Big Project ME September 2013 by Big Project Middle East

090

SEPTEMBER 2013

ALSO INSIDE HOSPITALITY HERE TO STAY DUBAI’S NEW MARVEL IN PROFILE: ALAN ROBERTSON CHINA IN AFRICA

MAKING AN EARLY START GCC Quantity Surveying comes of age

M MIDDLE EAST

CONTENTS

SEPTEMBER 2013 07

The Big picture international contractors in qatar warned Contractors warned of pitfalls in the Qatari contractors market

News analysis paying the price How prevalent is bribery and corruption in the Middle East?

18 In profile Reading the Pattern JLL’s Alan Robertson on the resurging Dubai real estate market

24 Site visit The Met Reborn Big Project ME visits the Habtoor Palace Complex construction site

MAIN FEATURE

Hospitality matters How hospitality is going to shake up regional construction

40 Site Visit RIde of a Lifetime Big Project ME goes on an adventure with IMG

Quantity surveyors Changing perceptions Examining the changing role of Middle Eastern quantity surveyors

Market Analysis

What are the chinese doing in Africa? Examining why the booming East African construction market is attracting Chinese contractors

60 Special Features Made to measure Big Project ME finds out how FM is adapting to a new market

Putting on a facade Just how much of an impact can a building façade have?

Tenders Top Tenders Listing the top tenders in the Middle East region

82 Constructive criticism A World of adventure awaits Gavin Davids says IMG’s theme park is just the beginning

SEPTEMBER 2013

MIDDLE EAST

PAGE 32

Hospitality is the third largest project sector in the GCC and growth is accelerating.

EDITOR’s COMMENT

M MIDDLE EAST

bigprojectME.com

World Expo go? There’s a lot riding on Dubai’s bid to win the right to host the World Expo in 2020, and I don’t mean the seven members of Dubai Riders, the city’s oldest motorcycle club, who are biking across Europe as I type. Personally I wouldn’t choose to ride a Honda from Athens to Hamburg to enhance a bid celebrating a greener more connected future for the Gulf’s hub metropolis. I will presume the bikes are being recycled into a compost silo. Coming out of summer, there’s a real feeling in the industry that should Dubai beat Izmir, Sao Paulo and Yekaterinburg then the floodgates will open for a devopment boom, not seen since, well, the last one. Certainly there are a lot of people willing to tell me they’ve heard non-too-quiet whispers that the momentum within the judging circle is with the city. The New York Times covered the build-up to the decision last month and described Dubai as the “frontrunner in the race”. Considering the competition contains one city that has already seen rioting relating to spending on the World Cup and two others which are embroiled in “political tensions” – saying Dubai is the outstanding candidate is like having a Harlem Globetrotter apply for a job fixing light bulbs. Dubai, which has frequently drawn comparisons with Las Vegas, maybe banking on itself but it is playing a high stakes game. The expected 25 million visitors, 270,000 jobs and related projects are a tantilising prospect – but the city of New Orleans went bankrupt hosting the event and Shanghai allegedly spent $50 billion on its expo, so economic viability should at least be considered. However I would like to see what Dubai would come up with in terms of its own Eiffel Tower. Although by 2020 we’ll already have one of those in Falcon City, won’t we?

Stephen White

Group Editor

Publisher Dominic De Sousa GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL GROUP EDITOR stephen white stephen.white@cpimediagroup.com +971 55 795 8740 deputy EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 features EDITOR JONATHON SAVILL MARKETING & ADVERTISING PUBLISHING Director RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5483 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALES DIRECTOR CARLO MENEZES carlo.menezes@cpimediagroup.com +971 4 375 5495 SALES MANAGER CAROL D’SOUZA carol.dsouza@cpimediagroup.com +971 4 375 5496 MARKETING MANAGER CAROLE MCCARTHY carole.mccarthy@cpimediagroup.com +971 4 375 5498 DESIGN SENIOR GRAPHIC DESIGNER REBECCA TEECE rebecca.teece@cpimediagroup.com +971 4 375 5713 JUNIOR GRAPHIC DESIGNER PERCIVAL manalaysay CIRCULATION & PRODUCTION Circulation and Distribution Manager ROCHELLE Almeida rochelle.almeida@cpimediagroup.com +971 4 368 1670 Database and Circulation Manager Rajeesh M rajeesh.nair@cpimediagroup.com +971 4 440 9147 Production Manager James P Tharian james.tharian@cpimediagroup.com +971 4 440 9146 DIGITAL www.bigprojectme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA JANICE FULGENCIO online@cpidubai.com +971 4 440 9100 Published by

MIDDLE EAST

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.

