Big Project ME July 2017

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JULY 2017 meconstructionnews.com

home of the law Big Project Me profiles the jahra and farwaniya court complexes, kuwait’s judiciary’s new home

THE BUSINESS OF CONSTRUCTION

© 2017 LACASA Architects & Engineering Consultants All Rights Reserved

I’m Rasha Al Khatib and I am an

Authorities relAtion MAnAger www.lacasa.ae

I believe that by working hand in hand with the authorities, we can continue to enhance the region’s construction standards.

Since heading up the department, I have strived to ensure that our designs not only meet the required standards, but exceed them in every aspect.

At LACASA, our architects and engineers have perfected a design formula that balances efficiency, sustainability, quality, and aesthetics while integrating the local authorities requirements.

Rasha Al Khatib

Authorities Relation Manager

LACASA is committed to providing quality-driven designs within a multidisciplinary environment.

Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region.

While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.

The awards are a great platform to share knowledge and the achievements of the industry. We enjoy the opportunity to network and collaborate at the event, as it is very well organised with a great turn out from all players in Construction.

The Big Project ME awards highlights the best projects, people and innovations in the region.

KEZ TAYLOR

CHIEF EXECUTIVE OFFICER ALEC

27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com

Contents

Issue 136 July 2017 08

16

20

26

34

40

16 Abu Dhabi rents in decline

40 Priority Planning

06 ME Construction News.com OnlIne

The biggest stories from Big Project Middle East’s home on the web

news analysIs

Manika Dhama takes an in-depth look at the Abu Dhabi rental market

urban InfrasTrucTure

Big Project ME discusses the outlook for urban infrastructure development in the GCC

07 Emaar plans property unit IPO 20 David Godchaux Developer to offer up to 30% of its UAE real estate development business

Gavin Davids speaks to David Godchaux, CEO of Core Savills

50 Selecting the Right Stay Cable

12 HOK reveals Yas Arena design

26 Law of the Land

52 Top Tenders

14 Overall KSA HPI rises

34 A Shift in Focus

56 Do’s and Don’ts of Fit-Out

The bIg pIcTure

InTernaTIOnal news

Multipurpose arena will host both sports and entertainment events MarkeT repOrT

SIMAH finds that upward trends indicate that Saudi consumers are starting to invest in property again

In prOfIle

prOJecT prOfIle

Big Project ME profiles the Jahra and Farwaniya Court Complexes in Kuwait City Mep

Big Project ME speaks to the experts to understand the risks and challenges facing MEP subcontractors

cOMMenT

Mike Tapley and Ian Flynn conclude their series on bridge engineering Tenders

Big Project ME lists the Middle East’s biggest construction tenders for July 2017 lasT wOrd

Marcos Bish of Summertown Interiors provides some tips for interior fit-out contractors

July 2017 3

Introduction

Time for a rethink?

A

s we advance further into the sweltering heat of a UAE summer, it’s perhaps a good time to take stock of how things are progressing in the construction and real estate industry. The first six months of the year have flown by, and there’s certainly been a lot happening to keep us all occupied!

We spoke to David Godchaux for this month’s issue to find out how things are progressing in the real estate sector in Dubai and Abu Dhabi, and he certainly had a lot to say. His views on the market were insightful and reflective of the trends we’ve been seeing for quite some time now.

Of particular interest to me, however, were his views on the need for an overhaul of the existing mortgage regulations. As I understand it, the current system makes it very difficult for would-be home owners to avail of a mortgage to buy their dream home in Dubai. As he points out, for homes in the affordable segment, buyers still have to put down 31% as a down payment, or 50% if buying off plan.

As a result, the intended market for these homes are left unable to meet the financial demands they’re being asked to meet, and that’s when investors step in, buying up large numbers of properties with the intention of generating a high yield.

This completely defeats the purpose

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of wanting to have an affordable housing market segment and in fact generates a big systemic risk to the entire system, Godchaux warns, as investors will look to sell if – or when – a downturn occurs, thereby causing a crash in the market segment.

I feel this is something that needs to be addressed by authorities, especially with the huge volume of affordable housing expected to come online within the next few years. I’d love to hear people’s thoughts on this as well, so please do get in touch.

Before I sign off, I would like to flag up that the Big Project ME Awards website is now up and running, and we’re ready to accept your nominations.

Please do head on over to www.bigprojectmeawards.com for a look. We’ve completely revamped things and have hopefully made the submission process a lot easier!

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MOHAMMAD AwAIS

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SADIq SIDDIqUI

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CONSTRUCTION

PROjECT MANAgEMENT kEy TO PREvENTINg DELAyS

Qatar construction sector faces materials shortage

CONSTRUCTION

26,000 buildings under construction in Dubai

In pictures: Sheikh Zayed grand Mosque visitor centre

CONSTRUCTION

Former CEO of Drake & Scull sells stake in Dubai contractor

CONSTRUCTION

Emaar: $48m bridge in Dubai is 90% complete

CONSTRUCTION

UAE developers ‘stockpiling materials ahead of VAT’ 6 July 2017

READERS’ COMMENTS

video: Fly through of Dubai Creek Harbour mega project

The article “Planning ahead: pre-empting project delays in the Middle East” (June 15) is good and brings forward a few important points.

However, what is critically missing is mention of project management.

Organisational project management (OPM) is vital for project success, and organisations with a high level of OPM maturity can deliver projects cheaper, faster and better, and this has been proven through numerous studies.

Nothing can guarantee success but organisations can significantly enhance their performance.

One way is the proper use of REAL project management. Further, the use of the stagegate methodological approach is vital.

Finally, a recent study shows that projects managed directly by project owners’ organisations show better performance.

Mounir A. Ajam, CEO of Sukad, comment posted to website

The Big Picture

Significant growth The last five years have seen significant growth for Emaar, with sales reaching $3.92bn in 2016.

Emaar plans IPO of UAE property business Initial public offering will be the largest since the Emaar Malls IPO in 2014 Global real estate company Emaar Properties has announced that it plans to offer up to 30% of its UAE real estate development business in an initial public offering (IPO), which will be the largest since the Emaar Malls IPO in 2014.

In a statement to the Dubai bourse, Emaar Properties said that the decision to list the UAE real estate development business came about because of an internal review of Emaar’s asset values.

Although subject to market conditions, it added that the funds raised through the sale of equity would be primarily distributed as dividends to its shareholders to help create significant value for them.

Emaar pointed out that this indicated the importance of highlighting the value of its business as a major contributor to the overall profitability of the developer through an independent listing.

8 July 2017

Investors who value the proven development track record of Emaar can invest directly in this business and benefit from the strong growth profile of the company’s UAE development business, the statement added.

In turn, this will enhance Emaar’s overall valuation as the value of this important business is properly recognised in the market.

“The proposed listing, and the additional dividend to our shareholders including (the) government of Dubai, underlines our commitment to provide superior value to

30%

Emaar plans to offer up 30% of its UAE real estate development business in an IPO

all our shareholders for their unwavering support to the company since its inception in 1997,” said Mohamed Alabbar, chairman of Emaar Properties.

“Over the years, we have generated significant returns from our UAE real estate development business and it continues to be a strong driver of growth for the group.

“As Emaar’s other businesses have grown and expanded, we wanted to ensure that investors who value the UAE real estate development business the most, the foundation of Emaar’s success, can do so directly. This will ensure that the value of this business is properly recognised, thereby enhancing value for all Emaar shareholders.

“We are drawing on our success to create a new Emaar defined by an expanded development pipeline in Dubai, anchored by iconic structures such as The

Tower at Dubai Creek Harbour.”

Over the last five years, Emaar’s real estate development in UAE has recorded significant growth.

Real estate sales increased from $1.14 billion in 2012 to $3.92 billion in 2016. Through end of May 2017, the business recorded sales of $2.64 billion, 24% above the same period in 2016.

Total backlog at the end of May 2017 was $10.89 billion.

This backlog represents the value of properties sold but where related revenues have not been recognised.

“Emaar’s value proposition is an unwavering commitment to provide the best-in-class service to our customers, which will be the main pillar for the UAE real estate development business to achieve significant successes. We have high-calibre professionals who lead our various businesses, and we are also investing in young talent,” Alabbar added.

The Big Picture

Qatar construction faces growing crisis Diplomatic crisis will impact country’s ability to deliver 2022 World Cup The ongoing diplomatic rift in the Gulf will have a severe impact on Qatar’s construction sector, an industry expert has told Big Project ME. Saudi Arabia, the UAE, Egypt and Bahrain have severed diplomatic ties with Qatar and blockaded its borders, while several other nations have also cut relations with Doha.

Gary Tracey, associate director – Project and Development Services, MENA for Jones Lang LaSalle, said that the cost of building materials and the tender price index will increase.

Furthermore, contractors will face increased risk on projects in the country, he warned.

“Most materials are delivered to Qatar from KSA and they have now cut off ties through land, air and sea. Qatar do not have many other alternatives for supply in

“We believe this will have a severe impact on the government’s ability to deliver the 2022 World Cup infrastructure projects on time and may result in Qatar losing the 2022 World Cup”

the GCC/Middle East, only Oman, Kuwait and Iran,” Tracey said.

“However, these three countries mostly import materials and will not solve the short to medium term demand of materials Qatar will need to fulfil its existing construction projects.

International contractors and consultants will increase their fees considerably due to many staff living in the UAE and flying in and out each week. This is now more difficult after the announcement.”

Tracey also warned that the diplomatic spat could have major repercussions on Qatar’s ability to deliver the infrastructure projects required for the 2022 World Cup. A report in the Guardian cities an unnamed source from the Supreme Committee, which is responsible for building the 2022 World Cup facilities, as saying that the seriousness of the current situation

is greater than any of the formidable challenges Qatar has faced since winning the vote in 2010.

“We believe this will have a severe impact on the government’s ability to deliver the 2022 World Cup infrastructure projects on time and may result in Qatar losing the 2022 World Cup,” Tracey said.

The UK’s Telegraph quoted Graham Robinson, a leading construction expert, as saying that the diplomatic crisis “could not have come at a worse time for the construction of the 2022 World Cup stadia and Qatar’s infrastructure programme”.

“The crisis is expected to most acutely affect labour supply, and on top of the controversy around workers’ rights, this will be a major blow for the Qatari government,” Robinson, a director at Global Construction Perspectives, was quoted as saying.

Severe impact The Qatar crisis will see costs of building materials rise, while tender price indexes will also increase.

July 2017 9

The Big Picture

Former DSI CEO sells stake in Dubai contractor Tabarak Investment becomes the largest shareholder in MEP contractor

Investment welcomed Wael Allan, CEO of Drake and Scull International, has welcomed the investment from Tabarak.

“We can move faster and better now that Tabarak is the major shareholder of DSI. Their involvement in the business now will accelerate recovery and create confidence for our people and clients alike”

Khaldoun Tabari, former CEO and vice-chairman of Drake & Scull International, has sold his shares to UAE-based Tabarak Investment, making it the largest shareholder in the Dubaibased building contractor.

The sale – believed to have taken place on June 8 – boosts Tabarak’s stake in DSI to between 18% and 20%, a source with knowledge of the deal told Zawya. It is understood that Khaldoun Tabari owned between 12% to 14% of the company.

In a statement to Big Project ME, Wael Allan, CEO of DSI, said he welcomed the acquisition, pointing out that it was a sign of commitment from Tabarak Investment.

“The management and the 10 July 2017

people of Drake & Scull are extremely encouraged by this news, and we are excited by the commitment of Tabarak Investment to the turnaround of the company,” he said.

“We can move faster and better now that Tabarak is the major shareholder of DSI. Their involvement in the business now will accelerate recovery and create confidence for our people and clients alike. We are in track, with our capital reduction and the equity injection by Tabarak expected to be completed within the next two months.”

DSI is in the midst of a capital restructuring exercise that could see the company write down as much as 75% of its share capital, or about 1.7 billion shares, in

an attempt to extinguish prior losses. Once this is complete, the company will have 580 million shares, with Tabarak Investments due to subscribe to 500 million new shares at a price of AED 1 per share, giving it a 47% stake in the company.

Given the recent share acquisitions, Tabarak Investments will become the majority stakeholder post-recapitalisation.

The capital restructuring was rejigged following the cancellation of an earlier plan, which called for a write-down of 50% of its capital while allowing Tabarak to subscribe to shares at a discounted rate of 43 fils per share. This plan was rejected by the regulator, the Securities and Commodities Authority.

“The acquisition of Tabari’s share is a voice of confidence in the DSI brand and the longstanding track record of the company, particularly in the MEP sector in the UAE,” said Ahmed Kilani, CEO of Tabarak Investment, during a joint press conference with DSI. “The strategic synergies between DSI and Tabark will be pivotal to the success of the turnaround strategy set forth by the company earlier this year.

“We are optimistic about the prospects of the company in the long term, and we are keen on the completion of the capital restructuring programme to assist the company during this challenging time, yet positive outlook,” he concluded.

The Big Picture

3

1. Lebanese firm to Launch infrastructure investment vehicLe FFA Private Bank, a Lebanese investment firm, has announced that it is ready to launch a structured investment vehicle that will channel the country’s investments in infrastructure projects and the power sector.

The Lebanon Infrastructure Fund is the first of its kind in the country and is “very advanced in terms of financial sophistication”, chairman Jean Riachi said. He added that the initial objective was to reach $1 billion of investments in the short to medium term over the next two to three years.

The fund will mainly focus on solar, wind and hydraulic power projects, besides waste-to-energy projects and waste treatment projects.

The financing could come in a variety of shapes, such as debt or equity financing, while it could also include bonds, bank loans and vendor financing, he added.

Furthermore, the funding could also be in the form of multilateral financing obtained from international organisations such as the International Finance Organisation, German stateowned development bank KfW and France’s Proparco.

12 July 2017

$21m

Arcadis found that the average value of North American construction disputes dropped in 2016 to $21 million

2. hoK reveaLs design for abu dhabi’s Yas arena Global design, architecture, engineering and planning firm HOK has taken the wraps off its design for the multipurpose Yas Arena on Abu Dhabi’s Yas Island.

Once completed, Yas Arena will be the first arena in the city that can accommodate both sports and entertainment events.

HOK is part of the WSP-led team engaged by Miral Asset

Management to be responsible for the design of Yas Arena.

The team is also supported

by Pascall+Watson. Miral is responsible for the development of a large chunk of the southern portion of Yas Island.

Yas Arena will be the centrepiece of the development, said John Rhodes, a director of HOK’s Sports + Recreation + Entertainment practice.

“Our team knew the building needed to be smart, adaptable and technologically advanced in order to efficiently transform for the wide variety of events the client wishes to host. This will make Yas Arena one of the most sophisticated arenas in the world,” added Rhodes.

The arena can expand from a 500-seat theatre to a larger 18,000-capacity venue for larger events.

The Big Picture

$61bn India plans to invest $61.3 billion in the current fiscal year to fund new integrated infrastructure plans

1

2 4

$780m Capital Projects plans to invest $780 million to fund a highway linking Mozambique and SouthAfrica

3. uK’s niceic to open in dubai The National Inspection Council for Electrical Installation Contracting (NICEIC), an independent body responsible for the safety of electrical installations across the UK, is establishing a regional base in Dubai.

The 60-year-old organisation mandates independent third-party inspections and strict

accountability, and issues fines for non-compliance or breach of standards.

“A large number of fires in the region can be traced back to electrical faults, which puts thousands of lives at risk every day.

“Along with development corporations, major international design and construction firms have created highly sophisticated buildings which have

transformed cities throughout the GCC. It is of paramount importance that these buildings are maintained professionally, to ensure that they continue to provide safe and efficient offices and homes that are fit for purpose and do not pose a risk to residents or occupants,” commented Eddie Arrowsmith, regional engineering manager of NICEIC’s Middle East operations.

4. crYstaL Lagoons signs deaL with egYpt’s tatweer misr Crystal Lagoons has announced that it has signed its second contract with Egyptian real estate company Tatweer Misr.

The company says the deal will bring “top amenities” to the $117m Fouka Bay project in Ras Al Hekmah, by effectively turning houses into waterfront properties.

“Our latest venture with Tatweer Misr is further testament to the vital role Crystal Lagoons plays in the successful introduction of new and existing real estate and hospitality projects to the market,” said Carlos Salas, Middle East regional director of Crystal Lagoons. “Our high-tech, energy-efficient lagoons are an increasingly popular amenity choice for forward-thinking developers in Egypt seeking an affordable long-term solution for sustainable development.”

Fouka Bay, along the coastline of Ras El Hekma, has been designed in collaboration with Italian architect 5+1AA. The development features a variety of luxurious residences with panoramic views of the coastline, and an 800m stretch of beach.

The resort is expected to be completed by 2022.

July 2017 13

Market Report

Overall HPI fOr KSa rISeS tO 83, frOm PrevIOuS 74

Upward trend in residential price indicates consumers are starting to invest in property again after a slow and difficult market in 2016, says SIMAH

rise in index The rise in the index marks the first observed increase in the average value of residential property since Q4 2015.

Built from a sample of more than 40,000 property records supplied by some of the country’s leading mortgage providers,

the Index measures changes in residential property prices, quarter-on-quarter, from a base point of 100 set in Q1 2013. Values above 100 denote that residential property prices have increased, on average, since Q1 2013; values below 100 denote an average drop in residential property prices since Q1 2013. The Index was built using a technique

called hedonic regression, the same statistical technique used in the UK, Australia and the US, SIMAH said in a statement released to Big Project ME. The rise in the Index marks the first observed increase in the average value of residential property since Q4 2015. The average price of residential property fell steadily in 2016,

from an index of 90 in Q1 2016 to a low of 74 in Q4 2016.

Despite the increase observed in Q1 2017, the HPI is still tracking below the original base point of 100 set in Q1 2013.

“SIMAH is delighted to launch the Saudi House Price Index, which has been developed using a robust sample of high-quality residential

“The rise in the Index marks the first observed increase in the average value of residential property since Q4 2015. The average price of residential property fell steadily in 2016, from an index of 90 in Q1 2016 to a low of 74 in Q4 2016”

14 July 2017

Source: SIMAH, the Saudi Credit Bureau

The overall Housing Price Index (HPI) for Saudi Arabia has risen to 83 from the previous quarter’s 74, the Saudi Credit Bureau (SIMAH) has said following the publication of its new Index for the Kingdom of Saudi Arabia.

Market Report

“The upward trend in average residential prices, coupled with the increase in mortgage enquiries and new loans written, reflects that consumers are starting to actively invest in property once again” property data and utilising international best practice statistical methodologies for the development of such indices,” said Nabih Al Mubarak, CEO of SIMAH. “We believe that this Index, which SIMAH will publish each quarter, will quickly become an important and leading economic indicator for policy-makers, banks and mortgage lenders, and consumers across the country.”

