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AUGUST 2010
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Tenders, diary, jobs and more...
The UAE leads the way in MEA hotel developments, but where is the demand?
MARKETS
INTERVIEW
ANALYSIS
The big projects enticing you to to do business in Bahrain
Damac's general manager on delays, delivery and diversity
The dangers of substandard formwork, as told by five experts
CONTENTS
AUGUST 2010
22
18 12
4 EDITOR’S LETTER
30 SUPPLIER SPOTLIGHT
6 NEWS BULLETIN
News, appointments and product launches from Middle East construction suppliers.
Stay in the loop with our pick of the region’s top stories of the month.
34 BUILDING MATERIALS: CORK
9 REPORT: SUSTAINABILITY A 'green' property market is feasible within two to three years, a survey conducted by Landmark Advisory has revealed.
12 OPINION: PROJECT RISKS
28
CMCS CEO Bassam Samman says investing in management skills is key to reducing the number of project failures.
15 EVENT INSIDER: ABU DHABI Six industry experts addressed challenges in developing the capital's infrastructure, during an event hosted by The Big Project in conjunction with ADCB, last month.
18 TALK: DAMAC PROPERTIES
38
Damac Properties general manager Ziad El Chaar addresses delays, the delivery of the developer's existing projects and its diversification into new markets.
As the Portuguese Cork Association looks to expand in the region, we look at why the material is gaining popularity for construction.
37 SUPPLIER HOT SEAT Dubai-based Resolco Insulation's regional sales manager reveals the latest product trends and calls for more regulations.
38 FIRST-CLASS FORMWORK Five experts on formwork uncover the dangers of implementing inadequate systems and share their recommendations for solutions to fit all construction projects.
42 TENDERS A building-progress update on the Dubai Industrial City development, as well as this month's tender listings.
51 JOBS A selection of the region's latest construction and architecture vacancies.
22 COVER STORY: HOTELS The UAE's active hotel developments make up 50% of MEA's pipeline, but is that where the investors and guests are? The Big Project investigates.
53 DIARY
28 MARKET EXPLORER: BAHRAIN
54 TEA BREAK
Five large-scale construction projects that are enticing more developers and contractors to the Kingdom of Bahrain.
We asked building buffs from around the world: Can you design and build a 'green' hotel without compromising on luxury?
Your guide to the must-go industry events and exhibitions taking place in the Middle East region and beyond.
August 2010
THE BIG PROJECT
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EDITOR’S LETTER
Risky business
W
hat is the difference between a gaping hole left unfilled and unguarded by workers conducting utilities repairs in a public walkway in England and a similar hole in the UAE? Not much unless you fall down it. In England, you'll probably break your ankle and make a tidy sum through a personal injury claim. In the UAE, you'll probably break your ankle. You see where I'm from (England if you didn't guess), injured individuals share tales of woe, that have happy endings, with millions of television viewers every day. One middle-aged lady, Patricia, tells us she sprained a toe after tripping over a neglected hard hat in the street. Young Norman suffered mild concussion having walked under a 15-storey-high scaffolding just as the construction worker above dropped his stale cheese sandwich. But even the unluckiest folk — like Patricia and Norman in the law-firm adverts — can have a stroke of luck. This usually begins with a chance meeting with the attorney who happens to be chasing their ambulance shouting "no win, no fee"; leading to a legal case and generally ending with compensation — which eases the pain, a little. As such, you could say that personal injury claims have become a way of life in England. And the result; most companies — contractors and facilities managers in particular — live in fear of the financial risks of posing a health and safety risk to the public or their employees. I'm not saying this level of health and safety is necessarily the right way to go as it can lead to absurd situations such as the one a librarian friend encountered...Under strict instruction not to use the library ladders until she had received a special 'safe ladder-climbing lesson', the librarian found herself precariously scrambling up a bookcase to reach the top shelf. But perhaps if the UAE took a small leaf out of the 'personal injury claims book', companies would become more inclined to be health and safety vigilant and less neglectful. Had I been in England, I'm sure there would have been a warning that the bridge I was walking over last week was only half constructed — ideally before I almost stepped off the edge into the Dubai Marina. And at home, I doubt I would be left to risk life and limb dodging the deep crevices in the public walkways of my apartment building that the offending contractors appear to have forgotten about.
Editor louise@cpidubai.com 4
THE BIG PROJECT
August 2010
Publisher Dominic De Sousa Chief operations officer Nadeem Hood Chief marketing officer Kimon Alexandrou kimon@cpidubai.com GSM: +971 (0)50 748 7963 Events and marketing manager Deep Karani deep@cpi-industry.com GSM: +971-50-858590 Sales director Liam Williams liam@cpidubai.com GSM: +971 (0)55 310 9256 Group advertising manager Alex Bendiouis alex@cpidubai.com GSM: +971 (0)50 458 9204 Editor Louise Birchall louise@cpidubai.com GSM: +971 (0)56 605 8091 Designer Marlou Delaben Photographer Abdul Kader Webmasters Troy Maagma Elizabeth Reyes Jerus King Bation Printed by Printwell Printing Press LLC
Published by
Head Office PO Box 13700 Dubai, UAE Web: www.thebigprojectme.com
Š Copyright 2010 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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Don’t miss the region’s construction news headlines with The Big Project’s monthly news roundup...
Strabag wins $281m Abu Dhabi port contract The Government of Abu Dhabi has awarded European construction group Strabag subsidiary Ed. Züblin a $281.5 million contract for the development and construction of buildings at the new Khalifa Port, according to the company. Ed. Züblin will build 25 buildings for one part of the Khalifa Port in an 86,000m² area. The new port facility located 60km from Abu Dhabi will replace the existing Mina Zayed port by the year 2012, the company said in a statement. Plans include a five-storey control building, several small administration buildings, a hospital, a fire station, several warehouses and the entire infrastructure. Strabag said the contract was being carried out by a consortium with a local partner Al Jaber Transport & General Contracting, with Ed. Züblin assuming the role of lead consortium partner.The construction work started this month and the project is due to be completed by August 2012, it added.
ction Saudi constru d to sector expecteis year grow 6.4% th
sector is ia's construction th of Saudi Arab ow of increased gr ck P ba GD e al th Re this year on 4% 6. nd 1.5% and pa ex te expected to a growth ra of ents, following ercial Bank stm m ve m in t Co l en m na rn tio gove spectively, Na re 09 20 d an 4.7% in 2008 t month. special report las P fell (NCB) said in a om's non-oil GD gd kin e in the -time high of all an h ac re The sector's shar to but it is forecast , 08 20 in . y id all sa margin the report end of this year, r rose 7.8% in 10.41% by the nstruction secto co i ud Sa e th to ng idence in the di nf len co Bank clear sign that a ar, ye is th of the first quarter News Daily. g, reported Gulf lt overexposed sector is returnin d up as banks fe ie dr d ha r fell cto se e it to the sector Lending to th ding . Bank cred len y e th av he as of 09 s 20 ar after five ye .9 billion) in llion riyals ($11 stment, a bi ve .7 in 44 te to iva % pr .7 in by 17 declines brought with it cancellations. economic crisis mber of project nu a d an in it, ed cr % of which are shrinking of bank rrent projects, 22 cu 7 68 s ha om The kingd are ase. 2010 and 2011 the execution ph cts awarded in ra nt co . B, ely NC tiv to spec According d $86 billion re h $64 billion an forecast to reac
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August 2010
The order also includes the development and construction of buildings for one part of the new port which connects the mainland with the container terminal, which is in progress, and has a length of four kilometres. Strabag CEO Hans Peter Haselsteiner said: “Only recently we won the contract to expand the Takreer Refinery in Abu Dhabi. I see the new project as a further sign that we are gaining a foothold in the region,” reported TradeArabia News Service.
Arabtec gets US $680m La Hoya Bay Project UAE-based Arabtec Holding PJSC has signed an accord with Khoie Properties for the construction of the La Hoya Bay Development on Ras Al Khaimah’s Marjan Island . The total value of the project is estimated at $680 million (AED 2.5 billion) and it will be built in phases over 54 months, Arabtec said in a statement. Construction on the project’s first phase, valued at $245 million (AED 900 million), will start immediatel y after a financing agreement is signed. The agreement is now in its final stages, reported Bloomberg Business. La Hoya Bay Development, which will be built on 1.5 million ft² of land on the man-made island, is designed to include homes, hotels, offices, retail space, three marinas and a yacht club. The project will have 5.5 millio n ft² of built up area, Arabtec said.
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Building materials stolen 'every day' in emirates
Construction companies and police are pushing to curb building materials theft – a campaign the firms hope will save them the cost of replacing labourers caught trying to supplement their income by selling on the black market, reported The National. “Materials are a lot cheaper than people,� said Charles Mallice, director of operations and training for the security company Adsecc. “People need to be educated so they don’t steal,� he added. “The investigations have gone up. The police are looking into reports of theft a lot more seriously now than ever before.� He said police hoped to send a message to the workers that there are serious consequences to stealing material from construction sites, even though the items themselves might not be worth very much. Trans Middle East general contracting general manager Abrar Ali Khan said the greater opportunity to steal construction materials stemmed from the disbanding of a committee four years ago that oversaw the disposal of scraps from building sites in the region. The panel had established designated areas in the city where contractors could dispose of their unused material. Nowadays, he said, there is a brisk demand for scrap material from collectors who sometimes even bribe or otherwise entice workers to steal. One of the most commonly-stolen materials is cable, from which the scrap dealers extract the metal, mostly copper. “Cables mostly make good money,� Khan told The National. “If you leave something lying around today, you won’t find it the next day. It is very common.� A senior police official said the scope of the crime was minor, however, “considering the massive construction projects going on in the capital�. Statistics on the number of recent cases of construction theft were unavailable. Last month, seven men from Sri Lanka and three from Bangladesh appeared before the Abu Dhabi Criminal Court of First Instance in two separate cases, charged with damaging and stealing electrical cables from construction sites. Their lawyers claimed the cables had been dumped and abandoned, and that their clients simply took what had been thrown away. Prosecutors argued that the men cut and stole the cables to sell them to scrap shops. Two construction companies brought the legal case. The Sri Lankans initially denied the charges, but changed their pleas to guilty. The Bangladeshis all pleaded not guilty. The court will issue verdicts next month.
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Aldar po slow salests loss as s bite ma rket
Abu Dhab i’s biggest property d $214.9 m eveloper, illion loss Aldar, post for the firs property sa ed a t half of th les contin is year as ued to bli Aldar Pro slow ght the m perties ch arket. a “with the ongoing im irman Ahmed al Sa yegh said pact of th situation, that e this has b een a very difficult global eco year for th nomic challengin e entire se g first half ctor�. The result of the is a sign o Dhabi de f is su e s “catchin velopers si g up� with nce the o the end o Abu nset of th f 2008 e financia Sorouh, th , analysts say. l crisis at e capital’s se value, rep cond-larg orted a 79 est deve % decline month as in second loper by market land sales -quarter p d ri e d up, rep Property p rofit last orted The rices in A National. peak in th bu Dhabi e middle h a ve fallen 30% of 2008, a by the co from their ccording nsu to figures demand is ltancy Jones Lang L published aSalle in F still low d ebruary, w espite a h Deutsche ousing sh hile Bank pred ortage in by the en ic ts the capita prices cou d of the y l. ld fall a fu ear as dem rther 10% Based on and rema c ins sluggis and a AED alculations from A h. ldar’s half 31 -yearly re losses in th 4.2m loss in the fi sult rst quarte e second r, the com s quarter re than doub pany ’s ached AE le the am D4 ount forec asted by a 75.3m, more nalysts.
