)
Steel producers in Qatar are being edged out by Turkey in their price competitiveness, according to statistics.
Data gathered by Statistics Centre – Abu Dhabi, which collects data across many industries as well as economic surveys, has found the Eastern European state undercutting rivals in Qatar since the beginning of this year.
The average price per tonne of 10-25mm steel bars from Turkey in July stood at AED2,183, the same as the UAE, compared to AED2,400 in Qatar. Turkish high-tensile steel was AED2,208 compared to the UAE’s AED2,216 and Qatar’s AED2,267.
Steel bars reached as low as AED2,001.3 from Turkey in February against AED2,007.5 in the UAE and AED2,012 from Qatar.
Saudi Steel Pipe Company, the Dammam-based manufacturer of welded pipes, is to start a new titanium and steel company with TSM Tech Company, a South Korean fi rm.
Saudi Steel Pipe will hold a 70% stake in the venture, it said last week. Production will come from a plant that will start in 2012. The 30-year-old company is one of the leading manufacturers for steel pipes in the Kingdom for the construction sector, as well as servces to the oil and gas industry, and it is now a year since the company fi rst listed on the Tadawul after launching an IPO for the equivalent of 31.4% of the company between June and July 2009.
The stock has declined around SR2 since the beginning of this quarter.
Turkey undercuts Qatar for steel price
Saudi Steel Pipe signs deal with TSM Tech
PROJECT TITLE STATUS VALUE / VALUE RANGE (US$)
OIL TERMINAL EXPANSION - FUJAIRAH, UAE Construction 100,000,000
NEW STEEL PLANT AT THE DUBAI INDUSTRIAL CITY (DI) Construction 100,000,000
YANBU REFINERY PROJECT Construction 1,000,000,000
PTA PLANT, YANBU COMPLEX Tender N/A
CONSTRUCTION OF NEW ACID GAS SEPARATION UNIT – KUWAIT Construction 405,000,000
GAS RECOVERY SYSTEM (UNIT: 105) AT MINA AL-AHMADEI REFINERY Construction 31,000,000
BOROUGE - ETHANE CRACKER, ABU DHABI Construction 1,075,000,000
BOROUGE 3 - UTILITIES & OFF-SITE FACILITIES Construction 935,000,000
BOROUGE 3 - LDPE UNIT Construction 400,000,000
BOROUGE 3 - FOUR BORSTAR UNITS Construction 1,255,000,000
10 latest industrial project updates
(Data accurate as of close 29th August 2010)
Deal in pipeline:
Fall in Tadawul All Share Building/Construction index since 1st May
Market capitalisation of Saudi Steel Pipe (Saudi riyal billions)
1.2
19.5%
Numbers game:
Increase in output of Emirates Steel in H1 compared with 2009
45.5%
Price fall (US$) per metric tonne of Turkish rebar in a week ($580,000)
60
10 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
MOST POPULAR
LATEST FEATURES
SPOT POLLHow has the last year affected wages at your company?
Sheikh Zayed Road library
New French mosque fi nally draws close to completion
We’ve had a good increase in salaries this year.
9.8%24.4%We’ve had a slight increase this year.
29.3%The company has launched a pay freeze.
36.6%We’ve had to cut staff and wages to remain buoyant.
IN PICTURES
Cheungvogl Architects have designed a library to commemorate UAE founder Sheikh Zayed for Dubai’s main throughfare, Sheikh Zayed Road.
After the fi rst stone was laid in 2004, construction of the new mosque of the eastern French city of Strasbourg has been progressing steadily, and is fi nally drawing close to completion. The building, which was designed by Italian architect Paolo Portoghesi, who also designed the Rome Mosque, is being constructed to replace the existing structure ‘The Strasbourg Mosque’, known by the French as La Grande Mosque de Strasbourg. Dating back to 1982, the old mosque currently occupies a converted foie gras factory in the Impasse du Mai in the centre of Strasbourg, near the law-courts. In its place, the new mosque, which has undergone a series of construction delays, partly due to litigation between contractors and city offi cials who prevented overseas funding of the project, is to occupy 5,000m2, with a 28-metre-high minaret. Other designers originally in the running for the project included Zaha Hadid, who came up with a more futuristic proposal for the building.
The new mosque in the eastern French city of Strasbourg has been progressing steadily since 2004.
ONLINE
Green Games on red lightPreparations for the Delhi 2010 Commonwealth Games have been rocked by allegations of corruption.
Signing of the summerCW interviews AECOM and Davis Langdon about the companies’ merger.
Raising the roofThe new terminal building in Abu Dhabi is progressing well.
For breaking news, analysis, interviews, tenders and projects, log on to constructionweekonline.com
1Mumbai’s 117-storey tower divides opinion
2Al Jaber gets US$300m for Shah Gas project
3 Nakheel announces payment of AED2.5bn to creditors
4Moonlighting workers risking their lives for cash
5Bauer completes piling for Louvre Abu Dhabi
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“With weeks to go before the Games, this is a massive distraction. We need
everyone focused on delivering the Games.”
MIKE HOOPER, Commonwealth
Games Federation chief executive, in New Delhi’s countdown to the 2010 Games in early October.
12 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
Skilled-trades shortage could stymie global growthSkilled-trades positions such as electricians and plumbers are among the hardest to fi ll in the world, according to the latest research from Manpower Inc. of the US, which surveyed 35,000 employers across 36 countries and territories.
In a new ‘World of Work Insight Paper’ entitled ‘Strategic Migration – a Short-Term Solution to the Skilled Trades Shortage,’ Manpower warns that as the global economy recovers, it may be necessary to implement strategic migration policies in order to create a mobile workforce and plug the gap of skilled workers.
The lack of skilled blue-collar workers could impede the progress of infrastructure projects and inhibit national growth – such as transportation in India and power in Brazil, for example. It is a problem that national governments must address in the long-term to foster economic health and fuel business growth, it
says. In the meantime, increasing the mobility of these workers can help ease the talent shortage.
“As the global recovery gathers pace, cultivating future talent and alleviating the shortage of skilled workers is becoming vital to ensure economic growth,” said Manpower Inc. chairman and CEO Jeffery Joerres.
“With unemployment high around the world, migration is an emotive subject, but strategic migration will be necessary to create a global workforce and alleviate the current shortage,” he added. “Countries should be developing policies which facilitate positive migration to fuel economic growth through providing skilled workers where they are needed, rather than creating barriers to immigration.”
Shortages of skilled workers are acute in many of the world’s biggest economies, including theUS, Germany, France, Italy, Canada and Brazil.
In Quotes
LABOUR
ROUND UP
“I will stand with you until the oil is cleaned up, polluters are held accountable, communities are made whole, and this region is back on its feet.”US president BARACK OBAMA on the recent troubles faced by its southern state residents.
“The heads of Davis Langdon and AECOM are talking about opportunities
and we can support them for growth in a way that is
sustainable.”KEVIN SIMS, Davis Langdon Middle East
head, on the company’s merger with AECOM.
Skilled tradesmen are a valuable resource, say researchers.
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 13
51
42
3
The general manager of Kuwaiti developer Grand Real Estate has resigned, a note to the Dubai stock exchange has revealed. The company said that Hussain Ali Zaman is to step down with effect from 1st December.Grand Real Estate is a Kuwaiti developer and manager of high-end and luxury buildings. This includes the construction of tourism and leisure facilities, hotel marketing and other services, property management and government projects.
Saudi contractors are hiring extra workers illegally, in a bid to avoid being fi ned for missing construction deadlines, according to reports. Around US $80bn-worth of projects are underway in the Kingdom, accord-ing to Business Monitor International’s Key Project Database, and this has put pressure on contrac-tors to meet deadlines. As a result, contractors have begun hiring extra workers illegally in order to avoid fi nes as a result of delays.
Qatari heavy plant specialists United Equip-ment Group says it has seen a marked increase in the number of fi rms opting to hire equipment rather than buy it. UEG, Qatar’s sole Liebherr tower crane dealer, keeps a stock of around 40 new cranes on its books, but the hire fl eet of 30 additional cranes is what has kept the company vibrant during the global economic downturn. The company says the boom-days of the past are clearly over.
Residents in Bahrain’s Jid Ali district are to get two new public parks. The parks will be the fi rst of their kind in the country, with the introduction of new conceptual modern designs unmatched by any other public park, a council spokesman said.
The number of hotels in the pipeline for construction across the MENA region fell by 2,600 rooms from April to June according to a report released by Al Taameer Real Estate Investment this week. Currently, just 455 properties totaling 126,310 rooms are due to be developed through North Africa and the Middle East, refl ecting a signifi cant drop in the numbers of people requiring hotel accommodation. According to the report: “The MENA region has been witnessing a continued capacity addition for the past 18 months and is fast outpacing the demand.”
Around the GCC
1. UAE
The number of GCC hotel projectsfalls from April-June
2. KSA
Firms turn to illegal workers
3. KUWAIT
Grand Real Estate GM resigns
5. QATAR
Firms opt to hire gear in downturn
4. BAHRAIN
Two new parks forJid Ali district
“The Kingdom’s museum and antiquities sector has made remarkable achievements in recent years.”PRINCE SULTAN BIN SALMAN, SCTA chairman on the construction and renovation of the Saudi Arabia’s museums.
ROUND UP
14 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
ROUND UP
In Numbers
Museums in Saudi Arabia under development as part of a push to preserve the Kingdom’s past.
Days left until New Delhi throws its doors open to the 2010 Commonwealth Games.
Value in US$ millions of the counterfeit parts trade in the UAE. 1130700
PROJECT
Mumbai’s 117-storey tower divides opinionMumbai is divided over plans for a 450m tower in the city’s downtown residential hub.
Developer Lodha says that the 117-storey World One tower, due to cost around US$450million, will become a landmark for the booming Indian city. Flats in the luxury residential tower will start at 47.5 million rupees.
“It took seven islands to cre-ate Mumbai, now one icon will defi ne it,” the company claimed in its promotional material.
Others are less convinced. Vishaan Chakrabarti, head of the
real estate development program at Columbia University told the New York Times that Mumbai needs infrastructure and plan-ning as well as bold projects.
“Icons alone don’t make a city,” Chakrabarti said. “You really need the platform that major urban centres like New York, London, Singapore and Hong Kong have, in addition to great architecture.”
FINANCE
Nakheel startspaying creditorsGovernment-backed developer of the Palm Jumeirah, Nakheel, announced earlier this week that it has paid AED2.5 billion of the AED4 billion owed to trade creditors, and of the AED91 billion owed in total.