The HPI also considers the difference in price for different residential property

types (villa, land, apartment and duplex) and different regions (Central including Riyadh, Eastern, Northern, Southern and Western). The most expensive property type in Q1 2017 was duplexes in the Western region, with an average price of SAR 3,717 per sqm.

The lowest price observed in the quarter was land in the Northern region, with an average price of SAR 397 per sqm.

On average, the Central region had the highest average residential property price per

sqm in the country and Riyadh was the most expensive city, with an average property price of SAR 2,948 per sqm.

In the HPI, villas comprised 60% of the property types measured, followed by land at 21%, apartments at 15% and duplexes at 4%.

“The upward movement in residential property prices across the Kingdom in Q1 2017 reflects what we have observed in terms of mortgage activity and which is described in the SIMAH Mortgage Credit Index, which

we also recently published.

The upward trend in average residential prices, coupled with the increase in mortgage enquiries and new loans written, reflects that consumers are starting to actively invest in property once again after a slow and difficult market in 2016.

“The relaxation of maximum loan-to-value criteria set by SAMA from 70% to 85% has also had a positive bearing in terms of average residential property values,” Mubarak added in conclusion.

Growth from House Price Index (Base: Q1 2013) 110

100

90

80

70

Q1 2013

Q2 2013

Q3 2013

Q4 2013

The most expensive property type by region in Q1 2017 were duplexes in the Western region, with an average per sqm price of

Q1 2014

Q2 2014

Q3 2014

Q4 2014

The lowest price observed in the quarter was land in the Northern region of Saudi Arabia, with an average per sqm price of

Sar 3,717 Sar 397

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Central region represented the highest average price per sqm in the country, and within the Central region, Riyadh was the most expensive city with an average per sqm price of

Sar 2,948

July 2017 15

News Analysis

Abu DhAbi Rents in Decline Manika Dhama, senior consultant, Strategic Consulting and Research at Cavendish Maxwell, takes an in-depth look at the Abu Dhabi rental market

Prices in the Abu Dhabi residential market continued to decline over the first quarter of 2017, with villa rents falling more than 1.5% in Al Raha Gardens and Al Reef and more than 1% in Saadiyat Island.

Apartment rents have also been pressured, with declines of over 1% in Al Raha Beach and Al Ghadeer.

Rents for apartments are currently at similar levels to 12 months ago, with units in Al Ghadeer, Al Raha Beach and Al Reef at the same levels as in the first quarter of 2016.

However, for villas in Al Reef and Saadiyat Island, the declines have been sharp with drops of over 5% over the same period.

Supply

Nearly 83% of the units completed in Q1 2017 were apartments, with the majority located in Saraya, Corniche area. Approximately 1,900 residential units were completed in Abu Dhabi investment zones in 2016. More than 90% of completed units in 2016 were apartments, with the majority located in Abu Dhabi 16 July 2017

Providing incentives Landlords may need to provide incentives to entice tenants, over and above flexibility of payment through multiple cheques.

News Analysis

City and Al Reem Island.

Approximately 1,200 residential units were completed in Q1 2017 in Abu Dhabi investment zones, with 7,800 units scheduled for delivery during the remainder of 2017.

New project announcements during the first quarter included Manazel’s 2,500 affordable villas project in Ghantoot and Aldar’s mid-market housing project The Bridges at Reem Island community, comprising six towers of 270 apartments each.

The starting prices for this new project were AED 450,000, with the release of two out of six towers during the Cityscape event earlier this year. A third tower was released after the event, while the remaining three will be held by Aldar as part of their leasing portfolio. This new

“Any improvement in transaction levels is only likely when developer offerings are adjusted to current demand dynamics, both from regional investors and end users”

level of pricing marks a shift in the strategy being adopted by developers in response to end user demand. More products with lower-priced inventory are expected to be launched in coming years.

Our research indicates upcoming pipeline supply of nearly 8,200 units in Reem Island between the remainder of 2017 and 2020. Supply pressure is expected to be felt more strongly on projects that are undifferentiated from the existing stock, i.e. offering more of the same in terms of amenities and unit sizes, and presenting payment plans weighted heavily towards pre-construction payments as opposed to posthandover. Developers must begin responding to current consumer needs by planning more efficient

designs and launching lowerpriced inventory, especially options targeted to end users.

Factors affecting residential market

Housing budgets have come under pressure in recent months and with new supply entering the market and areas with existing supporting infrastructure, tenants will move to new areas, provided the rent payout does not squeeze budgets. Landlords may need to provide incentives to entice tenants, over and above flexibility of payment through multiple cheques.

There is expected to be continued pressure on rents from slow job growth and further redundancies. Areas with upcoming supply in the short to medium term (such as

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News Analysis

Community

Average Rent (AED/Unit)

Last 6 months

Last 3 months

Last month

Al Ghadeer - Apartments

47,362

-1.38%

-1.24%

-0.50%

Al Raha Beach - Apartments

147,412

-1.37%

-1.01%

-0.36%

Al Raha Gardens

218,097

-2.32%

-1.54%

-0.62%

Al Reef - Apartments

121,215

-1.16%

-0.86%

-0.29%

Al Reef - Villas

139,429

-1.75%

-1.75%

-0.70%

Al Reem Island

126,864

-0.90%

-0.90%

-0.38%

Saadiyat Island - Apartments

189,698

-0.92%

-0.92%

-0.41%

Saadiyat Island - Villas

477,897

-1.37%

-1.37%

-0.55%

Reem Island) are expected to be more affected. Occupancy risk will continue in larger units as senior-level executives remain most affected by readjusted employee benefits such as housing allowances.

Market activity has slowed in the past 12 months and consumers are more costconscious today. Thus, any improvement in transaction levels is only likely when developer offerings are adjusted to current demand dynamics, both from regional investors and end users. Consumer demand continues to shift in favour of communities with existing infrastructure and amenities, with developer track record becoming a key factor in sustaining price and rent levels.

“Occupancy risk will continue in larger units as senior-level executives remain most affected by readjusted employee benefits such as housing allowances”

The potential buyer mix is slowly tilting towards the end user segment, hence payment plans offered by developers must align with this reality. Payment plans in the boom years leading to 2008 typically required 80%+ payment during construction.

Since the real estate price correction following the 2008 global financial crisis, payment plans have become far more attractive to investors, with developers sharing more of the development risk. In the current market, payment plans vary from a significant proportion during construction to only a small proportion, say 20-30%, during construction, with the remainder on completion or over a period following completion.

This trend is expected to

continue with new developments launched in the emirate.

Looking ahead

The Department of Economic Development expects Abu Dhabi’s growth rate to be 3.5-3.7% in 2017. Oil price stability at levels close to the $50 a barrel mark has helped to improve market sentiment, though challenges remain with redundancies in the oil & gas sector continuing to have an impact on housing demand in the emirate.

Recovery in the overall economic climate of the emirate is linked closely to government spending, and the Executive Committee’s approval of $64 million worth of projects in March 2017 is a positive step in this direction.

Government spending Recovery of Abu Dhabi’s real estate market is closely linked to government spending in the emirate.

18 July 2017

Source: Cavendish Maxwell

Abu Dhabi rental index

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In Profile

20 July 2017

In Profile

“In an emergIng market nothIng replaces transactIon data, whIch Is what we get from our brokers. havIng these two worlds work well together Is one of the usps that we’ve been tryIng to have from the begInnIng for our clIents”

David Godchaux, CEO of Core Savills, sits down with Big Project ME to discuss how his firm is shaping up to meet the challenges and opportunities of the UAE real estate sector, and his outlook for the market for 2017 and beyond

July 2017 21

In Profile

w hile there are several top-tier real estate analysis firms operating in the UAE market and hundreds of real estate brokerages across the country, it’s rare to find a firm that offers both services. This has always seemed a little odd to David Godchaux, CEO of Core Savills, a real estate provider with a difference. Not only does the firm act as a broker for completed projects, it also looks to be a onestop shop for its clients, providing analysis, data and research to go along with its many other services.

“From the very beginning, the vision has been to try and provide a very integrated solution for different types of clients, in terms of all real estate services,” Godchaux tells Big Project ME during an interview at the firm’s Dubai offices.

With four offices in the UAE between Abu Dhabi and Dubai, Core Savills has grown over the last 18 months to almost 100 employees covering the entire gamut of the regional real estate sector, with residential, commercial and international real estate, while also offering investment sales services, project and sales marketing, and property management, among others.

“The integrated offering goes from the purely transactional services, through to the investment services – the property and asset management – as well as all these professional services, the research and development consultancy, it’s all integrated with the transactional part.

“It’s something that is unique in many places around the world, 22 July 2017

everything under one roof David Godchaux says Core Savills is committed to offering clients a variety of real estate services from one office, as this allows its teams to be reactive and mobile.

and it’s certainly unique in Dubai.

If you look at our competition in Dubai, you have a lot of very good and talented brokers in the market, but they’re just brokers.

They don’t have the development consultancy; they don’t have the analysts to crunch the data and make conclusions as to where the market is going.

“Then you have the professional services, the global ones. They’re doing a fantastic job of crunching the numbers and analysing the market and making recommendations for clients. But the data they rely on is public data, it’s not data that is coming from transactions.

They’re advising with something that is good enough, but in an emerging market nothing replaces transaction data, which is what we get from our brokers. Having these two worlds work well together is one of the USPs that we’ve been trying to have from the beginning

“In Dubai, you have a lot of very talented brokers in the market, but they’re just brokers. They don’t have the development consultancy; they don’t have the analysts to crunch the data and make conclusions”

for our clients,” he asserts.

Godchaux adds that this is just one part of the overall vision for Core Savills as a business. The second part is to integrate all these services and offerings with the back office, he explains. While competitors have branches in Dubai and the rest of their support systems spread around the globe, he insists that the best way forward is to have everything in-house.

“It does cost us a lot, but it’s a service that we offer our clients, it allows us to be very reactive and lets us mobilise when we must mobilise. We don’t need to say that we must involve the IT or research departments somewhere else in the world. We can mobilise very quickly on a project over here and handle it from A to Z, right from the early consultation down to the pricing strategy and marketing plan for the next two or three years, to bring the project to market. We do all the transaction management processes, down to the snagging and the final details, all on behalf of the client.”

Furthermore, this approach also covers the global marketing plan for the project, the PR plan, even the after-sales if needed. Godchaux says the firm can even offer certain end users property management services or resale services if needed.

“That applies to all our offices across the region. We’re also transacting in the wider region, while also supporting clients in other GCC regions with this philosophy and through our head office in Dubai. But that’s not the same as any other Savills office around the world, because typically, in most offices you don’t have commercial and residential under the same roof. That’s a choice we’ve made and it does cost us, but we believe in it.”

Having spent ten years in Russia prior to moving to the UAE, he points out that this model works particularly

In Profile

well in emerging markets.

“In the Middle East, you typically don’t have a very well defined line between what’s institutional and corporate, and what’s private wealth. It’s not so defined here. You don’t have a lot of pure institutional money.

Recently, we’ve seen more projects coming to the market, but it’s still very limited in the Middle East.

Most of the money is owned by private people, and I think having this full service under one roof allows us to provide solutions.”

However, the primary Core Savills area of focus remains the larger developers, he says. The company worked recently with Meraas on both the CityWalk and Bluewaters Island, and Godchaux says that because it was fully embedded on both projects from

the start, Core Savills was able to put in place comprehensive plans for the marketing and selling of units, creating a 360-degree vision of how the projects are positioned.

“Developers need to understand that their area of expertise is to develop projects, which they’re very good at. It makes much more sense for them to externalise all these services to companies who have offices around the world, who have done it for years and who are transacting locally. It’s not only the research part, it’s also the local transaction part. We take ownership of everything, and that means that if we succeed, then we can say that we succeeded because we put everything in place. And if we fail, it’s not because of someone else. We take ownership [of the project].”

When asked about the Dubai real estate market, Godchaux splits the commercial and residential real estate markets into different segments, all with different drivers. When it comes to the commercial market, that comes down to two key sub-markets, he says. These are the prime sub-market, approximately 30% of total stock, and the grade B and C stock, 70% of total stock.

“The prime sub-market has really been left behind by developers in the last ten years. As a result, while Dubai has established itself as a global hub and as a place to be for international players, that market has largely become under-supplied. Rents have been going up for several years, but when the market started being less active in the last 24 months,

rents have continued to stay where they are because there’s such an under-supply of quality stock.

“Then you’ve got the grade B and C market, which is completely the opposite story. The market has been flooded with grade B and C stock over the last 10 years, and as a result, we’re seeing much more supply that has been difficult to absorb by very different types of occupiers.”

What this means is that the lower-priced segment of the market tends to attract smaller companies that are much more sensitive to market dynamics.

When the economy is booming, these commercial units tend to see a strong uptake; however, when the economy contracts, as it has for the last 24 months, these spaces also tend to see a high vacancy prime stock The commerical prime sub-market has been left behind by developers over the last ten years.

July 2017 23

In Profile

rate, while rents also fall rapidly.

“We did a research report recently where we were analysing this, and we did a simulation where the economy was booming again – the best two years of the last ten years, with that happening again for the next two years. Even in this type of scenario, if you take the absorption rates of the grade B and C markets, it’ll take three years for half the stock available to be absorbed. That means it’s not going to recover anytime soon,” Godchaux says pessimistically.

A similar picture emerges when you look at the residential sector.

Here the market is divided into three sub-sectors – the affordable to bottom mid-market, the upper mid-market and the prime market.

Although the common perception is that the prime market has seen a lot of supply coming in over the last decade, Godchaux says this isn’t necessarily true.

“We’re not in a situation where we’re very worried, as there’s still a lot of quality supply coming consistently, but if you look at the figure, roughly 50% of what has been announced has been delivered, and it continues

to roll over. In the past ten years, almost every single year, only 50% of the amount announced has been delivered. Why is that?

Because the developers don’t have any incentives to terminate on time, and so that’s actually a very healthy adjustment mechanism.

“If the market is not there, then they delay the units until the remaining stock is absorbed.

This doesn’t exist in the Western world, because they would get highly penalised, but here it’s possible. Of course, for those who have bought off-plan and not had their units delivered while they’re

still paying for it, that’s an issue the Land Department will have to address, but until now this mechanism has served the market well. It has stopped the market from having an over-supply that will lie empty. So as a result, we don’t have that much quantity of grade A stock in the market today.”

However, Godchaux adds that he’s also quite positive about the outlook for the grade A market because of the supply figures coming through. He predicts that investors are monitoring the market closely and waiting to see what the rest of the market

“The prime sub-market has really been left behind by developers in the last ten years. As a result, while Dubai has established itself as a place to be for international players, that market has largely become under-supplied” positive outlook Godchaux says the outlook for the Grade A resiential market is quite good because of the supply figures coming through.

24 July 2017

In Profile

is doing before deciding to invest or reinvest their money.

Conversely, the mid-market segment is something he is quite concerned about, pointing out that it has suffered a lot over the last 36 months, with prices dropping 15-20%. While approximately half of this market has shown signs of recovery over the last 18 months, the rest continue to struggle as they are in areas of Dubai that aren’t in as high demand.

This concern also ties in with the third segment of the residential market – the affordable or bottom mid-market. Three or four years ago, governments and developers both realised there was a huge need for affordable housing in Dubai. As a result, the last year has seen a lot of stock coming into the market. However, in order to keep prices down, developers have had to build on less expensive land, and as a result a lot of projects are coming up in the outer areas of Dubai.

“There is something that is a little bit dangerous with what’s happening right now, and it’s certainly a reason for concern for the next five or ten years in Dubai.

If you look at the total stock that will be delivered, realistically the total number of units delivered over the next four or five years will be 60,000 units – that’s by 2020, so it’s not even four or five years.

“I think out of the 60,000 units, 80% of those – which is a lot – are going to be priced below the AED 1.2 million range, so you’ve suddenly got a massive supply coming. The problem is that the Central Bank has not changed the mortgage regulations, so it still costs you around 31% down payment if you want to buy a unit.

Now, especially for the affordable segment, these people don’t have enough money to make that down payment, and if you buy off-plan, then it’s a 50% down payment that you have to make, while

different cultures While landlords in Dubai are more reactive to market pressures, Abu Dhabi landlords prefer to keep their rents up and ride out dips in the market, Godchaux says.

“If the market is not there, then they delay the units until the remaining stock is absorbed. This doesn’t exist in the Western world, because they would get highly penalised, but here it’s possible”

also continuing to pay rent.

“So while creating affordable housing might have started out with the best intentions, due to the financial restrictions that the target market faces, the existing affordable stock is bought up by investors who then flood the market and look to generate high yields. This needs to be addressed, because that generates a big systemic risk to the system,” he warns, explaining that because the market is cyclical, these investors will then look to sell when things are not going so well, creating a crash in the market segment.

“Unfortunately, this market doesn’t have a very large pool of end users that would make it more stable when something goes wrong. It’s a market that’s not very well established. I believe that there are a lot of potential reasons to be concerned about it, and it needs to be addressed.”

Another market Godchaux

is quite interested in is the Abu Dhabi real estate sector, which has also seen tremendous change over the last 18 months or so. Due to the UAE capital’s dependence on oil prices, he says its real estate sector has been hit a little bit harder than that of Dubai.

“Adjustments happen all over the world, and there’s nothing to be worried about,” he asserts. “Actually, they’re trying to structurally reform the way real estate works over there.

They’re changing the laws and it’s a nice time for them to see what’s working and what’s not.”

“But there are a few issues.

Obviously, there’s a lot of vacancies in the residential and office markets, and just like in Dubai, there’s not enough quality office space generally. On the residential front, we’ve noticed some migration from the city areas to the outer areas because people can’t afford the rent any more.

“And that’s something interesting about the culture in Abu Dhabi. In Dubai, landlords generally tend to react faster to the market. When rents are going down, they will more often than not adjust the rents fairly quickly, rather than keep their units empty for a year.

‘This hasn’t been the case in the Abu Dhabi City area for the past 12 months. A lot of landlords have decided that they would rather keep the headline rent and leave their unit empty. What has happened is that people have left to the outer areas, where landlords are a little bit more flexible, or where there are more new properties, which then gives the impression that the outer areas are very healthy. It’s going to be interesting in two or three years, or maybe earlier, when the market starts recovering and we’ll see if those areas are actually that healthy,” he warns, bringing the interview to a conclusion.

July 2017 25

Project Profile

26 July 2017

Project Profile

Law of the Land

t

he Amiri Diwan and the Ministry of Public Works (Kuwait), commissioned Pace, a Kuwaiti multidisciplinary consultancy firm, to undertake the full judiciary architectural design and construction supervision of two major governmental establishments in the country – the Jahra and Farwaniya court complexes.

Both projects are in main governorates within their central service zones, surrounded by major highways and link roads. The buildings are occupied by the beneficiary, the Ministry of Justice.

In order to ensure the successful delivery of the project

by June 2016, Pace entered into a joint venture partnership with a specialised international court consultant, Fentress Architects.