BREAKING
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August 2010
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CONSTRUCTION SURVEY NEWS REPORT
Green building survey results Landmark Advisory has released the findings of its first sustainable building survey, which indicates that a ‘green’ property market is viable in the UAE within two to three years
A
survey conducted by Landmark Advisory in conjunction with Cityscape Intelligence indicated a willingness from the development and investment communities to implement green building into business models. The survey was the first of its kind conducted by the UAE-based real estate consultancy: “Through initiatives such as Estidama and Masdar City, it is clear
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that considerable progress is being made in sustainable real estate, particularly in Abu Dhabi. However, we felt it was important to understand the perspective of various industry stakeholders, and their awareness of the various issues surrounding green buildings, as well as their opinions regarding the potential demand drivers for green real estate in the UAE,” said director of research and advisory Jesse Downs. When asked if developers are now willing to build green buildings, 66% of respondents, which included developers, investors, property managers and analysts, responded positively. In addition, 60% said investors would now be willing to invest in green buildings. The top three attributes associated with green building were ‘environmentally friendly’ (83%), ‘lower utility bills’ (54%) and ‘better design’ (34%). However, when asked about the feasibility for developers to build and lease or sell green buildings in the UAE,
a quarter of respondents indicated that this would only be viable in two-to-three years’ time. While 20% thought it was already feasible.
Response to regulation Furthermore, the survey assessed the need for regulation to improve sustainability in the UAE property market. While regulation was perceived as having a positive impact on the implementation of green building, there was a moderate sentiment towards its implementation in the sector, with many respondents remaining 'neutral'. Overall, the survey findings highlighted that the vast majority of those interviewed have a grasp on the concept of green buildings. Approximately 96% of respondents reported an understanding of what a green building is. “Of course, this does not test actual understanding, but rather self assessment of knowledge, which is subjective,” said Downs. “While this is a very basic question to ask, it is one potential indication of awareness of sustainability in the real estate market. Fostering awareness through education is the critical first step in building a sustainable property market,” she concluded TBP
August 2010
THE BIG PROJECT
9
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OPINION CMCS
Quick fix Improving project management skills is key to minimising project failures, according to Collaboration, Management and Control Solutions (CMCS) CEO and founder Bassam Samman CMCS CEO and founder Bassam Samman.
A
mid the positive economic forecasts that the Middle East region is slowly rebounding from the impact of the global financial downturn, one factor that seems to be pulling the region back from full recovery is the presence of development projects that have either stopped, exceeded their original budgets
or that have missed their scheduled date of completion. These failed projects translate to billions of dollars wasted every year — leaving investors grappling with huge financial losses and the missed opportunity of putting the funds into other investment initiatives. According to a recent survey
conducted by Collaboration, Management and Control Solutions (CMCS), the leading causes of project failure in the Middle East region are poor project planning and methodology, unrealistic target completion dates and a lack of communication. The results of the survey show the region’s alarming underinvestment in project
“THE LEADING CAUSES OF PROJECT FAILURE IN THE REGION ARE POOR PROJECT PLANNING, UNREALISTIC TARGETS AND BAD COMMUNICATION”
Unqualified project-delivery teams and poor communication between construction workers are two main reasons for project failures.
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management competencies across different project-based sectors. The survey, which was conducted among members of the region’s construction and development segment, reveals improper planning and poor methodology (78%) as the top reason for today’s failed projects. This was followed by a lack of proper communication at 75% and the setting of unrealistic target completion dates at 67%. Other factors identified in the survey were the lack of commitment and involvement from senior management (59%) inadequate budget and resources (56%), too many assumptions and unknowns (51%), project politics and conflicts (38%), a lack of set targets and measurable results (45%), and the presence of unqualified project delivery teams on site (27%). www.thebigprojectme.com
CMCS OPINION
Learning from error The global financial downturn has helped us to see the inadequacies and flaws in the way the region manages its projects. We should have learnt our lesson through the discovery of these errors and sought out solutions to help deal with them. Despite economic experts predicting the slow-but-sure path to recovery of the construction sector, we still find ourselves committing the same mistakes that ultimately result in project failure — poor planning and execution, flaws in communication and setting unreachable target deadlines. Not only do these failed projects hinder our move towards recovery but they also set a big blow in terms of huge investment losses. The solution lies in the implementation of a strategy that sets out to expand and enhance project management competencies. Adopting benchmark project management innovations and practices can bolster the success rates of current development projects in the Middle East. Formal education in project management is the key, and the region
Contractors and developers continue to make the same old construction mistakes that lead to project delays according to Samman.
seems to be catching up on this. Today, countries like the UAE and KSA have expressed a growing interest in managing project risk. Investing in a sound project management system and utilising it as part of a company’s daily operations translates to positive results. Other catalysts for failure noted in the survey were lack of motivation
and the inability to properly control the project team, insufficient risk analysis, lack of planning tools and weak IT infrastructure, slow decision making, lack of alignment with the organisation’s strategic goals, delays in engineering and procurement, the wrong choice of contractors, design changes, and economic instability. TBP
“ADOPTING BENCHMARK PROJECT MANAGEMENT INNOVATIONS AND PRACTICES CAN BOLSTER THE SUCCESS RATES OF DEVELOPMENTS” Other major causes of project failure in the region
Lack of commitment from managers Insufficient budgets and resources Too many assumptions and unknowns lack of set targets or measurables
Percentage of respondents
Project politics and conflicts Formation of the wrong project team
Top three causes of project failure in the region
Improper planning and methodology
Lack of communication Unrealistic target completion dates
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Percentage of respondents
UAE-based CMCS provides project portfolio management solutions across the engineering and construction sector, among others. The company has 17 offices spread across the Middle East, Africa, Asia and Europe.
August 2010
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ABU DHABI EVENT INSIDER
Investing in infrastructure Last month, The Big Project in conjunction with Abu Dhabi Commercial Bank (ADCB) brought together six experts to discuss challenges in developing Abu Dhabi’s infrastructure
The agenda Guests were welcomed by ADCB senior vice president and head of SME banking Nilanjan Ray, before Deloitte UAE audit partner and construction leader Cynthia Corby took to the stage. Corby’s portfolio of clients includes major construction companies audited in the UAE, such as Amana Group, Murray & Roberts, Wade Adams Group, Khansaheb, TAV and Hasties, among others. She is also the advisory partner for Arabtec and Multiplex. Based on her discussions with clients and industry experience, Corby offered an insightful overview of infrastructure developments in Abu Dhabi, raising some of the key industry issues and points of discussion.
The debate
L-R: Michael Barron, Tim Burbury, Mark Scorer, Karl Hamer, Chase Pense and Howard Gaunt at the event, which took place on July 12.
The Abu Dhabi Government is spending more than any GCC city on infrastructure projects, according to Business Monitor International. Investments are expected to exceed $15 billion between 2009 and 2012. Three main issues were addressed during the seminar; the tender process and delivery of infrastructure developments in Abu Dhabi, how to fund infrastructure projects and the effects of increased competition in the market. The panellists agreed that Abu Dhabi infrastructure developments
"INVESTMENTS IN ABU DHABI INFRASTRUCTURE DEVELOPMENTS ARE EXPECTED TO EXCEED US $15 BILLION BETWEEN 2009 AND 2012"
A
s Abu Dhabi rapidly expands over the next 20 years in line with Plan Abu Dhabi 2030, the development of its infrastructure will require particularlycareful attention. The capital’s already overstretched infrastructure is inadequate to meet forecast demand. Plan Abu Dhabi 2030 acknowledges that advanced, reliable infrastructures are fundamental to fostering rapid economic development and new supply options must be determined, designed, funded and constructed in the expanding capital urgently. In the first instalment of the ADCB www.thebigprojectme.com
presents SME Connect Series, which took place on July 12 at the Beach Rotana Abu Dhabi, six industry experts came together to together to discuss and debate supply and demand, best practice and opportunities involved in the sustainable expansion and diversification of Abu Dhabi’s infrastructure (see The line up on the next page). The interactive conference was attended by more than 50 developers and contractors from across the emirates, as well as members of Abu Dhabi Municipality. The Big Project brings you some of the highlights from the evening:
Repackaging projects could speed up delivery and reduce risk.
August 2010
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EVENT INSIDER ABU DHABI
THE LINE UP Michael Barron, divisional manager of transport & planning Middle East for Mott MacDonald In 2006, Barron moved to the UAE to head up Mott MacDonald’s Middle East transport division. Since, he has led a team providing technical advice on the Palm Jumeirah Monorail and was heavily involved in the transit safeguarding undertaken as part of Abu Dhabi’s Surface Transport Master Plan. Barron has more than 20 years’ industry experience.
Chase Pense, operations director, Al Fara’a Group
A shot of the Abu Dhabi sewage treatment development constructed by contractor Six Construct.
are extremely important to the construction sector moving forward. But, with a long list of contractors bidding for projects, contractors’ margins had been negatively impacted. It was suggested that projects could be smartly repackaged to allow for smaller jobs to be taken up by smaller contractors, as many opportunities are snapped up by the larger companies. It was also suggested that this could limit risk. However, a greater issue of concern was that the number of projects being awarded in the capital was still relatively low. The panellists discussed the feasibility of alternative models designed to speed up the tender process and delivery of projects in the capital, which they said were typically long and drawn out. While funding of projects remains challenging, it was proposed that public-private partnerships could stimulate the level of active infrastructure projects in the UAE, however, questions were raised over the effectiveness of this solution in the short term. TBP
Pense joined Al Fara’a Group in Abu Dhabi in June last year, having previously held the role of project leader at Aldar Laing O’Rourke. He is currently in charge of strategic joint ventures and has aligned with several leading international companies. Through such joint ventures, he is responsible for actively pursuing and executing large, complex projects within healthcare, education and infrastructure sectors.
Tim Burbury, construction and major projects counsel, King & Spalding Burbury advises master developers, government-owned entities, utilities and infrastructure funds on their involvement in energy projects, PPPs and mixed-use master developments throughout the Middle East, Asia and Australia. Most recently, Burbury has been advising TDIC, ADNEC, Mubadala Development Company and Mubadala Infrastructure Partners on a number of infrastructure projects in the region.
Mark Scorer, GM, Al Habtoor Leighton Group Civil engineer Mark Scorer has more than 32 years’ experience in the construction industry, most of which has involved working on infrastructure projects worldwide. He has performed major roles in project development, execution and management. He joined Leighton Group in 1979 and is currently based in Abu Dhabi.
Karl Hamer, director of sales, Al Habtoor Motors Hamer has clocked up more than 33 years in the automotives industry and joined Al Habtoor Motors in 2008. Hamer is well placed to comment on trends in construction project demand for vehicles.
Howard Gaunt, corporate and commercial banking head, Abu Dhabi Commercial Bank (ADCB)
Construction of Abu Dhabi's Sheikh Zayed Bridge. The bridge is 842m long with a main span of 140m.
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Gaunt is responsible for the strategic development and end-to-end management of commercial and corporate business. He has integrated the customer coverage and analytics units allowing for industry and customer segmentation, and single banker customer coverage. He has more than 25 years’ experience in the sector.
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TALK DAMAC PROPERTIES
Delivery before
diversity Damac Properties GM Ziad El Chaar comments on the cancellation of Tarin Hills in Iraq, delivery of the group's ongoing projects and why it is time to revisit Lebanon El Chaar: We will re-enter Iraq when the market is ready.
I
t seems that Damac Properties is undeterred by the recent cancellation of its US $14.97 billion Tarin Hills project planned for the Kurdistan area of Iraq, instead the developer is following an “aggressive” strategy to deliver its current MENA projects, general manager Ziad El Chaar tells The Big Project. The first phase of Tarin Hills was announced two years ago, but last month the licence for the project was cancelled by the Kurdistan regional government investment board because
Revisiting old markets Only time will tell how Damac’s future Iraq plans will pan out, however, the group recently announced that it will revisit Lebanon. Last month, the company publicised plans to build Damac Tower in the downtown area of Beirut. Damac first announced a project in Lebanon in 2006, but the developmemt was put on hold due to political disruptions in the country at the time. “The time is right for us to re-enter Lebanon. The market has settled very
nicely and it’s one we have always had an interest in. It is not new territory for Damac, this is a comeback,” explained El Chaar, when asked why the group has chosen to launch a new project at a time when its main focus is to complete existing developments. Enabling works have commenced on the high-rise residential building, which is expected to be completed in 2013. These works are expected to be completed within seven to eight months, after which time the main contract will be awarded.