The fi rm’s chairman Ali Loo-tah said that 80% of its trade creditors had agreed to the pay-ment terms proposed in March to pay back 40% of its debts in cash and 60% in sukuk.
As yet, another 15% of trade creditors must agree to the terms in order for Nakheel to pay 60% back in Islamic bonds,
Saudi Arabia will spend US$ 39billion (SR150 billion) on construction of “smart buildings” over the next eight years to pro-mote long-term sustain-ability in the country.
Studies show that cool-ing, heating and lighting systems used by smart buildings can save 30% on energy consumption, cut down 50% of water con-sumption and minimise up to 90% of building waste.
The Saudi Build 2010 and Saudi Stone-Tech trade shows are expected to provide contractors, real estate developers and building owners with direct access to a range of smart building ideas from hundreds of companies from Europe, Africa, the Middle East and Asia.
“Building owners are increasingly becoming interested in making their facilities more energyeffi cient to save money and decrease operating costs,” said the Saudi Build project manager, Shahid Bhatti.
The two events will be held at the Riyadh International Convention and Exhibition Centre from 18th-21st October.
Saudi to spend $39bn on sustainability
PICTURE PERFECT
A BUCKET-WHEEL EXCAVATOR removes the fi rst layer of soil for the expansion of the nearby Welzow open-pit lignite coal mine in Drebkau, Germany. The area of northern Saxony and southern Brandenburg is scarred with active and former mines, and a large-scale project is underway to fl ood the massive pits and convert them into lakes for tourism.
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 15
though the developer made clear that it had no plans to review its original proposals.
“The offer proposed to bank creditors is fi nal and isn’t being re-visited or revised,” Lootah told Al Khaleej, adding that on the whole, his fi rm had had a “positive reception and general satisfaction” from banks and creditors.
As well as trying to restruc-ture its debt, Nakheel is also in the process of appointing con-sultants to assess and advise on its current fi nancial situation and commitments.
PROJECTS
Affordable housing will rely on PPPsPublic-private partnerships (PPPs) will be the norm for forthcoming affordable and social housing projects in the GCC, according to industry experts.
The Standard Chartered Bank’s head of commercial real estate in the Middle East, Fergal Harris, said there is, and would continue to be, a move towards PPPs as a means of ensuring quality building on government-led housing initiatives.
At least two housing projects planned for Bahrain,
which have been launched to cater for the growing population and increasing demand for affordable housing, are currently looking at PPPs with a view to guaranteeing effi cient programme management.
BUSINESS
Saudi market tempts UK giant CarillionBritish construction fi rm Carillion is considering a future entry into the lucrative Saudi market, although its plans are still at an initial stage.
John Denning, Carillion’s director of group corporate affairs, said: “We are at the feasibility study stage, and we haven’t got as far thinking about a potential partner yet.”
He added: “It is probably a year or two away, because you need to tread very carefully when entering any new market. But we are in the process of looking at Saudi, and of course one would eventually need a partner to operate in the country.” Denning said that his fi rm had noticed Saudi Arabia’s massive infrastructure funding, such as the $385 billion budget announced last week.
BUSINESS
Al Habtoor’s Voyer: Civil to dominateAl Habtoor Leighton is looking to increase its projects in civil engineering to 70% of its total workload, according to one of the fi rm’s executives.
Laurie Voyer, managing director at the Dubai-based contractor, told CW: “We’re established here in the market for general buildings though there is also scope to develop our name in civil engineering, as there might be more jobs in this fi eld than in buildings. In future years I’d say we might be perhaps 70% to 30% for civil jobs rather than buildings.”
PROJECTS
Mott MacDonald to engineer India metroMott MacDonald has been appointed detailed civil and structural design engineer for 10 elevated metro stations in Chennai in the state of Tamil Nadu by Consolidated Construction Company Ltd.
India’s fastest-growing economic region, Chennai has the country’s highest reliance on public transport. The proposed high-capacity, high-frequency metro will not only be a cheaper mode of
transport, but also provide a safer, more reliable and better customer service. The Tamil Nadu government is investing US$3.1billion into the Chennai Metro Rail Project, one of the largest projects underway in the region.
PROJECTS
Mourjan Marinas in Lusail City projectMourjan Marinas IGY will undertake the design, construction and operation of all marinas in the Lusail City’s development in Qatar.
Master planning for the 35km2 Lusail City development, north of capital Doha, has been completed and it is envisaged the area will be home to 200,000 people. It is also destined to be a martime hub, with a number of marinas targeted at different clientele – including private, business and community marinas. In addition, 1,500 berths are planned for the development.
The fi rst phase of the project is expected to be completed by January 2011 and will include waterfront dining and shopping. Other phases will include yacht clubs and shipyards.
ROUND UP
Number of weeks in which traffi c was stuck on a Chinese freeway last month.2 Billions of US$ set aside by Saudi
power authorities for three major projects in the Kingdom.
Number of welds inspected by robot X-ray machines in a new Nigerian gas pipeline. 3.92200
16 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
COMMENT
It is tempting to speculate how companies have used the relatively quiet period during Ramadan. It is probably the case that it will be determined by how well
your company might have performed so far this year. Are you looking to cut losses or invest in greater work capacity; maintain the business you have or look again at new markets?
Half-year fi nancial statements across the construction industry can be deceptive in how you view companies in the mid-to-long term. Profi ts can either indicate the fruits of well-timed business expansions or, if you are a material supplier, higher production capacity. Or they could be the result of one-off events, such as a sale of assets. Losses could either see you at the mercy of declining demand – again, particularly for material suppliers – or a temporary dip while awaiting the delayed proceeds of a number of astute moves.
Aldar Properties might be a good example of the latter. Total revenues for the fi rst six months of this year fell by more than half compared to the same period last year, and investment property gains were hit by fair value accounting, but it has secured more than AED1.567 billion of additional funding. Sales fell, but the AED695 million it did make “will be recognised in future periods”, the company states tantalisingly.
Cement & Gypsum Products in Oman also indicated that the company’s OR300 million net losses for the six months were also due to a kind of limbo between old projects and new. In truth this reminds me of the euphemism people give to
avoid saying they’re unemployed – instead, they are “between jobs”.
It’s a tough market for the grey stuff, however: even if sales increased, prices sank. One analyst told ConstructionWeek that the boom for cement in Oman – where some companies imported to meet demand during 2007-2008 to be subsidised this year by the government – is “over”.
Even in Saudi Arabia, big projects have not stopped market saturation due to so much of cement remaining within its borders – as attested by the “lower sale incentives” highlighted by Southern Province Cement in its statement, and the SR283 million-worth of bags it didn’t shift compared to last year.
The contractor that has most caught the eye is National Marine Dredging Company. This could be because news surrounding ports has been all over the media this summer, topped by the thorough coverage in this week’s issue. With ongoing updates about airport expansions, there’s something warm and familiar about big projects like these.
On the other hand, the numbers are big: NMDC’s contract revenue increased from AED532.2 million to AED950 million comparing the fi rst six months of this year to those of 2009, with gross profi ts up more than AED100 million. No doubt this will be a company looking to ‘expand’ rather than simply ‘maintain’ itself.
More so than ever, the difference between winners and losers will be wide. As work soon returns to the standard extra hours, how will you be using them?
Taking stockFull working days await – how will your performance so far infl uence the rest of the year?
Losses could either see you at the mercy of declining demand, or a temporary dip while awaiting delayed proceeds
BEN ROBERTS
Accounted for: fi nancial statements can indicate many things.
18 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
COMMENT
CAROL PRINCE
Switching onCarol Prince explains how LEDs let us keep the lights on for longer and reduce environmental damage.
T HE NEED TO SWITCH TO SUSTAIN-ABLE energy solutions is more important than ever in the region, as demand frequently outstrips
supply. Lighting represents 22% of electricity usage in the Middle East – a much higher sta-tistic than anywhere else in the world. If GCC consumers switch the lights in their homes to more effi cient solutions, this will save up to US$400 million and 5.1 megatonnes in carbon dioxide emissions annually.
Briefl y, Light Emitting Diodes (LEDs) are the effi cient lighting solution for today’s energy issues. The future of lighting will soon see a widespread adoption of this solution. LEDs are available as small solid light bulbs or in cluster form with diffuser lenses, which are ideal for the home.
These cluster beams can use as many as 180 bulbs per cluster and the light is spread evenly. A recent additions to the market are LEDs that can be dimmed to the zero position and emit no energy, unlike their traditional counterpart that still emits energy loss even at zero.
At present, the drawback to switching to LED is the initial cost, but the effi ciency and cost effectiveness of LED lighting systems will drive demand for more affordable LED lights. Further, there are still tremendous fi nancial and energy savings to be achieved.
The operational life of white LED lamps is 50,000 hours. This is more than 10 years of continuous operation. The long operational
life of an LED lamp is a stark contrast to the average life of an incandescent bulb, which is approximately 5,000 hours. The long life span of the LED has naturally a direct impact on maintenance requirement.
The true expense of incandescent bulbs is in the cost, labour and time needed to replace them. These are important factors when considering lighting options for an offi ce, as maintenance costs to replace bulbs can be enormous, and can be virtually eliminated with the LED option.
The key to switching to LED lighting is reducing power consumption. With correct design, an LED circuit will realise approximately 80% effi ciency, meaning 80% of the electrical energy is converted to light energy. The remaining 20% is lost through heat. Incandescent lamps operate at about 20% effi ciency with a staggering 80% lost as heat. Furthermore, LEDs do not cause heat build-up, producing only 3.4 British Thermal Units (btu) per hour, compared to up to 88btus for incandescent.
Comparing LEDs and incandescents fi nancially, a 100 Watt incandescent is used for 12 months, with electrical cost at 33fi ls/kilowatt per hour, at a total cost of AED290. The same example for LED with 80% effi ciency being used, the electricity cost would be AED44 per 12 months – a saving of AED246 over the 12 months.
The true savings are actually much higher, when you take into account that traditional
lamps need to be replaced more frequently, usually within a year, and this involves man-power and maintenance costs. Also, some areas will remain unlit if traditional lamps lose their power, due to contractual obligations. Many buildings do not allow repairs to be carried out when public areas are open, so maintenance must be carried out within set periods and limits.
RWN Trading recently conducted research on lighting for a carpark that had 900 incandescent four-foot tubes on for 24 hours. Most last one year and some last no more than six months. When the company conducted the survey, 30% of the lamps had blown and had yet to be changed. The results showed very clearly the huge savings by swapping from the standard 40-watt lamp to an 18-watt LED.
Facilities managers need to look at the bigger picture when analysing the true cost of energy saving with LEDs. The obvious fi gures start with the lights themselves, but further savings can be made in cooling expenses because LEDs generate less heat, which naturally leads to less power needed.