As a result, a fully qualified, experienced and technical team was in place, allowing the project to be completed in less than 20 months through the use of fasttrack construction technologies.

Each of the main buildings of the two projects accommodates 80 courts. A net area of 50,225sqm was allocated for offices to accommodate 2,019 employees, taking into consideration future expansion for all departments.

The buildings also include a law library, cafés, prayer rooms, seminar rooms and a multi-use hall for special events, as well as the areas required for mechanical and service utilities. The total gross area of the Farwaniya Court main building is 94,760sqm, and the

total gross area of the Jahra Court main building is 95,026sqm. Both complexes are 17 storeys high with three service basement floors.

There are two separate automated car parks for each project, the first of their kind in the region. They have been constructed on a plot area of 5,000sqm each, accommodating over 2,900 cars with separate, secure spaces allocated to court officials.

An efficient planning strategy in the design separates the three types of circulation systems: public, private ( judicial) and secure/ prisoner. Circulation flow was also carefully studied and designed to ensure harmony and integrity among main entrances and exits.

The project’s internal and external designs were developed and tested with the client in order to meet the design brief.

Externally, the architectural envelope is enlivened by the use of a contemporary interpretation July 2017 27

Images: Nick Merrick © Hedrich Blessing

Tarek Shuaib, owner and managing partner of Pace Engineering, outlines how the Kuwaiti firm brought the Jahra and Farwaniya court complexes to fruition for the Amiri Diwan and the Ministry of Public Works, in an exclusive piece for Big Project ME

Project Profile

of an Islamic pattern. The architectural mass makes best use of the site and expresses the gravity and importance expected from a building of this stature.

Environmental Factors

The main source of airborne pollution is sand and dust-bearing desert winds from the northwest.

These occur during the summer months of June to August.

Unfortunately, these winds cannot be easily controlled or diverted; therefore, the building orientation has been carefully investigated to minimise the impact from these natural occurrences. Equipment has been fitted with the necessary filters and traps to minimise the damage and effects of sand.

Planning, Form and Fenestration

The most significant principle in the architectural expression of a courthouse is that the courthouse is a steward of all that the law represents: openness, accessibility, permanence and, most importantly, fairness for everyone. With the increasing complexities of society, this is accomplished by communicating the open and transparent judicial process that affirms the administration of justice.

A strong architectural expression is therefore essential.

While open and transparent, it must express security; while stable, it must be flexible for future needs. While it represents fairness for the citizen, it commands respect; it is integrated with the latest technology, yet maintains a strong sense of history and the community’s purpose in dispensing justice to the people.

The foundation of planning and designing the modern courthouse is a clear and efficient planning strategy that ensures three separate circulation systems: public, private/ judicial and secure/prisoner. The public and private circulation 28 July 2017

essential expressions Part of the brief for the project was that it was essential for it to have a strong architectural expression of openness and transparency, while also showing a sense of security.

systems occur horizontally, while the secure or prisoner circulation occurs vertically.

The design creates an impressive central interior courtyard. This public hall is both the symbolic and functional focus of the courthouse. After traversing the grand public steps in front of the building and passing through security, members of the public enter a majestic central atrium.

This finely appointed grand interior room has courtrooms on two sides and public elevators and offices on the third side. The large, geometrically detailed wall of glass allows the public to see into the building and, once

inside, view the outside while filtering the harsh sunlight.

The atrium is designed to be welcoming to the public and articulates this with the sense that a traditional courtyard has been turned on its side, opening to the public rather than the sky.

This creates both a functional and symbolic public space. In contrast, a more traditional building entry would be opaque and uninviting to the public. The skilful use of glass expresses a sense of increased transparency of the judicial process and openness of the legal system.

Views are also abundant from the interior space of the courthouses.

The grand entry experience in

this civic building also supports the expression of the openness and transparency of the business being conducted inside the courthouse.

This strong connection between the inside and outside affirms the civic purpose of the judicial centre.

The design of the Jahra and Farwaniya court complexes is an interaction between inspirational yet highly efficient spatial relationships and a reinterpretation of traditional Kuwaiti architectural elements and the art of Arabic calligraphy.

These different generative concepts inform and strengthen each other in a pervasive way, each adding value to the other

Project Profile

in every part of the building.

After extensive study of programmatic layout, an interlocking ‘L’ shape provides the most efficient interaction between the three circulation zones (public, secure, restricted) and the spaces they serve. The grand atrium is the space holding these zones together in dramatic fashion.

The vertical extensions accent and protect certain parts of the building, one being the open main entry of the building. Within Kuwaiti architecture, attention to the main entry is paramount.

The large glass wall at the entry to the courthouse emphasises the point of entry with the slope of the stairs as they rise. This key design element is also decorated with an Arabic-derived frit pattern that both serves as a screen and

imbues the space with the southern light entering the building.

Conceptual Design

FACTS AND FIGURES Total gross area of Farwaniya Court main building: 94,760sqm Total gross area of Jahra Court main building: 95,026sqm Number of courts in each building: 80 Height of both buildings: 17 storeys + 3 basement levels

During the design process of the Al-Jahra and Al-Farwaniya court complexes, the following functional requirements were taken into consideration: • Access for judges, prisoners, employees and visitors • Departmental locations and their relationship with one another • Area distribution • Quality of interior spaces • Parking demand and supply • Building efficiency • Project cost Interior Design

The interior design of the Jahra and Farwaniya court complexes

began by allowing as much natural daylight as possible to filter through the building to create a sense of well-being, assisted by using glass in both the architecture and the interior partitioning.

This was also enhanced by a neutral palette of materials that lend themselves to the variety of demands required by the various spaces. To create interest and pattern, contrasting materials and textures were introduced.

The interior planning of the court buildings began with one key factor: retaining a secure separation between the judiciary, the public and those held in custody. This independent circulation is retained throughout the building, making it impossible for one group to mix with another at any point.

Using natural light The interior design of the court complexes use as much natural light as possible to create a sense of well-being.

July 2017 29

Project Profile

the Clerk of Court and other support activities. The Court of Appeals is on levels 14 and 15 along with the court support staff, Court Clerk and those responsible for scheduling and managing the Court of Appeals.

All judges have access to up to nine conference/hearing rooms for private consultation, each with direct access from the Judicial Lounge and each of the courts. Restrooms, tea service, lounges and a dining room are available to all judges.

Each of the four 200sqm Ceremonial Courts have the benefit of natural daylight from a row of clerestory windows high above the judge’s bench.

All spaces are designed as per the area programme, providing considerable flexibility in the ways in which spaces are assigned adjacent to their support services.

Brand & Signage Design

Maximising size The layout of the project maximises the size of the first four floors in order to provide easy access to the main departments.

This placed serious demands on the planning of the internal areas, and was overcome by creating three separate circulation routes.

The layout maximises the size of the first four floors in order to provide easy access to the main departments that the majority of the public will be visiting, including support departments and counter positions. Visitors approach the entrance of the building by ascending a set of stairs that leads them into a brightly naturally lit lobby area. Once they have passed through the magnetometers, clear signage directs them to the required department; alternatively, they can approach the information desk strategically placed in the centre of the lobby before making their way around to the main lifts.

Judicial officers enter the building through a secured vehicle sally port monitored by security personnel, before driving to level 30 July 2017

“The most significant principle in the architectural expression of a courthouse is that the courthouse is a steward of all that the law represents: openness, accessibility, permanence and fairness”

B-2. Here they enter a secure parking area adjacent to each of the courts on levels 7 through to 15. This corridor leads judicial officers to the Judicial Lounge, Judge’s Library, conference rooms and offices, as well as restrooms and robing rooms, all without being observed by visitors.

People in custody arriving by bus and van enter through a separate sally port at ground level before being moved to the holding area. From the holding area, they have direct access to lifts that arrive between pairs of courts, with docks on levels 7 through to 15. This ensures that they never mix with the public, court staff or judicial personnel before entering the courtroom from the holding area on each floor.

The Courts of First Instance are on the middle levels of the building, and these accommodate the Court of First Instance, the Notary Public,

The Jahra and Farwaniya courthouse brand has been designed to ensure a strong image consistent throughout the buildings. The aim of the logo is to portray the importance of the institution while harmonising with the contemporary design of the courthouse complex.

Legibility is also a major factor, as this logo will be used on many different materials and formats, from the grand signage on the front of the court complexes to stationery items such as letterheads and business cards.

Signage has been designed to convey information in a consistent and authoritative manner while remaining in harmony with the architecture and interior design of the complexes. The location, background material and use of signage have been carefully considered in order to produce a clear, coordinated signage package.

Structural System

The optimum structural system

Project Profile

“The interior planning of the court buildings began with one key factor: retaining a secure separation between the judiciary, the public and those held in custody. This independent circulation is retained throughout the building, making it impossible for one group to mix with another at any point” was selected, to achieve the most economical design in terms of programme and cost. The structural elements (columns, slabs, beams and shear walls) were studied and analysed using the most advanced structural software, including ETABs and STAAD Pro. Additional special software was used to design the building’s various structural elements based on the American codes referred to in the technical and safety requirements.

High-performance concrete

of grade 650kg/sqcm has been proposed for all vertical elements, and grade 450 kg/sqcm for floor beams and slabs. One-way ribbed slabs spanning a maximum of 11.0m and solid slabs are used as a combination structural system.

In order to provide a column-free auditorium space, composite steel sections are used for beams spanning 16.0m on the ground floor.

For the floor spanning over the atrium, two plain trusses with a depth of one floor and composite steel beams spanning these

trusses were used as structural framing on level 16 and the roof above. The atrium roof is covered by a 2.0m-deep space frame.

Lateral stability against wind loads and seismic effect was achieved by the main concrete cores and internal shear walls.

Steel members and pre-tensioned cables are used to support the inclined main curtain wall glass panels. The retaining walls of the three basement floor levels were designed to support the lateral earth pressure and the

underground water pressure.

The whole building is supported on a raft foundation with thickness of 2.4m under the main core and 1.80m under the rest of the building. The raft is used to transfer the upper loads with almost uniform distribution to the soil.

HVAC System A/C & Ventilation

The design of the HVAC system took into consideration the recommendations and mandatory clauses of MEW 2010 codes for energy conservation, weather data,

July 2017 31

Project Profile

“The design of the Jahra and Farwaniya court complexes is an interaction between inspirational yet highly efficient spatial relationships, and a reinterpretation of traditional Kuwaiti architectural elements and the art of Arabic calligraphy” etc. Other international standards such as ASHRAE were also used as guidelines in the design.

The total calculated cooling load for the building is around 3,300TR, and the chiller plant room is on basement level B3.

Four ozone-friendly R134A centrifugal water cooled chillers of 660TR each, with constant flow primary and variable flow secondary chilled water circuits, cater for 80% of the peak cooling load; and in combination with the thermal ice storage system, the remaining 20% of the peak cooling load is met. The chilled water circuit and glycol circuit are decoupled by a plate heat exchanger. Package cooling towers for the chillers’ condenser water is on the roof, with condenser water pumps in the basement B3 32 July 2017

designed to specifications The building’s smoke ventilation system has been designed in accordance with Kuwait’s fire department requirements.

chiller plant room. Winter heating is through electric heating coils in the perimeter room VAV boxes.

The thermal ice storage system comprises two ice-making glycol screw chillers, ice storage tanks, two plate-type heat exchangers and 25% ethylene glycol circulation pumps with controls.

Ice-making chillers generally work at night to charge ice inside the ice storage tanks, which is melted during the peak demand period (day) to substitute 20% of the peak cooling load. All office spaces are air conditioned by VAV AHUs, with a VAV terminal box for each room temperature control. Typical courtrooms are air conditioned by CV AHUs. All courtrooms are designspecified for low noise. Office-level AHUs and courtroom AHUs are

supplied with treated fresh air from 100% outdoor air AHU with energy recovery. Prison areas are designed to have security grilles and are air conditioned by independent AHUs. The atrium entrance and atrium corridors are air conditioned by independent AHUs in their level AHU rooms.

The data centre is air conditioned by a computer room air conditioning unit, for close temperature and humidity control. The computer room air conditioning unit is of Dx type, with a watercooled condenser coupled with a close circuit evaporative cooling tower on the roof.

The basement car park is ventilated with two-speed supply and exhaust fans. Other basement areas such as the archives,

transformer room, HT room, LT room and central plant are air conditioned. The generator room is equipped with exhaust fans for normal room ventilation and smoke exhaust. The chiller plant room includes refrigerant leak detection with exhaust fan.

The smoke ventilation system for the building is designed in accordance with Kuwait fire department requirements.

The building automation system (BAS) is specified to have the latest BacNet protocol in compliance with ASHRAE std 135. BAS is connected to the integrated system and will use the IT backbone. All equipment (chillers, cooling towers, pumps, AHUs, FCUs, fans, VAV boxes, electric panels, Ph equipment, etc) is interfaced to the BAS.

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MEP

A Shift in focuS

Big Project ME speaks to MEP experts to understand the risks and challenges facing this vital sub-sector of the construction industry

A

s the GCC construction industry continues to deal with rapidly shifting trends and market forces, certain sectors of the industry feel the effects of market pressures and dynamics more strongly than others.

The MEP sector is particularly susceptible to these changes, given that contractors operating in this field are often at the mercy of circumstances beyond their control. While it was predicted in 2016 that the sector would see growth in 2017 off the back of investment in tourism and hospitality development, six months into the year it has become increasingly apparent that greater challenges lie ahead.

Given the altered landscape, Big Project ME spoke to three leading MEP contractors and consultants to get a rounded view of the market and learn how firms are adapting to the new realities around them.

“Despite trying to recover, the MEP market is still flat since the 2008 downturn,” says Robert McDonnell, senior estimating manager for ALEMCO. “The buoyancy has never really returned to the market, as some MEP contractors are still undercutting project values, which is just compounding the problem in an already flat market.”

“As a result, some established contractors are no longer active in the market, while new MEP players have arrived on the scene, and in an attempt to establish themselves quickly have taken on risky work at the wrong prices.

This has also led to the delay of the MEP market recovery.”

This has also caused a shift in focus for the MEP industry, with established contractors now

focusing on milestone projects that come with certain guarantees in terms of fees, delivery and scheduling, as Sameer Daoud, chief development officer and managing director for KSA at Drake & Scull International, explains.

“The MEP market in the UAE is very promising. We have a lot of work available, with many upcoming milestones such as the Expo 2020 and the 2030 Vision.

We see great development and projects coming up that will comprise a lot of MEP work.

“In addition, we see a lot of focus on the infrastructure side, in terms of delivering water reticulation and district cooling. A third component is the industrial market. The UAE government is supporting and pushing these projects forward, and that looks very promising.”

Furthermore, with longevity and cost savings now on the agenda, Cathy Christer, partner and head of MEP at Godwin Austen Johnson, explains that

there is now increased client interest in sustainability and green building measures.

“The MEP industry is well placed to deliver the green construction and sustainability targets as the designers of water, power and cooling systems within the developments. The local MEP market is, as ever, fastpaced with a lot of new projects large and small to bid on, and if successful, work on as well.

“We have seen a trend with increased client interest in sustainability and green building measures, which is great. In addition, clients are interested in the longevity of their buildings – how will the designs and systems perform in five or ten years’ time,” she adds.

A by-product of this shift in thinking is that specialist MEP firms will have more opportunities in a market that seems to be focused on quality and the long term, rather than immediate cost savings. Specialist firms who

“The buoyancy has never really returned to the market, as some MEP contractors are still undercutting project values, which is just compounding the problem in an already flat market” 34 July 2017

MEP

July 2017 35

MEP

are familiar with the market and are flexible and agile at delivering clients’ requirements will do well, predicts Christer.

“In my opinion, a specialist is someone who will give the best solution to a problem. Therefore, a specialist MEP firm will be well placed to respond to a client’s requirements, be they to provide a low-cost solution or a design to meet a mid- or highrange budget. The specialist will work together with the quantity surveyor to inform the client as to the risks and opportunities within the brief and budget.”

However, while Sameer Daoud agrees that specialist firms will have an advantage in the current market, he asserts that this will only exist if there is cash available from the client.

“Our biggest challenge, whether as an MEP specialist or as a general contractor, consultant or end user, is funding, which is key. Cash is only available when all stakeholders are on board with plans and budgets, with adequate credit secured. If the funding issues are resolved, then

I don’t see any further challenges in the MEP market in the UAE. “The biggest problem we have faced in the last few years is the declining oil price, while the political unrest has impacted the willingness of clients to pay.

Sometimes, even when there is sufficient budget, there are now more ancillary issues to contend with, such as delayed payments, onerous terms and conditions, and intense competition, to the point where some contractors have been forced to deliver projects at cost, or even at a loss, to retain their staff,” Daoud explains.

“That can be a solution for a short period, but it is not sustainable. Eventually it catches up with you. Again, the root cause is liquidity and access to ready cash. Cash flow is part of the supply chain, and if that integral link is broken, it doesn’t work.”

Robert McDonnell is quick to agree, pointing out that while specialist firms may be desired in a market where clients are looking for quality, the tight budgets mean subcontractors will be exposed to greater risk.

cash is king Daoud points out that the biggest challenge facing the MEP industry is funding. If funding issues are resolved, it will resolve a number of issues facing contractors.

36 July 2017

offering the best solution Christer says that specialst MEP firms will be able to offer clients the best solutions to their problems.

“We see a lot of focus on the infrastructure side, in terms of delivering water reticulation and district cooling. A third component is the industrial market.

The UAE government is supporting and pushing these projects forward, and that looks very promising”

“Obviously, with tightened budgets the MEP contractors will be at a disadvantage, as will all subcontractors. The main contractor margins are under pressure and this forces the MEP prices further down, variations charges are not assessed properly, and eventually the main loser in the cycle is the client,” he explains.

“Generally in this situation, the quality of the MEP materials and installation suffers and the client could potentially be left with an asset that does not function the way they initially envisaged.”

“The average cost of running and maintaining an asset is 20 times more than the initial construction cost, based on the entire lifetime of the building.

On these grounds, it is better to avail of high-quality sustainable MEP practices and materials at construction stage, to ensure the sustainable longevity of the asset.”

Risk minimisation thus becomes key to the MEP industry, given the economic conditions around it.

This means greater attention has to be paid to the long-term plan and subcontractors can no longer

MEP

Adap t to survi ve and thrive All the exper ts say that the MEP indus try must become more efficient, flexible and selective if it is to grow in the current marke t economy.

ThE FuTurE oF MEP Given the changing dynamics of the industry, what are your thoughts on the future of MEP? CC: “The future of MEP will be governed by our ability to respond to changing work platforms, and our use of software to automate calculations and roll through the changes into the 3D environment. MEP engineering will become more about people-based design interfaces and less about number crunching, as the calculations become automated.”

SD: “You cannot build anything without MEP, and that is not an exaggeration.

MEP is the key to the success of any project!

MEP will always be there.