“WE AWARDED 20 PROJECTS LAST MONTH WORTH APPROXIMATELY AED 3.6 BILLION. OUR FOCUS IS ON COMPLETING THESE DEVELOPMENTS” construction did not commence according to schedule. “The credit crunch unfortunately started at the same time as we announced the project. The Iraq market is very important to us but in the short term we’re focused on completing the projects we have already launched and which we have customers for,” explains El Chaar. But the group hasn’t given up on Iraq, he suggests that there are opportunities in the retail sector of the war-torn country and the developer hopes to reannounce the project soon having readdressed some of the key design and function elements. “When the Iraq market is ready for projects to be introduced into it we will do so,” adds El Chaar. 18
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The main contract for Damac's Abu Dhabi mixed-use development Oceanscape was awarded to Al Shafar General Contracting in June.
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DAMAC PROPERTIES TALK
The developer has teamed up with Italian fashion designer Versace for the interior design elements of the project.
Award after award Meanwhile in the UAE, El Chaar confirms that the company’s ambitious intention of delivering almost 4000 units in Dubai by the first quarter of 2011, making up a third of the 12,000 units it expects to complete within the GCC over the next three years, is on track. “We awarded 20 projects last month worth approximately AED 3.6 billion. Our focus is on completing those developments,” says El Chaar. Among those awarded was the main construction contract for the 600-apartment residential project Damac Heights, located in Dubai marina. Arabtec won the AED 500 million ($136 million )tender. Damac Heights is within walking distance of another of the company’s flagship properties; Ocean Heights, which is also being constructed by Arabtec. Work on Ocean Heights is due to be completed this year. The awarding of the Damac Heights contract marked the third major contract announced this year following on from awards for its Lakeside development at Dubai’s International
Al-Jawhara Tower is a 178m-tall, 49-floor residential project currently being developed by Damac Properties in Jeddah, Saudi Arabia.
“SUSTAINABILITY IS SOMETHING THAT IS IN ITS INFANCY IN THIS PART OF THE WORLD, BUT IT’S SOMETHING ALL DEVELOPERS ARE LOOKING AT” Media Production Zone and The Corner at Dubai Business Bay, worth around AED 484 million ($132 million). El Chaar says there are more contract awards still to come this summer. “The full focus is on awarding contracts and working with contractors to build and construct the products that we already have in the market to the highest quality.”
Cementing relationships He acknowledges an industry shift to a ‘developers’ market’ as construction projects wane and competition rises among contractors. However, he says this has not affected the company’s choice of contractor. “Developers that are the size of Damac are in the game for the longwww.thebigprojectme.com
The 310m-tall Ocean Heights is to be completed this year.
term, not just for the market peak. So we like to build relationships with contractors over a long period of time, regardless of whether it’s a developers’ or contractors’ market. “We have used a lot of contractors in the past, such as Arabtec and Drake and Scull for example, we build relationships with these contractors.” But – luckily for other contractors in the market – this doesn’t rule out competition, according to El Chaar. “You have to look at the project size, the complexity and the key requirements. We don’t just look at the contractors we know we’d like to work with, we investigate who’s really qualified to take on the project taking into account these specifications.” August 2010
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Structural works on Damac's Park Towers development at Dubai International Financial Centre (DIFC) are completed and the project is on schedule to be completed this year, according to the developer.
Contractors can also boost their bid by highlighting their green credentials and experience, El Chaar reveals. The company has a LEED coordinator on board to ensure projects comply with key sustainability guidelines and drive green initiatives within the company. There are a lot of green components and requirements within the tender
Arabtec is constructing Damac Heights in Dubai Marina.
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documents, says El Chaar, and contractors that can demonstrate that they can meet these are at an advantage. “Sustainability is something that is in its infancy in this part of the world, but all developers want to make buildings more energy efficient.”
DAMAC FACTS z
Time for efficiency In fact, efficiency is top priority for Damac in all aspects of its projects, reveals El Chaar, explaining that the efficiency of project construction, delivery and the end product is more important than ever within a competitive market; especially if the company is going to meet the ambitious completion goals it has set. And that is not the only lesson to come out of the past financially-challenging 18 months: “The most important lesson learned is that you need to keep communication with customers, clients and investors, even at a time of crisis; there must not be a communication breakdown.” Armed with its experience of a volatile market, the company has high hopes for further expansion in due course. “Diversification is key to any business,” concludes El Chaar. TBP
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Damac Properties, part of Damac Holdings was established in 2002 in Dubai, as a private residential, leisure and commercial developer. It has since expanded into North Africa, Jordan, Lebanon, Qatar and Saudi Arabia. The company has delivered more than 3500 units into the Dubai market with projects at IMPZ (The Crescent), TECOM (Executive Heights), JLT (Lake View and Lake Terrace) and the Marina (The Waves and Marina Terrace). Damac is expected to hand over approximately 3971 additional units by the end of 2010 / start of 2011. The company manages all aspects of a project from land acquisition, appointment of architects and designers, construction and sales to after-sales service.
www.thebigprojectme.com
Hotels in the
pipeline There are 455 hotels in the Middle East and Africa development pipeline comprising 126,310 rooms. As the UAE accounts for 50% of these, The Big Project explores the potential of the emirates to attract enough investors and guests to balance supply and demand
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t may come as a surprise that many of the UAE’s hotel projects continue to forge ahead in spite of widespread development delays and cancellations more often making the headlines. Out of 455 hotels in the Middle East and Africa active development pipeline, the UAE accounts for almost 50%. That’s 54,814 rooms out of the 126,310 being developed in the region. Dubai is the largest market, with 32,224 upcoming rooms and the highest number active in the construction phase (16,768). Since the hotel construction boom of 2006, Dubai has made the headlines for the launch of many iconic high-end hotels, but when the global economic downturn struck in late 2008, the emirate took a major blow as occupancy plunged and rates were slashed by up to 50%. Many investors and developers turned their attention to Abu Dhabi, which had always appeared to take a more sustainable approach to hotel development, having announced longterm development plans surrounding tourism and infrastructure. In fact, reluctant to keep all of their eggs in one basket, many Dubai developers have expanded into new or emerging markets with the launch of hotel projects. “Dubai could have once been considered as the market leader in
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hotel design and construction, but now we are involved in and seeing very interesting projects emerging in Abu Dhabi, Doha, Beirut and other places,” says PLP Architecture partner partner Lee Polisano. But that is not to say there will not be a demand for the thousands of hotel rooms upcoming in Dubai. “For leisure tourists, Dubai will always be the destination. Business travellers will continue to be attracted to Abu Dhabi. However, licences for city hotels in the centre of Abu Dhabi
Dubai-based Layia Hospitality CEO Daniel Hajjar.
are not being issued. There is no space. So the hotel development focus in the capital is moving to the beachlined outskirts, which poses increased competition to Dubai's leisure market,” asserts Dubai-based City Seasons Group managing director Thomas Tapken. Hotel developer and operator, Layia Hospitality set up in Dubai three years ago and opened its first hotel in the emirate at the start of the financial crisis, but today, its Dubai hotels continue to achieve an occupancy level of 80%, according to CEO Daniel Hajjar. “Obviously the room rates have been affected, but previously the rates were over the top; so it’s been an acceptable adjustment. I don’t think we’ll have challenges with rates any more, the situation has stabilised,” he says. www.thebigprojectme.com
“THE ECONOMIC ENVIRONMENT INFLUENCES HOTELS' FACADE DESIGN AND STRUCTURE” In fact, Hajjar suggests that the lower rates have encouraged guests — business customers especially — to return to the UAE two or three times. Consequently, the drop in rates has been somewhat offset by the number of return guests in search of a bargain, he says. But if the success of the Dubai tourism market is dependent on an influx of budget travellers, what does the future hold for the emirate's numerous luxury five-star properties?
Luxury versus budget PLP Architecture designed the fivewww.thebigprojectme.com
star Four Seasons Hotel at Abu Dhabi Sowwah Island, which is currently being developed. Polisano says: “There is a continued desire for luxury and increased levels of services. We also see an increase in combining residential accommodation with hotel accommodation; offering residents a special level of hospitality service that is usually only available to hotel guests.” “There will always be a market for five-star luxury,” adds Hajjar, adding that, however, there is a trend towards the budget hotels, which are becoming “acceptable” in this part of the world
City Seasons Group MD Thomas Tapken.
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COVER STORY HOTELS
and therefore challenging the profitability of the highend market. “Previously, threestar properties had a bad reputation for service and products, but the introduction of ‘branded’ budget hotels, such as the Premier Inn and the Holiday Express, has changed this. “The introduction of low-cost airlines, including FlyDubai, has also helped this market to mature. And of course, people are counting their money — so budget holidays are increasingly attractive,” he adds. Tapken adds: “Dubai will be a budget destination for the coming year, on the other hand, the only properties on the beach are rated five-star and the only hotels doing well are the five-star hotels. However, the company is currently developing its first
budget, three-star property, the City Seasons Park Hotel, in Abu Dhabi.
Standing out Whatever the scale of the hotel, it is important to have a tangible niche. Hajjar has been in the hotel development industry in the Middle East for around 23 years; witnessing firsthand the good and the bad days. He has seen a switch in the popularity of hotel developments among investors towards a trend for residential buildings due to a perceived higher and more immediate return on investment. However, he says that investors are once again leaning towards hotel projects as a secure longterm investment. “People are realising you need to have hotels to develop countries.
The Four Seasons Hotel Abu Dhabi at Sowwah Island has been designed by PLP Architecture and will be loca
“BIGGER IS NOT ALWAYS BETTER. CREATING A MEMORABLE GUEST EXPERIENCE IS ONE OF THE KEY DRIVERS TOWARDS A BETTER HOTEL”
In April ground was broken on the Premier Inn project at ADNEC's Capital Centre, Abu Dhabi.
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Oversupply is not good, but when you see the number of planes Emirates Airline is buying, and the investments in airports in Dubai, it tells you that it is safe to invest in Dubai properties.” But you have to have the right product, he warns, not every development will be a sell out — you need to go back to reality. But what is the right product for the seemingly saturated Dubai hotel market? Hajjar says investors and developers should stay away from five-star hotels — “there are already too many of these in Dubai”. Layia Hospitality is focused on developing business hotels of either a “very-good three-star
standard” or an “excellent four-star” classification, according to Hajjar. Tapken adds that the citybased business hotel sector is a high performer at present. The 232-key Layia Plaza hotel in Dubai is expected to open in September or October, having experienced a six-month delay due to "planning changes". Hajjar says that the 140-room Layia Orchid Hotel, also in Dubai, will be handed over in the next six to eight months, while piling and excavation works have started on the 240-room, Dubai-based Layia Dahlia Hotel and the Layia International Financial Hotel in Sharjah, which are expected to open in 2012 and 2013 respectively. www.thebigprojectme.com
HOTELS COVER STORY
$1.17 billion The amount of cash to be spent this year on hotel projects under construction in the GCC according to Proleads.
ated at the heart of Abu Dhabi's new Central Business District. The project is being developed by Mubadala.
markets, having signed a 240key, four-star deluxe property in Jordan last year. Hajjar also reveals that Layia Hospitality is in final negotiations for a number of properties in Saudi Arabia, which it hopes to finalise and announce within the next two months. Similarly, City Seasons Group is expected to handover its new Muscat hotel on December 1. “It’s very easy to work in Oman, the people are friendly and charming and you don’t encounter the Dubai stress. But it can be
difficult to get things done. The project has been ongoing for three and a half years and we have seen delays, which I’d attribute to the laid-back attitude in the country.” Tapken says that one of the biggest challenges has been communicating with the Oman Municipality to have the utilities connected and switched on. But this hasn’t put the developer off Oman: “We’re looking at a second project as part of a development featuring three other hotels in Muscat. Two major chains are on board for two of the
“IF THE BANKS WERE AVAILABLE TODAY, WE WOULD SEE MANY MORE PROJECTS COMING UP AS THE COST OF BUILDING HOTELS IS DOWN” But, the hotel developments are not a priority for the owners, says Hajjar, as hotels are not their core business. When eventually complete, the four additional hotels will bring Layia’s number of hotels in operation to nine, comprising 1439 rooms – mainly in Dubai. “The owners’ priorities are somewhere else, which means we’re in limbo with dates, but that’s understandable taking into account the financial crisis,” he explains. On the upside, he says that the cost of building these hotels has got cheaper. When the company first entered the market it could not find anyone to build its hotels –
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everyone was too busy, but now contractors are calling developers, offering their services at lower prices. “If the banks were available today, we would see many more projects coming up as the prices are good, but the banks are not lending,” says Hajjar. On the other hand, Tapken says he has found the building costs to be only “slightly cheaper”, and says that the main challenge in the UAE is bringing in the materials and labour forces from abroad.