SEPTEMBER 2013

The Formwork Experts.

Pathbreaking in Formwork Solutions Supporting you to build more efficiently for every concrete project. Infrastructure | Housing | Energy | High-Rise | Civil Consulting & On-site Services From project development to project close-out Systems & Components Wall, floor, shoring and climbing solutions with European safety standards

www.doka-me.com

FOAMGLAS® Insulation

Roof Upgrade to High Thermal Performance

Planning ASG Contracting Riyadh Build 2012 Application - Roof 3000 m2, FOAMGLAS® READY BOARD T4+, 70 mm thick and T4+ slabs, 30 mm thick Application - Wall 2000 m2, FOAMGLAS® T4+ slabs, 70 mm thick Finish UV resistant bituminous layer waterproofing 4

3 2

Roof system 1 Existing PU-panel, 50 mm 2 FOAMGLAS® T4+ filler, 30 mm, in corrugation glued with PC® 11 adhesive 3 FOAMGLAS® READY BOARD, 70 mm, glued with PC® 11 adhesive and mechanical fixation 4 Two layers of bituminous waterproofing membrane; top layer UVresistant 5 Anchor F fixed into existing PU-Panel

high RiSE Bu oR ilD EF in D A

Conversion to cold storage, Alsafi Danone, Al Kharj, KSA

ThE BE ST FA C

The Alsafi farm in al Kharj KSA is the largest integrated dairy farm worldwide with Guinness World Book of Records entry 1998. The farm is fully integrated from the growing of forage to the final distribution of milk and dairy products and includes factory and storage facilities. Due to the adjustment of the daily need the upgrading of a storage to a cold storage needed to be done. The client decided to follow a proposal to upgrade the building envelope on the roof and the wall with FOAMGLAS® systems which are FM approved. The existing PU-panels on the hall were the base for the application of the FOAMGLAS® on the roof. The corrugation filler and the top layer are executed with FOAMGLAS® cellular glass insulation. A double layer bitumen membrane is the waterproofing and final finish of the roof. Final performance testing of the client showed excellent performance to the full satisfaction of Alsafi Danone.

E R I F

E F SA

36 , E1 4 8 ME AST

Upgrade for a lifetime with durable and fire safe FOAMGLAS® insulation material. Web: www.foamglas.ae Email: info@foamglas.ae Dubai office Tel: +9714 434 7140 Doha office Tel: +974 465 5360

THE BIGGEST PICTURE

International contractors in Qatar

warned about pitfalls

big project, big numbers $200 billion To be invested in construction projects by 2022 $140 billion Amount Qatar will invest into transportation infrastructure $20 billion Amount to be invested into tourism infrastructure

UrbaCon’s contract director highlights the modification made to international contracts in Qatar and the ramifications of this for external contractors not watching where they step in the market Contracting hinges on its contracts, naturally, and in most countries around the world these are standardised international forms of contract like FIDIC, but Qatar tends to be a different story. “One of the main issues is that the employers over here tend to use their own form of contract, so they take a FIDIC and amend with clauses that make it a more onerous contract for the contractor,” explains Alexander Milne, contracts director at UrbaCon Trading & Contracting (UCC). “Any contracts department must make sure to identify the risks in each of the contracts and address those risks either by qualification or by pricing.” An early identification of these risks is therefore a key step as contractors look to safeguard themselves from otherwise unnecessary arbitrations at a later date down the project timeline.

“That’s one of the issues that make it difficult out here – if there is a major dispute you can obviously go to arbitration,” says Milne. “But that’s certainly not a route that I would recommend if you want to keep the client on-side. You want to keep a good relationship. It’s all about relationships, and about nipping things in the bud before they become a major problem. A contract’s a contract, but it’s how the personalities interpret it.” UCC, for its part, has never been involved in arbitration, and this can be put down to both its attention to its contractual obligations and its local harmonisation. Moutaz Khayyat, CEO of UCC, comments that accomodating client needs and establishing understanding between stakeholders reduces chance of any major legal action. “You do not want to head

towards arbitrations as a contractor or a client, because it destroys the relationship between the two parties, and in terms of trust that makes it very expensive.” UCC managing director Ramez Khayyat adds: “Contracting is about trust between client and contractor, and if the client shares the risk then it is so much the better – it makes for a much happier project.” Qatar has seen relatively little arbitration, with the exception of works on NDIA, but as FIFA World Cup 2022 projects begin many new contracts will see ink on paper, and then the system truly be tested. “Arbitration is relatively new in Doha, but there have been one or two test cases,” says Milne. “Looking at those I think it will go much like Dubai, which should give confidence to contractors.”