However, it will only grow and evolve by becoming more efficient. This is the time when we must step forward and lead the industry. We cannot be in the backseat anymore. We must be in the driver’s seat and lead with innovation and technology, so as to be in a position to ride the wave of upcoming developments. Otherwise you will get left behind...”

rMcD: “The long-term vision of the UAE government is excellent. They are world leaders when it comes to visions of sustainability and innovative goals. They are continuing to bring iconic projects to the shores of the UAE, such as the EXPO 2020 District and the Dubai Creek Harbour Tower.

With these mega projects and others on the horizon, we see an injection of growth in the MEP industry, but it will only be positive growth if the MEP market learns to take stock and evaluate its behaviour from a delivery point of view and also from a commercially viable aspect.

A building is a long-term fixed asset, and a quality building relies on a quality MEP installation. To achieve this, there must be a good quality design, good quality coordination between all elements of the building, good quality procurement, good quality installation and good quality maintenance.

The industry must ensure that all these elements are in place if we want to create great sustainable long-term assets.”

just deal with problems as they arise. To achieve this shift in mindset, Christer explains, there needs to be trust and communication between all stakeholders, while solid documentation must be provided under a range of different circumstances and pressures.

“All stakeholders need to play their part in mitigating risk. The entire project lifecycle inherently contains risk. To manage risk, you must understand the pending technical and commercial risks,” adds Daoud. “When a risk becomes a reality, it is not a risk anymore, but a problem that you now have to contend with. When you manage risk properly, you avoid it completely so that it doesn’t happen at all, as well as being prepared to deal with any occurrences of risk.”

“MEP contractors face the same risks as others in the construction sector. The technical challenges are different, but the commercial challenges are mostly the same.

Risk generally becomes a problem

when you don’t have adequate risk management in place, where you haven’t planned your risk exposure from day one until the very end. If you have plans in place, and link it to your project delivery, you can mitigate any risk, reduce it, or at least overcome the problems if they should arise,” he insists.

“Contractors are placing more emphasis on risk management these days. We are no longer in a position where we can deal with problems when they arise. Instead we must adopt a cautious approach.

We have to be more organised and selective in terms of which clients we wish to work with.”

McDonnell adds that one of the biggest risks facing the MEP industry is the issue of reckless MEP contractors taking on projects they don’t have the capacity or capability to cope with.

“Continuously taking on contracts below the net cost and signing up to onerous contracts and unachievable delivery dates will ensure that the MEP industry’s growth will remain stagnant,” the ALEMCO man warns in conclusion.

Stagnant growth McDonnell warns that firms taking on projects that they don’t have the capacity or capabilities to cope with, risk causing the industry’s growth to stagnate.

July 2017 37

Urban Infrastructure

Priority Planning

Big Project ME meets with Mostafa Salim, principal at United World Infrastructure, and Mohamed Zayout, chief technical officer at Al Shafar General Contracting, to discuss the outlook for urban infrastructure development in the GCC

What is the outlook for the regional urban infrastructure development sector, keeping in context the shifts in government spending and priorities?

MZ: We are increasingly seeing that

urban development takes priority within governments’ national agendas. Creating new sustainable developments that cater for the needs of the citizens and provide them with modern facilities is a

40 July 2017

strategic decision by governments, and that has become even more prevalent over the last 12 months in this region. Taking the UAE as just one example, this trend is evident in the various developments being established across the nation within the first six months of 2017.

MS: We are seeing a more responsive and measured approach to infrastructure investment, with increased efforts to decrease

gaps in funding through greater governmental efficiency, increased private sector participation and new ways of financing projects.

In this decade, GCC governments have recognised the importance of continued investment to experience continued growth. Many GCC countries are in fact increasing their expenditure on infrastructure development from previous years,

in a drive to expand their economic base. The UAE will continue to host more global events, requiring heavy investment in construction and infrastructure that includes largescale development, integrating multiple infrastructure networks, and real estate development.

With the shift away from oil dependence, key government priorities in development address education, health and social welfare

Urban Infrastructure

across the region. Balancing this investment in human capital with investment in hard infrastructure is signalling a socially sustainable plan for growth.

What are the challenges around the development of urban infrastructure?

MZ: Project funding remains a

major challenge, given the increase in construction costs coupled with

a cautious approach to real estate projects adopted by most investors and financial institutions. The initial investments are relatively higher in new urban areas, which again represents a challenge.

However, when looking to the complete lifecycle of a sustainable development and taking into consideration the facilities management cost in addition to the energy savings, we have seen that the overall cost of the development is both reasonable and justifiable in most projects.

MS: Some of the key considerations include increasing demand for urban infrastructure, a broader outlook on how to finance, and a commitment to quality and sustainability.

By 2020, the GCC population is forecast to reach 53.5 million, a 30% increase over the level in 2000.

These burgeoning populations will put existing strain on available housing, transport networks, water and power systems among others, and will necessitate upgrading existing systems and building entirely new systems.

While there is growing interest in private sector investment in long-term assets like Gulf infrastructure, there is still more work to be done to establish policy frameworks conducive to attracting private investment.

Some countries, including Saudi Arabia and the UAE, have come a long way in developing public-private partnership frameworks and standards.

If countries in the GCC were merely aspiring to provide infrastructure meeting basic needs, timeliness and funding might pose a smaller challenge. However, most of the governments in the GCC are aspiring to provide world-class infrastructure which will attract multinational corporations and globally mobile talent, be a model for modern and environmentally

By 2020, the GCC population is forecast to reach 53.5 million, a 30% increase over the level in 2000. These burgeoning populations will put existing strain on available housing, transport networks, water and power systems and will necessitate upgrading existing systems and building entirely new systems� sustainable development, and facilitate the happiness of residents, workers and visitors.

This cutting-edge development requires world-class expertise in the sector and environments conducive to innovation and the protection of intellectual property.

These challenges can be addressed through an integrated approach to development with private partners at the start of the project, to create a centralised

planning, funding and management platform. This can help improve efficiency and streamline decisionmaking, expediting large-scale developments on time and within budget. In our projects, we develop partnerships with governments and government-linked entities at the outset and support them in establishing an investor-friendly policy framework, including an economic free zone, one-stop-shop, and fiscal and non-fiscal incentives.

What sort of projects are being looked at by governments in the region?

MS: Transport projects, full

urban developments and event preparations, including EXPO 2020 in the UAE, will dominate infrastructure investment in the GCC over the next few years, as well as investment in social infrastructure projects like new schools, hospitals, housing and civil defence centres.

Mobility systems appropriately constitute over 50% of the current infrastructure projects. High transport connectivity such as road, air, rail and port will nurture trade and industry as the region moves away from oil-based revenues.

The transport networks being introduced within each GCC nation will help connect more rural/ less populated communities with one another and city centres, as well as improve/extend current mass transit networks to alleviate the traffic stress caused by the rapidly growing population.

Supporting its vision for a sustainable and diversified economy and capitalising on its airport’s status as the busiest in the world, Dubai is fashioning itself into a world hub for trade, commerce and tourism. Its ongoing investment, not just in Dubai World Central Airport but in the ancillary logistics industry and surrounding mixed-use residential community, Dubai South, demonstrates

July 2017 41

Urban Infrastructure

accelerating innovation Dubai has looked to promote innovation through its Government Accelerator programmes, which have hosted the Hyperloop as well as other smart technology entrepreneurs.

“The region’s efforts to diversify economies beyond sole dependence on a single sector, and high investment in developing human capital through education and support for small business development, underscore the strategy for economic sustainability” well integrated infrastructure and real estate projects which deliver economically sustainable communities.

All too often in the infrastructure development sector, you see disparate road, airport, residential development projects which fail to meet expectations or fully realise their potential because they were planned in silos. The UAE government, and increasingly Saudi Arabia, have shown forward thinking in the way they’ve managed to break down these silos to promote the integration of infrastructure systems and real estate divisions to further drive economic development.

MZ: Given the population shifts we’re seeing in the region, there is always a focus on residential developments, and particularly sustainable communities that rely on clean energy. Of course, these are built in silos. Such developments also necessitate providing adequate transportation

42 July 2017

as well as social infrastructure projects represented in medical and educational facilities.

How do these projects tie in with regional government aims to introduce smart cities and solutions?

MZ: Designing communities

that consider the use of innovative technologies in construction, materials and transportation methods allows these communities to become hubs for further development.

Similar clusters then eventually transform the cities we live in to become truly smart cities.

At ASGC, we work with several government entities, such as the RTA, Dubai Municipality and DAEP, in developing infrastructure projects that serve the community and make a difference in people’s lives. We do this in part by introducing new construction control techniques that support the government’s ambitious plans

and allow successful completion of challenging projects.

A project such as the RTA’s EC3, which manages transportation schemes in Dubai, is an example of how modern technology can enhance our lives. Upgrading Dubai International Airport is another example of an infrastructure project in the transportation sector where we’re deploying tailored PM control procedures to enable us to operate in such a site while providing minimal disturbance to the passengers.

MS: Many GCC countries have developed a long-term digital strategy which includes investment in high-speed internet and greater cyber security mechanisms as examples of direct infrastructure development. Currently, the IT sector in most GCC countries largely comprises consultants and outposts of international suppliers. To undergo a cohesive

digital transformation, the GCC will need to have home-grown innovators in the IT sector.

Dubai has attempted to accelerate these types of innovative businesses through their Government Accelerator programmes, which have hosted the Hyperloop as well as other smart technology entrepreneurs, working to improve the lives of end users through technologically enhanced infrastructure. Oman provides technical training and business services to IT SMEs, to help develop an IT industry cluster.

The digital strategies in several countries have recognised that human capital will be the cornerstone to an evolving and improving digital landscape, and investment in education systems will support future digital innovation. Reliable and high-quality infrastructure will also attract global talent that can transfer knowledge and skills.

Urban Infrastructure

In the GCC, as part of each country’s digital strategy, infrastructure assets often have a digital e-governance platform and/or built-in sensors to gather data and provide real-time maintenance alerts. Saudi Arabia is targeting a healthcare platform of formal and informal providers that one day will be able to share information to best meet patient needs and provide remote care.

What are your thoughts on the development of sustainable urban infrastructure? Is it achievable in the GCC? MS: We see sustainability as the

only path. Every government, private sector partner and contractor needs to be integrating sustainable practices into their business model for development.

The GCC, and particularly the UAE, have set ambitious goals

for achieving three different categories of sustainability – environmental, economic and social – through urban infrastructure development.

While not every country is setting specific targets for emission reduction, GCC countries are promoting environmental sustainability by focusing on a shift to clean energy, improving air and water quality, reducing water consumption, preserving natural resources and promoting green growth. The UAE is currently developing the largest solar panel park in the world and has committed to achieving 75% clean energy supply by 2050.

Dubai has developed its own green rating system for buildings, made mandatory since 2014.

Smart building technologies also contribute to decreased energy

and water consumption. These initiatives are further supported by government funding for R&D in technologies advancing greener and more environmentally sustainable living. Even the most ambitious targets and projects will fall short if there is not ongoing enthusiasm for greater innovation in the industry.

The region’s efforts to diversify economies beyond sole dependence on a single sector, and high investment in developing human capital through education and support for small business development, underscore the strategy for economic sustainability. Highquality, reliable infrastructure plays an important role in attracting multinational corporations and global talent.

This churn of talent and new perspectives promotes ongoing

technology transfer to the region and drives job creation.

Similarly, robust healthcare networks, education systems and community services rely on heavy investment and adoption of best practices. The region’s continued construction of new schools, hospitals and digital systems to facilitate services for residents, workers and visitors contributes to long-term sustainable social development.

MZ: The development of sustainable urban infrastructure is achievable, and the evidence is clear. Projects such as Masdar and the urban developments in Al Ain and the northern emirates prove the compelling nature of sustainable communities that follow modern design, attract the population and provide them with a lifestyle that caters to their needs.

Promoting environmental sustainability GCC countries are promoting environmental sustainability by focusing on a shift to clean energy, improving air and water quality, reducing water consumption, preserving natural resources and promoting green growth.

July 2017 43

Technology

enabling integration A BIM strategy enables the integration of data-rich models, often in 3D/4D/5D, and project information databases, so as to build a virtual representation of a project and all its assets.

The evoluTion of BiM

Aidan Mercer, industry marketing director, Utilities and Government for Bentley, plots out the future of BIM in a Q&A session with Big Project ME

What is the next step in the evolution of BIM?

The potential of the BIM process is cumulative. However, the evolution of BIM is not quite as straightforward. The benefits of a BIM process are well documented in projects that adhere to the methodology for value perpetually. These benefits can be experienced on projects ranging from smallto large-scale initiatives that also range in complexity.

44 July 2017

From a technology perspective, a BIM strategy enables the integration of data-rich models, often in 3D/4D/5D, and project information databases, to build a virtual representation of a project and all assets. This allows stakeholders access to reliable information, making collaboration easier, reducing risks, aiding decision-making and improving ROI. If we focus on the technology

aspect of BIM, and global trends such as big data and IoT, then we might suggest the potential of BIM is evolving. Despite the complexities of technology and integration with people and process, if all aspects can indeed be harnessed, I believe we are going to reach a new level of BIM – one that takes advantage of multiple data sources with the potential to not only improve project delivery, but also find excellence in asset performance.

Are developers looking to create software that harnesses the power of the cloud?

This will ultimately be the way software is accessed and consumed, and provides an alternative, or indeed complementary, solution as a platform for projects.

Particularly with the rise of big data, cloud services, with seemingly unlimited storage space, will be the de facto solution for so many users as

Technology

example, can add value at a later stage of the asset lifecycle.

Without a seamless connected environment for this information to flow through, it loses value and relevance, which in today’s working environment is simply not acceptable for many firms.

As long as software is developed concurrently to avail of a cloud services option, users of such software can take advantage of its tremendous power.

Is BIM now being developed to move beyond its standard use in design and planning?

greater computational power becomes a requirement.

For BIM processes, this is an improved platform for sharing and exchanging engineering data throughout the lifecycle. At Bentley, we are rolling out software innovations that do just that.

With our CONNECT Edition, users can now take advantage of a Microsoft Azureprovisioned connected data environment. The connected data environment ensures the seamless management and movement of data from connected users, projects and enterprises. Harnessing the engineering data created by engineers or consultants at early stages of a project, for

Understanding BIM as a process and as a set of guidelines is important for seeing the development of what it could be. BIM processes have taken advantage of the digitisation of engineering by providing a platform for BIM Level I through 3D visualisation to consistently communicate and document designs, while reducing errors.

This digital transformation is underway, driven by disruptive technologies enabling better processes and better ways of working. The digital transformation includes what we might call digital engineering models created by engineers and leveraged at different levels.

Level II focuses on collaborative BIM methodologies which enhance the ability to share information in a common format and in a connected data environment, facilitating a more federated approach to projects and an improved level of interoperability.

Level III offers the promise of performance during the operations lifecycle of the infrastructure, including postconstruction. This creates a mechanism that connects the virtual and the physical into performance environments, for

“The potential of connecting technology is starting to be realised for its potential for meeting business imperatives and objectives. By connecting the ‘as-operated’ performance of assets to the ‘as-designed’ performance, they can be analysed with burgeoning real-time data leveraged with IoT and big data”

better project delivery and asset performance. This ensures that whatever physical infrastructure is built or managed, it isn’t done in isolation or without the ability to capture data to ensure better operations.

Level III also offers continuous opportunities to deliver real-time operational improvements, resulting in a better payoff when delivered on all levels. However, the ability to advance infrastructure depends on the technology itself, and to continuously update and maintain the digital data needed is a real challenge. With the advent of sensors, big data and real-time analytics, all in a connected environment, the potential for adding digital data to be optimised is at the top of the agenda in many organisations.

How are BIM software developers increasing connectivity between users and stakeholders?

The transparency of the BIM methodology not only assists users as they work on projects by connecting and converging, but also helps to effectively communicate designs and concepts, as well as reduce rework, clashes and other critical components via the use of visualisation software. Using the construction industry as an example, the effect is two-fold.

Firstly, BIM advancements enhance project collaboration and improve construction productivity, which contributes toward building a robust construction economy and improving stakeholder input and satisfaction. Employing BIM methodologies leads to faster client approval cycles, which can have a dramatic impact on reducing overall project delivery costs. Secondly, BIM ROI enables

July 2017 45

Technology

Gaining recognition The critical importance of engineering data is gaining more recognition than ever before.

constructors to confidently select the best team for the job, improving stakeholder visibility and confidence as connectivity is achieved through digital means.

If your firm or organisation does not adopt a digital strategy, what will be the effect? I suggest it will be lasting damage to project costs, quality and collaboration, as processes will be manual, error-strewn, laborious and not fit for modern demands.

The insight a stakeholder can gain into a project now is such that I believe it will soon become mandatory for digital processes to further the potential of BIM, improving infrastructure quality, reducing costs and ensuring consistency across the entire project.

How are BIM software developers using data collection and mining to improve their offerings?

BIM Level III focuses on asset performance strategies once

46 July 2017

“BIM advancements enhance project collaboration and improve construction productivity, which contributes toward building a robust construction economy and improving stakeholder input and satisfaction”

projects are in operation. The value of data mining, aggregation and intelligence can be realised through operational analytics.

Operational analytics is an emerging, industry-recognised business process that focuses on improving infrastructure asset performance with the power of sophisticated analytics.

The critical importance of engineering data is gaining more recognition than ever before, by offering an opportunity for ultimate convergence between IT/OT and now ET (engineering technology).

The challenge to this ultimate convergence has been that historically, the engineers who design digital engineering models for planning, design and construction have been less focused on the benefits of these models for operational purposes; and the operators have been less aware that the ‘digital DNA’ produced when designing and building early in

the lifecycle can be used for effective decision support.

The potential of connecting technology is starting to be realised for meeting business imperatives and objectives. By connecting the ‘as-operated’ performance of assets to the ‘as-designed’ performance, they can be analysed with burgeoning real-time data leveraged with IoT, big data, historical data and engineering data, to improve operational efficiencies with predictive techniques.

The predictive and prescriptive nature of machine learning can be the ultimate decision support tool to identify critical issues in a timely manner, improving safety and reliability, but also optimising such scenarios for future forecasting. In this new environment, BIM models are integrally connected to the physical asset, thus closing the loop between all levels of BIM.

Technology

Putting the ‘I’ in BIM Peter Damhuis, CCS business analyst, observes that a comprehensive BIM strategy requires all project and asset information to be shared to succeed A popular misconception is that BM (Building Modelling) is in fact BIM (Building Information Modelling), and various theories and perceptions exist on what the ‘I’ in BIM really means and incorporates.

For example, a modeller may include all the construction information required to construct the model and can be considered representative of BIM or at least a component thereof, but a comprehensive BIM strategy requires ALL project and asset information, documentation and data, in an electronic format, available throughout the full lifecycle of the asset.