Market opportunities In addition to its Dubai projects, Layia Hospitality has diversified into other Middle East and Africa
The Park Hyatt Saadiyat Beach resort is being developed by Abu Dhabi National Hotels Company.
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WHAT’S YOUR FAVOURITE HOTEL UNDER CONSTRUCTION IN THE REGION? It would have to be the Makkah Royal Clock Tower Hotel in Saudi Arabia. Not only will it be the world's tallest hotel, but it will be the second tallest building in the world when it is completed and will have the world's highest observation deck, and I would imagine the largest clocks. I am impressed by the to open a sheer magnitude of the project and when I first heard about it, business here. I thought it was a hoax. The main tower will be surrounded Projects are still by six other residential towers. The architecture actually being driven by blends in well with the neighbouring Grand Mosque. I do the government so have one concern; I keep seeing different height figures for it’s good to know the towers in the complex. I now hear that the main tower there is a future. will be 601m, but I do not have official height numbers for “We will remain the other towers. They most certainly would rank among where we are in some of the tallest residential buildings in the world. the UAE. Within the next five years we want to have 15 properties across the region,” reveals Tapken.
Marshall Gerometta, database editor, Council on Tall Buildings and Urban Habitat
In conclusion hotels, which will serve alcohol. We are a dry hotel and Oman is very strict so we believe a City Seasons hotel will work well within this development. “We’re also seriously looking into Saudi Arabia and Qatar. There are only four or five cities interesting for any developer in Saudi Arabia. The population is tremendously growing in line with infrastructure. The people coming in to develop these projects need somewhere to stay. We offer city hotels; that is our niche and Saudi Arabia is exactly where we should be,” says Tapken. “City Seasons is going the right way, nothing new is being announced in the UAE presently and all ongoing projects are being completed within the next two or three years. I don’t think the business we had previously will ever return to how it was. But in Dubai, the city is continuing to build the infrastructure which makes it attractive
Chain scale
The global economic downturn has driven developers to identify opportunities in new markets and develop clear niches in terms of region, hotel classification and design, but industry players remain positive about Dubai’s future potential to attract leisure and business tourists, as well as Abu Dhabi's growing sector. Furthermore, PLP Architecture outlines a wider consequence of changes in the economic environment, saying that hotel projects’ massing, facade design, structural systems and services strategy have all been affected. “We are seeing a balance being struck between the parametres of ‘bigger and better’, which were often a criteria for hotel design in this region in the past. Bigger is not always better. The desire to create a memorable guest experience is one of the key drivers of making a hotel better. Better is about competition and will remain a key driver of design as will the quality of the guest experience,” says Polisano. TBP
Existing supply
PLP Architecture partner Lee Polisano.
The Kempinski Hotel, Jeddah is expected to open in 2012.
In construction
Total active pipeline*
Luxury
46,387
17,296
26,697
Upper upscale
69,509
21,839
34,200
Upscale
80,532
12,281
18,918
Midscale with F&B
51,732
2,987
7,586
Midscale without F&B
3,442
440
1,015
Economy
12,860
2,410
5,607
Unaffiliated
318,926
14,740
32,287
Total
583,388
71,993
126,310
*Includes those projects in the in construction, final planning and planning phases. Source: STR Global
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MARKET EXPLORER BAHRAIN
5 projects to entice you to
Bahrain The Big Projects looks at five key developments attracting more contractors to Bahrain
Low-cost housing units The Bahrain Ministry of Works & Housing has issued a request for proposals to three consortiums for developing 5000 low-cost housing units in the country. The developments will be spread across three areas, Al Buhari, North Bahrain Newtown and Al Lawzi. The consortiums are understood to include local firm Al-Moayyed International Group and local real estate and infrastructure development company Naseej. Land will be given to the winning consortium free of charge. There will be a government guarantee on the scheme to encourage banks to finance the project, which will be the country’s first public-private partnership. Bidders will be required to supply committed financing details for their bids, which must be submitted by August. Ernst & Young, Mott Macdonald and Freshfields Bruckhaus Deringer are advising the client on this development, which is expected to be completed in 2015.
National Amphitheatre The US $43 million national amphitheatre is expected to become a hot venue in Bahrain once it is completed in July 2012. With the capacity to seat 1000, the theatre will feature a number of multi-purpose halls and cover an area of up to 12,000m² situated north of Bahrain National Museum Lake. Cypriot construction firm Cybroc, the company that built the Riffa Views residential golf development in Manama, has been awarded the main contract.
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BAHRAIN MARKET EXPLORER
Diar Al Muharraq mixed-use resort
Kuwait Finance House is expected to invite contractors to bid for the main contract to develop Diar Al Muharraq, a mixed-use resort comprising 13 islands, with 40km of waterfront, in the fourth quarter of this year. The project will feature residential areas, commercial centres, shopping malls and hotels due to be fully completed in 2020, and is valued at $3.2 billion. To be situated on the coast of Muharraq, once completed the project will have 30,000 properties and house up to 100,000 people. Hyder Consulting has been appointed as infrastructure consultant, while Scott Wilson is the main consultant, Hisham Abdulrahman Jaffer is the project manager (HAJ) and AECOM Group has been awarded the master plan consultant contract. Danish Environmental Consultancy has also been brought onboard as the project's environmental consultant.
Bahrain Monorail The feasibility study for a 184km-long monorail network linking the Eastern Province of Saudi Arabia, Bahrain and Qatar is expected to be completed in September this year. Phase one comprising a 23km section is expected to be completed in 2016. Phase two includes the Green Line, a light-rail transit system that extends from Juffair through Manama to Seef District and is scheduled to commence in 2016. Phase three includes the Red Line, a tramway that extends from Bahrain International Airport, through the Diplomatic Area to Seef District. The project is expected to be fully completed in 2030. Dubai-based Systra has been awarded the main contract, while Germany’s IAB GmbH has been brought on as environmental consultant. www.thebigprojectme.com
Bahrain International Airport expansion
It is expected that contractors will be invited to bid for the construction contract to expand Bahrain International Airport’s existing terminal this month or in September. The client, Bahrain Airport Company, has received 39 pre-qualification documents for the design and supervision consultancy for two new terminals. In addition to the extension of the existing terminal, a second new terminal will be built, including rail links between the two and a multi-storey car park. France’s Aeroports de Paris and Jacobs Consultancy have been appointed master plan consultants, and HOK International, GIBB Ltd and Mohammed Salahuddin Consulting Engineering Bureau (MSCEB) are design consultants. Hill International and Dar Al Handasah (Shair And Partners) are the project managers.
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Suppliers in the spotlight A ROUND-UP OF THE LATEST NEWS AND ANNOUNCEMENTS FROM INDUSTRY SUPPLIERS IN THE MIDDLE EAST
NEW DIRECTOR AND OFFICE FOR SAS Building interiors supplier SAS International has appointed Hew Balfour as non-executive director. Joining from Havelock Europa, where he was CEO, Balfour brings a wealth of experience including former roles as non-executive director at the Scottish Leather Group and housing, property and construction company Miller Group. Having operated in the Middle East for more than 30 years, the company opened a new office and warehouse in Dubai Investment Park just over a month ago, with intentions of further expanding in the emirate.
'Air-cleaning' carpet launched International carpet manufacturer Desso has launched a carpet which the company claims can clean indoor air. The new carpet called AirMaster is primarily designed for implementation in offices, hospitals, schools and other public buildings as it reduces the amount of dist and particulate matter floating in the air, the company said. Independent tests have confirmed that AirMaster is eight times more effective in capturing and retaining fine dust than hard flooring and four times more effective than standard carpeting solutions, according to Desso. “AirMaster is a significant step forward from standard carpet in improving interior air quality and will be welcomed throughout the region and internationally,” said Desso regional manager for the Middle East & North Africa Andre Dulka. The carpet is based on patented technology and works by reducing the incidence of potentially harmful allergy-producing particles by safely trapping and immobilising them.
Victaulic introduces latest pipe-preparation tool ELECTRO-HYDRAULIC DEVICE ROLLS GROOVES IN PIPES UP TO 1500MM IN DIAMETER Mechanical pipe-joining systems manufacturer Victaulic has launched a new tool to prepare pipes for efficient and reliable flame-free joining. The VE460 shop fabrication rollgrooving tool is designed for use with pipes from 100–1500mm in diameter, depending on pipe material. It is suitable for preparing pipes to be joined with Original Groove System (OGS) couplings for 100–300mm sizes or the Advanced Groove System (AGS) ranging from 350to 1500mm. “It has been specifically designed for the wedge-shaped AGS grooves that deliver high-pressure ratings and can roll a groove on standard wall, large diameter
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pipe in five to seven minutes. That means that installers can prepare pipe and install couplings in a fraction of the time it takes to weld,” said Victaulic vice president and general manager for Europe, the Middle East, Africa and India Mark Gilbert. Available for purchase or hire, the fully-motorised, semi-automatic device is equipped with a three-phase motor wired for 400 volts and can be rewired for 230 volts. It comes with safety guards and a safety foot switch and is supplied with rolls for OGS from 100-300mm and for AGS from 350-600mm. All rolls are enhanced tracking rolls (ETR) to prevent pipe ‘walk-off’ and make grooving short pipe lengths easier.
www.thebigprojectme.com
SUPPLIERS NEWS
Exeed Litecreet hosts safety training Abu Dhabi-based Exeed Litecreet completed a safety training module for its employees in cooperation with the Ministry of Interior — Technical Rescue and Quick Intervention Branch last month. The company manufactures light-weight and thermo-insulating Autoclaved Aerated Concrete (AAC) blocks as well as reinforced panels, slabs and lintels for the GCC construction market. Adolf Neuner, a reputed trainer from Germany, led the initiative in the presence of representatives from ZonesCorp, the Ministry of Interior — Technical Rescue and
Exeed Litecreet hosts safety training module for its employees in cooperation with the Ministry of Interior.
Quick Intervention Branch, and Falck Safety Service. A pictorial explanation was offered on the functions and reactions of aluminium that is used in the manufacturing process of AAC blocks to generate the micro-pore structure inside the products. In addition to imparting techniques for handling aluminium, the trainer
also introduced employees to the hazards of the metal in causing fires and demonstrated the right and wrong measures taken while extinguishing a fire. On its part, the Ministry of Interior Technical Rescue and Quick Intervention Branch offered a simulation exercise that will be an integral part of Exeed’s emergency operations.
New fire dampers from Aldes Aldes Middle East has launched its Isone fire damper range to enhance the level of safety, indoor air quality and thermal comfort in UAE buildings. The dampers adhere to stringent European standards EN 1366-2 and ensure two hours' fire resistance without any heat transfer and smoke leakage. These fire compartmentation solutions offer four main advantages according to the company: Firstly; no heat transfer as the damper is constructed with an efficient isolating blade of refractory material (calcium silicate). Secondly; no smoke leakage due to an intumescing fire seal, thirdly; quick activation that doesn’t consume power and lastly; easy maintenance. The control box can be supplied with a reset motor for remote maintenance and inspection purposes. The UAE-based company moved into its new factory at the beginning of the year, the new base features an 8000m² production site housing around 90 staff. www.thebigprojectme.com
Rubber World Industries managing director Muzammil Shaikhani.