Companies have a responsibility to reduce their energy consumption and carbon footprint. Swapping from traditional incandescent to LEDs can save up to 80% of your light energy costs.
Carol Prince is marketing director of RWN Trading.
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COMMENT
20 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
JAY PALMOS
Keep up-to-date with delaysMEP contractors suffer disproportionately more from claims of delay than other construction professionals as a result of the economic crisis, argues Hill International's Dr Jay Palmos.
T HE GROWTH OF DUBAI IN THE LAST decade has been unprecedented. However, the economic crisis has resulted in a decrease in jobs and,
consequently, a slowdown in the number of people immigrating to the emirate. But the unprecedented construction has not slowed. Last month, Deutsche Bank estimated that up to 30,000 new units will enter the Dubai resi-dential market this year. A UBS study predicts rental prices could decline by as much as 30% during the fi nancial year 2010 due to overca-pacity. These reports paint a bleak picture for developments currently under construction.
Developers know that to increase the chance of renting space successfully they must enter the market as early as possible. Due to the immense pressure to complete projects, developers are reticent to grant time extensions and continue to rely on strict liquidated damages provisions to force contractors into timely completion.
Of all the participants on a project, MEP contractors are most often blamed for project delay. The most common cause of blame stems from the fact that the MEP contractor relies heavily on the performance of others for its success, including scenarios where:1. The MEP contractor is selected late
in the nomination process, thereby reducing its overall time of performance (this issue is often compounded by
unrealistic programme requirements);2. Late access to site or critical parts of
site such as the roof level (due to design change or construction delays);
3. The MEP scope is the technical heart of any project, and therefore it is linked to many other disciplines requiring long co-ordination and/or approval periods for submittals;
4. Due to the ubiquitous nature of MEP work, installation must be co-ordinated expertly to reduce congestion between subcontractors of different disciplines. No doubt, MEP contractors suffer disproportionately more from a sub-standard project manager;
5. Finally, even small dollar value MEP scope variations can have an enormous impact on completion if it affects a critical area of the scope. For example, an upgraded chiller system can impact the electrical requirements and ducting throughout the site – with the necessary utility co-ordination.
Delays have been reported as the most common and costly problem encountered on construction projects (Const Mgmt and Economics 1996). In normal economic conditions, contractors are compensated for delay caused by others through a time extension. However, in today’s market, it is increasingly diffi cult to obtain such an extension. The most recent Middle
Eastern academic research (Eng, Const & Architectural Mgmt Vol 16, No. 1, 2009) listed reasons where failure to provide adequate evaluations led to delay claims as: lack of awareness by site staff to detect a delay; insuffi cient skilled personnel for detecting a claim; and inadequate contract knowledge by site staff.
This research is particularly concerning for MEP contractors because most general contractors and developers are unfamiliar with the technical nuances of MEP work. It is often extremely diffi cult to convince general contractors of entitlement to an EOT. To this end, MEP contractors must support their prime contractor by providing clear claims which demonstrate entitlement. The conclusion of the research, particularly in light of the squeeze on developer’s profi t margins created by the global fi nancial crisis, is clear: protect your interests by having personnel specially trained in delay identifi cation and contract interpretation available to you. Early identifi cation and prevention is the key to avoiding unnecessary costs. The survival of many contractors will depend upon the timing and total costs associated with their present contracts.
Dr Palmos, an experienced lead expert witness in delay litigation, is an engineer and licensed attorney, as well as a university lecturer.
22 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
LETTERS
RE: OCTOBER CONTRACT AWARD FOR BAHRAIN HOUSING PROJECT
It appears to being consid-ered on BOOT type and is an interesting incursion into the housing sector. It will be in-teresting to read more details of this project particularly with regards to the project fi nancing aspects.LIAQAT HAYAT
RE: BAUER COMPLETES PILING FOR LOUVRE ABU DHABI
I do hope that the Piling Contractors Land Surveyor made the necessary adjust-ment for Scale Factor whilst setting out the piles. This is a very common error prevalent in the UAE which usually becomes a costly one later on in the project.MIKE SILVESTER
RE: INDIAN STEEL MAGNATE NAMED BRITAIN'S RICHEST MAN
Mr Mittal, it is great to hear the news of you being the richest man in Britain. Con-gratulations! May you grow more and achieve more in the future and see more Indians follow in your footsteps. Keep up the good spirit.ZAKIR HUSSAIN
RE: PUSHING CONSTRUCTION'S BUTTONS
I somewhat agree with Schwarz, but I go back to the subject regarding reusing the wastage and recyclable items. Right now it is going to cost more, but we as professionals have to view the matters in the long run and with regards for the future. M A HUSSAIN
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: Mumbai's 117-storey tower divides opinion
Can anybody throw light on these concerns?SURESH
RE: NAKHEEL TO RESTART WORK ON SIX PROJECTS
I am tired with Nakheel's pace at Jumeirah Park and Jumeirah Village. Whilst these projects remain half done, owners are payingbank loans, and Nakheel
Can anybody explain how people will exit the build-ing in the case of a fi re? We have already seen on TV how on 26 November when the Taj was burning, there was hardly any pressure from fi re hoses. It is important for people to know how this will be taken care of. In an emer-gency, it will be extremely diffi cult to reach a hospital.
It will be interesting to see how the construction material for this 117-storey tower will reach the construction site, bearing in mind all the chaos in and around the city, especially in the morning and during the evening hours. At the moment, Mumbai cannot really afford to have any more towers, given its brittle infrastructure. For this reason, the government should focus on improving the infrastructure of the city before it develops any more of these iconic towers. Currently there are more potholes on the road than the population in Mumbai. The fastest car on the road does not go above 15kmh during peak hours, and this tower will only increase the traffi c in and around the location and make congestion worse. Please save Mumbai from collapsing. NARENDRA SINGH VERMA
don't seem very bothered. Please think of investors' money and restart these projects.DEBAPRIYA
We are happy to hear the good news. Dubai is making me sleepy with these crises. Nakheel's repay-ments will help attract contractors and investors to Dubai again.JAVED
Yasser Baaj Emirates Precast Construction
Steve Pennell Arup
Aqel AlaridArabian International Co.
Ron BrinkmanMurray and Roberts
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24 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
ANALYSIS
Money talksFor the fi rst in a three-part series looking at whether or not contractors are prepared for a possible industry resurgence, two leading fi nance offi cers give their views on the cashfl ow situation. By Elizabeth Broomhall.
Nine months into 2010, and there is a sense in parts of the region that the industry may be through the worst of the economic downturn.
New markets have been a huge focus for most companies, with more Dubai-based construction fi rms looking across the GCC for opportunities.
But for contractors to win new business, it is not only important that the projects are available, but that the contractors themselves have the necessary funding to bid for them. Given today’s highly competitive market, which includes an infl ux of international players, they are seemingly under more pressure than ever to ensure the appropriate funds are immediately accessible.
“The key to taking advantage of the opportunities which the GCC countries offer the industry is to be suitably positioned to seize the opportunity,” explains Arabtec’s chief fi nancial offi cer, Ziad Makhzoumi, who is working hard to ensure his company stays at the forefront of new and existing GCC markets by maintaining strong control of cashfl ow.
“Working capital is rarely a top priority for operating managers, but at times like these, it should be a high priority on the corporate agenda.”
ALEC’s fi nancial director Greg Walsh agrees. “There’s a saying in the construction industry. ‘If you win a tender, you’ve made a mistake or forgotten to price something correctly!’ Clearly, remaining competitive in today’s market is no mean feat considering the portion of provisional sums that make up any tender. It’s getting to the stage now where tenders are won based on who is the bravest and how good your last contract was,” he says.
Challenging timesCertainly one of the biggest symptoms of the global fi nancial crisis within the construction industry has been a diffi culty to manage cashfl ow in the wake of a non- and late-payment period. As cash-strapped developers struggled to stay afl oat, payments to contractors either slowed down or stopped completely in some quarters, causing some contractors to walk off-site. After months of speculation about whether or not struggling contractors
ANALYSIS
ZIAD MAKHZOUMI:Arabtec’s chief
fi nancial offi cer says management needs to be more
dynamic.
$680m
$2.7tn
$76bnTotal value of projects still to be awarded in the Middle East region.
Value of delayed or cancelled projectsin the UAE by February last year.
Amount Nakheel has paid to itstrade creditors so far.
“Even as funding opportunities begin to re-emerge, it will still be essential to maintain fi nancial strength and independence, and to remain in tight control of your company’s fi nances.”
ANALYSIS
SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 25
ANALYSIS
For up-to-the-minute analysis log on to constructionweekonline.com
would ever receive payment, and in turn, what would happen to these delayed and abandoned projects, some positive steps towards resolving the payment issues began to occur towards the end of the second quarter of 2010.
The question being asked today is: does this mean that contractors now have enough capital to compete for new projects in the event of an upturn? Have the last six months helped them to access the appropriate funds to facilitate their movement into new markets, which for some is critical for their survival?
“From my point of view,” says Walsh, “the UAE construction market is facing very challenging times in 2010 compared with 2009. As construction projects generally span more than a 12-month
period, most of 2009 was spent completing projects that were already in the contractors’ order books, which gave some stability to the industry. Now, many of these projects are completed and handed over.”
Makhzoumi concurs that the construction industry is not out of the woods yet, but attributes the problems more to a lack of payment resolutions.
“In Dubai, although Nakheel has come up with a solution and has started payment, other developers have not sorted their cash situation and have therefore not started making substantial payments yet,” he says.
Exacerbating problems, are the current payment terms being negotiated with clients and the availability of funding from the region’s fi nancial institutions. The fact
that pricing tends to be agreed and fi nalised at the end of a project, for example, continues to create diffi culties for contractors who have borne the brunt of initial project costs.
“This again has an impact on cashfl ow as the work is not certifi ed along with the original contract value in spite of it being done,” says Makhzoumi. “Over the last few months, this has meant that many contractors have essentially funded these variations, which in some cases have been signifi cant.”
“Also in the last nine months we have witnessed clients asking to re-price contracts for projects that have not yet commenced but are planned to go ahead,” he adds.
Limited access to fi nance meanwhile
Access to fi nanceZiad Makhzoumi on the role of fi nancial institutions:“In any capital markets, the equity investors and fi nancial institutions play a signifi cant role in providing investment funding and working capital for supporting businesses and stimulating the economy. Our region particularly is less risk- averse to private equity investment than other regions in North America, Europe or even Asia, which highlights the important role of the fi nancial institutions.