A model created for the design and construction of a commercial building, for instance, inclusive of every aspect of the project right down to the nuts and bolts,

“The collaboration between the modeller, the contractor and the owner is essential to ensure that this information is gathered for the entire project and is where the link between software becomes crucial”

still falls short in the asset management of a project if the model is not updated to include all the changes made before, during and even after the construction phase, i.e. not just changes in design but changes to specification, supply, facilities management, etc.

Let’s say the original design called for a specific chiller plant; during the construction phase, the engineer or contractor, as a value engineering measure, may source an alternative supplier with the same or better design and equipment, shorter delivery time, better maintenance and warranty support.

This must be reflected and integrated into the model, budget and schedule for this revision to become part of the data set for facilities maintenance during the life cycle of the asset.

The collaboration between the modeller, the contractor and the owner is thus essential to ensure this information is gathered for the entire project, and is where the link between cost management software and building modelling software becomes crucial.

Establishment of this electronic and auditable link saves a substantial amount of time and effort in sourcing this information during the asset’s life cycle.

As a result, managing expected costs extends well beyond the construction phase of the project.

Having identified the various phases of BIM and where it specifically relates to cost management software, CCS Candy is currently developing and enhancing its QTO (Quantity Take-off )

module with tier-one modelling software compatibility.

The dynamic link between model intelligence and quantification and Candy’s leading Estimating, Planning and Valuations modules establishes the budget and commitment to deliver a project, and the platform to effect and manage changes throughout the project life cycle.

CCS BuildSmart, our construction cost management and enterprise accounting system, seamlessly integrated with Candy, takes BIM to the next level.

Every purchase and its associated cost, specification, supplier, warranty and anticipated lifetime can be captured and integrated into the model, budget and schedule – effectively dotting the ‘I’ in BIM.

July 2017 47

Bottomline Matters

Helping you make the smartest decisions

the voice of the customer Michael Lotfy says that ABB strives to listen to its customers and understand their needs, so as to provide solutions that best fit their requirements.

the smart way forward

Michael Lotfy explains how ABB is developing its systems to answer the needs of its clients and the demands of the regional marketplace What is ABB doing in the smart building/cities/utilities field?

Smart buildings don’t just react to your needs, but predict them. They are fully networked and connected to the building management systems, enabling easy and safe control as well as predictive maintenance that lowers downtime and maintenance costs. And ABB has a portfolio of products and solutions, from high voltage to low voltage, from source to socket.

Our smart building technologies lower energy consumption, all

48 July 2017

the while not compromising on comfort and experience.

Whether it be for commercial or residential applications, ABB can provide a host of sustainable options, from solar power roof tops and electric vehicle charging to light control systems and guest room management systems – all networked to the building management systems. And with the visualisation software, systems can be monitored and changed via one platform at the touch of a button, on your mobile phone, tablet or computer.

Why is it important to use products and systems geared towards the smart concept?

Sustainability is key, and smart buildings can provide this in an energy-efficient way. The smart concept is necessary to reduce environmental impact and preserve our future. We also have to look at the mega trends that influence the world, and in this era it is all about individualisation, urbanisation, personalisation and digitisation. This means we want easy control at the touch of a button. But that is safe. Safety

is a current issue worldwide, and this isn’t just physical safety, but virtual. And this is what people want for their houses, at work, transiting through an airport or browsing in a shopping mall.

Nowadays, the expectation is to have a personalised experience no matter whether you are at home or travelling. We may all use the same portable devices, but the home screens and content are all set up differently to reflect our individual preferences. The desire to be connected at all times is a driver for the smart world

guest room management systems and have partnered with the likes of DigiValet to service high-end hotels with discerning customers who not only want to control their room environment, but use movies on demand and order food at the touch of a button.

Cyber security is a big focus for ABB now and this covers shopping malls, airports, hotels, hospitals and residences, all of which need both physical security and virtual.

It’s about ensuring anonymity and data protection in a world where people constantly publish their thoughts and movements online.

How do you view the energy efficiency market? What must the industry do to prepare?

Growing market Lotfy says that the energy efficiency market will signficantly expand in the years to come, following five years of continuous growth.

and digitisation – inside or out.

If I am at home, I want to see who is at my front door. Or if I am upstairs, I want to see which lights I have left on downstairs. And if I walk into my hotel room, I want the temperature and lighting to be set based on my preferences, from the last time I stayed. I want a comfortable and easy life.

How are you working with clients and partners to answer their needs?

Firstly, we always take the time to listen to our customers, understand their needs and then offer solutions that best fit their requirements. The voice of the customer is the main driver for all departments, from Research & Development to Project Management and Financial Controlling. We strive to offer our customers a full portfolio of

products and solutions that can fulfil every need, and where we see something missing in the offering, we partner with third parties to bridge that gap.

Discuss ABB’s ongoing research and development. What are some of the products in the pipeline?

It is not a secret that we have focused a lot on smart homes and have brought ABB-free@ home to the market, succeeded by the wireless version early this year, enabling people to fully network their homes and create a perfect and comfortable living space which is easily controlled at the touch of a button. And we have more advancements in this segment that will be shared with the market later in the year.

And for commercial customers, we are always improving our

“Sustainability is key, and smart buildings can provide this in an energy-efficient way. The smart concept is necessary to reduce environmental impact and preserve our future”

The energy efficiency market has been growing for the past five years, and I think it will significantly expand in the years to come, as natural resources are decreasing and political instabilities create supply and demand issues. Moreover, the cost of energy is always increasing and therefore we are starting to depend more on renewables such as solar, wind and hydropower.

Regulations from governments on a global scale are pushing for the building sector to be greener and less impactful on the environment. This includes the residential market, where small individual houses are using solar roof tops to fuel their home and give back to the grid. In addition, people are starting to use more electric vehicles and in some countries, public transport is now running on solar powered electricity. So I would say that as the public become more and more educated about sustainability, there will be more and more pressure on businesses to commission companies like ABB to help build a greener world.

July 2016 49

Comment

Mike Tapley

Ian Flynn

Selecting the right Stay cable

In the last of four articles on long-span bridges in the Middle East, Mike Tapley and Ian Flynn look at the two choices for cable stays and review the relative merits of each As we have established in previous articles, cable-stayed bridges are the preferred choice for long-span designs for spans ranging from 200m to 1,200m. There are two types of stay cable, and in this article we will look at the advantages and disadvantages of each.

Parallel wire stay (PWS) cables are prefabricated from individual wires and then erected and stressed in a single operation. This type of cable is used mainly in Japan and China, and is particularly beneficial in ultra-long cable-stayed bridges.

Parallel strand stay (PSS) cables are formed from seven strands of wire. The cable is formed in 50 July 2017

situ, with each strand individually stressed. This type of cable is the most common in markets outside China and Japan.

The erection technique for each cable differs significantly.

When selecting the most appropriate cable form, the erection method should be considered along with factors such as wind loading and durability.

PWS installation As PWS cables are prefabricated off-site and delivered as a single unit, transport and installation can cause a major logistical headache. In addition, there can be a significant likelihood of damage to the cable during

installation. On Hong Kong’s Stonecutters Bridge, where PWS cables were specified, the longest were 530m in length and weighed over 80 tonnes. Fabrication of the cables was handled at Jiangyin in China (about 1,300km from Hong Kong), where they were spooled onto large-diameter drums before being shipped to Hong Kong by barge.

The packaging and handling of the cables required close attention to detail. To begin, each dead end anchorage was lifted to the anchor box on the pylon by tower crane. The lower end of the cable was then carefully unrolled along the deck and rested on temporary trestles to

avoid damage. After this, the anchorage was pulled through the anchor tube by two mobile cranes and a series of temporary rods.

PWS cables are both difficult to handle and easy to damage.

On the Stonecutters Bridge project, special saddles were required at lifting points to control the curvature of the cables while they were placed.

Tight bends can cause damage which is difficult to repair once installation is complete.

PWS cables tend to have shorter design lives than comparable components on a bridge, as the HDPE sheathing deteriorates over time, with around 60 years being a typical

Comment

easy to install PSS cables are relatively easy to install, with each strand individually installed in its protective sheath before being stressed to the predetermined tensile force.

“When selecting the most appropriate cable form, the erection method should be considered along with factors such as wind loading and durability”

lifespan. This might be even shorter in the Middle East’s harsh environment. Consequently, it is important to have the supplier provide a replacement procedure for the cables that is practical and which minimises disruption once the bridge is operational.

PSS installation Unlike PWS cables, PSS cables are relatively easy to install, with each strand individually installed in its protective sheath before being stressed to the predetermined tensile force.

While the process of stressing individual strands might seem time-consuming, the reality is that once installation has

begun, a steady work-flow can be easily developed. In any case, for the alternative PWS cable design, installation still has to take place in sequence, as cables can only be placed once the connections from the previous cable have been completed.

In general, PSS cables offer more advantages than PWS cables. Their only drawback is that they tend to have larger diameters with the strands individually wrapped. This naturally attracts greater wind load than the more compact PWS design. However, new methods are emerging to make the PSS cables more compact.

Interestingly, the current longest

cable-stayed bridge in the world, Russia’s Russky Bridge, opted for PSS cables with a relatively compact design.

For both PWS and PSS cables, one of the most important considerations for developers in the Middle East is the effect of sunlight, particularly on the outer HDPE sleeve of the cable. Strong sunlight will lead to accelerated degrading, and as such the sleeve needs to be modified. PSS may be considered the best option for this region as it includes additional protection to the strands, with each one individually wrapped and not relying on the outer HDPE sheath, as is the case with the PWS arrangement.

July 2017 51

Tenders

Top tenders Multipurpose terMinal – alexandria port

MovenpiCk Hotels Waad al sHaMal projeCt

Budget $700,000,000 project number MPR1544-E territory Alexandria, Egypt Client name Alexandria Port Authority (Egypt) address 106 El Horreya Street phone (+20-3) 445 8395 Fax (+20-3) 445 8397 description Construction of a multipurpose terminal status Current Project Main Contractor China Harbour Engineering Company Ltd (CHEC) tender Categories Marine Eng Works & Seaports tender products Seaports

Budget $75,000,000 project number WPR1905-SA territory Jubail, Saudi Arabia Client name Karan Gulf Services (Saudi Arabia) address Karan Hotel, Jubail Industrial City, Alfanateer Area, Al Dana Street phone (+966-13) 347 1144 Fax (+966-13) 347 1133 email info@karanhotel.com Website www.demo.karanhotel.com description Construction of a new hotel comprising 237 guestrooms, including three food and beverage outlets, extensive meeting and event space, male and female wellness areas as well as recreation facilities period 2018

status Current Project Main Contractor Azmeel Contracting & Construction Corporation (Saudi Arabia) tender Categories Construction & Contracting, Hotels, Leisure & Entertainment tender products Hotel Construction

residential Building projeCt – Business Bay Budget $50,000,000 project number WPR2049-U territory Dubai, United Arab Emirates Client name Al Garhoud Real Estate Company (Dubai) phone (+971-4) 229 2900 description Construction of a residential building comprising a ground floor and 27 floors period 2019 status New Tender Main Consultant Adnan Saffarini Engineering Consultants (Dubai)

tender Categories Prestige Buildings tender products High-rise Towers, Residential Buildings

Hotel ConstruCtion projeCt – gHala Budget $25,000,000 project number WPR2056-O territory Oman Client Private investor (Oman) description Construction of a hotel comprising a basement, ground floor and 9 floors period 2018 status Current Project Main Consultant Al Meedania Engineering Consultancy (Oman) Main Contractor Al Dawah Trading & Contracting (Oman) Mep Contractor Al Dawah Trading & Contracting (Oman) tender Categories Construction & Contracting, Hotels tender products Hotel Construction

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52 July 2017

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Middle East tenders UAE FaCtory, oFFiCe Building & laBour aCCoMModation ConstruCtion projeCt – al gHail Budget $10,000,000 project number WPR2021-U territory Ras Al Khaimah, United Arab Emirates Client name Spar Steel Industries LLC (Ras Al Khaimah) address Plot No. 111, Al Ghail Industrial Park phone (+971-50) 461 3829 email info@arabianspar.com Website www.sparsteel.com description Construction of a factory, office building and labour accommodation period 2018 status Current Project Main Consultant Capital Engineering Consultancy (Ras Al Khaimah) Main Contractor Muhammad Jamil Building Contracting LLC (Dubai) tender Categories Construction & Contracting, Industrial & Special Projects tender products Commercial Buildings, Factories, Residential Buildings

duBai Hospital expansion projeCt – pHase 1 Budget $23,000,000 project number WPR1938-U territory Dubai, United Arab Emirates Client name Dubai Hospital (Dubai)

phone (+971-4) 219 5000 / 271 4444 Fax (+971-4) 219 5613 email dhweb@dohms.gov.ae Website www.dha.gov.ae description Expansion of a hospital comprising a six-storey building for specialised outpatient clinics status New Tender tender Categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction

Oman

Mills Company SAOG postal/Zip Code 566 phone (+968) 2471 1155 Fax (+968) 2471 4711 email info@omanflourmills.com Website www.omanflourmills.com description Construction of a plant with annual capacity to produce 2.3 billion eggs period 2019 status New Tender tender Categories Industrial & Special Projects tender products Food Processing Plants

taBle eggs produCtion FaCility projeCt – iBri project number WPR2061-O territory Ruwi PC 112, Oman Client name Oman Flour

golF lake residential projeCt – jeBel siFaH project number WPR1952-O

territory Muscat, Oman Client name Muriya Tourism Development Company (Oman) address PC 130 postal/Zip Code 1719 Country Oman phone (+968) 2469 4778/ 2469 4779/ 2469 4565/ 2440 4189 Fax (+968) 2469 3383 email info@muriya.om Website www.muriya.om description Development of a residential scheme comprising 14 buildings offering 131 nos. studios, one- and two-bedroom apartments as well as lofts period 2018 status Current Project Main Consultant Arab Engineering Bureau (Oman) Main architect ME Studio

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54 July 2017

Tenders

Engineering Consultancy LLC (Oman) design Consultant Arab Engineering Bureau (Oman) Main Contractor Hussain Fadhil & Partners (Oman) tender Categories Construction & Contracting tender products Residential Buildings

Bahrain al sidra gated CoMMunity projeCt project number WPR1982-B territory Manama, Bahrain Client name Bin Faqeeh Real Estate Investment Company (Bahrain) address Business Bay Tower, Bldg. 3232, Road 4654, Block 346, Seef District phone (+973) 7714 4144 / 1723 4226 Fax (+973) 7715 5155 email info@binfaqeeh.com Website www.altaitoon.net description Construction of a gated community comprising 440 impressive luxury villas of varying designs and capacities period 2018 tender Categories Construction & Contracting tender products Community Development, Villas Construction

postal/Zip Code 887 phone (+966) 2 640 5000 Fax (+966) 2 640 1477 email gaca-info@gaca.gov.sa Website www.gaca.gov.sa description Renovation and upgrade of the domestic airport status Current Project Main Consultant Zuhair Fayez Partnership Consultants (Jeddah Branch) – Saudi Arabia Main Contractor Al Mabani General Contractors (Saudi Arabia) tender Categories Airport, Construction & Contracting tender products Airports Development & Management

Kuwait al salaM Hospital al aHMadi projeCt project number WPR1655-K territory Dasman 35151, Kuwait Client name Al Salam

International Hospital (Kuwait) postal/Zip Code 11023 phone (+965) 183 0003 Fax (+965) 2254 0167 email hr@sih-kw.com Website www.sih-kw.com description Construction of a new hospital with 120 beds providing inpatient and outpatient services, covering most of the diagnostic and medical treatment divisions period 2018 status Current Project Main Consultant Option One International WLL (Kuwait) Main Contractor Construction Management & Building Company (Kuwait) Mep Contractor Rasco Refrigeration & Air Conditioning Systems Company (Kuwait) tender Categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction

Lebanon saint jaCques plaZa projeCt – Burj HaMMoud City project number WPR1853-LE territory Beirut, Lebanon Client name Municipality of Burj Hammoud (Lebanon) address Armenia Street, Burj Hammoud phone (+961-1) 260 155 Fax (+961-1) 260 156 email info@bourjhammoud.com Website www.burjhammoud.gov.lb description Construction of three residential buildings, shops and a multi-level parking facility period 2019 status Current Project Main Consultant Vazken Chekijian Architect (Lebanon) tender Categories Construction & Contracting, Leisure & Entertainment tender products Residential Buildings, Retail Developments

Saudi Arabia al-WajH doMestiC airport projeCt – taBuk project number MPR1545-SA territory Jeddah 21421, Saudi Arabia Client name General Authority of Civil Aviation (Saudi Arabia) address Bin Malek Street, Old Airport Area

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July 2017 55

Last Word

The Do’s and Don’ts of Interior Fit-Out Marcos Bish, managing director of Summertown Interiors, outlines the key aspects of interior fit-out contracting for Big Project ME Do’s:

• Hire experts to create a detailed brief well in advance of the start of your project. This brief should include information about the business and the people in it, individual and group requirements, facilities required and timetable, as well as the budget available. Finally, if you do not own your office building, make sure that your landlord is informed of the plans.

• Do your homework.

Make sure you call at least three previous recent clients for each contractor you are considering hiring.

Score that contractor out of 10 for key deliverables. If the overall score across the three clients is unsatisfactory, you know not to use that contractor. Finally, visit its most recent project, as a contractor is only as good as the last project delivered.

56 July 2017

“Don’t hire the cheapest contractor, hire the best. Hiring a cheap contractor can be an expensive mistake.

Their bid may seem low, but additional cost variations during the project are very likely”

• Think green. The concept is to come up with energy-efficient, environment-friendly, cost-effective designs.

The most important characteristics are sustainable sites, water efficiency, optimal energy performance, minimal energy use, usage of materials with recycled content, waste management and indoor environmental quality.

Green offices improve profitability through improved employee productivity and lower operational cost.

Don’ts:

• Don’t hire the cheapest contractor, hire the best. Hiring a cheap contractor can be an expensive mistake.

Cheap contractors are often not the best at creating accurate bids.

Their bid may seem low, but additional cost variations during the project are very likely.

A change order calls

for an amendment to the contract, and there will most likely be time and cost implications.

Very few interior fit-out projects will be completed with no change orders, but it is important to minimise them because they can be expensive. Hiring an inexperienced, cheap fit-out contractor might cause you to end up with more change orders than if you had hired someone with experience.

• Don’t take their word for it. Get everything in writing from the start; you need to make sure that everything discussed and agreed upon is acknowledged in writing. A lot of contractors in the UAE will agree to almost anything verbally if it means winning the deal, but when it comes to the nitty-gritty, you’ll be surprised at how bad

a contractor’s memory becomes when you can’t produce evidence to prove what you have agreed on. Once you’re ready to appoint a contractor, make sure you understand the contract terms.

If you’re unsure of anything, please seek professional advice before signing a contract.