RWI operations resume after warehouse blaze Rubber World Industries (RWI) said operations would resume with customers’ orders being delivered in spite of delays caused by a fire at its Ajman warehouse in June. Having stabilised the situation, the company is looking at a more “long-term solution” to offset the repercussions of the incident in which no one was injured, according to RWI managing director Muzammil Shaikhani. “We are exploring options in terms of investing into a new facility, while making sure that all our customers’ requirements are met. We would like to thank the civil authorities for their fast response to put out the fire.” TBP August 2010
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BUILDING MATERIALS CORK
Cracking cork construction Cork is fast becoming a sought-after — if somewhat exclusive — building material. Ben Watts ventures to the Portugal cork forests to find out more about the product
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ustainable, fashionable and flexible, cork is veering away from its age-old reputation as the material used primarily as a bottle stopper, to a versatile product that is today used in flooring, insulation and aesthetics. The light, fire-retardant material, which is the bark of the cork oak tree, acts as an excellent thermal and acoustic insulator, and is impermeable to liquids and gases. In Portugal, where a large percentage of the world’s cork comes from, cork forests have been protected by law since the 13th Century.
Cork oak wood was used for ship parts during the Age of Discoveries on Portuguese caravels, and was even used by the Ancient Greek and Roman civilisations as a noble and adaptable building material. Despite the growing use of plastic and metal bottle tops in the bottlestopping industry, cork’s potential as a commonly-used material is growing, with demand coming from furniture manufacturers, insulation specialists and many construction niches. Architects such as the Lisbon-based Barbini Arquitectos have been adopting the sustainable qualities of cork in
“WHILE IT IS MORE EXPENSIVE THAN SIMILAR MAN-MADE MATERIALS, CORK IS A RECYCLABLE AND BIODEGRADABLE BUILDING PRODUCT”
Barbini Arquitectos is the architect behind Ecocabana; an environmentally-friendly hut that is constructed from cork.
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recent eco-construction projects. The firm’s architect and co-founder Flavio Barbini describes the material as “versatile and distinct”. “We have used the material on one project called the Ecocabana, an environmentally-friendly hut, which we want to use to educate people on the environment,” says Barbini. “Not only does cork act as an insulator, but it is a very versatile material to use. “We have had to change our plans somewhat from the initial design stage, but as we learn more about the material we are becoming more likely to use it on other projects – especially projects in natural environments such as in forests and on beaches.” www.thebigprojectme.com
CORK BUILDING MATERIALS
ADDITIONAL USES OF CORK As a flooring option, cork based products are varied and can be grouped as follows: z z z z
z z
Agglomerated cork tiles Agglomerated cork tiles with elastomer Agglomerated cork tiles with PVC A resilient agglomerated cork base with a vinyl surface layer and an agglomerated cork surface layer with a PVC base Rubbercork flooring Floating cork flooring with an upper or lower cork layer
In terms of insulation, the application possibilities of expanded agglomerated cork for construction are: z z z z
z z
Barbini notes that one of the benefits of using cork in construction is that it comes with a significant amount of heritage.
Building an icon “In Portugal cork is part of the culture, so as well as the environmental benefits, it is also an iconic material,” he remarks. The bark of a cork oak is harvested on average every nine years, in a process that actually saves the tree from dying. Bark from a tree's first two harvests, known as virgin and secondary bark, is usually used to make corkboard insulation and cork tiles. The cork that is produced from the third and subsequent harvests, known in the industry as reproduction cork, is generally used for making natural and technical cork stoppers. www.thebigprojectme.com
Other produce is used in granulated cork products such as floor tiles, memo boards, handles of fishing rods and gaskets. It can also be combined with rubber for gaskets, valves and insulation in buildings and railways, and has even been found in the nose cone of a space shuttle. Architects, designers and decorators have been finding the material of more interest as a natural material in recent years and there now exists a range of decorative products in a variety of textures, tones and colours. While it is more expensive than similar man-made materials, cork offers the construction industry a recyclable and biodegradable material that could help architects and builders meet the growing demand for ecofriendly buildings. TBP
Terrace — thermal, vibration, moisture, and waterproofing insulations Walls and roofing — thermal insulation, prevention of condensation Partitions and doors — thermal and acoustic insulation solutions Walls and ceilings — acoustic correction, thermal insulation, environmental comfort, and decoration Floors — vibration and thermal insulation; Bridges — thermal insulation, contraction/ and expansion joints
CORK — FAST FACTS z
z
z
z z
Cork is the outer bark of the evergreen cork oak (Quercus suber L). This variety of oak grows mainly in Portugal, Spain, southern France, Italy, and the Maghreb Cork oak trees are never cut down during the harvesting process. In fact, cork oak trees are protected by law across Portugal Cork consists of a tight web of up to 40 million cells per cubic centimetre. The cell membranes retain air-like gas — giving cork its capacity to float, insulate and re-expand quickly after compression Cork is natural, recyclable and biodegradable Cork retains unique qualities of flexibility, elasticity and compressibility
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HOT SEAT SUPPLIER
Resolco’s revelations
Resolco Insulation MENA sales manager Khaled Zuraiki says GCC contractors are beginning to recognise the link between insulation materials and levels of health and safety in buildings
When was Resolco established? Resolco Insulation was launched in the UAE in 2006.
What is unique about the products and services you offer? Resolco’s unique formulation produces rigid blocks of a consistently uniform size and shape. The blocks are free from pin holes, voids and cracks that compromise the performance of the phenolic. The company offers phenolic insulation called Insul-phen. Insul-phen is widely acknowledged as one of the safest insulation materials available as it meets international fire standards such as Class O in the UK and ASTM E84 25/50 in North America. Insul-phen’s low smoke emissions means it does not exhume toxic fumes, making a significant difference in the event of a fire as smoke and fumes are often a greater threat to life than the fire itself. Insul-phen is fabricated
Other markets such as North America and the UK are more stringent on fire and smoke regulations.
What insulation challenges are unique to this region and how are these overcome? High temperature and humidity can cause major problems. The level of condensation control measured by the thickness of the insulation must be calculated based on reallife conditions. Furthermore, the choice of vapour barrier and protective jacket is critical, especially in external applications.
“WE WOULD LIKE TO SEE FIRE STANDARDS AND REGULATIONS IN THE MIDDLE EAST BEING IMPROVED, SPECIFIED AND ADHERED TO” into pipe sections and is supplied for insulation in all types of residential, commercial and industrial buildings, and pipes and ductworks.
How does the UAE compare to the worldwide industry in its choice and application of insulation products? As is the case in South East Asia and the Southern States of America, the GCC countries are beginning to specify that engineers must consider the potential effect of high temperatures and high humidity within buildings; closed-cell insulations are a must in these climates. www.thebigprojectme.com
Do you have any plans to introduce new products or services to meet market demand? Based on the global campaign for a safer environment and taking into consideration the importance of energy conservation, our innovation team is consistently developing Insul-phen Phenolic for us in a variety of insulation applications in the region.
How has demand for your products varied over the past 12 months? Our supply is dictated by major project activity. We target prestige projects
where fire or smoke, insulation value and environmental benefits are key to the client, such as Masdar City, hospitals, schools, hotels and airports.
Would you like to see more stringent fire standards or regulations in the UAE industry? We would like to see fire standards and regulations in the region being improved and adhered to. Insulation materials can contribute significantly to the dangers of smoke obscuration. Fire materials with low smoke emissions should be more widely specified. TBP August 2010
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First-class formwork Five experts on formwork reveal the dangers of implementing poor or counterfeit systems and uncover the latest, most fitting solutions for a variety of construction applications What dangers are posed by the implementation of poor formwork? FRIEDRICH KERSCHEBAUMER: The danger of poor and under-designed formwork systems lies in the security on construction sites. The risk of a failure while casting is much higher and workers can be injured. PATRICK O’SULLIVAN: Concrete behaves heavily when poured; the pressures exerted can become a real safety risk. Therefore, building with concrete requires highly-developed technology to make the most of it. PAUL WILLIAMS: There are two distinct issues here: 1. the technical specifications and capacity of the product and 2. the adequacy of design. The associated risks are high — at the
This will damage the structure being built and possibly injure workers. To compensate this, suppliers of poor formwork systems may add extra material to their design because they are not confident in the properties of their system, so called ‘fear props’. Adding extra material is not of benefit to contractors.
Is counterfeit formwork an issue in GCC countries? FK: Counterfeit formwork is a big problem in GCC countries because formwork suppliers have no experience in statical calculation or the potential health and safety dangers onsite. PO: Counterfeit products are an issue in any country. The difference between wearing a fake Rolex watch on your
Try the same with fake panels and the site may collapse under the concrete! PW: We have witnessed a large increase in copy products being offered in the market over recent years. The biggest issue with counterfeit products is that they are not usually made to original product/technical specifications. Substitute materials are used and usually less attention is paid to quality control. While a product may physically
“GOOD-QUALITY, HIGHLY-DEVELOPED FORMWORK SYSTEMS ARE EASIER TO ASSEMBLE AND ARE MOST OFTEN FOOL-PROOF” forefront of considerations should be safety, formwork failures can and do cost lives. In addition, failures cause disruption and delays to construction schedules and can result in significant extra costs. ROGER RATCLIFFE: Inadequate formwork design can lead to collapses, with fatal consequences in many cases. THOMAS DAY: Poor formwork systems become overloaded; this may lead to the collapse of the formwork system. 38
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wrist and employing cheap counterfeit building equipment is that the latter is a safety issue. Considering that goodquality concrete results can only be achieved using top-quality equipment and ingredients; using counterfeit formwork is dangerous and shortsighted. A simple example illustrates this: a formwork panel quality controlled and tested to take concrete pressure of approximately 100 kN/m² will allow the site to pour to a height of four metres without considering concrete type/mixture, flowability etc.
appear to be the same as an original — often the grade of material used in the fabrication is not to original design specifications (for example, the grade of steel, thickness etc). The biggest risk to contractors is that the project designs incorporating these products as part of a system or solution are generally based on the original product specifications. A greater risk to the industry and to formwork companies is that substandard materials can contaminate quality products, formwork suppliers and contractors need to www.thebigprojectme.com
be particularly vigilant in terms of identifying copy product from original. Formwork suppliers (as designers and manufacturers of the product) have the capacity and trained people to properly assess and identify copy equipment, for contractors, however, the task is much more difficult. TD: The test for any formwork is whether it meets defined standards. Not all formwork available in the GCC countries will meet these defined standards as this region is a developing market. However, the quality of the formwork being used is improving.
Can you give any recent examples of the consequences of implementing inadequate formwork in this region? PW: There are many examples. Recently we saw the collapse of a complete bridge span; it was constructed using copy products, but designed using the original manufacturer’s technical specifications. There have been other cases in the UAE and in Kuwait where entire floor slabs of buildings have also collapsed due to this reason. It is common in these cases that the thickness and grade of steel used in the false-work system is not to specification. www.thebigprojectme.com
Aside from the larger catastrophes that occur and attract publicity and attention, there is a larger number of formwork failures that are associated through the use of counterfeit formwork accessories; for example, copy tie systems etc.
Why do buyers opt for counterfeit or inadequate solutions? FK: Buyers see the cheap price, but they do not think about the consequences of buying counterfeit or inferior systems, such as a lack of adequate technical support and safe-assembly training. PO: Buyers would opt for a counterfeit or inadequate solution due to a lack of knowledge or expertise in concrete construction; otherwise they would not take such a risk. It's like sending a Formula One team onto the track in the hope of winning the world record on wooden bicycles. PW: We work in a cost-driven industry. RR: The usual reason for selecting inferior material is price so if the system is a lot cheaper than others on the market; this provides an early clue that the source may be questionable.
Friedrich Kerschbaumer Technical manager PERI Formwork Shoring Engineering
Patrick O’Sullivan Chief executive officer Meva
Paul Williams Managing director RMD Kwikform Middle East
Thomas Day Sales manager GHI Formwork
Roger Ratcliffe Chief executive officer RJR Global Scaffolding Trading & Rental
August 2010
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SUPPLIERS FORMWORK
educate buyers in this regard. The more developed the market becomes the more individual buyers will become educated in formwork systems.
What should a buyer do if they encounter a supplier selling copies? PW: The goods should be immediately isolated from any other materials being used on the project. Proper investigation and assessment of the material should be undertaken. Where inferior products are identified and confirmed as the same, these products should be destroyed.