“Statistics show that in the Middle East, most companies’ borrowing is short term; this is in part a corporate culture matter, for we do not like to borrow, but more recently, a banking risk strategy. Banks should fund businesses on a medium- to long-term basis and regulations should be in place for the central banks to allow other banks to carry loans on their books.
“Banks should also take a longer term view on the economy, backed by regulations which will help them provide necessary funding without increasing the risks on their balance sheets.”
ANALYSIS
26 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
is, according to Walsh, adding to the mounting pressure on contractors and making it diffi cult for them to compete with global fi rms that have the advantage of being international.
“When it comes to facilities from fi nancial institutions, there is either nothing on offer or rates that are unaffordable, especially for the second tier contractor,” he says. “In my personal opinion, the targets and tight timeframes the central bank has set have resulted in the majority of institutions changing their business models, with some opting to stay clear of the construction industry.”
These problems in mind, both experts believe that only the bigger contractors are really prepared to take on new projects.
“Contractors that are under-capitalised, have restricted bank facilities and outstanding receivables are stuck and will suffer most, because they do not have the money to expand into new markets or fund new projects,” Makhzoumi explains.
“On the other hand, companies that can survive this deep recession will not have a problem raising funding when there is an upturn. That said, initially, the cost of funding will be high, and they will need to manage their cash aggressively.”
Similarly, but without claiming to know for sure how the industry is coping currently due to a lack of listed companies and fi nancial reporting, Walsh believes that
the coming months and years will be a test for the Middle East building sector.
“The drastic reduction of liquidity across the construction industry has put huge strain on the supply chain and this is going to be a real litmus test during any future upturn or sudden shift in the market. The major contractors will manage to ride out the storm, especially those that are diversifi ed, but a major portion may not survive.”
Moving forwardWith many new projects and government investment schemes this year, from Saudi Arabia and Azerbaijan to north African states such as Egypt and Libya, 2010 is no time for contractors to give up. Irrespective of being the largest construction contractor in the UAE, Arabtec is also going through some challenging times. The company’s most recent fi nancial results for Q2 2010 for example, showed a 23% fall in after-tax profi ts from AED393.3 million for the same quarter last year to AED301.7 million in 2010. That said, the company continues to surge ahead, committed both to diversifying its markets and taking a somewhat strategic approach to cash management.
Likewise, Walsh explains that ALEC is focusing on new sectors, and on reinforcing win-win relationships with stakeholders, suppliers and subcontractors, as well as fi nancial institutions.
“I believe we face a recession which is expected to be severe and prolonged, combined with exceptional stress in the fi nancial system,” says Makhzoumi. “Even as funding opportunities begin to re-emerge, it will be essential to maintain fi nancial strength and independence, and to keep tight control of fi nances.”
Among his many tips for struggling companies, this year, Makhzoumi advises that all contractors make it their focus to understand how refi nancing needs to evolve, and that they develop contingency plans to prepare for future funding gaps. He also suggests that fi rms manage their company receivables effectively so as to limit expensive and increasingly risky trade credit, and implement strict spending controls internally with a view to improving their fi nancial strength during rocky economic times. He maintains that there needs to be a shift to a more dynamic management approach in a more complex and unpredictable environment.
“This should include restructuring balance sheets, business models and overall business strategies. At the same time, it is important to remember thatthe mid- and long-term implications of these measures need to be evaluated, especially because the current climate offers the chance to pursue capital investment opportunities at a lowerthan normal cost.”
Before the fi nancial crisis, there were many more commercial high rises and real estate towers being constructed in Dubai.Slow payments have had a signifi cant affect on cashfl ow.
28 CONSTRUCTION WEEK JUNE 5–11, 2010
FACE TO FACEFACE TO FACE
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 29
A CENTURY OF CONSULTANCY
For more than 30 years in its one hundred-year history, EC Harris has been a massive player in the Middle East construction industry. In an exclusive interview with CW, regional leader John Williams
explains how the consultancy is evolving in afast-changing business climate.
By Elizabeth Broomhall
I t’s been 100 years since EC Harris was founded and, hav-ing spread its wings across a number of regions and mar-kets, the built asset consultancy now regards the Middle East as one of its most valuable business hubs.
But like most other construction fi rms, the company was not so lucky that it managed to come away from
the global economic recession unscathed. After experiencing a substantial fall in new business, it was forced to make some diffi cult decisions and was compelled to diversify, both in terms of geography and sector. The result was a re-defi ned growth plan, being driven forward by the fi rm’s key executives today.
The man behind EC Harris Middle East, John Willams, is in some ways what you would expect of a regional managing director. Positive, knowledgeable and forward-thinking, while slightly cautious about giving away too much. On the other hand, he is rather surprising, almost shy and relaxed. Hence why, when he is asked about how the company has fared during 2010, he gives what seems like a very honest answer.
“I think most people would agree that it’s been a really tough year, but there are some signs of recovery,” he says optimistically. “We’ve had a good couple of months in terms of new project wins, and we see the market picking up towards the end of 2010.”
For EC Harris, the downturn wasn’t as much about losing customers as it was about losing a market. According to Williams, the company’s focus had been on the commercial property market in the UAE – this being among the hardest hit by the declining fi nancial situation. “Previously, we were heavily orientated towards the commercial property sector because the market pulled us that
way. It was diffi cult to focus on much else because that’s where the investment was. Then when the recession hit, consultancies like ours had to look at their client bases. The fact that projects were stopped in Dubai generally, obviously, affected everyone, and it infl uenced decision-making everywhere.”
Luckily, Williams explains, EC Harris had already begun to diversify its markets, putting it in a good position to make the quick changes that became critical to every business’ survival.
“I would say we probably weren’t hit quite as hard as other fi rms because we had diversifi ed already in terms of sectors and geographies. So work in Saudi, for example, helped us, and fortunately we had invested in building some infrastructure in the oil and gas sector. But we did have to make some changes very quickly and it wasn’t easy. We’re still operating very much in Dubai, but obviously the commercial market there has completely changed.”
As a result, he says, EC Harris Middle East has worked exceptionally hard as a branch for the last 18 months to build a strong client base while broadening its capabilities in education, health, oil and gas and transportation sectors, as well as remaining in touch with its commercial property business.
Evidently, most companies that previously had a focus in the UAE or commercial property market have a similar story. What separates them today, however, is how they perceive the evolution of the market, and ultimately, their level of commitment to the UAE as a business hub from 2011.
“EC Harris has been in Abu Dhabi for 30 years, although we’ve been working in the region for about 50 years. So we are very committed to the region, which I think is important at the moment.
FACE TO FACE
FACE TO FACE
30 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
You do hear of some people that have been opportunist, who’ve packed up and left now and just saw this as somewhere to make hay.”
Certainly there are companies that don’t feel it is important to stay in the Middle East, or the UAE. So why is it so critical for EC Harris? According to Williams, there is a lot more to come from both.
“I’ve been on the same rollercoaster as many other people in the region. Whilst the market has undergone a big change, it is still the case that some of the world’s largest projects are in the Middle East, and some of the world’s most experienced capabilities continue to be needed here. Dubai particularly is an international fi nancial centre, so whilst it’s been through a diffi cult time, as an international fi nancial centre it will continue to attract large investments in the future.”
EC Harris is providing commercial management services to Aldar Properties PJSC on the prestigious Al Gurm Residential Development on Abu Dhabi’s coastline.
EC HARRIS HAS BEEN IN THE UAE FOR 30 YEARS• THE FIRM HAS 17 DISCIPLINES
Another advantage of staying put, he explains, is the fact that businesses are more attractive to both potential clients and employees if they have a long-term vision.
“If, when you talk to clients about their issues and needs, you can make clear that you’ll be here for the long term, I think it helps. I think people are attracted to a business that is talking about a sustainable future, and that recognises the Middle East as one of the regions of growth in the world.”
He continues: “There’s also a good employee proposition. Our projects are pushing us further, so we’re now working in a lot more new places and I think that gives a good employee message. There are plenty of opportunities for people to work on a major project; for example, somewhere like Al Raha beach where we’ve had quite a large team.
“Inevitably, the people that work on the projects will take that experience with them, so it’s great for their CVs.”
Of course, Williams agrees that not every company in the UAE is in a position to commit to the GCC. Many fi rms have left due to fi nancial diffi culties, rather than out of choice. Perhaps being an international fi rm gives EC Harris a strong advantage.
“Yes, I would say the fact that we had an ability to diversify; and the fact that we had offi ces in other parts of the world which were supportive to the Middle East branch meant we were in a much better position than a lot of smaller companies. Some of our people moved into other parts of the business elsewhere, and actually, being international meant we continued to get international clients in Dubai during the recession time-frame through our
FACE TO FACE
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 31
international connections,” he says, adding, “It must have been pretty tough for a lot of smaller companies.”
Indeed, one of the reasons the company wins some of the work it does in the region, according to Williams, is simply because it is international.
“I think people do look for the covenant of a large company, but I think the bigger advantage of being international in the Middle East is the knowledge we get from the rest of our business. If we’re building a major stadium here, for example, or a major residential scheme or a major hospital, we have data from all around the world as to what the effi ciency of all those buildings should look like.”
Even for international fi rms, Williams makes clear that some of the recession’s demons were still unavoidable. Developers for example, did not discriminate between small and large, local or global companies when it came to payment problems, and EC Harris was among a number of other large consultants and contractors, on the receiving end. This year, however, he maintains that things are looking up in that department.
“In some cases we have been paid, in some cases there are ongoing discussions. But generally the positive message coming from each situation we’re in is that we’re discussing things with people in a positive way to resolve things. The dialogue is progressing and there is movement. I think that’s been a major change in this area over the last six to nine months.”
In the interests of looking ahead, Williams is particularly keen to stress
John Williams believes the construction market is changing post-recession, with more developers becoming asset owners.
EC Harris has worked on Central Market in Abu Dhabi.
EC HARRIS HAS 46 OFFICES IN 24 COUNTRIES EMPLOYING MORE THAN 3,000 PEOPLE
“When the recession hit, it affected everyone. I’ve been on the same rollercoaster as many other people in the region.”
EC HARRIS’ CURRENT PROJECTS:
Al Raha Beach, Abu DhabiCentral Market, Abu DhabiLandmark Tower, Corniche, Abu DhabiMirdif City Centre, DubaiAl Wadha City Mall Development, Abu DhabiAldar HQKhalidya PalaceAtlantis HotelIbis and Novotel, Dubai Pullman Hotel, DubaiJAFZA DevelopmentQatar Financial Centre
how EC Harris is focusing on further diversifi cation, in terms of geography and sector, services and offerings. According to the MD, this is due to a signifi cant change in the way the industry is operating, including a new approach to development.