• Don’t overlook regulatory, building regulations and health & safety regulations.

All projects require regulatory approvals, and certain works require building control approval.

Before work begins, make sure your contractor is aware of the regulations and the latest legislation that your project will need to be compliant with.

Using a reputable fit-out company will ensure you cover these issues properly and avoid problems later.

Bringing the latest

construction news from across the GCC

www.meconstructionnews.com

Leaders in Project Management

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A supplement of:

CONCRETE REPORT ConCrete industry Bashar aBou-Mayaleh on expansion plans and future opportunities ready-mix e r Menon of golden ready-Mix relates how his firM is Bouncing Back

BaCk in Business

optimism within the concrete industry is on the rise as companies expect business to boom in the years to come

Golden Ready Mix LLC

Jabel Ali Industrial Area 2 P.O.Box 171929, Dubai U.A.E Tel : 048804494

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Introduction

4

BASHAR ABOUMAYALEH

PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDItorIAL eDItor GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAGAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DeSIGN Art DIrector SIMON COBON cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI PUBLISHeD By

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Ready to Go

I

t’s been quite interesting putting together this year’s Concrete Report. To be honest, I expected to encounter some negativity about the prospects in the market, especially given the economic backdrop we’ve had for the last couple of years.

However, I was pleasantly surprised to see quite a few people tell me that they’ve all done quite well over the course of the year, and are expecting to go on to greater things in the months ahead. We feature two individuals who encapsulate this positive outlook, with Bashar AbouMayaleh, from CIC, and E R Menon, from Golden Ready-Mix, both telling us that they’re raring to go, with big ambitions in place.

In other features, we look at the different facets of the concrete industry, hearing from the experts, who provide us with valuable tips and tricks to get the most out of your concrete.

It’s certainly worth a read!

2

12

COBIAX CASE STUDY VIDA RESIDENCE

14

20

MIXED TO ORDER

www.cpimediagroup.com A supplement of Big project Middle East FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By pRINTwELL pRINTING pRESS LLC © Copyright 2017 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.

Gavin Davids editor gavin.davids@cpimediagroup.com

24

THE GOLDEN TOUCH Concrete Report 2017 1

Overview

The Creation of Concrete

Mike Kenyon, partner and head of Machinery and Business Assets at Cavendish Maxwell, discusses the details of concrete production

At first glance, the creation of concrete appears very simple: a mixture of cement, water and admixtures. However, in reality it is far more complex.

The creation of concrete is known as batching and is created by mass, as opposed to the traditional way of by volume.

Concrete is formed through the process of measuring ingredients by volume or mass and then mixing these ingredients together.

When creating concrete, the materials used consist of cement, water, aggregate and admixtures. A careful percentage of each should be combined, using the following materials: Cement

There are many misconceptions as to what cement is, and if it is the same as concrete. Portland cement is the basic ingredient of concrete and is a powder-like substance that turns into a thick formula when mixed with water.

So, what is in cement? Cement consists of clay, slate, chalk, sand and limestone. When heated at a very high temperature, these ingredients form a rock-like substance. The rocks are then ground down into powder, which becomes known as cement.

When making concrete, cement acts as the binding agent for the water, aggregate and admixtures.

Aggregate

Aggregate is made up of gravel, sand and crushed stone, and strongly affects the quality of the final concrete. Aggregate comes in

2 Concrete Report 2017

two forms: fine and coarse. Fine aggregate is the components in their simplest form, whereas in coarse aggregate, the components can be up to 1.5 inches in size.

Admixture

“If aiming for high-quality concrete, using less water in the mixture helps.

Air bubbles can take up to 8-10% of the mixture, so it is important to understand the requirement of the concrete so that this can be reduced if required”

Admixtures reduce the need for large amounts of water in the mixture, and increase the strength of the concrete and the workability of the cement mixture.

Chemical admixtures are used to give the concrete particular characteristics such as a change in colour, to ensure it doesn’t corrode around metal bars, and to reduce the number of air bubbles.

Mineral admixtures are added to the concrete mix to improve its properties or replace cement.

Water

Water is combined with the mix to ensure it flows more freely. The more slump required in the concrete, the more water should be added.

Each project requires a different grade of concrete, so it is custom designed to suit a project’s needs. The planned use of the concrete helps the customer and concrete producer determine the measurement of substances, the strength of the mixture and the content of air in the mixture. If aiming for high-quality concrete, using less water in the mixture helps. Air bubbles can take up to 8-10% of the mixture, so it is important to understand the requirement of the concrete so that this can be reduced if required. Surprisingly,

cement typically makes up only 10-15% of the mix, with water at 15-20% and admixtures contributing a massive 60-75%.

The mixing begins with some water, before adding admixture aggregate and cement into the mix.

Within the UAE, concrete is predominantly produced in concrete batching plants, which are in convenient areas for easy distribution to construction sites.

The mix is then transferred into the truck-mounted rotating mixers which we see on our roads daily.

The concrete mix should be used within a short amount of time from mixing to final use. It is usually recommended that the concrete be deposited onto the job-site within 90 minutes. This is to avoid losing the slump in the mixture.

Elsewhere around the world, mobile volumetric batching plants are now being used to mix ingredients on-site. They are mounted on a lorry chassis and therefore can provide a smaller batch of concrete which can be custom-made on-site. This means that all ingredients (cement, water, aggregates and admixtures) are transported to the site, where this mobile plant mixes them into concrete. At present, these types of batching plants are not used in the UAE, as typically the number of units are still too big to accommodate mobile plants.

Building projects are usually so large in the UAE that they need a centralised batching plant to be able to produce the high quantity of concrete required.

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In Profile

“We have a big list of neW developments and We’re alWays enthusiastic to implement the latest practices in the World, to be innovative. this is a neverending procedure for cic, as We believe very much in development” Big Project ME speaks to Bashar Abou-Mayaleh, managing director of HPBS, HBBS and Emirates Beton, to find out what life is like at the helm of three concrete giants and what his plans are for the companies 4 Concrete Report 2017

In Profile

Concrete Report 2017 5

In Profile

i

f you think that the gloomy economic cloud that has hung over the GCC construction industry for the last couple of years has resulted in downbeat forecasts and conservative speculation for a firm involved in the concrete industry, Bashar Abou-Mayaleh is quick to correct you.

The managing director of Hard Precast Building Systems, Hard Block Factory and Emirates Beton, Abou-Mayaleh cheerfully tells Big Project ME that, contrary to assumptions, his group of companies – all under the Al Shafar Group banner – are doing quite well, thank you very much.

While it’s certainly true that the concrete industry has felt the pinch of the post-2014 oil prices slump, Abou-Mayaleh says a well-thought-out strategy and a clear vision for the companies have resulted in sustained success that he expects to continue over the coming years.

“2012 to 2013 were very slow years for us, but with our strong belief in Dubai’s policies and in HH Sheikh Mohammed Bin Rashid Al Maktoum’s vision, we took a chance and began the biggest ever expansion of our factory,” he relates.

“We were rewarded with one of our biggest projects in 2014.

CityWalk was originally fully designed as a cast in-situ project, and then we got the second and third phases of it, and we changed the design to precast solutions.

It was really challenging with the unique architectural design 6 Concrete Report 2017

strength of a vision Bashar Abou-Mayaleh says that faith in Dubai’s policies and Sheikh Mohammed’s vision for the city gave him the strength to invest and expand the company despite the downturn.

of the project, as there was no similarity between the buildings, and this is always a big challenge for precast. But it soon became very clear that phases two and three were done much faster than the first phase, which was done in a conventional manner.”

This success helped lay the foundation for the continued success of HPBS, establishing its reputation as a precaster that provides a total engineering service, starting from value engineering, all the way through to production and erection.

“Starting from 2014, we are more than satisfied with our business. But it is a strong belief that I have, that every generation must prepare the way for the next,” he asserts. “When we took over the management of Emirates Beton, along with Hard Precast and Hard Block, it became a huge concrete industry set-up, which we call Concrete Industries

“The number one reason for our success story is the culture and the values – these people are the sons of this environment. We trust them very much, and we know they are motivated and will add a lot to these companies”

Complex, or CIC for short.”

“The takeover took place in December 2015, and our results in 2016 were much better than even we expected or planned for. We believe very much in delegation, and there was a need that came from our enlarged structure. So we appointed four general managers – one for each company, and one for the corporate office. The corporate office acts in such a way that all the central departments for the three companies work under it,” Abou-Mayaleh explains.

“We have a big list of new developments and we’re always enthusiastic to implement the latest practices in the world, to be innovative. This is a never-ending procedure for CIC, as we believe very much in development.”

This stance is backed up

by Abou-Mayaleh’s support of his GMs. Not only does he provide them with the necessary backing at board level, but he is also keen to showcase their achievements. It comes as no surprise to learn that they have all come up from within the companies and have grown within the environment he has created within his organisations.

“They believe in our values, which is very important. The number one reason for our success story is the culture and the values – these people are the sons of this environment.

We trust them very much, and we know they are motivated and will add a lot to these companies,” he says, displaying an almost paternal pride.

Perhaps this culture of nurture and growth is the reason the CIC continues to do well in an economic climate that has most of its competitors feeling the pinch. Abou-Mayaleh points out that it’s not a coincidence that since taking over Emirates Beton, the ready-mix

In Profile

manufacturer has become one of the best customer satisfaction providers in the industry.

“All the professional, big contractors are very interested in working with us. In this industry, it’s always very difficult to deal with the daily planning part of the job – the scheduling, the rescheduling, the rebooking, the cancellations. This is a very big issue, and Emirates Beton now has a great team of planning engineers spread throughout their projects to

ensure that the early planning is done with the suppliers.

“The results have been more than satisfactory for most of our customers. In fact, in 2016 we didn’t suffer except for one point – precast, where we had some challenges. For the block and ready-mix industries, since there is demand, we have no problems. Even if there’s an increase in costs, we come to good agreements with our customers.

They understand that our prices will also increase with our costs.

“However, in the precast, we’ve had some challenges, unfortunately. The last few years have shown that the industry couldn’t adapt or adjust to all the increases that happened within the industry. Now all the extra costs come on our shoulders,” he explains.

Coupled with the introduction of new structural restrictions from Dubai Municipality, the use of precast is not always feasible for certain projects, compared to conventional

building methods. Despite this, Abou-Mayaleh remains upbeat, pointing out that their 2017 order book is completely full, and he insists that this is a trend he expects to see continue, far beyond even Expo 2020.

“You might be surprised if I tell you that, in our group, we’re very optimistic about the boom continuing after the Expo. This is simply because Dubai began planning 15 years ago, for the next 30 years. If you look at the map of Dubai and see the

“You might be surprised if I tell you that, in our group, we’re very optimistic about the boom continuing after the Expo. This is simply because Dubai began planning 15 years ago, for the next 30 years” biggest expansion HPBS underwent the biggest expansion of its factory in its history, despite 2012 and 2013 being very slow years for the precast manufacturer.

Concrete Report 2017 7

In Profile

bouncing back The takeover of Emirates Beton took place in December 2015, and results in 2016 soon saw an upswing.

“All of these kinds of concrete mixes are very sustainable. Our R&D lab and quality control department are working constantly. We’re trying to make a lot of trials and we’re connected to several other parties, including big chemical suppliers and research centres out there” ongoing major projects, then you’ll realise that these projects will have to continue and they have to match all kinds of growth, including population growth.

“If you look at Mohammed Bin Rashid City, Dubai Creek Harbour and so on, they are huge projects. MBR is equal to Bur

Dubai and Deira combined! If you look at the area from Jebel Ali to Dubai South, including the Al Maktoum Airport, DWC and the residential area in that, this plan needs another 10 years at least [to come to fruition],” he continues, underlying his optimism for the market.

automated production HPBS was the first precast manufacturer in the region to automate its production line, Abou-Mayaleh says.

8 Concrete Report 2017

Much as he approaches the growth of individuals within his company, Abou-Mayaleh says he also insists that the companies keep up with the latest technological advancements and developments from around the world. While he remains unconvinced about the suitability

of 3D printing for the large-scale concrete industry at present, he acknowledges that the future of the industry is tied to how they apply technology to their production lines and projects.

“We have been in direct contact with international universities and researchers, and while the 3D application in the precast sector is still at a very early stage for faster production, ASGC as a group is very interested to see all the possible applications for the technology. However, our partners are working very hard with us and we also conduct trials and experiments, and I’m sure that within the next 10 to 15 years, there will be something that we can’t even imagine at this moment.”

He’s quick to point out that HPBS was the first precast manufacturer to automate its production line.

“HPBS successfully implemented these production lines. They were customised by us, we didn’t import anything ready-made, we customised

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In Profile

the production process and manufactured the production lines with our partners in Germany and Finland. We were the first precaster to automate our production.

“We are very progressive and we believe in continuous development. Of course, we have some more advanced mechanisms within this factory, but we want to reactivate them in such a way that it will be more effective for our production.

We are working on these two or three areas – the plotters, the vibration stations and the concrete distributors. We want them to be more effective in our daily use. The most important part to remember is that you can’t survive without IT or smart solutions anymore.”

This is best exemplified by the fact that the companies use advanced software to monitor each activity on the factory floors, using it to track production work through to erection. In fact, they also use their own in-house developed software (designed to work under the Oracle umbrella) to monitor how many manhours are spent on each element or application.

“This software is very specialised in our nature of work. They are focused on analysing everything in this factory, and the output will be a huge set of statistics that will be analysed. We’ll get huge benefits from this, as we’ll be able to establish new benchmarks and objectives.”

Finally, talk turns to sustainability, a particularly popular buzzword in the construction and concrete industries at the moment, given the emphasis put on it by the Dubai Government this year.

However, Abou-Mayaleh insists he has been a long-term advocate 10 Concrete Report 2017

sustainable impact Bashar Abou-Mayaleh says that precast has longterm sustainability benefits, including cutting down on emissions and wastage from having thousands of workers on a construction project site.

“We are very progressive and we believe in continuous development.

Of course, we have some more advanced mechanisms, but we want to reactivate them in such a way that it will be more effective for our production”

for sustainability and has always looked to work with authorities to improve and surpass standards and regulations.

“This factory has been made in such a way that we’re recycling some of our materials, while sometimes we’re also using recycled materials as raw materials, starting with GBBS, fly ash, recycled water and so on. We are using these effectively, and we have many types of concrete mix designs that are very sustainable, where we’ve reduced the percentage of cement drastically and it’s replaced by waste material.

“All of these kinds of concrete mixes are very sustainable. Our R&D lab and quality control department are working constantly. We’re trying to make a lot of trials and we’re connected to several other parties, including big chemical suppliers and research centres out there.”

In addition, one reason he’s a major advocate for precast solutions in the construction industry is the amount of labour it would save. Not only would it cut costs, but having fewer workers on-site would in turn mean a smaller carbon footprint for the project.

“In the UAE, you have around four million workers here, with at least 50% working in construction, half of whom are unskilled workers. Can you imagine the number of labour accommodation, air conditioning, transport systems and drainage systems they must use?

“If you calculate all these extra workers and the costs they incur, then precast is indirectly saving a lot of money by being a full system provider,” he concludes, radiating confidence that his group of companies will continue to flourish, no matter the challenges ahead.

In Profile

THE TAllEST PrEcAST TowEr in THE rEgion HPBS has built the tallest fully precast tower in the region, located in the heart of Dubailand.

Executed under ASGC supervision, this commercial and residential building is the first of its kind to use precast and pre-stressed beams, column shuttering, precast upstand, hollow core slabs, stairs and walls, all the way from its three basement floors to the ground, mezzanine and four parking floors, and up to the 32nd floor, 171 metres above the ground.

The total built-up area is 110,330sqm.

The total number of elements are 5,600.

of the concrete wall around the column?

All precast beams need to have a temporary support until the final connection is cast.

Therefore, concrete columns receive the concrete inside to provide temporary support for the beams. Otherwise, the beams would need a concrete bracket form, which may not be architecturally accepted.

Structural system The shear wall and core wall are cast in place components.

Precast column or semi-precast columns.

Precast form beams, pre-stressed or reinforced depending on the design.

Precast pre-stressed hollow-core slabs are widely used to cover the whole spans of large flooring areas.

Structural reinforced toppings are cast in place above the hollow core slab.

why were the beams pre-stressed?

According to beam design, it is advantageous to have pre-stressed tendons as they allow a much lower concentration of steel reinforcement between the beams and columns.

what is the purpose

why were form beams used on the project?

Form beams provide numerous advantages, including that they weigh less and provide a very strong connection between the beams and columns.

was scaffolding needed on the project?

As the precast beams were pre-stressed, no scaffolding was required during the installation process.

Only propping jacks under the beams were necessary.

Concrete Report 2017 11

Case Study

Building at height Vida residence

Lightweight concrete slab manufacturer Cobiax showcases the technology it used to build Emaar’s Vida Residence in Dubai Project Name: Vida Residence Project Area: 100,273sqm Location: Downtown Dubai Building Owner: Emaar Properties PJSC Authority: Dubai Municipality Principal Consultant: NORR Architects & Engineers Contractor: Al-Basti & Muktha LLC Third Party: Salama Structural Engineers Project Management: Arcadis Cost Consultant: Omnium Cobiax Middle East and Cobiax Emirates (KEW Enterprises) implemented the first Cobiax slab of the Vida Residence Downtown Dubai Project.

Engineers representing all parties involved were present during the first slab concrete pouring.

The 66-storey building was redesigned using the Cobiax Slab System jointly by the consultant, the third party and the Cobiax Middle East technical team. Thanks to the significant optimisation in the slab thicknesses and the structure’s overall weight, EMAAR could add up to two additional floors to the building;

12 Concrete Report 2017

it chose to add one. Therefore, the building became 67 floors.

Cobiax slab thicknesses of 25-35cm for spans up to 9.5m were 1-2cm less than the original PT slabs’ thicknesses and 18% less than their weight.

The main achievements of using Cobiax Slab System on this project, in the slabs only: 1. 2,170m3 concrete saving 2. 5,425t weight reduction 3. 456t CO2 emission reduction 4. Money saving 5. Adding one additional floor 6. Quick and easy installation and site work compared to any slab system 7. Working with Cobiax is very flexible. Partial slab work is possible, as the contractor didn’t wait for the scaffolding and decking work to be finished. He proceeded with bottom steel mesh works in the ready areas and directly installed Cobiax on ready meshes. Once the Cobiax was installed, they proceeded with MEP works and then the top steel mesh, making progress faster than any systems that require continuity.

adding to the height Thanks to the significant optimisation in the slab thickness and the structure’s overall weight, two additional floors could be added to the building.

Case Study

allowing for redesign The 66-storey building was redesigned using the Cobiax Slab System.

slim and strong Cobiax slab thicknesses of 25-35cm for spans up to 9.5m were 1-2cm less than the original PT slabs’ thicknesses and 18% less than their weight.