How do you ensure your products are safe, reliable and high quality?
TD: Price is one reason why buyers opt for inadequate formwork solutions. They may not understand the risks of poor formwork, they may not work for a company that takes health and safety seriously or perhaps they don't work in a jurisdiction that demands the use of adequate formwork systems by law.
How can a buyer distinguish between counterfeit- and genuine brands? FK: The buyer should ask for technical
between genuine brands and counterfeit ones can prove to be difficult as more often than not there is little difference in the physical appearance; it is the quality or the grade of the material used that represents the risk. It is recommended that the buyer invites inspection of the goods by a reputable supplier, who will be better equipped and positioned to identify inferior grade products, and can conduct load tests on the components.
FK: Every item Peri supplies is quality checked before it leaves our stockyard. Furthermore, before casting items onsite, our site supervisors check the assembled system and certify this to our clients if required. PO: We have certified quality management through stringent testing and a good track record. We also show our commitment to international organisations dedicated to advancing concrete expertise and quality. PW: Like all reputable formwork
“THE USE OF COPY FORMWORK PRODUCTS CAN COMPROMISE BOTH THE DESIGN AND STRUCTURAL INTEGRITY OF THE SYSTEM BEING USED”
PO: Buyers will be supported through the service, expertise and consulting offered by leading formwork manufacturers. These companies will offer engineering support from the projecting phase all the way to supervision onsite. Suppliers of counterfeit formwork don’t have these expertise to offer.
RR: Before approving any system, qualified engineers should check the contractor’s proposals and supplier’s calculations and sign them off once approved by all concerned. The supplier, contractor, consultant and engineers have a joint responsibility in selecting the system. Price should not be number one criteria. Furthermore, sources of copied systems should be closely examined for quality of products and assurance of the grade of material used to ensure they are up to standard. Load tests of systems should be provided on major projects to ensure adequacy and certification should be provided by a recognised testing laboratory.
PW: In some cases distinguishing
TD: We are more than willing to
support, statical calculation of the system and enquire whether technical training for workers is included. By asking these questions, buyers will be able to distinguish very quickly whether the formwork is counterfeit or not and whether the supplier can be trusted.
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suppliers we have rigorous quality assurance procedures and material inspection routines, moreover, staff are trained to identify copy products from originals. This is particularly important to avoid contamination of quality stock. A trained eye can usually identify an inferior product, in the cases where this is not possible tests are to be conducted. TD: GHI’s manufacturers and suppliers are proven companies that produce materials to meet defined standards. Our company quality-assurance scheme checks supplier’s standards are good.
Do your products carry certification? FK: PERI is carrying the industry ISO 9001:2008 certification. www.thebigprojectme.com
FORMWORK SUPPLIERS
PO: We have achieved a number of certifications including: DIN ISO 9001 quality certification for all 40 Meva locations in 30 countries; CE safety certification for Meva formwork and access systems, as well as numerous other industry-recognised accolades. PW: All our products are designed to British standards and are manufactured by internally-approved ISO certified suppliers. Our company has developed an in-house quality management system, which is used by our quality assurance managers to assess materials, suppliers and manage production. All products have manufacturer markings for identification of the source and type of goods and the date of manufacturing.
Expressway in Oman, the Saadiyat Bridge crossing in Abu Dhabi and the Business Bay crossing in Dubai.
What are your biggest-selling items in this region? FK: Peri’s biggest-selling product is the GT24 lattice girder, while the biggestselling systems in wall formworks are the Vario system and Trio panel formworks. The most popular systems for slab formworks are the Multiflex system and the Table solutions. PO: Our most popular products in the Middle East are our climbing technologies (MGC guided climbing and MAC automatic climbing), our slab formwork system called MevaDec, a
special steel formwork capabilities for example, for bridge piers and columns, have experienced a significant surge in business levels.
Which regions are your main markets and has this changed recently? FK: Our main markets in the UAE are still Dubai and Abu Dhabi. We also supply many projects in Oman. PO: We have shifted our emphasis on Dubai to include surrounding regions, mainly Saudi Arabia, Qatar and Bahrain. PW: In recent years the UAE market has proved to be our largest, however, this has changed and we are expanding our focus and activities across Arabia,
“AT THE FOREFRONT OF FORMWORK CONSIDERATIONS SHOULD BE SAFETY; SYSTEM FAILURES CAN AND DO COST LIVES” TD: Our products are certified to meet defined standards and we design formwork solutions that are backed up by calculations.
heavy-duty wall system called Mammut 350 and support frame Meva STB 450, an all-plastic formwork.
What major Middle East projects has your company supplied?
PW: RMD’s aluminium false-work systems are the most popular product lines at present.
FK: We have supplied The Cube Hotel Apartments at Dubai Sports City, and the Regent Emirates Pearl Hotel and the Reem Island mixed-use development both in Abu Dhabi, among many others.
TD: Our biggest-selling items are TriTec (our original steel panel wall formwork system) and Multiflex (our timber beam and prop slab support system). Our
North Africa, the Levant and India. We have recently established ourselves in Saudi Arabia and have operations in Al-Khobar, Riyadh and Jeddah. We see Saudi Arabia as one of the most promising markets in the region. RR: With the impact of the global economic downturn large in Dubai, our focus has shifted to other regions in the Middle East and Africa, including Saudi Arabia, Kuwait, Yemen, Oman
PO: We have worked on the Burj Khalifa in Dubai, the Al Nadha Tower and the Al Hamlan Tower, both in Sharjah, and Al Lulu Towers in Manama, Bahrain, among others. PW: We have been involved in numerous major projects across the region. Current examples include Dubai International Airport, the Oman Majalis, Basra Sports City in Iraq and Jedideh Tower in Lebanon, as well as lots more. RR: Our systems have been used worldwide for more than 25 years, to name a few applications; the UK—France Channel Tunnel, Taiwan’s high-speed rail viaducts, Bangkok’s elevated road and rail system, the Mecca-Jeddah Expressway, and recently the Muscat www.thebigprojectme.com
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and Libya, where significant opportunities are under offer and discussion. Also since we have worldwide markets we are exploring further afield for large-scale projects. TD: The main markets out of our Dubai office are the UAE, and the wider Middle East and North Africa. The volume of business we experience in Saudi Arabia has increased significantly.
Have you launched any new formwork products? FK: We launched Liwa lightweight wall formwork, which does not require the use of a crane to implement.
PO: Meva is about to introduce a measuring technology for determining a concrete-setting time. It is an ultrasonic measuring device that can be employed onsite. The device will enable concrete contractors to correctly design formwork to take the real pressure that concrete will exert.
formwork according to a contractor’s actual inventory. We can repair and provide top-up material where required. Secondly, we have introduced TriTec Light. This is a crane-independent wall formwork system. Third, we have introduced Roundflex; a freely-adjustable circular wall formwork system.
PW: This year we launched a self-climbing core formwork system called Tru-Lift and recently secured a supply order on a project in Jebel Ali for the system.
What emerging formwork trends have you noticed?
TD: We have three new products. We will design
PO: There has been a definite and consistent shift to high-end technologies for safety reasons. The logic is simple; highly-developed formwork systems are easier to assemble and most often fool-proof. This avoids costly and dangerous errors. Even unskilled staff can be employed and the learning curve is low and short. Safe work is quality work. PW: There has been a move away from the low-cost, high-labour formwork systems in favour of lightweight, labour-efficient systems that provide added benefits in terms of safety and cycle times. TD: There is evidence of a professional approach being taken to formwork. For example, the use of systems that offer construction speed (table systems) and health and safety. A trend towards increased safety, especially edge protection to prevent falls from height, should be welcomed. Although the larger construction companies are meeting international standards, perhaps the smaller companies have some work to do. Buyers in the UK do not have the choice of selecting poor or nonstandard formwork as they
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are either unavailable or would not be approved by main contractors. Formwork discussions in the UK often concern build methodology and the most suitable overall formwork solution for the project. The GCC is moving towards this approach.
What has been the most significant innovation in formwork recently? PO: The replacement of plywood by an all-plastic facing that is 100% woodfree is the most significant advancement. We believe Meva was the first to introduce this technology in all of its formwork products, completing the switch-over in 2004. Notably in the GCC states this has had an enormous impact on the concrete contractors' work, since the new product is immune to heat or cold, doesn't swell or shrink, absorbs no moisture, is completely repairable and can be cleaned using a highpressure washer — features that plywood never offered. The Burj Khalifa was built using this technology for a simple reason: the facing never needs to be replaced. This avoids down-times, which, at a building height of 600m-plus would have meant an enormous disruption in work flow.
How has your company fared during the downturn? FK: It's more difficult to get money from some clients. PO: We have been able to adapt to changing market conditions in some parts of the world quickly. This has enabled us to keep the company's performance profitable — compensating market downturns in some other regions. TBP www.thebigprojectme.com
PROJECT SPOTLIGHT TENDERS
Industrial City infrastructure works on track Wade Adams awarded contract for phase two of Dubai logistics destination project
S
econd phase infrastructure works are progressing on Dubai Industrial City, a member of TECOM Investments in Dubai. Wade Adams Group was appointed as the contractor in June and the project is expected to be completed in October 2011. Work undertaken by Wade Adams Group includes the
completion of all sewage, water and irrigation and remaining road works, as well as the construction of telecommunication networks and Dubai Electricity and Water Authority (DEWA) electrical ducts to serve all facilities and active developments. The scope of proposed works will also include all required testing and commissioning of utilities works. The project will be managed by Tamdeen, TECOM’s projectmanagement entity. “We will be working closely with the contractor to guarantee the timely delivery of the project,” Tamdeen CEO Badr Al Gargawi said in a statement. Located on Emirates Road near the new Al Maktoum International Airport, Dubai Industrial City is in close proximity to major highways and the Jebel Ali Port. Covering an area of 560 million ft², it offers a dedicated manufacturing destination comprising six industrial clusters; food and beverage, base metal, mineral products, chemicals, transport equipment and parts and machinery and mechanical equipment. Wade Adams Group is also currently implementing projects in the UAE, Qatar, Libya, Oman and Saudi Arabia construction markets.
Aerial view of Dubai: Dubai Industrial City will offer a dedicated manufacturing destination comprising six industrial clusters, including food and beverage, base metal and mineral products.
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TENDERS
Consultant Royal Haskoning
BAHRAIN PROJECT
PROJECT
MUKHAIZNA EOR - PIPELINES
Value $M
WATER GARDEN CITY - BAHRAIN
200
Status
Execution
Status Execution
Update
Construction work is 70% complete.
Update Al Hasanain has been awarded US $25 million contract for a 3km quay wall to be completed within 24 months.
Owner
Mukhaizna Development Company
Consultant
WorleyParsons - Muscat
Owner Albilad Real Estate Investment Company
Contractor
Gulf Petrochemical Services & Trading LLC (GPS)
Value $M 6600
Consultant Scott Wilson PROJECT PROJECT
SALALAH PORT EXPANSION PROJECT - GENERAL CARGO TERMINAL
Value $M 120
NORTH BAHRAIN NEW TOWN - PHASE 1 (1500 HOUSES)
Status Design
Value $M 500 Update Bids opened in July and Construction is scheduled to start in October 2010.
Update Berths are in final design stage. Tender for a liquids berth is expected soon. Construction of cargo and liquid berths is scheduled to take 22 months. Operation is expected to start in Q4 2012.
Owner Bahrain Ministry of Works
Owner Oman Ministry of Transport & Communications
Status Design
Consultant Ama - Architecture
QATAR KUWAIT PROJECT
PROJECT
Status Design Update Construction costs are still being negotiated with Vinci. Vinci leads a joint venture of Qatari Diar, Hochtief, CCC and Medco. Construction is expected to commence in August 2010.
Value $M 150 Status Execution Update Mohammed Abdulmohsin Al Kharafi has been awarded the contract for administration buildings, car parks and two fire stations.