SEPTEMBER 2013

MIDDLE EAST

Big Project ME talks to JLL’s alan robertson about dubai’s real estate recovery – Page 18

THE BIG PICTURE

bigprojectME.com

Empower to build first green plant in region Plant has been designed to meet additional cooling requirements of buildings in Business Bay Empower, the largest district cooling provider in the Middle East, has awarded a $42 million contract to the UAE’s TransGulf for the construction of the first district cooling plant in the region built in line with Green Building principles. The contract covers the construction of one building which will comprise district cooling infrastructure such as pumps, chillers, water tanks, cooling towers and office space. The plant will be built in two phases based on capacity distribution, with the majority of cooling load being available in phase one.

HLG seeks $272 million in compensation from Qatari Sheikh Contractor says Al Faisal Holding owes hundreds of millions in late payments for Doha City Centre hotel project Al Habtoor Leighton, the Dubai arm of the Australian contractor, is seeking more than $272 million in compensation from a prominent member of the Qatari royal family for late payments on a hotel project in Doha. According to a Reuters report, HLG has launched a series of suits against Sheikh Faisal Bin Qassim Al Thani’s Al Faisal Holding in relation to the Doha City Centre Hotel development. Khalaf Habtoor, chairman of the Al Habtoor Group and part owner of HLG, has said that it planned to initiate legal action internationally against the Qatari company. However, Al Faisal has countered HLG’s suits with accusations of mismanagement and a failure to take responsibility for several delays. A statement by the Qatari company said that these delays have affected the construction of several hotel towers, which were scheduled to be completed in 2007. “The company wants more than a $272 million dirhams in compensation from Al Faisal,” Habtoor told Reuters. He said the suits were in response to Al Faisal Holding cashing in a $100 million performance bond which HLG had put up as a guarantee against work on Marriott, Renaissance and Shangri-La properties.

The district cooling plant, which is Empower’s second in Business Bay is expected to be complete by mid-2014 and will have a full capacity of 45,000 Refrigeration Tonnes (RT). The plant has been designed to meet the additional cooling requirements of the buildings in Business Bay. It will also be the first district cooling plant in the region to be built in line with Green Building principles, and to follow the guidelines of Treated Sewage Effluent (TSE) and Thermal Energy Storage (TES). Green Buildings adopt measures which ensure the building is sustainable and energy efficient. These measures include reducing fresh water usage and carbon dioxide emissions, using more environmentally-friendly construction materials and also integrating energyefficient lighting.

Oman to award $65bn in projects over next four years Projects to be awarded double the combined value of projects awarded over last five years

$65 billion Value of projects oman will award

Oman has announced that it will award as much as $65 billion worth of projects between 2013 and 2017, which is double the combined value of projects awarded over the last five years. Among the projects at the forefront of Oman’s aggressive expansion programme are BP’s $15 billion Khazzan tight gas project, the development of a $10 billion refinery and petrochemical complex at Duqm and a nationwide railway construction project. Some of the largest projects expected to be completed this year include the $560 million Sohar Steel Complex Expansion (Phase 3) and the $480 million Musandam Oil & Gas Processing Plant. Capturing a bigger share of Oman’s projects market will be among the highlights of the forthcoming Oman Projects Forum 2013, which will address the latest project developments, opportunities as well as in-country value initiatives across the sultanate’s energy and non-energy related infrastructure market.