Working flexible The contractor did not have to wait for the whole scaffolding and decking work to be completed. Once bottom steel meshes were installed, the Cobiax system was able to be directly installed.

Concrete Report 2017 13

Concreting

Practices for Hot Weather Concreting

Michael Tholen, managing director of Engineering and Professional Development at ACI, takes on the topic of hot weather concreting What are the ACI building code requirements for placing concrete in a tropical climate? Some say we should specify a maximum permissible concrete temperature of 90°F (32°C). Others say a temperature higher than 90°F (32°C) is allowable if the concrete contains a set-retarding admixture.

ACI 301-16 “Specifications for Structural Concrete” and ACI 305.1-14 “Specification for Hot Weather Concreting” limit the maximum concrete temperature to 95°F (35°C) at the time of discharge. This limit is for general types of hot weather construction such as pavements, bridges and buildings, not mass concrete.

Hot weather concreting is defined by ACI as “one or a combination of the following conditions that tends to impair the quality of freshly mixed or hardened concrete by accelerating the rate of

14 Concrete Report 2017

“Although the adverse effects of hot weather can never be fully alleviated, proper practices can help minimise the impact by protecting the concrete from early water evaporation from the mixture”

moisture loss and rate of cement hydration, or otherwise causing detrimental results: high ambient temperature; high concrete temperature; low relative humidity; and high wind speed”.

Various adverse effects on the properties and serviceability of concrete are brought on by hot weather. Just one of those is the effect on strength – concrete mixed, placed and cured at elevated temperatures normally develops higher early strengths than concrete produced and cured at lower temperatures.

Although the adverse effects of hot weather can never be fully alleviated, proper practices can help minimise the impact by protecting the concrete from early water evaporation from the mixture. Potential deficiencies to concrete in the hardened state can include decreased strengths resulting from higher water demand,

and decreased durability resulting from cracking.

Typical hot weather concrete evaporation protection measures include fogging, evaporation retarders, wet burlap, wind breaks and protection of quality control specimens.

ACI University offers several on-demand courses covering the topic of hot weather concrete.

A recently released course highlights the best practices and examples from projects where pre-cooling measures, moisture controls, mixture adjustments and admixture technologies have been implemented to reduce adverse effects to the concrete under hot drying conditions. Case studies from large infrastructure projects are included to describe different costeffective ways to improve constructability of field operations in hot weather.

Add to your knowledge by signing up for “Hot Weather Concrete – Best

Practices and Lessons Learned” by visiting www.ACIUniversity.com.

The ACI Guide to Hot Weather Concreting (305R-10) defines hot weather, discusses potential problems and presents practices intended to minimise them. These practices include selecting materials and proportions, precooling ingredients, and batching. Other topics discussed include length of haul, consideration of concrete temperature as placed, facilities for handling concrete at the site and, during the early curing period, placing and curing techniques as well as appropriate testing and inspection procedures in hot weather conditions.

Hot weather concreting can be a challenge – to minimise the disadvantages, and make your next hot weather concreting project a success, use ACI’s resources.

Visit www.concrete.org for more information.

Concrete Machinery

With the Gulf in Mind

Big Project ME speaks to Wajih Eit, head of area – MENA for CIFA, about how the Italian company is heavily invested in developing products specifically for the Gulf market

How has the first half of 2017 been for CIFA? What are your thoughts on 2016?

The first half of 2017 for CIFA in the MENA region has been perfectly in line with 2016’s sales results, despite some extra challenges this year such as the block of imports in Algeria and the currency fluctuation in Egypt. That was thanks to the aggressive business development plan we put in place three years ago, where different countries in the region are now covered by a top-class distribution network.

2016 was a very tough year for everyone in the region due to the oil price drop and political situation, and CIFA, like all other players, was affected and suffered a drop in volumes. Despite that, our performance was very

16 Concrete Report 2017

positive in terms of market share, keeping the same positive trend of the past three years.

CIFA has introduced a series of products specifically for the Middle East market. What has been the reaction, and why was that decision made?

Actually, CIFA’s development plan in MENA also includes the launch of a dedicated product range. We believe that each region has its own characteristics and even the machines should be designed accordingly.

As we know, in the Middle East generally we have very tough climate conditions and difficult roads, especially outside the main cities, so we started with HD (heavy duty) transit mixers four years ago, achieving outstanding results in terms of units sold (over 1,500) and reliability, thanks to the

“One of CIFA’s main advantages is in product development, where each year we are investing more than 2% of our turnover into R&D, adding to an internal certified testing centre that no other competitor has”

highest technical standards used.

This included having a reinforced structure, special drum material and thickness, double rollers, drum anti-rebound system, and so on. Today, we can proudly claim that our HD mixer is absolutely the best in the market!

CIFA has also developed the first plug-in hybrid truck mixer in the concrete industry. How important is that going to be for the Middle East market, and what has been the reaction?

The ENERGYA plug-in hybrid mixer is one of CIFA’s registered trademarks (we have 50 patent families and 12 registered trademarks) and is already a strong reality working in Europe’s main city centres, such as Paris and London. Less pollution, less fuel consumption and less noise are some of the main advantages

Concrete Machinery

of the ENERGYA. These are very important themes in Europe. They are not yet in the Middle East, but the plans to reach European standards are already in place, as we can note also from the main EXPO 2020 themes, so we are expecting to start supplying our plug-in hybrid mixer into the GCC in the next few years, having accumulated experience and feedback in this new technology.

What are some of the other products in your pipeline? Are you continuing to develop specifically for the Middle East market?

One of CIFA’s main advantages is in product development, where each year we are investing more than 2% of our turnover into R&D, adding to an internal certified testing centre that no other competitor has. We call it the TEC (Testing European Centre) and we’ll definitely continue to develop new products where needed.

As for products specifically dedicated to the Middle East, aside from the above-mentioned HD mixers, we have already launched different products such as CIFA model K42L and K55L truck-mounted concrete pumps, while others will be revealed soon!

MIxInG It GrEEn As part of efforts to reduce its environmental footprint, CIFA has unveiled a new product in its concrete mixer line-up: the plug-in hybrid truck mixer from its ENERGYA series. It is available in two models, E8 and E9, and is much quieter than a traditional mixer, while also using up to 30% less fuel.

In a conventional truck mixer, drum movement is generated by a hydraulic system. In the hybrid mixer, on the other hand, the drum is rotated by an electric induction motor powered by a lithium-ion battery.

The batteries can be charged either from the power grid or through a generator powered by a diesel engine on the truck.

This allows the truck mixer to be fully operational even when the batteries are dead

or the truck is switched off.

Thus, during loading operations in the plant and when discharging at the work-site, the truck’s diesel engine can be turned off, and the drum can be powered by the electric motor connected to the battery.

During transport, the diesel engine recharges the electric battery if necessary, ensuring that the truck mixer can operate autonomously.

During braking in a standard truck, the kinetic power of motion is lost. But the ENERGYA has a brake energy recovery system, which puts part of that energy inside the batteries to be used later in making the drum turn. Being able to operate even when the engine is switched off particularly comes into play when noise is an issue, such as in city centres.

visions launched by the local governments, which are willing to keep investing and developing their infrastructure. We strongly believe that investing in our product development, following the market’s needs and having a strong dealer network covering all countries with a high level of after-sales are the keys to success in any market situation.

You recently introduced the world’s highest truck-mounted concrete pump. What are the plans for that model in the Middle East?

Another patented technology in CIFA is the introduction of what we call the CARBOTECH series, where some boom sections are completely made of carbon fibre!

This new technology allowed CIFA to introduce the world’s highest truck-mounted concrete pump (80m and 101m). After succeeding in Europe and China, our plan is to start to have this very special product working on key projects in the Middle East. investing in product development Wajih Eit says that CIFA will continue to spend heavily on product development as it will allow the manufacturer to keep ahead of market demands.

What are your views on the GCC construction market?

The GCC construction market is always very interesting, with big projects already assigned (Expo 2020 Dubai, the new airport in Kuwait, the 2022 World Cup in Qatar and so on) and others in the process to be assigned soon. The main difficulties are in the Saudi market, which is also very normal due to the big size of the market itself.

Regarding the future, we believe it’ll be very positive in the GCC thanks to the different

Concrete Report 2017 17

Advertorial

Forming an innovative Future

Doka reveals how it is pushing the boundaries of construction innovation

Widely recognised as an industry that has failed to keep up with its peers in terms of innovation, construction is one of the major sectors highlighted by organisations including the World Economic Forum that is “ripe for and capable of transformation”.

Doka may have always prioritised innovation as a central core of its business, but it wasn’t until 1990 that the Austrian formwork giant established its own research and development facility from its headquarters in Amstetten, thereby providing a physical manifestation for its various new products, systems and ideas.

Focusing on a variety of performance metrics, Doka’s R&D engineers used a methodology of listening to feedback from its field around the world in order to understand where practical changes could be made to either enhance safety, increase efficiency or save clients’ money.

As a result, the department has yielded a constant stream of innovative products widely used in day-to-day operations, including the Frami Xlife system for forming walls, columns and foundations and its electricpowered table lifting system, which enables the vertical repositioning of table forms without the use of a crane.

Other innovations launched

by Doka include Concremote – a concrete construction

18 Concrete Report 2017

Listening to feedback Doka’s R&D engineers used a methodology of listening to feedback from its field around the world in order to understand where practical changes could be made to enhance safety and increase efficiency.

methodology providing concrete intelligence. Concremote combines estimation and scheduling with performance tracking and control with an internet-connected sensor solution that measures the compressive strength gain of fresh concrete. It’s an integrated system providing actual information on concrete performance to support decisions for subsequent construction work.

Most recently, Doka Ventures, a sister company of the Doka Group, has announced its partnership with Contour Crafting Corporation for the launch of its mobile industrial 3D construction printers, a significant technology which will reduce the construction time of buildings to just days or even hours, helping to meet the increasing demand for socially acceptable accommodation and infrastructure.

“The construction markets of the Middle East and Africa both have an extensive range of fascinating projects which are well-suited for the latest innovations, and are subsequently helping to advance our industry. Thanks to our dedicated R&D department, we are constantly understanding how our clients interact with our technology, and use this data to make our products and systems more effective,” added Peter Vogel, Doka Middle East and Africa director.

Concrete Mixers

Mixed to order

Global manufacturers of the transit mixer, a vital part of the construction landscape in the region, are adapting their products to local requirements while also offering the latest innovations to customers in the Middle East

i

f you live in one of the six countries that make up the GCC, probably the most ubiquitous of all construction machinery and related equipment that you will see on the roads is not the crane or the dump truck, the excavator or the skid-steer, but the humble transit mixer.

Whether it is the boom times of not so long ago or the leaner present economic scenario, the GCC countries never stop building. And this keeps the wheels and barrels of transit mixers in the region turning as they rush from ready-mix concrete plants to job-sites with their cargo of the ready-to-pour stuff that the skyscrapers, bridges and flyovers of the region are made of.

The importance of the transit 20 Concrete Report 2017

mixer to the construction process cannot be overstated. Without this piece of equipment, the furious pace of construction that countries like the UAE and Qatar are used to seeing would slow down considerably, if not stop altogether. For it is the transit mixer that every project relies upon to deliver concrete – that very basic and all-important substance no construction can do without – from the production plant to the structure being built.

Imagine if there was no transit mixer. The voluminous quantities of concrete that modern buildings consume would then have to be prepared on-site, as was done, perilously slowly, almost an epoch ago. At best, every project would need its own concrete plant built adjacent to it onsite – which is surely a financial and logistical impossibility.

Now that we have established the importance of the transit mixer – not that it needed establishing – let us look into what the equipment is all about.

Transit mixers are special

concrete transport trucks made to transport and mix concrete up to the construction site. The truck’s mixing barrel maintains the material’s liquid state through agitation, or turning of the drum, until delivery.

The interior of the drum on a concrete mixing truck is fitted with a spiral blade. In one rotational direction, the mixer is ‘charged’ when the concrete is pushed deeper into the drum.

This is the direction the drum is rotated while the concrete is being transported to the building site. At the site, the drum disgorges its liquid contents when the blade rotates in the other direction, with the Archimedes’ screw-type arrangement ‘discharging’, or forcing the concrete out of the drum.

Today’s modern in-transit mixer sits on a truck chassis built by almost any heavy vehicle manufacturer, such as Scania, Volvo, Mercedes-Benz, Iveco, Man, Maz, Quon or Renault.

Manufacturing the mixer drum is a specialist undertaking, done

Concrete Mixers

Concrete Report 2017 21

Concrete Mixers

by companies that produce the structure and assemble it on the truck chassis. One such specialist is Spanish transit mixer maker Gicalla, which uses mainly Iveco chassis for its vehicles.

Speaking about Gicalla’s mixer products and their advantages, Marc Vaello from the company’s marketing department says: “Our mixers offer great stability through optimum weight distribution.

We adjust the machine or the vehicle such that operation and power are improved. To avoid excessive twisting of the truck frame, the joints of the machine with the frame are screwless.”

This results in increased braking efficiency, greater road adherence and less wear on wheels and brakes, he adds.

“We have the lowest chassis height in the market and this provides maximum grip and stability, keeping the centre of

“The transit mixers work on average 18 hours per day and return low fuel consumption figures along with long life for their parts.

Our engineers and technicians are also trained to ensure optimal vehicle performance”

gravity among the lowest in the market. Our easels are designed to reduce twisting of the truck frame through cylindrical parts.

With our technological advances and patents, we offer maximum exclusivity and quality, even when adapting our frames to different manufacturers.”

Adapting solutions Making a great product and making a great product for the uniquely harsh Middle East conditions are two different things, however. But Gicalla has the answer. “We are able to adapt our solution to each market, meeting the demand of both client and market,” Vaello adds. “For example, for the Middle East we have increased the thicknesses of the bottle or mixer to adapt to the extreme environmental conditions. Another solution we have for the Middle East market Adapting to the market Gicalla has customised its products to deal with the conditions found in the Middle East.

22 Concrete Report 2017

is to install a combined or dual cooling mechanism, with part of the cooling duties taken over by the water tank and part by the external radiator cooled by forced air from an electric fan.”

Another adaptation for the region is what Gicalla calls the Double Cross of San Andrés – a double crosshead installed in the frame supporting the mixer drum. “With this we obtain greater rigidity of the structure of the tandem, avoiding cracks and excess torsions,” Vaello explains. “It comes standard with options such as cases in the hoppers for both loading and unloading, a tool box and a flushing device both at the top of the machine and the bottom.”

With a desire to push the boundaries of its capabilities further, the Spanish company is also developing newer products for the future. Vaello says Gicalla is working on a technical plastic water tank and hopper for loading and unloading. “This is the way forward, where the future of the sector is lighter equipment with electric or hydraulic capabilities.

We have also developed the GH1, a lighter concrete mixer with thickness reduced to 500 on the Brinell scale, while retaining the necessary robustness.”

Swearing by Gicalla’s mixers is Arab Contractors. The Egyptian construction company owns 111 transit mixers in its fleet with capacities from six to 10 cubic metres. It has 60 units of mixers with the Iveco-Gicalla combination, which are the new 2015-16 Iveco models.

“We are one of the largest customers for Gicalla and Iveco in the region and all our trucks are working at high efficiencies,” says Osama Kamal Mahmoud, equipment sector head at Arab Contractors. “The transit mixers work on average 18 hours per day and return low fuel consumption

Concrete Mixers

Future demand There is a demand in the market for transit mixers, thanks to the many construction and road projects taking place across the region.

“The future is lighter equipment with electric or hydraulic capabilities.

We have developed the GH1, a lighter concrete mixer with thickness reduced to 500 on the Brinell scale, while retaining the necessary robustness” figures along with long life for their parts. Our engineers and technicians are also trained by the respective equipment manufacturers to ensure optimal vehicle performance.”

Speaking about future demand for transit mixers, he adds: “There is a demand in the market due to many construction and road projects in Egypt. Arab Contractors is participating in big projects, such as New Cairo, as well as many road projects. We will be looking to expand our fleet in the future based on new projects coming to us, and the GicallaIveco combine with the same configuration as our recent transit mixers is what we will go for.”

Middle East model Another transit mixer manufacturer at the vanguard of the sector is Cifa. The Italian specialist installs mixers on all

truck brands its customers choose, but according to Diego Bertati, area manager, Middle East, heavyduty trucks such as the Astra range are preferable for the Middle East market. It has recently introduced a model aimed specifically at the Middle East market.

“Earlier we made specific customisation to adapt our products to the Middle East, but we took a significant step forward recently by introducing a whole series of products, the HD – Heavy Duty, specifically for the Middle East countries,” says Bertati.

“Harsh environments, high temperatures and bumpy desert tracks are home for these mixers.

Specific solutions were developed, such as wider drum rollers, drum anti-rebound systems, increased chassis beams resistance, oversized heat exchangers and so on. The HD series has just been enlarged with the HD15, the only

truck mixer with 15 cubic metres of nominal capacity that can be installed on a four-axle truck.”

Cifa has also developed the first plug-in hybrid truck mixer in the concrete industry, the ENERGYA. This mixer is able to keep the drum rotating when the truck engine is turned off, using batteries and an electric motor.

“We’ve experienced up to 30% of reduction in fuel consumption, lower CO2 emissions, with the benefit of a significant noise reduction that is good for cities or closed work-sites such as tunnels,” explains Bertati. “The ENERGYA is already working successfully in many European countries but is not yet mainstream. We hope to be the pioneers in bringing new sustainability in the concrete mixers industry.”

Meanwhile, at Express Heavy Equipment Trading and Leasing in Dubai, the dealer of

concrete mixers from Belarusian truck brand MAZ, general manager Romieo Amarose says: “For current and upcoming construction projects in the UAE market within the next five to seven years, the supply and demand of heavy construction vehicles such as concrete mixers has to be equalised with the introduction of more economical and mid-price products.”

MAZ, one of the largest heavy-duty truck manufacturers in Europe, has introduced its range of 9-12cbm concrete mixers which are suitable for the demand in the UAE market with their value propositions, he adds. Fully backed up with after-sales support from the Express group with its eight mobile workshops and its 100,000sqft service facility in Dubai Investments Park, MAZ hopes to push 100 to 150 transit mixers per year by 2017.

Concrete Report 2017 23

In Profile

The Golden Touch Big Project ME interviews E R Menon, CEO and partner at Golden ReadyMix, about how the company is back from the brink and ready to take the construction industry by storm

Back in business Since taking over Golden Ready-Mix in October 2015, ER Menon and his team have overseen a rapid increase in business for the ready-mix supplier.

24 Concrete Report 2017

Back in 2007, optimism in the Dubai construction market was at peak levels, with massive projects underway across the city and new ones being announced almost every day. It was in this environment that a group of investors came together to launch a ready-mix company that would be their springboard into Dubai’s construction industry.