Owner Qatar Bahrain Causeway Foundation Consultant COWI - Qatar
Owner Kuwait Directorate-General of Civil Aviation (DGCA)
Contractor VINCI Construction Grands Projets - Qatari Diar JV (QDVC)
Consultant Dorsch Consult - Salem al-Marzouk & Sabah Abi-Hanna (SSH) Contractor Siemens Kuwait PROJECT
PROJECT
DOHA BAY CROSSING (SUBSEA TUNNEL)
Value $M 1000
KUWAIT UNIVERSITY EXPANSION - SHUWAIKH CAMPUS - LABORATORIES EXPANSION
Status Design Scope Construction of 12km, six lanes (three in each direction) subsea tunnel under Doha Bay, linking new Doha International Airport and the Financial Centre.
Value $M 102 Status Execution Update Combined Group has been awarded the contract.
Update COWI has submitted the feasibility study and the basic design to Urban Planning. Ashghal is expected to take over at detailed design and construction stages.
Owner Kuwait University Contractor Combined Group Company
Owner Qatar Urban Planning & Development Authority
OMAN PROJECT
QATAR BAHRAIN CAUSEWAY (FRIENDSHIP BRIDGE)
Value $M 3000
KUWAIT INTERNATIONAL AIRPORT EXPANSION - AIRSPACE SYSTEM ELECTRICAL INFRASTRUCTURE
Consultant COWI A/S AL MADINA AL ZARQA (BLUE CITY) DEVELOPMENT - PHASE 1
Value $M 2200
PROJECT
MUSHEIREB (HEART OF DOHA CITY) - PHASE 1A
Value $M 430
Status Execution
Status Execution
Update Bin Muhanna Holding has joined Blu City project as a partner.
Update Phase 1A has been awarded to the joint venture of Hyundai E&C and HBK Contracting.
Owner Al-Sawadi Investment & Tourism Company LLC
Owner Dohaland
Consultant Foster & Partners
Contractor Hyundai E&C - HBK JV
Contractor AECO Development LLC
PROJECT PROJECT
ASHGHAL - DOHA SOUTH STP PHASE 2
Value $M 300
PDO - BUDOUR NORTHEAST EOR
Status Execution
Value $M 1500
Update Doha South expansion has been awarded to L&T.
Status Study
Owner Public Works Authority (ASHGHAL)
Update Project is still in the study phase.
Consultant Hyder Consulting
Owner Petroleum Development Oman (PDO)
Contractor Larsen & Toubro (L&T) - Doha PROJECT
SALALAH PORT EXPANSION PROJECT - BERTHS 7 & 8 & 9 (TERMINAL 2)
Value $M 530
PROJECT
LUSAIL REAL ESTATE DEVELOPMENT - FOX HILLS - THE PIAZZA - QATAR
Value $M 273
Status Design Update Revised master plan has been released. Detailed design is expected in 2011. Owner Oman Ministry of Transport & Communications
Status Design Update Enabling work is near completion. Detailed design is in finishing stages and tender for the main construction contract is expected to be issued shortly.
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ESTIMATING AND PROJECT CONTROL 44
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August 2010
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TENDERS
Owner DAMAC Group Holding (DAMAC Properties) PROJECT
MUSHEIREB (HEART OF DOHA CITY) - INFRASTRUCTURE
Value $M 150
Contractor Danieli - Saudi Arabia PROJECT
Status Bidding
Status Execution
Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost.
Update Infrastructure package has been awarded to CAT International. Owner Dohaland Contractor CAT International (Qatar) PROJECT
LUSAIL REAL ESTATE DEVELOPMENT - BUSINESS SQUARE
Value $M 110
Owner Saudi Aramco Consultant Kellogg; Brown & Root (KBR) - Riyadh PROJECT
Status Design
Status Bidding Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost.
Owner DAMAC Group Holding (DAMAC Properties)
Owner Saudi Aramco
SAUDI ARABIA
Consultant Kellogg; Brown & Root (KBR) - Riyadh ARAMCO - RAS TANURA INTEGRATED REFINERY & PETROCHEMICAL COMPLEX - POLYOLEFINS
PROJECT
ARAMCO - YANBU EXPORT REFINERY - STORAGE TANKS
Value $M 900
Value $M 10000
Status Bidding
Status FEED
Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost.
Update FEED completion has been delayed and is expected to be completed in Q3 2010. Owner Aramco - Dow JV Consultant Foster Wheeler Inc. PROJECT
ARAMCO - YANBU EXPORT REFINERY - O&U
Value $M 1500
Update Initial site preparation is complete. Enabling work will start in summer 2010.
PROJECT
ARAMCO - YANBU EXPORT REFINERY - GASOLINE UNIT
Value $M 1500
SAFCO HADEED JV - JUBAIL STEEL PLANT (1.7 MTPA)
Owner Saudi Aramco Consultant Kellogg; Brown & Root (KBR) - Riyadh
Value $M 3000 Status Study
PROJECT
Update Danieli has awarded Tamimi Group the civil package contract for Jubail billets plant for $630 million.
Status Execution
Owner Saudi Iron & Steel Company (Hadeed) PROJECT
Update Work is in progress and is expected to be completed in Q1 2011.
ARAMCO - YANBU EXPORT REFINERY - COKER
Value $M 2000
Owner Saudi Arabian Mining Company (Maaden) Consultant SNC Lavalin - Jacobs Engineering
Status Bidding
Contractor Grinaker - Outokumpu
Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost. Owner Saudi Aramco
PROJECT
Status Execution Update Construction work is in progress as per schedule.
ARAMCO - YANBU EXPORT REFINERY - CRUDE UNIT
Value $M 2000
Owner Saudi Arabia Ministry of Water and Electricity
Status Bidding
Contractor Ali Al Qarni Al Razqi Contracting Co.
Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost.
PROJECT
Owner Saudi Aramco
Status Bidding Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost.
ARAMCO - YANBU EXPORT REFINERY - HYDROCRACKER
Value $M 1500
Owner Saudi Aramco
Status Bidding Update Project is facing delay due to finance issue. Developer is trying to cut more from the project cost. Owner Saudi Aramco
Consultant Kellogg; Brown & Root (KBR) - Riyadh PROJECT
Consultant Kellogg; Brown & Root (KBR) - Riyadh PROJECT
ARAMCO - YANBU EXPORT REFINERY - SOLIDS HANDLING
Value $M 500
Consultant Kellogg; Brown & Root (KBR) PROJECT
RIYADH SEWAGE NETWORK
Value $M 530
Consultant Kellogg; Brown & Root (KBR) - Riyadh PROJECT
RAS AL ZOUR CHEMICAL & FERTILIZER COMPLEX - SULPHURIC ACID
Value $M 800
SAFCO HADEED JV - JUBAIL STEEL BILLETS PLANT (1 MTPA)
Status Execution
Value $M 1500
Update The contract has been extended. Construction work is likely to complete in June 2011.
Status Execution Update Danieli has awarded Tamimi Group the civil package contract for $630 million. Owner Saudi Iron & Steel Company (Hadeed)
2000 HEALTH CLINICS - 456 CLINICS - 152 CLINICS (HAIF)
Value $M 500
Owner Saudi Arabia Ministry of Health Consultant Zuhair Fayez Partnership Consultants
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TENDERS
Contractor Haif Trading & Contracting Company PROJECT
GHURNATA COMPLEX IN RIYADH
Value $M 410
Contractor Arabian Construction Company (ACC) PROJECT
Status Execution
Status Execution
Update The commercial building has reached the 10th floor.
Update The MEP, aluminium and glazing tenders on the Dubai Pearl project have been issued and are scheduled to be awarded by September 2010. Construction work on towers one and three has reached level three, while towers two and four have reached level two.
Owner General Organisation for Social Insurance (GOSI) Consultant Omrania & Associates Architecture & Engineering Consultants Contractor Al Latifia Trading & Contracting PROJECT
KING ABDULLAH FINANCIAL DISTRICT - INNOVIA MONORAIL SYSTEM
PROJECT
Status Execution
Status Execution Update The handover of 83 villas is underway. The first phase is set to be complete in the fourth quarter of 2010.
Contractor Saudi Oger Ltd LINKING SAUDI ARABIA & OMAN BORDER ROAD
Value $M 230
Owner Abwab Real Estate - Green Works JV Consultant Parsons International - Dubai Contractor Al Naboodah Contracting LLC PROJECT
Status Bidding
Status Execution
Scope The project calls for the design and execution of 190km the final phase of the road between Saudi Arabia and Oman border.
Update The package has been awarded to Samsung Engineering.
Owner Saudi Arabia Ministry of Transport CITC HEADQUARTER IN RIYADH
Owner Abu Dhabi National Oil Company (ADNOC) Consultant Fluor Mideast Limited PROJECT
ADNOC - SOUR GAS DEVELOPMENT PROGRAM - SHAH FIELD - SULPHUR RECOVERY
Value $M 1300 Status Execution
Value $M 160
Update The package has been awarded to Saipem.
Status Execution Update The building has reached the 9th floor. Owner Communications and Information Technology Commission (CITC) Consultant Ernst & Young Contractor Contracting & Construction Enterprises Ltd. (CCE) NAJRAN UNIVERSITY - UNIVERSITY HOSPITAL
Owner Abu Dhabi National Oil Company (ADNOC) Consultant Fluor Mideast Limited Contractor Saipem S.p.A. PROJECT
TUNNEL & ROADS IN SALAM STREET - ABU DHABI
Value $M 871
Value $M 150
Status Execution
Status Bidding
Update Construction work is 66% complete.
Update Main construction contract is still to be awarded. Owner Saudi Arabia Ministry of Higher Education Consultant Tkoinat Consulting Engineers Co.
UNITED ARAB EMIRATES PROJECT
ADNOC - SOUR GAS DEVELOPMENT PROGRAM - SHAH FIELD - O&U
Value $M 1500
Update Bids have been submitted for the main construction contract. The lowest bidder is Al-Rosan Est. For Contracting
PROJECT
DUBAILAND - ECO-TOURISM WORLD - AL BARARI DEVELOPMENT - PHASE 1
Update Bombardier Transportation has signed a contract with Saudi Oger to supply, install, operate and maintain an Innovia Monorail System within King Abdullah Financial District. Owner Public Pension Agency (PPC)
PROJECT
Owner Pearl Dubai FZ LLC Consultant D G Jones & Partners Limited
Value $M 1500
Value $M 241
PROJECT
DUBAI TECHNOLOGY & MEDIA FREE ZONE (TECOM) - DUBAI PEARL DEVELOPMENT
Value $M 1600
ADNOC - SOUR GAS DEVELOPMENT PROGRAM - SHAH FIELD - GAS PROCESSING
Owner Abu Dhabi Municipality Consultant Parsons International - Dubai Contractor Samsung Corporation - Saif Bin Darwish JV PROJECT
SAADIYAT ISLAND DEVELOPMENT - CULTURAL DISTRICT - NEW YORK UNIVERSITY NYU ABU DHABI
Value $M 865 Status Execution
Value $M 1800
Update Al Futtaim Carillion has been awarded the design and build contract for the main campus.
Status Execution Update The package has been awarded to Saipem.
Owner Mubadala Development Company
Owner Abu Dhabi National Oil Company (ADNOC) Consultant Fluor Mideast Limited
Consultant Rafael Vinoly Architects PC
Contractor Saipem S.p.A.
Contractor Al Futtaim Carillion LLC
PROJECT
AL-REEM ISLAND DEVELOPMENT (ABU SHUOOM ISLAND DEVELOPMENT EMIRATES PEARL) - SHAMS - GATEWAY TOWERS
PROJECT
AL BATEEN PARK DEVELOPMENT - ABU DHABI
Value $M 800 Status Design
Value $M 1600 Status Execution Update Construction is progressing as scheduled at one floor every 10 days. Owner Sorouh Real EstateCompany Consultant Khatib & Alami
Update Aldar Properties has announced to develop Al Bateen Park, a residential complex in Abu Dhabi. Construction is expected to be completed in August 2012. Owner Aldar Properties PJSC
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47
TENDERS
Consultant VIAP Middle East Engineering Management LLC. PROJECT
ABU DHABI MEDIA ZONE AUTHORITY (TWOFOUR54) MENA ZAYED CAMPUS
Contractor Samsung Corporation - Baytur Insaat Taahh端t A.S JV
Value $M 700 PROJECT
Status Design Update Twofour54 has announced a master plan for a new campus in Mena Zayed.