MIDDLE EAST

Big project me highlights hospitality’s impact on construction in the region – page 32

SEPTEMBER 2013

THE BIG PICTURE

Space frame for IMG Worlds of Adventure erected

RMJM merges European operations in MidEast business

City of Arabia-based theme park enters new phase of development, Ilyas and Mustafa Galadari Group spokesperson says

RMJM International will manage offices in UK, Abu Dhabi, Bahrain, Saudi Arabia and Turkey as architectural and planning company promises fresh approach

The space frame at IMG Worlds of Adventure (IMGWOA), a themed entertainment facility within the City of Arabia project, has been erected, the developers behind the project have announced. Owned by the Ilyas and Mustafa Galadari Group, the IMG Worlds of Adventure is a multi-faceted themed entertainment facility comprising of four zones including; MARVEL, Cartoon Network, Lost Valley and IMG Entertainment Zone. The park will be in excess of 1.5 million square feet overall in its first stage and will be the largest temperature controlled indoor themed entertainment destination in the world. “With the structural columns in place, we have entered a new phase of development. IMG Worlds of Adventure is one of the most anticipated developments in the region offering a number of world firsts,” an official from the Ilyas and Mustafa Galadari Group said in a statement.

RMJM, the international has merged its European operations into its Middle Eastern business to form an enlarged multi-regional company that will be headquartered in Dubai. Known as RMJM International, the firm will manage offices in London and Glasgow in the UK, as well as offices in Abu Dhabi, Bahrain, Saudi Arabia and Turkey. Harry Downie will lead RMJM International as CEO, while Boran Agoston will be the design principal. “I am particularly proud to announce this merger” commented Peter Morrison, RMJM Group CEO. “Our Middle East business has been a beacon of light within the RMJM Group throughout a dark and difficult global recession.” “The strength of the RMJM brand in the Middle East is testament to the extraordinary strength of character

TATA Steel to manufacture 60,000 tonnes of steel for Holy Cities railway New railway will carry millions of pilgrims across 444km of desert TATA Steel has won an order to manufacture 60,000 tonnes of highquality rails for a new high-speed line linking the Saudi Arabian cities of Makkah and Madinah. The new railway will allow millions of pilgrims to cross the 444km between the two holy cities at speeds of 320kmph, traversing desert and withstanding temperatures ranging from freezing to 50°C, as well as sandstorms, flash flooding and shifting dunes. The steel for the project will be made in the steel giant’s Scunthorpe plant, before being rolled into rail in lengths of 25 metres both at the UK plant and TATA’s Hayange facility in Northern France.

million sqft Size of IMg worlds of adventure

encapsulated within our regional team and serves as a constant reminder of why we have been able to maintain a constant presence and sustain a successful business here for more than 40 years.,” he added. Commenting specifically on the design capabilities of RMJM’s European team, Boran Agoston, design principal of RMJM International said that RMJM’s European team was very experienced and had a range of skills and talents that would complement existing Middle East projects. “This merger significantly expands the range of design capabilities RMJM can offer to its long standing Middle East clients and will also open up new market sectors for us.” “At the same time our Middle East design team will be able to offer a new and fresh design approach to our European clients,” Agoston added in the statement.

Work on producing the rail will start at the end of the year and will continue throughout 2014.

SEPTEMBER 2013

MIDDLE EAST

big project me finds out what new powerhouse china is up to in eastern africa – page 50

THE BIG PICTURE

Dubai Holding’s SmartCity Kochi receives permission to begin construction Construction set to start at the end of August, managing director says Dubai Holding, the main promoter of SmartCity Kochi, has received permission to begin construction on the first building on the project, from the single window clearance board, it has been announced. Baju George, managing director of SmartCity Kochi, told Gulf News that construction work would start at the end of August, with the tendering of piling works set to be completed first. He added that land development activities had already started. Different activities have been taking place on site from July, prior to the construction of the first IT building, George said. “We expect piling to start this month and the first building to be given out for fit-out by December 2014. The fit-out is expected to take three months,” he added. The agreement for SmartCity Kochi was signed in 2007 when the new government took charge but the land was registered in February 2011, a Gulf News newspaper report said. The total area of the project is 246 acres. Abdul Latif Al Mulla, CEO of SmartCity Dubai and the chief business development officer of Dubai Holding, said that all major regulatory requirements had been obtained.

bigprojectME.com

Makkah’s Employment Crisis Although more than $30 billion has been invested into projects in the Holy City through the Makkah Development Plan, young Saudi Arabians are failing to make the most of the opportunities on offer