“In today’s market, developers and investors are realising that they can get value from their portfolios. Usually in a
development market, developers just build buildings and sell them, but in a market like the one we’re in today, developers have to keep their options open, because they may not be able to sell their assets at the end of construction. Leasing is therefore becoming more and more critical in providing a source of income, and all of a sudden, through that market change, we’re seeing
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32 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
people modify their whole business model to become asset owners.”
In response to this new demand, he explains that EC Harris’ core business today involves advising clients on how to make the most of their built assets, though he maintains that the company still does a substantial amount of work in what it is famous for, namely project management, risk management, commercial management and general consultancy services.
“What we’re trying to do is look at how we can get stakeholders better results by helping them deliver projects quicker, cheaper, faster and better. We’ve been quite bold in this built asset consultancy statement, because we can see the value of the service.”
He goes on to explain how, in addition to changes in developer priorities, the cost of construction post-recession has also had a signifi cant impact on EC Harris’ ability to provide these services.
“The price of construction has come right down, and whilst there is an opportunity for clients to take advantage of that, it becomes a real challenge to buy the best contract in a market which is quite cut-throat, and then to get the best performance on it. The client has to make sure that the way that they’re procuring a property, the way they’re selecting the contractor, the way the project is defi ned, briefed and delivered is in a very certain way. Because if someone is charging a low price, there is more chance they’re going to try and recover money somewhere later on. In this sense, we expect the market for construction claims to rise.”
Interestingly, this new ability within the fi rm also presents business opportunities as developers look to resume construction on delayed or abandoned projects. Only recently, industry experts came together to discuss the commercial viability of restarting construction on a ‘ghost building’ or ‘skeleton structure’ as more and more developers and contractors look to fi nish them. Bearing in mind EC Harris’ ability to advise clients on maximising the value of their built assets, executives are confi dent the company’s services can be of use.
EC Harris also worked on the Mirdif City Centre project as a quantity surveyor.
EC HARRIS HAS 4 OFFICES IN THE GCC, IN DOHA, ABU DHABI, DUBAI AND DAMMAM
“Whilst the market has obviously undergone a big change, it is still the case that some of the world’s largest projects are in the Middle East, and some of the world’s most experienced capabilities are still needed here.”
“We are actually talking to a lot of people who are making investment decisions like that at the moment, because it’s a very real issue,” says Williams.
He explains how, from a commercial point of view, restarting an old project is far less straightforward than it appears. Not only are developers faced with the challenge of trying to get potentially unpaid contractors back on board to carry out work on the project, but in some cases, the structures themselves may be extremely ineffi cient.
“This market is looking at getting as much value as it can out of its assets, which means looking at the commercial viability of the product today – so, if there is a market for the building as it was originally designed and intended – as well as the cost to complete, the outstanding contractor debts, the quality of the structure, the fabric of the building and the cost of any remedial works required.”
“In a nutshell, we can help companies with the risk management process when they’re taking over a project, and our view is that we will really start to see some movement in this market towards the end of this year.”
In truth, Williams says, it is opportunities such as these which have made the post-recession market so valuable to his company. He believes there is room for more facilities management consultancy work at the very beginning of a project, again in response to a growing trend of long-term asset-owning, rather
FACE TO FACE
The company was key in the development of the headquarters of Aldar Properties PJSC.
than simply building and selling. He is additionally confi dent that, hand in hand with these new business models, there will be a renewed focus on quality, and inevitably, a new role for contractors.
“In order to make the most of your built assets you need to be working with the contractors as a team, and there’s huge value in companies like EC Harris getting involved with the people who build the buildings as well as the clients and developers, to make sure that we produce something together that’s a success,” he says. “So I absolutely see collaborative working with contractors as a progression within the industry which we want to be part of. I can see that contractors are going to become strategically important in the future as more and more models for delivery will have them at the helm.”
THE FIRM IS CURRENTLY HANDLING MORE THAN 13 PROJECTS ACROSS THE REGION
THE DRIVING FORCE BEHIND EC HARRIS MIDDLE EAST: JOHN WILLIAMS
John Williams is a partner at EC Harris, and the Middle East regional leader.
He has worked in a wide variety of sectors including a number of commercial and major infrastructure projects, and has had a key role in the fi rm’s growth strategy and in maintaining a positive company reputation.
Having worked for EC Harris for over 20 years, Williams has been responsible for various commercial, leisure, infrastructure and industrial schemes.
Today, he is driving forward EC Harris’ goals in the Middle East, leading over 320 experts operating in Abu Dhabi, Dubai, Doha and Dammam.
Before his venture into the Middle East, Williams was in charge of EC Harris’ BAA commission as their framework partner under the overall long-term partnering agreement with BAA at Heathrow Terminal 5, Stansted and Gatwick Airports in London.
Here he led the EC Harris team in delivering the successful commercial outcome on T5 and was subsequently asked by BAA to lead their Step Change Programme to improve project performance across their portfolio of capital expenditure.
In addition, Williams is a certifi ed value management practitioner from The Institute of Value Management.
He regularly facilitates strategic studies on major programmes of works and capital projects, providing an integrated value and risk approach to maximise clients’ return on investment and expenditure.
FACE TO FACE
For up-to-the-minute analysis log on to constructionweekonline.com
Williams says the UAE is still an important business hub.
“Contractors are going to become strategically important as more and more models for delivery will have them at the helm.”
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 33
34 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
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A S ONE OF THE GCC’S BIGGEST DEVELOPMENTS of the year, the multi-billion dollar Khalifa Port and Industrial Zone (KPIZ) project is one that no con-tractor can afford to ignore. Covering a total area of 420km2, it is four times the size of Abu Dhabi island, two-thirds the size of Singapore and 25% of
the land mass of Greater London. With as much as $8.5 billion in construction projectsalready committed, and another $18.5 billion yet to be awarded for Phase 1 alone, the opportunities for contractors and investors are immense.
Harbouring opportunitiesProgressing well into Phase 1, the colossal Khalifa Port and Industrial Zone project is set to the change the face of Abu Dhabi’s economy, and the construction sector is urged to prepare for billions of dollars worth of contract opportunities. By Elizabeth Broomhall
34 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
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SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 35
“We are currently in the process of procuring the
contracts for the primary road, infrastructure and utilities works in Area A.” – Jurjen Groen, project manager for
Khalifa Port and Industrial Zone.
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“
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SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 35
36 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
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But before hearing about the project’s unique characteristics and contract opportunities, not to mention the records broken and construc-tion milestones achieved during development so far, attendees at this month’s Abu Dhabi Ports Press Conference were keen to know why such an expensive project was necessary. Whilst the property slowdown in the UAE has created an excess of general cargo that would normally be exported, according to the audi-ence, there is also a perfectly decent, main port in downtown Abu Dhabi already.
According to developer Abu Dhabi Ports Company (ADPC), the main reason for the project was to diversify both the Abu Dhabi and UAE economies, with a mega-scale industrial zone refl ecting the Abu Dhabi 2030 economic vision by bringing a wealth of new business and manufacturing opportunities to the emirate. In this sense, the port is set to perform a second-ary role to the industrial zone, facilitating its operation by allowing manufacturers access to seawater cooling and supplies by boat.
“Abu Dhabi Ports Company plays a funda-mental part in the diversifi cation of the UAE’s economy,” says ADPC’s new CEO Tony Doug-las. “The Khalifa Port and Industrial Zone will be particularly important in presenting a breadth of opportunities in line with the Abu Dhabi 2030 strategy.”
Separately, company executives were also keen to stress an imminent need to increase the capacity of Abu Dhabi ports in preparation
“We’re looking for companies who can act as delivery partners. Others talk bluntly about contractors, but we’re looking for people who will make a very formal commitment.” – Abu Dhabi Ports Company CEO Tony Douglas.
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OFFSHORE PORT AREA:The reclaimed offshore area, which is linked to the mainland by the causeway, is 2.7km2, the size of 370 football pitches.
THE FIRST ‘FINGER’ OF THE KHALIFA PORT
The majority of work on the port has been completed.
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SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 37
for an extra 2.6 million tonnes of general cargo expected to hit UAE shores in 2011. While the existing port Mina Zayed has suffi ced up until now, executives from Abu Dhabi Terminals made clear that it had a rather limited capacity today considering the huge infl ux of incoming cargo that would be witnessed in the coming years. This being the case, conference attend-ees were eager to understand why the existing port could not just be expanded.
Douglas was quick to respond: “Mina Zayed is the main downtown port and principal port of Abu Dhabi, about 3km away from Emirates Palace. Obviously when it was built in the late 60s, the head of Abu Dhabi island was absolutely a logical place to put a port, but decades later, it’s a different story. Today it is the most populated part of Abu Dhabi, which causes problems when the road network gets constrained with a fl ow of wagons bringing out containers and bulks.
“Equally, this is a prime time real estate area now given its proximity to Reem Island, Saadiyat Island and the downtown business district of Abu Dhabi. At some stage, it will need to be redeveloped given its strategic location and value,” he added.
By contrast, the new port is situated between Abu Dhabi and Dubai, as well as two major airports, Jebel Ali International Airport and
Abu Dhabi Airport. Set to provide a gateway for UAE imports and exports, it will initially have a capacity of 2 million TEUs and 9 mil-lion tonnes of general cargo compared with 650,000 and 7.5 million at Mina Zayed respec-tively. By 2030, the aim is to have increased capacity to a massive 15 million TEUs and 35 million tonnes of general cargo.
To compete at a global level, the port will also be connected to the mainland via a series of highways, roads and utility distribution networks, as well as a nationwide freight rail-way line, making it the fi rst port in the UAE to have heavy rail connectivity. In addition, and unlike some other ports, the Khalifa port will not receive container ships and bulk cargos exclusively, but any kind of vessels, including military and cruise ships.
However, a change of port facilities is not an easy task, and to ensure a smooth transi-tion of port services, ADPC executives plan to gradually phase Mina Zayed out while phas-ing Khalifa Port in. Bearing in mind the sheer size of the project, one of the key challenges for developers throughout will be programme management. According to the ADPC, it is essential with any mega project to make certain that construction work is carried out in the right order and to schedule, and that there is clear accountability for delivery of each set
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for an extra 2.6 million tonnes of general cargo expected to hit UAE shores in 2011. While the
Abu Dhabi Airport. Set to provide a gateway for UAE imports and exports, it will initially
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38 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
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of works. With this in mind, managers have so far split the project into Phases 1 and 2, as well as port and industrial zone, port onshore and offshore areas, industrial zone Areas A and B and a number of industrial clusters within each industrial zone Area. In line with the existing schedule, Phase 1 of the project, due to be completed by 2012, is well underway, with the majority of construction works focused on the port side.