ADNOC - SOUR GAS DEVELOPMENT PROGRAM - SHAH FIELD - SULPHER PIPELINE
Value $M 300 Status Execution
Owner Abu Dhabi Media Zone Authority (twofour54)
Update The package has been awarded to Saipem.
Consultant Adamson Associates (International) Limited
Owner Abu Dhabi National Oil Company (ADNOC) PROJECT
AJMAN UPTOWN - MAIN CONSTRUCTION PACKAGE
Consultant Fluor Mideast Limited Contractor Saipem S.p.A.
Value $M 600 Status Execution Update The superstructure works on the villas are complete.
PROJECT
DUBAI MARINA DEVELOPMENT - ELITE RESIDENCE
Value $M 272 Status Execution
Owner Sweet Homes Real Estate
Update Cladding work is in progress and the project should be completed as planned early in 2011.
Consultant Adnan Safarini Contractor Sweet Homes General Contracting (SHGC)
Owner Tameer Holding PROJECT
AL-REEM ISLAND DEVELOPMENT (ABU SHUOOM ISLAND DEVELOPMENT EMIRATES PEARL) - SHAMS - THE GATE FIRST PLOT
Value $M 500 Status Execution Update Development is near completion.
Consultant ASE Consulting Limited Contractor Arabian Construction Company (ACC) - Dubai PROJECT
Status Execution
Owner Sorouh Real Estate Company
Update Construction work on zone two has started.
Consultant Hyder Consulting Middle East Ltd. - Abu Dhabi Contractor Arabian Construction Company (ACC) - Abu Dhabi PROJECT
ADNOC - SOUR GAS DEVELOPMENT PROGRAM - SHAH FIELD - GAS GATHERING
DUBAI INVESTMENT PARK - DUBAI LAGOON DEVELOPMENT - PHASE 1 & 2
Value $M 271
Owner Schon Properties Consultant ARTEC Architectural and Engineering Consultants Contractor Power Line Gulf Construction Company L.L.C PROJECT
Value $M 463
CAPITAL CENTRE - ABU DHABI NATIONAL EXHIBITION CENTRE EXPANSION PROJECT - CAPITAL GATE (FEATURE TOWER)
Status Execution Update The package has been awarded to a joint venture of Tecnicas Reunidas and Punj Lloyd
Value $M 264 Status Execution Update Construction work on the helipad is ongoing. Interior fit-out of the hotel is progressing as per schedule.
Owner Abu Dhabi National Oil Company (ADNOC) Consultant Fluor Mideast Limited
Owner Abu Dhabi National Exhibitions Company (ADNEC)
Contractor Tecnicas Reunidas - Punj Lloyd JV
Contractor Al Habtoor Engineering Enterprises PROJECT
DUBAI INVESTMENT PARK - DUBAI LAGOON DEVELOPMENT - PHASE 3 PROJECT
Value $M 463
KHALIFA PORT & INDUSTRIAL ZONE (FORMERLY MINA ZAYED PORT) MEENA PLAZA
Status Execution Update Construction work on zone three has reached the third floor.
Value $M 255 Status Execution
Owner Schon Properties
Update Project completion is expected by the end of 2011.
Consultant ARTEC Architectural and Engineering Consultants
Owner Tamouh Investments
Contractor Belhasa Engineering & Contracting Company LLC
Consultant Al Torath Consultant PROJECT
JUMEIRAH VILLAGE DEVELOPMENT - JUMEIRAH VILLAGE SOUTH - SEASONS COMMUNITY
Contractor Zelan Holding - Abu Dhabi PROJECT
Value $M 330
AL-REEM ISLAND DEVELOPMENT (ABU SHUOOM ISLAND DEVELOPMENT EMIRATES PEARL) - CITY OF LIGHTS - ADDAX
Status Execution Update Project handover is scheduled for April 2011.
Value $M 240 Status Execution
Owner Ishraqah Development Ltd.
Update Construction work is progressing as per schedule.
Consultant Dimensions Engineering Consultants (DEC)
Owner Tamouh Investments
Contractor Bin Shafar Contracting LLC
Contractor Multiplex Group PROJECT
BURJ DUBAI DEVELOPMENT - BOULEVARD PLAZA
PROJECT
THE PALM JUMEIRAH DEVELOPMENT - FAIRMONT PALM RESIDENCES & HOTEL - HOTEL PACKAGE
Value $M 300 Status Execution
Value $M 220 Status Execution
Update Development is near completion. Final works are in progress.
Update Construction work is 99% complete.
Owner Emaar Properties PJSC
Owner International Financial Advisors (IFA) Hotels and Resorts Kingdom Hotel Investments
Consultant Aedas - Dubai
www.ccsgulf.com | Tel: +971 4 267 6115 | sales@ccsgulf.com
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PROJECT MANAGER Ref: CON042 Location: Dubai, UAE Salary: Excellent Salary, plus car, housing allowance and benefits
SENIOR QUANTITY SURVEYOR Ref: CON023 Location: Abu Dhabi, UAE Salary: Excellent salary plus car, housing allowance and benefits
PROJECT DIRECTOR Ref: V0146 Location: Riyadh, Saudi Arabia Salary: Excellent salary and benefits
SENIOR QUANTITY SURVEYOR Ref: CON024 Location: Ajman, UAE Salary: Excellent salary plus car, housing allowance and benefits
PROJECT MANAGERS (ROADS AND BRIDGES) Ref: V0149 Location: Jeddah, Saudi Arabia Salary: Excellent salary and benefits
COMMERCIAL MANAGER Ref: CON048 Location: Dubai, UAE Salary: Excellent salary plus car, housing allowance and benefits
QUANTITY SURVEYOR Ref: CON001 Location: Dubai, UAE Salary: Excellent Salary, plus car, housing allowance and benefits
COMMERCIAL MANAGER Ref: CON049 Location: Middle East Salary: Excellent salary plus car, housing allowance and benefits
QUANTITY SURVEYOR Ref: CON004 Location: Jeddah, Saudi Arabia Salary: Excellent salary, car, housing allowance plus benefits
ASSOCIATE QUANTITY SURVEYOR Ref: CON052 Location: Middle East Salary: Excellent salary plus car, housing allowance and benefits
QUANTITY SURVEYOR Ref: CON008 Location: Ajman, UAE Salary: Excellent salary plus car, housing allowance and benefits COST MANAGER Ref: CON022 Location: Dubai, UAE Salary: Excellent salary plus car, housing allowance and benefits
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CONTACT For further details on the jobs listed or to find out about other vacancies in the region, please email: max@kadtech.co.uk and quote the reference code. Don't forget to mention where you saw the advert. Jobs supplied by UK-based Alan & Partners recruitment firm.
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DIARY
Plan the months ahead with our handy construction events home and away diary
September 13-16 Tunnels and Underground Construction India New Delhi India September 26-29 Vertical Transportation Middle East Radisson Blu Hotel Golf Plaza, Abu Dhabi UAE September 26-29 Affordable Housing Development Summit Middle East Gulf Hotel Bahrain, Manama Bahrain September 27-30 Bridges Eurasia 2010 Istanbul Turkey October 5 The Global Community of Growth, Innovation and Leadership Emirates Palace Abu Dhabi UAE
ACOUSTICS IN CONSTRUCTION 2010 SUMMIT September 26-29 Le Royal Méridien Abu Dhabi, UAE
The Acoustics in Construction 2010 Summit is intended to provide a platform to discuss, benchmark and learn from the Middle East’s construction acoustics innovators and leaders. Acoustic performance must be considered essential for the successful delivery of construction projects to end users, say the show’s organiser IQPC. The framework for construction acoustics in the Middle East will be addressed at the event, in addition to topics such as improving project planning and design to ensure acoustic success, benchmarking building acoustics against case study sessions and mitigating the impact of construction phase noise control.
October 17-20 Piling & Deep Foundations Saudi Arabia Crowne Plaza, Jeddah Saudi Arabia
October 25-27 Piling & Deep Foundations India 2010-06-06 Mumbai India
October 18-19 Innovative Roofs India Mumbai India
October 18-21 Saudi Build – The PMV Series 2010 Riyadh International Convention & Exhibition Centre Saudi Arabia
October 23-25 Saudi Arabian Infrastructure Congress 2010 Four Seasons Hotel Riyadh Saudi Arabia
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November 7- 13 Building & Construction Exhibition Kuwait International Fair – hall eight Kuwait
November 22-25 The Big 5 Dubai Dubai World Trade Centre UAE November 23-26 Bauma China 2010 Shanghai New International Expo Centre China November 28-December 1 Stadium and Venue Design and Development MENA Doha Qatar
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TEA BREAK
Your shout This month, The Big Project asked LinkedIn members in the worldwide construction management field: How can you design and build a 'sustainable' five-star hotel without compromising perceived 'luxury'?
By implementing LEED concepts, we can work on a luxury hotel that meets renewable energy requirements and the overall green building concept.
Alejandro Vargas Quinonez, independent design professional
“If an operator was conducting a tour of its new hotel to its top-level clientele, it could say; ‘Here we have wood panels made of saw dust from trees that have been butchered in masses and we pase these panels to the wall with an adhesive that is saturated with formaldehyde’, which doesn’t sounds so luxurious. Or on the otherhand, the operator of a sustainably-built hotel could say: ‘Here we have wood panels made from renewable parawood with a water based low-VOC stain, attached to the wall using stainlesssteel nails which are a sustainable material and will resist weathering.’ Suzy Silvestre, business development manager, ML Nielsen Construction
The day will come soon when informed, aware patrons of luxury hotels will ask; ‘is your hotel LEED certified?’, ‘is it Energy Star compliant?’ or ‘do you demonstrate sustainable best practices?’ If not, they will take their business to one that does. So not being sustainable will place hotels at a disadvantage.
Patrick McGarry, senior project manager, Green Ideas, Arizona, US
Use innovative design concepts that tie the building envelope to the building systems. The luxurious options can be installed as typical. Increasing the energy efficiency without increasing the initial cost of construction is achievable if you use integrated project delivery techniques to deliver the project from concept through to operation.
Philosophically there are those that would say a luxury hotel cannot be sustainable in any case because of the resources it uses; I disagree. In most cases, it is the luxury end of the market that has the margins and serves a more sophisticated client that drives innovation. Plus high-end products are often manufactured from natural materials, less petroleum/chemical based, and are therefore more re-usable or recyclable. From a developer or operator's perspective, if you don’t build sustainably your saying: ‘We cater to unsophisticated people who don't expect us to be innovative, who don't care how much energy we use or if our air quality is bad, or that the building will end up in a landfill after it is obsolete in 40 years.’
Nate Neuenschwander, vice president, Touchstone CPM, Ohio, US
Sustainable design is good design, and is essential to great design in the 21st Century. It takes more time and effort because it is still a new way of thinking about buildings (for example, integrated envelopes and systems) rather than just changing the shape of the same kinds of structures. It is an exciting time to be in our industry, which means it is also uncomfortable and unfamiliar. Change will be incremental but inexorable. The technical answers today will not be the answers 10 years from now. Accept that and move forward with imagination, but begin with the end clearly in mind.
Scott Bedingfield, president, Meridian Construction and Development
Join The Big Project group on LinkedIn to have your say or visit thebigprojectme.com
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Thermal insulation systems for the entire building envelope - $+!'%$# $) "", (%*$ !$ !) ( # $* )*'!$ *( $ + $)* " !(&%( " - %) "", ' '%# CFC $ HCFC - ' , "!$ " (( %$) $)
Ref: Abu Dhabi OfďŹ cer’s Club (pictured under construction)
THERMAL INSULATION WITH SEAM ROOF FINISH
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Ref: Social Service Department, Stuttgart, Germany
THERMAL INSULATION FOR ROOF GARDEN
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Ref: BMW factory, Regensburg Germany
ROOF INSULATION FOR FACTORY
Ref (also main image): Islamic Museum of Modern Art, Doha
ROOF INSULATION FOR TERRACE
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