Focusing on the highend market, these investors brought in the most modern and technologically advanced

plants, equipment and machinery, along with a quarry and testing lab. However, despite the best intentions, even the most wellthought through plans and strategies can be waylaid by circumstances beyond anyone’s control.

As such, despite the newly launched company doing a good amount of business in 2008 and 2009, it found itself caught out by the collapse of the market, leaving it with severe issues. Following a period of considerable struggle,

In Profile

the company was finally put up for sale in 2013, which is when E R Menon and his team come into the picture for Golden Ready-Mix. “They were up for sale since 2013/2014 and we bought them in October 2015. Back then, the company was hardly doing any volumes. They had sufficient capacity, but the business was not there. They were doing about 12,000 cubic metres per month as a yearly average for 2015,” Menon tells Big Project ME during

an interview at his office at the Golden Ready-Mix factory.

“After we took over the company in 2015, we turned it around despite only operating for only three months, and we came to a breakeven situation by the end of 2016.”

Having done well in 2016, Menon asserts that 2017 has continued the upward trend for the company, insisting the market is there for firms like his.

“There are cashflow issues, but having said that, my team knows the market and we’ve been here for a long time, so we know who to deal with and who not to deal with – and how to collect our money. I have hardly written off any money in my previous companies, so we’ve got a good record for collecting our money.”

Having spent his entire career in the construction industry, Menon has developed a specialisation in ready-mix concrete, precast solutions and material testing, among many others. He was previously managing director and business partner at Emirates Beton, prior to taking on his current role as CEO and partner at Golden Ready-Mix. With more than 30 years of experience, Menon is considered something of a pioneer in the field of ready-mix concrete, with experience in the field of concrete mix designs, production and supply, and pumping operations for highprofile projects such as Burj Khalifa, Burj Al Arab and Emirates Towers.

“We are technically very sound.

The Burj Khalifa is a standout example. I personally have done the mixes for that project. We did the pumping from the ground level to the top. When I say ‘we’, I’m talking about the group of people – we were working for Unimix at the time, so as a company, Unimix has the credit, but I don’t think there’s anyone still there in the operations who was involved in the Burj Khalifa

“In the 18 months since we bought this company, we have got three new branches coming up – one in Al Quoz that is under construction, one in Sharjah, at the Hamriyah Free Zone which is also under construction, and there’s one to start in Dubai Industrial City”

project. So we have this expertise in high-strength, high-performance concrete and we have unparalleled experience in high-rise pumping,” he proclaims confidently.

Menon goes on to explain that the new iteration of the company will focus on large and quality projects, while also keeping a balance between high-profile projects, such as the Tower in Dubai Creek Harbour (which the company has prequalified for), and more necessary infrastructure projects such as the sewage treatment plant in Jebel Ali that it is working on for Besix.

“We can perform where anybody else in the market cannot, I can openly challenge this to any competitor in the market,” Menon asserts. “Any complex job in terms of pumping or concrete quality, we will be able to perform. We have done several difficult jobs in the market where others have failed.

That’s one reason why we’ve come up so fast in this short span of time.”

“In the 18 months since we bought this company, we have got three new branches coming up – one in Al Quoz that is under construction, one in Sharjah in Hamriyah Free Zone which is also under construction, and there’s one to start in Dubai Industrial City. We also have acquired a quarry and a crusher, it’s called Golden Rock and Aggregate, which is operational, and we’ve acquired a precast concrete factory called Precast Concrete Products (PCP), which is operating out of Dubai Industries Park.

“This year, we’ll move into the corporate sector as Golden ReadyMix alone. We’re currently placed in the second level of companies in terms of volume. We’ve come from the grave, the not-even-zero level, so we’re doing relatively well.”

Although Menon says the company saw an increase of 200% in terms of volume in 2016, and a further 50% increase in 2017 on

Concrete Report 2017 25

In Profile

Planning for improvement Menon says that once the company hits a certain volume of production, he intends to focus on improving service, rather than chasing more volume.

top of that, he insists there is no chance of getting carried away.

“I won’t go into reckless expansion. I have a certain figure in mind, and once we reach there – and we hope to be there within four or five months – then we will focus on the price. Instead of going after more volume, we’re going to try and improve and give better service for a better price.”

This approach is particularly close to his heart, having seen certain unnamed competitors approach the market in a manner that makes him uneasy.

“Right now, there is one company in the market that is leading by far when it comes to volume, but they’re doing that by selling at very low prices. We should look at it like a business.

Here at Golden Ready-Mix, we don’t operate on commissions based on volume. We’re focused on what benefit we get as a business.

We are focused on providing our clients with quality work, with no compromises or cutting of corners.

“The big challenge is educating the people operating in the readymix industry. I honestly feel that we in the industry lack some bones, that we don’t have the courage to stand up when we should. Certain jobs

26 Concrete Report 2017

are being priced below cost, or there are very low mark-ups on material costs, where a company would lose money. How are they surviving, and why do they do it? I have no clue. It’s not a mature market, I would say. People are running behind volumes and that could lead to trouble later,” he explains.

“We need to educate our fellow players in the market, to get them to stand up and say that we have this cost and it has to be absorbed by whoever is building the project. There’s a tendency to cut corners here and

there, and this should stop.”

He goes on to explain that Golden Ready-Mix doesn’t offer fixed prices, in contrast to many of its peers in the market, and says problems often arise when a contractor is finalising a project with a client and finalises for a lump-sum price, with not many variations allowed. Given the fluctuations in raw material prices, the contractor must take a risk and make certain allowances.

“As suppliers, we should either stop giving fixed prices at all, or we should consider a

Funding research and development In addition to expanding its services, Golden Ready-Mix also has a research and development lab that looks to improve the performance and efficiency of its admixtures and aggregates.

margin for allowing that risk. This sometimes doesn’t happen, and this is where we have an issue.

“At Golden Ready-Mix, if someone wants fixed prices, then we talk back to back with other cement companies and raw material suppliers. If they agree, only then do we provide that facility to the contractor. If they don’t, and if the contractor still wants a fixed price, then we keep a margin or provision for it. That way, it’s taken care of to a certain extent.”

Despite all this, he concedes that at the end of the day, it is still a business and there will always be some risks involved. As he brings the interview to a close, Menon points out that when a market is affected in general, for whatever reason, then running a business like his will always be a challenge.

“I cannot predict what will happen here, and we are nobody to talk about the larger picture that goes on behind the scenes, but as far as Dubai is concerned, we believe that this is one of the safest places in the region, with a progressive attitude. Looking at what has been planned for the next five to ten years, unless something very critical happens, the market will continue to perform,” he predicts confidently.

EXPERIENCE, EXPERTICE, EXCELLENCE.

PCP Technology FZCo

Technopark P.O Box: 393849, Dubai U.A.E Tel : 043399386

PCP Technology FZCo Technopark P.O Box: 393849 Tel : 043399386

3D-Printing Technology

improved ways Thanks to advanced robotics and a modern understanding of concrete mixtures, structures can be built in improved ways.

Does ConCrete Have a Future in ConstruCtion?

Cazza, a Dubai-based 3D-printing start-up, predicts that concrete will continue to play a key role in construction, despite the evolution of technology around it

28 Concrete Report 2017

3D-Printing Technology

The good news is that the future of concrete is, well, concrete. While our technologies are advancing at an unprecedented rate, that doesn’t mean the positive qualities of traditional building materials are suddenly irrelevant. In the case of concrete in particular, it’s still without a doubt one of the most versatile, cost-effective and proven building materials in our arsenal.

Rather than fundamentally changing the materials themselves, the role of future building technologies will be to augment and transform those materials in new ways. At Cazza, we’ve seen that future literally form before our eyes, written in 3D-printed concrete at the cutting edge of the field.

Going Green

A central theme in that future is sustainability. We’re becoming more and more conscious of wastage and the environmental impact of human activity, and that’s reflected in the ongoing trend for construction technology to become greener every passing year.

This is also one of the key reasons that additive manufacturing in construction is such an exciting technology.

Thanks to advanced robotics and a modern understanding of concrete mixtures, we can build structures in drastically improved ways.

In pure sustainability terms, 3D printing technologies allow us to use less than half of the concrete mass traditional building methods demand. Although concrete is a very affordable material, it still has significant absolute costs in

terms of resource usage. Slashing the amount of concrete by more than half for the same result is one of the most drastic sustainability developments in the industry.

Stronger, Better, Faster

The advantages of combining 3D printing and concrete don’t stop there. The actual construction process of a 3D-printed concrete structure is much faster than traditional construction methods – in some cases as much as 76% faster!

It’s pretty self-evident that this has a positive domino effect on the entire construction chain. It means building more structure over the same period of time, and other stakeholders in the project spending less time waiting before moving in to install electrical systems or plumbing, to name but two benefits.

Concrete itself is also likely to become an even better material. It’s stood the test of time for much of recorded human history, but there’s still room for improvement. Disposable embedded smart sensors are already in use to precisely report when new concrete has cured properly, but going ahead, smart sensors mixed into concrete could report all sorts of important information about the state of the material over its lifetime.

If you can build faster and with less material, then clearly there are also significant savings to be had. In general, this construction method costs just over a third less compared to traditional building methods.

Safety First

Another strong advantage is that 3D printing keeps human workers further away from the concrete itself. Portland cement, a key component in concrete, has quite a few well-documented health hazards associated with it. So in general, minimising human contact with raw building materials is a good thing.

This new approach to building with concrete also has another related advantage: it widens the scope of environments in which one can safely build. The management of heat-related risks in hot parts of the world such as the Middle East is a constant concern in the industry. Using an automated robotic system to construct structures in harsh conditions means fewer people need to perform tough physical labour under a relentless sun.

New Twists on Old Favourites

Finally, additive manufacturing and robotic construction automation also mean we can push traditional materials to entirely new places. Architectural design has been a consistently innovative art and science, but armed with a new generation of construction systems, we’ll be able to make structures that were simply infeasible outside the wild imagination of a designer.

So while the cities of the future may still be made of materials we all know well, the Cazza team believes in the power of 3D printing technology to eliminate the barrier between the imagination of a designer and the limits of reality.

“The actual construction process of a 3D-printed concrete structure is much faster than traditional construction methods – in some cases as much as 76% faster!”

Concrete Report 2017 29

Concrete Chemicals

Mandatory switch Since April 2015, Dubai Municipality has made it mandatory to switch to green concrete. GCP has worked with its customers to develop optimised new mixes that meet the municipality’s specifications.

The RighT STuff

Big Project ME speaks to the experts at GCP Applied Technologies to find out how their construction chemicals are helping improve the performance and efficiency of concrete in the Gulf

How do you work with your customers to resolve specific challenges or issues unique to this part of the world (heat, humidity, dust, etc)?

Alexander Grosskord: Constant

change and new technical requirements in as fast-moving a market as the Middle East requires GCP to quickly respond with new product development and solutions, to avoid any delays in concrete production while meeting concrete performance requirements under tough conditions.

The relationship between our sales team and customers, and the given trust of their technical managers, ensures close

30 Concrete Report 2017

cooperation with our technical service team. As an example, each year when the temperature starts increasing with the start of the hot summer in the Middle East, temperatures can reach more than 50oC, which has a major impact on concrete performance. Because of high temperatures and combined unpredictable traffic conditions to reach the job-sites, GCP offers more powerful slump retaining admixtures to guarantee flowable concrete for up to four hours, to meet the technical requirements.

Our local R&D centre in Dubai has all the technical experience and equipment to react quickly to provide products and solutions to address our customers’

requirements promptly. With our global R&D centre in Cambridge in the US, we further leverage technical expertise for ongoing materials research.

Are you finding greater uptake for your products with the push towards sustainability in the UAE?

Due to the wide and long vision of the government in UAE, sustainability is becoming a more and more important topic. Since April 2015, Dubai Municipality has made it mandatory to switch to green concrete to make its ever-expanding built-up areas healthier and more sustainable.

Fly ash and ground granulated blast furnace slag is replacing

to a certain extent ordinary Portland cement, to reduce CO2 and other toxic gases. To meet the sustainability requirements, often mix design optimisations and new admixture products are required.

GCP has successfully worked with our customers to develop the optimised mixes and new products, such as Concera for control flow concrete and Clarena for aggregate management, have been introduced to ensure the concrete technical performance targets are met.

How do your products help reduce energy usage and lower CO2 emissions?

GCP has many products with

Concrete Chemicals

a sustainable impact on the construction environment. As an example, we recently introduced our newest products for aggregate management. Designed with ready mix and aggregate producers in mind, the Clarena portfolio helps mitigate the negative effects of poor quality aggregates on concrete performance.

Dr Lawrence Kuo: Clays can be particularly harmful to concrete mixes by absorbing large amounts of water and admixture, which leads to poor workability, reductions in strength, and increased plastic and drying shrinkage. Ultimately, this increases the cost of concrete production.

With the diminishing availability of high quality aggregates, the use of lower quality unconventional alternatives has been on the rise. This has resulted in the production of concrete with increased process variability and higher production costs.

Pung Chan: We know it’s important for ready mix and aggregate producers to continuously provide consistent product performance.

The clay mitigating agents in the Clarena family of products not only remove production variability, but can also provide materials flexibility and cost savings. We are excited to offer our customers these innovative technologies for material, operational and productivity management.

Clarena water reducing admixtures ensure better workability and finishability by creating a smooth flowing concrete with improved placement properties. They are ideal for use within a wide range of concrete slumps where superior finishing characteristics are desired – particularly in commercial and residential flatwork, and formed concrete applications.

We are aware that concrete producers face quality control

challenges, resulting from the variable quality of aggregates. We developed the Clarena admixtures to provide our customers with materials flexibility and remove variations in production. We are enabling them to save on material costs, while improving concrete performance.

For aggregate producers, Clarena additives deliver greater efficiency and less waste compared to mechanical or equipment solutions.

Not only do our Clarena additives reduce waste and extend quarry reserves, they also help quarry owners enhance yield and productivity. Aggregate producers can now convert waste into revenue and improve profitability.

GCP understands that aggregate issues vary by region, which is why the Clarena portfolio offers regional customisation to address various material deficiencies.

How do your admixtures produce better results and reduce water usage, while also improving strength and long-term performance?

GCP’s new Concera admixtures enable the production of control flow concrete, a new category of highly flowable segregationresistant concrete using conventional mix designs. With

Laith haboubi Concera admixtures allow contractors to complete projects faster, while reducing labour costs and even skill requirements to place and finish.

“Our local R&D centre in Dubai has all the technical experience and equipment to react quickly to provide products and solutions to address our customers’ requirements promptly” Concera, ready mix producers can consistently make highly workable quality concrete using simple conventional mix designs at the same water/ cement ratios, without fears of segregation during placement.

Control flow concrete with Concera is suitable for use in all applications that can take advantage of a high-flow, nonsegregating concrete mixture.

Fast discharge, easy pumping

Pung Chan The clay mitigating agents in the Clarena family of products not only remove production variability, but also provide materials flexibility and cost savings.

and placing, and high response to minimal vibration make control flow concrete ideal for use in decks, walls, columns, floors, beams, pilings and footers.

Concrete produced with Concera admixtures exhibits consistent quality and excellent flow retention, without retardation. This controllable and reproducible performance could reduce quality control costs for the concrete producer, providing easier construction for the contractor and, importantly, potential programme timeline savings.

Laith Haboubi: The technology engineered into the Concera admixtures allows contractors to complete projects faster, while reducing labour costs and even skill level requirements to place and finish.

Our industry partners are excited to take advantage of the new Concera admixture technology to enhance quality and performance, and improve project profitability.

The patent-pending Concera admixtures impart conventional mix designs with unconventional performance. Customers use Concera admixtures for control flow concrete to enable quality construction.

Alexander grosskord The relationship between GCP’s sales team and customers, and the trust of their technical managers, ensures close cooperation.

Concrete Report 2017 31

Last Word

Cementing Sustainable Infrastructure

Amer Arafat, technical manager at Dubai Carbon, tackles the issue of lowering energy emissions during concrete production Concrete is the most widely used building material in the world, and with the global construction boom its usage has risen manifold.

For example, in China alone over 6.5 billion metric tonnes of cement were used from 2011 through 2013.

Between 2006 and 2050, the worldwide production of cement is expected to increase to between 3.7 and 4.4 billion metric tonnes a year. Taking these figures into consideration and keeping in mind its durability and strength, among many other benefits, it doesn’t seem that concrete will go away anytime soon.

However, the production of cement is an energyintensive process. A huge amount of energy is required to ignite the kilns and heat up the limestone for calcination, one of the cement manufacturing steps. As a result, the amount of CO2 produced during the manufacturing process is quite high. It is estimated that cement production accounts for

32 Concrete Report 2017

The amount of CO2 produced during the manufacturing process is quite high. It is estimated that cement production accounts for about 5% of total humangenerated CO2 emissions annually”

about 5% of total humangenerated CO2 emissions annually. Given the large carbon footprint of this process and the increasing demand, reducing the environmental impact of cement manufacturing is more necessary than ever.

The first way to curb the emissions of a cement manufacturing plant is to increase energy efficiency and modernise the manufacturing process.

Many cement plants were built a long time ago and still use outdated technologies. Therefore, it is worth investing in upgrading such plants with modern equipment and advanced control systems.

Another approach is to substitute fossil fuels with other energy sources. For example, industrial waste, sewage sludge, biomass and used tyres can replace fossil fuels in the kilns. In this way, not only is emissions reduction achieved by using alternative fuels, but safe dump disposal is also fulfilled for hazardous

materials that would otherwise be landfilled.

Waste heat recovery in cement plants is becoming a popular approach as well.

The recovered heat can be used either for heating purposes or for electric power co-generation.

Usually, recovering heat for heating purposes is more efficient than power generation. However, there must be a heat consumer on-site or not far from the cement plant. If that is not the case, then generating electricity from heat is preferable. The generated electricity can either be used in the plant itself or given back to the grid.

Another way to reduce the carbon footprint of the concrete industry is through recycling concrete, which reduces both emissions and the cost of transport.

Recycling concrete is not a complicated process, as it is mainly about breaking and crushing it into the desired size and quality.

The recycled concrete is

often used as aggregate in a sub-base layer, which also saves the energy of processing and transporting new aggregates, while also preserving resources.

This all could soon change, as a team of researchers at École Polytechnique Fédérale de Lausanne (EPFL) in Switzerland is working on developing a greener cement with the potential to reduce the carbon footprint by 40%. The new product, called LC3 (limestone calcined clay cement), is made mainly of materials that are abundant and widely available all over the world – calcined clay and ground limestone. Mixing them creates cement that is stronger than normal cement and not as porous.

Compared to other building materials, concrete is resourceefficient and requires little processing, but when it comes to sustainability, there is always room for improvement.

ASSESSING AND ASSURING EXCELLENCE

www.alcuae.com

Advanced Laboratory Centre (ALC) Jabel Ali Industrial Area 2 P.O.Box 171929, Dubai U.A.E Tel : 048804494