Completed worksTo date, the majority of dredging and reclamation work for stage 1 of the offshore port island, which includes the fi rst ‘fi nger’ of the port, the approach channel and main causeway linking the onshore and offshore port areas,
has been completed. Along the causeway, a 60-80m-deep quay wall requiring 28,000 blocks has been constructed, together with a 3m capping beam to hold it in place and contain the utilities cables needed to power cranes and docked ships. This fi rst fi nger, which extends 4.5km off-shore and expects to receive vessels by the end of the year, will be replicated another four times out to sea as the port progresses through its fi ve stages of construction.
Also near-completion are the two identi-cal sets of seawater cooling intake/outfall pipework required both for EMAL (currently constructing the world’s largest single-site aluminium smelter in the area) and for the rest of the industrial zone. This, as well as a
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420km2
28,000246km40m m3
Number of blocks in the quay wall
Length of pipework laid on the project
Amount of earth moved from Area B-A
Total area of entire KPIZ development
“In 2011, we will see an additional 2.6 million tonnes of general cargo hitting our shores.” – Abu Dhabi Terminals CEO Julian Skyrme
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SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 39
1.7km-long canal ranging between 45m and 80m wide between the onshore and offshore areas containing a basin of water protected from the tide and currents, will facilitate the sea-water cooling process required by the likes of glass and aluminium manufac-turers. Meanwhile, the partly constructed EMAL smelter, which will produce up to 1.4 million tonnes of aluminium per year when complete, is constructed as far as Phase 1, together with a vacuum suction and con-veyor belt system to aid the transportation of alumina and coke supplies from incoming vessels to the main facility.
Perhaps some the most critical port ele-ments already constructed include the environmental breakwater that extends
around the perimeter of the port and out into the shipping canal, and the bridges connecting the onshore and offshore port areas. While the bridges hold the record for being the longest and third longest in the whole of the UAE, according to Douglas, the 17km sea wall, costing US$240 million (AED880 million), is signifi cant in “pro-tecting the largest coral reef and seagrass meadows in the UAE” and in demonstrating “the manner in which environmental chal-lenges have been embraced in the Khalifa Port project”.
Project managers say that it will also pro-tect the reef from spills and currents that occur during construction and reclamation of the port island.
Ongoing workWhile most project elements already completed are ports-focused, the main construction work taking place today is related to the industrial zone. This follows the assignment of two major earthworks contracts as far back as 2008 to Al Jaber Transport and General Contracting, and Ghantoot Transport and General Contracting Establishment, requiring the contractors to move 40 million m3 of sand from Area B to Area A to raise the ground level in area A by 2.5m above mean sea level. Scheduled for completion within 36 months of the contracts being awarded, and marking the start of construction in the industrial zone, the works are now steadily progressing, with 1,500 truck movements per day, the equivalent of 1.2 million m3 of sand each month.
“The main activity in terms of construction is the mass land fi lling work in the industrial zone,” says ADPC project manager Jurjen Groen. “They’re moving the land from Area B, where there is a big surplus of sand, to Area A, where the ground level needs to be higher because of its proximity to the sea. The other reason for raising the area was because some of it was actually lower than the design ground level based on a stone surface analysis.”
Other contracts already awarded, in line with the project schedule, are associated with the port. According to Douglas, this was not because the port was a priority, but rather, because it was the fi rst stage of development. “Most of the contracts we have awarded already are pretty much exclusively linked to the port,” he says. “These are the biggies, the ones in excess of a billion dirhams. That said, the port, for all intents and purposes, is actually one of the smaller elements of the project – the development being an industrial zone with a port rather than a port with an industrial zone. But it’s the fi rst part of the job.”
Other contracts already awarded include those for the construction of onshore and offshore port facilities, and for the construc-tion, testing and commissioning of the port’s power supply. Probably the furthest ahead is the construction of onshore port facilities, which was awarded to Al Habtoor Leighton Group last year.
One of the main things the fi rm was assigned to was the construction of 47 offi cial buildings, the largest of which is the central facilities building – over 300m long and fi ve storeys high . In addition, the company was also required to manage the associated infrastructure works for the area, including a series of road networks, bridges, utility installations and landscaping. The works are steadily progressing towards completion in 2011.
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40 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
The remaining two contracts on the other hand, were not awarded until this year, hence, construction is still in its early stages. In March, Larsen and Toubro began works for the design, construction, testing and commissioning of an electrical, medium-voltage power supply for Phase 1A of the port. Here, the company’s primary role was to install a 33kV power cable network and three primary substations to provide the main power supply for the entire Phase 1A of the port, in addition to the construction of civil buildings with utilities such as air conditioning, fi re protection and lighting systems.
In July, Ed Zublin AG and Al Jaber Trans-port and General Contracting were assigned to design, construct, fi t-out, test and commission the offshore port’s civil and structural building works, providing the necessary infrastructure to support the commencement of port opera-tions in 2012. Among the works required of the contractors was the construction of 23 buildings and associated structures, including the six-storey Terminal Operations Building, over 1,000m of additional quay wall and associ-
ated marine fenders and bollards. This was in addition to a 5.4km dual carriageway linking the offshore port to the mainland, as well as associated service roads, street lighting and two helipads. In the future, Zublin and Al Jaber will also be responsible for implement-ing site-wide utilities in the area, including electrical, drainage, sewerage, potable water and telecoms.
Outstanding contractsWith AED18.5 billion-worth of contracts yet to be awarded for Phase 1 alone, the KPIZ project certainly offers attractive new business prospects to qualifi ed contractors.
According to Groen, there are three new contracts on the cusp of being awarded for the north, central and south areas of Area A within the industrial zone.
“We are currently in the process of procuring the contracts for the primary road, infrastructure and utilities works in Area A,” he says. “So that basically involves work on the roads, utilities, sewage, seawater cooling, and telecoms
systems in the primary corridors. We have divided the area into three parts and will be awarding three separate packages, although the contracts will be fairly general in terms of the work involved.”
Though keeping quiet about the total value of the project, Douglas is also keen to stress that there is “a lot more to come” for those with high health and safety standards and a strong sense of corporate social responsibility.
“We’re looking for world class practice as opposed to regional practice when it comes to safety management,” he explains. “A formal part of our evaluation is to look at the man-ner in which contractors demonstrate their corporate social responsibility and how that refl ects in the way they operate.”
He adds: “We’re also looking for companies who can act as delivery partners. Others talk bluntly about contractors, but we’re looking for people who will make a very formal com-mitment to participating in this vital piece of infrastructure for Abu Dhabi.”
As well as hosting the World Ports and Trade Summit in March 2011, the developer has promised to provide more information about contract opportunities and the programme of works at a press conference in November.
The Summit in March will take place at the Abu Dhabi Exhibition Centre (ADEC) with a view to unveiling new projects and giving further explanations as to the investment and development opportunities.
systems in the primary corridors. We have divided the area into three parts and will be awarding three separate packages, although h llb f l l f
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SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 41
ADPC HEADQUARTERSOperations are currently
being led from the temporary ADPC
headquarters on site.
KPIZ PHASE 1: OUTSTANDING CONTRACTS
Industrial Zone Port General/other
Construction
Area A infrastructure North Outstanding industrial zone seawater cooling intake / outfall pipework – deferred
Security installations
Area A infrastructure Central Advanced piling for offshore terminal area
Area A infrastructure South
Area A ME&S infrastructure
Area A secondary infrastructure
Design services
Design for IZ secondary infrastructure None Framework design services
Technical services
None None Security services
Professional services
None Marine design validation of KPMC works None
General/other services
None None General construction works (pack 1)
General construction works (pack 2)
General construction works (pack 3)
General construction works (pack 4)
42 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
TOP 10 PORT PROJECTS
Oman’s move to improve its transport hubs is impressive, and none more so than the coastal town of Al Duqm where the port is currently undergoing a massive construction project to not only transform the port, but to also build a world-class, region rivalling dry-dock for ultra-large LPG tankers.
Khatib & Alami Consolidated Engineering Company was charged with the feasibility study for the port project, while a consortium of three companies (Jan De Nul, CCC and STFA Marine Construction Company) was awarded the engineering, procurement and construction project in 2007. It’s a huge project: the contract called for the construction of the entire port complex, including the breakwaters and quay walls and the dredging of the access channel and harbour basin.
The Oman Drydock project is being handled by a joint venture between Daewoo Shipbuilding and Marine Engineering and the government.The $800 million world-class ship repair facility is scheduled to be operational by March 2011 and will have the capacity to handle anything up to 600,000-tonne oil and gas supertankers. When fully on track, the Duqm Drydock will generate an anticipated $210 million in annual revenue and employ 3,500 people by 2020.Location: Al Duqm, OmanProject cost: $1.25bnProject type: ConstructionScope of works: New port, breakwater and drydockClient: Ministry of Transport and CommunicationMain contractor: Jan De Nul, CCC and STFA Marine Construction (port), Daewoo Engineering and Contracting, and Galfar Engineering and Contracting (dry dock)Completion due: Q2 2012
Built in fi ve phases over a 20-year period, Abu Dhabi’s Khalifa Port is the largest port development for the UAE. Aligned with the new 420km2 industrial zone, logistics, commercial, educational, and residential special economic and free zones, Khalifa Port’s future is rosy.
At the moment, Abu Dhabi’s main port, Mina Zayed, has 21 berths with 143km2 of covered warehousing and 20,000 tonnes of cold storage facilities. The current port offers little room for expansion, so the new Khalifa Port, situated at Al-Taweelah north of the city, will take over once completed. Transfer of Mina Zayed’s operation is expected to take place at the end of 2012, while the phased project continues.
By 2030 the port will have 7.4km of quay for 22 container berths, 12.6km of quay for 63 general cargo and RO-RO berths, and 2.4km of quay for six dry bulk berths. This will accommodate 15 million TEU containerised cargo, 16 million tonnes of general and RO-RO cargo, and 25 million tonnes of dry bulk annually. Initially, however, Khalifa Port will handle two million TEU (twenty foot equivalent units) and nine million tons of general cargo.
International Bechtel Company Limited (IBCLTD) was appointed as programme managers. Bechtel’s primary responsibility is for the management and co-ordination of the master planning, design and construction of the port and associated infrastructure.Location: Abu DhabiProject cost: Not stated, but includes $1.5bn (dredging and reclamation); $380m (port and onshore facilities).Project type: Major port developmentScope of works: Construction of port and industrial zoneClient: Abu Dhabi Ports CompanyCompletion due: Phase 1, 2012; total completion, Q1 2030
KHALIFA PORT
Top 10 Port ProjectsPort projects within the GCC are big business, and CW has listed 10 of the most interesting contracts underway
AL DUQM PORT AND DRYDOCK
SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 43
TOP 10 PORT PROJECTS
Industry drives port expansion and a US$1.35 billion project at the Port of Sohar has helped drive investment in to the northern Omani region.
The Port of Sohar underwent a major redevelopment in the early 2000s and late last year announced that it had signed three contracts for the fi nancing and construction of a 1,380-metre long deep water jetty and port designed to cater for ships with drafts of up to 25 million.
Work on the new $1.4bn iron ore pelletising plant and distribution centre began last March by Brazilian mining conglomerate Vale. Van Oord, famous for its work on the Palm islands and The World in Dubai, will carry out dredging duties. A 50/50 joint venture between the Italian company SAIPEM, and AFCONS from India, will construct the jetty. Location: Sohar, OmanProject cost: $1.35bnProject type: Jetty construction and dredging worksScope of works: 1380m jetty construction; harbour dredging to 25mMain contractor: SAIPEM and AFCONS (jetty), Van Oord (dredging)Completion due: Q1 2011
SOHAR INDUSTRIAL PORT
Increased port traffi c and extra tonnage means that the new terminal and three berths with a combined capacity of 1.5 TEUs and 400km2
storage area has been a welcome relief for the busy Saudi port.
Jeddah is the biggest container port on KSA’s west coast, and pressure on the facility increases every year. Around 73% of all shipping containers sent to the kingdom are processed at Jeddah – and the port has seen a 20% increase in total tonnage processed through the facility for the fi rst six months of 2010.
The expansion project began in 2008 soon after China Harbour had been awarded the contract for civil works in late 2007. Halcrow was project consultant and Shanghai Zhenhua Port Machinery Company was awarded the equipment supplying contract. The fi rst phase of the project opened in December 2009, and the terminal is due for completion later this year.
Six tandem-lift, Super Post-Panamax, 85-tonne ship-to-shore cranes, manufactured by ZPMC were commissioned earlier this year and join the 26 RTG Yard Cranes already at the port.
Port authorities plan to build a fourth terminal at the site, increasing capacity by almost 60%. Location: Jeddah, Saudi ArabiaProject cost: $510mProject type: Construction/expansionScope of works: Terminal, 1.5m TEU storageClient: Saudi Trade and Export DevelopmentMain contractor: China HarbourCompletion due: 2010
JEDDAH ISLAMIC PORT, RED SEA GATEWAY TERMINAL
In the pipeline for quite some time, Kuwait’s Boubyan Island is one of the latest ports to appoint a major contractor to complete its works. The idea is to return Kuwait to its former glory as a regional shipping hub, and for Boubyan Island to act as a gateway to the Gulf state.
The $1.1billion development contract was signed by Hyundai Engineering and Construction Company and local fi rm the Kharafi Group in July this year to design and build the port. The plan calls for 16 berths to be designed and an initial four berths to be up and running by 2015, while the staged development could see as many as 60 berths in operation on the island.
Dredging works are going to be a considerable part of the project. Depth at the basins of the port are projected at 16.5 metres, and navigation channels will be 14.5m deep.
The fi rst phase of work is estimated to cost $410m and also includes the construction of a 30.30km two-way, six-lane road and foundation for 24km multitrack railways, which include a 1.42km road bridge and a 4.245km railway bridge across Subiya Straits, and the sub-works for soil foundation treatment below the roadbed. China Harbour Engineering Company and two local companies (GDC and SAC) have formed a JV for the initial contracts. Location: Boubyan Island, KuwaitProject cost: $410m (Phase 1 only)Project type: Island port developmentScope of works: Harbour dredging and initial design of 16 berthsMain contractor: Hyundai Engineering and the Kharafi Group (port)Completion due: December 2015
BOUBYAN ISLAND, KUWAIT
44 CONSTRUCTION WEEK SEPTEMBER 4–10, 2010
TOP 10 PORT PROJECTS
Ras Laffan’s goals are fairly simple. As Qatar seeks to become one of the world’s leading exporters of Liquefi ed Natural Gas (LNG) by 2012, Ras Laffan – situated 80km north of the capital Doha, and close to the North Field Gas Reservoir – wants to become the world’s leading port for LNG.
It’s no mean feat. The port covers an area of 51km2 and substantially increases the amount of LPG the country will be able to export in future. It includes fi ve new LNG berths, 10 liquid product and liquid petroleum gas (LPG) berths, four small tanker berths, navy/coastguard and tug berths, container export berths plus onshore infrastructure. The berths are designed to enable simultaneous berthing, mooring and loading of two vessels from 20,000 to 300,000 tonnes.
The development also includes a comprehensive dry dock and ship repair operation which was built by Daewoo E&C. Qatar Petroleum (QP) funded the land reclamation and construction of the project.Location: QatarProject cost: $1.7bnProject type: Port expansionScope of works: Major LNG port expansion projectClient: Qatar PetroleumMain contractor: CCC/Six ConstructionCompletion due: Q4 2010
Doha’s new port is one of the largest and newest projects of its type in the GCC.
It’s intended that the new 20km2 port, to be constructed in Economic Zone 3, Al Wakra, will transform Doha’s shipping industry. It will include fi ve general cargo terminals and berths, four container terminals and berths and a roll-on/roll-off berth, plus berthing for tug and pilot boats.
The project will begin in 2011 with the fi rst phase operational in 2014. By then, the port will have a capacity of two million TEU per year – increasing considerably once the project is fully implemented in 2023. AECOM was awarded a six-year, $149.3 million contract to provide program management services to the project in 2008. Location: QatarProject cost: $7bnProject type: Construction of 20km2 port complexScope of works: Construction of new portClient: Doha port authorityCompletion due: 2014 (Phase 1), 2023 (complete)
The UAE’s fi fth largest emirate, Fujairah’s strategic location on the coast of Oman at the entrance to the Persian Gulf makes it a perfect spot for shipping operations. Though the emirate isn’t huge, expansion of the port has been required to meet demand placed on the facility as a bunkering centre and regional trading hub.
An additional 600,000 cubic metres of storage has been allocated, expanding total storage capacity at the port to 2.1 million cubic metres when the project is completed in 2012. The project includes 20 new tanks (ranging between 20,000 to 40,000m3), one new berth for ships up to 110,000 tonnes, another for vessels up to 60,000 tonnes, and six loading arms – three each for white and black goods.Location: Fujairah, UAEProject cost: $110mProject type: Construction, engineeringScope of works: Expansion of cargo terminalClient: Vopak Horizon FujairahCompletion due: Q1 2012
NEW DOHA PORT FUJAIRAH OIL TERMINAL
RAS LAFFAN PORT
SEPTEMBER 4–10, 2010 CONSTRUCTION WEEK 45
TOP 10 PORT PROJECTS
Sea freight through the Omani port of Salalah has almost tripled in the last decade which has prompted several port expansion projects over recent years.
The latest additions to the port, simply known as Terminal Two, will add three more berths to the existing six and 1,350 metres of quay wall, boosting the port’s capacity by three million TEU by 2012.Terminal Two will handle general container freight, with the fi rst berth, Berth 7 scheduled for completion during the fi rst quarter of 2011. Berths 8 and 9 will follow in 2012.
The expansion project also calls for the construction of a new breakwater, a new liquids jetty and the related facilities. Bids have just closed for the work, and the port authority expects to announce contract winners soon.Location: Salalah, OmanProject cost: $500mProject type: General cargo terminalScope of works: Expansion of container terminalClient: Transport and Communications MinistryMain contractor: TBACompletion due: End 2012
Located about 120km north of Doha, Al Ruwais Port is designed to accommodate dhows, coastal trading vessels and a roll-on/roll-off passenger/car ferry, centring on general cargo, fruit and vegetables, livestock and building materials.
It may not be the largest port development underway in the region, but it’s no less important to the local economy. The port currently caters for over 100 vessels, including fi shing boats, customs and Ports General Authority (CPGA), Ministry of Interior and small leisure boats, and it will remain open while the new port is developed.
The work includes dredging of the 3km channel to fi ve metres, while the port basin will be dredged to seven metres and the marina and fi shing harbour to 2.5 metres. Around 2.8 million cubic metres of mud, silt and sand will be removed during the process. It also includes the construction of block work quay walls, fenders, navigation aids, utilities and port furniture, fl oating pontoons, slipways, fuel storage tank and dispensers, and block paving.
There are also provisions for roads, sewerage, water and drainage works in the contract. The main construction contract was awarded to Consolidated Engineering Construction Company in May.Location: QatarProject cost: $215mProject type: Port developmentScope of works: Marine facilities, infrastructureClient: Public Works AuthorityMain contractor: Consolidated Engineering Construction Co.Completion due: Q1 2013
DEVELOPMENT OF AL-RUWAIS PORT
PORT OF SALALAH EXPANSION
SCAFFOLDING AND SAFETY
46 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
T HE EQUIPMENT AND SAFETY standards for building at height have been a discus-sion point this summer fol-lowing a spate of accidents.
Three on-site deaths linked to the collapse of scaffolding in Sharjah caught the atten-tion of national media, while the deaths of four workers at the Ansar Mall when their maintenance cradle collapsed was attrib-uted to the fact that they were not wearing safety harnesses.
Scaffolding work is perhaps the most pre-carious element of construction, with work-ers occasionally hundreds of feet off the ground on temporary structures. Industry initiatives to improve the awareness of safe-ty at height have led to a healthy debate as to where the main responsibility lies, along with discussions about the origin of safety rules: industry-wide generic legislation against management-focused schemes.
At ConstructionWeek’s ‘Building at Height… Safely’ conference in Dubai in May, panelists concluded that a balance needed to be struck between generic guidelines and those directly implemented by a project’s management. Mark Warrington, of the Al Ain Municipality for Atkins, said: “To an-swer the question as to whether it needs to be prescriptive or implemented from a man-
Structured productsQuality equipment and early training are the core principles to reduce scaffold-based injury, say suppliers. By Ben Roberts
agement perspective, the answer is both. There have to be guidelines and I think it has to be tailored to the region.”
Basic scaffolding comprises galvanised steel (or aluminium) vertical ‘standards’ and horizontal ledgers. There are also ‘tran-soms’, which rest across the parallel ledgers so that the walkway resembles a ladder laid fl at (before the timber boards are placed on top). The whole structure rests on a square base plate to spread the load.
Scaffolding fi rms constantly need to pro-mote safety standards due to these inher-ent dangers. Mizra Nadeem Baig, general manager at Ajman-based KHK Scaffolding & Formwork, explains that the scaffolding needed when pouring concrete for slabs and beams within each fl oor is designed by the company for the client and checked during operation.
“At the start we ask for the structural drawings from the contractors, and we de-sign the scaffolding needed for the building,” he says. “We’ll design the layout and once that is complete the engineers can enter and train those on site.”
When this is fi xed the contractor will work on the rebar for the beams and all pre-paratory work. Then, before the concrete is poured, the KHK engineer will go back onto the site to check that the scaffolding was
“A good contractor will appoint a safety offi cer who they will consult with. A bad contractor will tell him: 'don't make life diffi cult for us'.”
SCAFFOLDING AND SAFETY
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 47
or shipbuilding. Other steel products – such as K-Stage scaffolding, a modular system that fi xes the horizontals ledgers and tran-soms by wedge fi xings – are sold directly to contractors.
Nadeem says that sales of aluminium scaffolding have decreased greatly since the economic slowdown as it can be “four or fi ve times” the price of steel, often around AED10,000 per tonne.
However, cutting costs can also result in contractors purchasing low quality scaffold-ing that will ultimately infringe on safety. “Some contractors will buy cheap scaffold-ing that has a lower quality, such as that the thickness of the pipes is not 3.25mm but 2mm,” he says. “Contractors look only at
constructed according to the design. “This includes checking stability and making sure all the links of all the different parts are se-cure, the drophead and wedges are secure,” he adds. “After that we will award a certifi -cate, and that is presented by the company to the Dubai Municipality.” This certifi cate is vital as proof that all relevant safety stan-dards have been met.
KHK sells fi nished aluminium and steel scaffolding products and has a galvanising plant to be able to also sell component parts. Its aluminium towers – mobile, lightweight structures that do not attach to buildings – are sold directly to customers. Steel parts such as pipes are sold to other suppliers that target specialist areas such as offshore work
the fi xed price and think a pipe is a pipe [like any other].”
Beyond ensuring high quality from the metal materials, scaffolding suppliers must also comply with the specifi cations of the industry into which they are selling their product, as each differs.
One key example is scaffolding for oil and gas projects. Mohammed Azazi, general manager of Kuwait-based Almen, which produces scaffolding for work on oil refi n-eries, said: “There is a very big difference between working on refi neries and other buildings. On refi neries you are working by the standards of the oil sector. This relates to all things, falling down, the stability of scaf-folding. Refi neries are different and require
Scaffolding is central to the safe construction of most major building projects.
SCAFFOLDING AND SAFETY
48 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
work, these procedures are not mandatory. Peter Neville, head of HSE at Halcrow
and Sharjah spokesperson for BuildSafe UAE, says the safety ‘culture’ in any contrac-tor should be emphasised.
“The contractor is responsible for daily safety and there are two ways of doing health and safety,” he says.
“The good contractor will appoint a safety
Mark Warrington: tailored regional guidelines are needed.
person who they have trained up and will consult with along the way. The bad contractor will simply appoint a person and say: ‘you’re in charge of health and safety but don’t make our life diffi cult’.”
He adds that it is everyone’s responsi-bility to ensure safety for a site, and ap-proves of initiatives such as a suggestion box, allowing employees to communi-cate safety issues on site, in exchange for a reward.
a different and special design for a spherical tank, or a reactor.”
Madhu K, Almen’s project manager, says there is a thorough procedure for installa-tion and maintenance.
“The scaffolding pipes, base plates screw jacks, scaffolding planks and clamps and all other materials should be inspected and ap-proved before use,” he says. “The scaffolding should be built on fi rm fl oor and base plates should be used to transfer the load uniform-ly to the earth.’
Red and green tags are also mandatory, he adds: red tags show the scaffolding is under construction; green tags authorise the people to work on it.
“The scaffolding structure will be re-in-spected once in seven days and tags system will be followed,” he explains. “The scaffold-ers will be provided with double latch hooks with safety harness for hooking purpose, leather pouch to keep the ratchet spanner and other basic personal protective equip-ments to be provided and used.”
He points out that in normal building
It seems safety isn't so much a priority in other regions, but industry experts want the GCC to take a lead in scaffolding safety.
Scaffold board standardsBS 2482 states that scaffolding boards of two thicknesses can be used, according to how the timbers are supported. Thinner timbers of 38mm can be used if they are supported at 1.2-1.5m centres, but wider gaps (up to 2.5m) must be spanned by boards no thinner than 63mm. The boards must be 225mm wide and can be selected by visual or machine strength grading. The standard does not cover laminated or fi nger-jointed scaffold boards.
PROJECT UPDATE
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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 SEPTEMBER 4-10, 2010
The new VIP terminal, being built in Abu Dhabi , is part of the 'Presidential Flight unit of Abu Dhabi Airport. It consists of a large main room and a domed tower in the corner. The 400 tonne roof structure has been prefabricated, and is set to be raised from the ground and placed into position using a sequence of eight hydraulic jacks. The structure is currently sitting on temporary I-beam piers about a metre off deck.
ABU DHABI AIRPORT TERMINAL BUILDING
LocationAbu Dhabi
VisitedJuly 2010
Sowwah Island, in Abu Dhabi, is being developed by Mubadala to be the new central business district of the UAE's capital. Sowwah Square is the most advanced of the island's developments so far and will be home to a new stock exchange as well as four business towers. Right next door is the Cleveland Clinic, along with the near by Rosewood Hotel. Work on a Four Seasons hotel is expected to start soon.
SOWWAH ISLAND
LocationAbu Dhabi
VisitedJune 2010
The American School of Dubai is a fast-track project being carried out by Al Ahmadiah Aktor. The anticipated opening date of the new campus is 14 September, to coincide with the new academic year. The design of the new campus has incorporated the latest sustainable trends to conserve energy. Construction teams include DG Jones & Partners as projects managers and RMJM architects.
AMERICAN SCHOOL OF DUBAI
LocationAl Barsha
VisitedJuly 2010
85mAED value of MEP contract awarded to
DSI
PROJECTS
After a slow and troubled start, Dubai Lagoon is a project getting back on track. Three main contractors – Bel-hasa Contracting and engineering, Bin Sabt Building Contracting and Commo-dore Contracting – are working across four zones within the development. Buildings in zone one, where eight resi-dential towers in zone one will provide 442 apartments, are due for completion around the end of 2010.
DUBAI LAGOON
LocationDubai
VisitedJune 2010
5.1mKg of steel
used so far in zone four
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
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 51
PROJECTS
When complete Elite Residence will be a towering 91 storeys, standing 380m high and holding a total of 697 residential units. With around 20 floors still to be cast, there is plenty left to do. The current scheduled completion date is around October 2011, and to meet this, main contractor Arabian Construction Company will have to keep the pace up. Coordination between ACC and its sub contractors is seen as critical.
ELITE TOWERS
LocationDubai
VisitedJuly 2010
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
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
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
52 CONSTRUCTION WEEK SEPTEMBER 4-10, 2010
PROJECTS
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
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.
SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 53
PROJECTS
Brokerage fi rm Landmark Proper-ties last month appointed Christiane Murray (right) as head of property management. With previouspositions at Lufthansa, Barclays Capital and Spectrum Real Estate Management, Murray brings with her 12 years of experience in the Middle East. In her new role, she will be responsible foradvising LandmarkProperties clients on best practice and standards re-lated to projects in both new and existing developments.
Mubadala Development’s property director, Canadian lawyer John Thomas, announced his resignation, with effect from the end of
August. He joined Mubadala in 2008 and oversaw the rollout of projects like
the new central businessdistrict on Sowwah Island and
the redevelopment of Mina Zayed waterfront. Thomas
says he will return to Canada to spend more
time with his family and pursue other interests. He has
been succeeded in the interim by the head of Mubadala Real Estate and Hospitality Peter Wilding.
APPOINTMENTS
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Mubadala DevelopmCanadian lawyer Johhis resignation, with
August. He joinedoversaw the r
the new cendistrict on
the redZayed
saysCan
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Shuffle
For directory information visit constructionweekonline.com/directory
SEPTEMBER 4-10 SEPTEMBER 4-10, 2010 CONSTRUCTION WEEK 55
ARTY-TYPE projects seem to have sprung up across the region.
I hear the piling work for the Louvre Abu Dhabi has just been fi nished on Saadiyat Island with the Guggenheim just beginning. Then there are the fi ve museums coming up in Saudi Arabia. Probably costly jobs given all the marble need-ed for these kinds of building, no doubt imported from Italy or somewhere like that.
But I suppose I’m most in-terested in the bit between de-sign and construction. Do you just copy the original layout in structure from the Louvre and Guggenheim in Europe, or come up with a Middle East version? Me, I think it’s enough of an art getting everyone in-volved in a project on the same page. One site was actually losing cash just because we had a lot of hired heavy machinery sitting round longer than we needed. Not a massive amount overall, but who is not count-ing their pennies these days?
Nurturing talentThis week I was at a social function and got talking to
Cultural values
FOREMAN
same. Certainly the architects I’ve worked with are a talented bunch, but I wonder if they’re missing a trick with their graduate staff.
Can sustainability be sustained?Thirty years ago, building green or ‘sustainably’ was unheard of here in the UAE. During the construction boom, the concept was defi nitely around, but only in the last few years has it really been a hot topic on site.
Funnily enough, the guys and I got into a debate about it the other day. Some of them think it’s going to take a long
Hats off: are architects getting the most out of their graduate workers?
a car designer, and how he sees the role of the graduates in the company as vital to keeping the brand fresh. I’d assumed that he’d save the plum jobs for himself and lock graduates into the more mundane tasks of designing wheels, switches and that sort of thing.
“Oh no. I get them to design the car itself – the exterior, the look. They’re the ones with the fresh ideas, why would I want to squash that creativity?” he said.
He saw his job as a conduit between their creativity and the realities of putting the car in to production and the company’s bottom line. “Designing the exterior is the easy bit. Transforming that idea into reality, that’s where the challenge of true design comes in,” he said.
It got me thinking about the parallels with the construction industry, and whether architects in the Middle East were as open to new and engaging ideas from graduates as this car designer obviously was.
Really the principles of nurturing talent remain the
time before buildings here are really green. They say it’s pretty unlikely there’ll be much in the way of new builds, particularly in Dubai, and for that reason, we might not see much ‘sustainable construction’ for a while. Some of the others said we will, but it’ll just be more retrofi tting – though they weren’t sure how popular this was with the tenants. I’m not so sure, but if I had to guess, I’d say there’s going to be a lot more retrofi tting, particularly in Dubai and Abu Dhabi where there are more offi ces than workers. Time will tell.
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