Jobs created by Makkah touristrelated projects

SAUDI NATIONALS

Percentages of Saudi jobseekers: BA degree vs Secondary certificates

30% Bachelor degrees

70% secondary or intermediate certificates

MIDDLE EAST

SEPTEMBER 2013

20%

80%

Male jobseekers

Female jobseekers

Foreign workers

Al Futtaim Engineering wins multi-million dollar HVAC contract for Etihad Rail

2014 december target date for smartcity kochi fitout

MEP division awarded contract by Italy’s Saipem, to provide HVAC works for depots, track and line side alignment facilities Al Futtaim Engineering has announced that it has been awarded the contract to provide HVAC works for the Etihad Rail project. The UAE based company’s MEP division was awarded the contract by Saipem, the main contractor for the multi-billion dollar project. The multimillion dollar contract will see the Al Futtaim Group company provide HVAC works for depots, track and line side alignment facilities at Mirfah in Abu Dhabi. “We are extremely honored to be awarded this prestigious contract,” said Murali S, acting managing

100,000 Saudis seeking work in Makkah

director of Al-Futtaim Engineering. “Once complete the rail project is expected to significantly boost the economy and we are proud to participate in the development of the country. The Etihad Rail contract underlines Al-Futtaim Engineering’s expertise in major infrastructure projects after having previously successfully delivered the Dubai Metro project and presently executing the Dubai Tram Project.” Etihad Rail’s $10.89 billion, 1,200km route network will connect urban and remote communities throughout the country.

Project Control Software for Owners, Developers and Program Managers

Capital Planning

Budget and Cost Management

Procurement Management

Document and Contract Control

Schedule Management

Progress and Communication Management

Proven. Project Control Software. Modelogix and Proliance were designed and built for capital construction owners and developers. No other software solution offers complete portfolio and program management throughout the building lifecycle. Use Modelogix for your estimating and cost-modeling needs and Proliance for project controls in the design-build-operate phases. Depending on your needs, use Proliance and Modelogix together or independently, the choice is yours.

To learn more, call us at +971 50 451 7943 UAE. Copyright 2013 Trimble Navigation. All rights reserved. Proliance and the Proliance logo are registered trademarks of Meridian Systems. Modelogix and the Modelogix logo are trademarks of WinEstimator, Inc.

THE BIG PICTURE

bigprojectME.com

GCC healthcare spend Barclays Capital says healthcare exchange traded funds have attracted more than $190 million in investments this year and are one of the largest drawers of funds in current markets

X100 1,200 healthcare projects scheduled in Kuwait during 2011-2012

46 million 50

OTCE reaches turning point in Saudi Arabia

Number of hospital treatments across the GCC in 2008

French consultant says it has identified several areas where it can contribute

37.9% f o ls th ita w sp o ho overr gr e SA ou th K T f in EX N years

hospitals currently underway

42%

G CC hea G R lt o OW hc ver are n TH ex years t the 10

years OTCE’s experience in construction

Imdaad succeeds in its review of ISO certification FM company has successfully passed a rigorous review of its ISO certifications

MIDDLE EAST

Imdaad’s attempts to expand its services in overseas markets has been boosted by the completion of a rigorous examination of its sustainability and safety credentials. The company said it has successfully passed a rigorous review of its ISO 14001:2004, ISO 9001:2000, and OHSAS 18001:1999 certifications, which it explained “creates a procedural framework that will help support the company’s international expansion plan”. “The periodic review is a clear testament of its unwavering commitment to international standards and strict compliance with environmental management systems, quality

SEPTEMBER 2013

management systems and health and safety measures,” said Imdaad. The Norway-based DNV Classification Agency, the specialist global entity in auditing the compliance with ISO specifications, carried out an extensive assessment of all certifications including the environmental management mechanism through which the environmental performance of the departments affiliated to Imdaad is followed up and improved. The registered standard is an assurance that customers receive the same level of efficiency from Imdaad, regardless of their requirement or locality.

French consultancy OTCE, “Omnium Technique d’études de la Construction et de l’Equipement” says it has taken advantage of the construction boom in the GCC. Based in Lebanon and Saudi Arabia it is extending its expertise to provide customers with high-quality, innovative engineering solutions more efficiently and cost effectively. Over the past few years, OTCE has increased the number of its potential clients through the achievement of outstanding and innovative solutions in the fields of engineering and construction. Last year it established an office in Riyadh and says that it is now positioned to make its mark in the Kingdom’s construction sector. General manager Simon Daniel in the Middle East identified several areas where OTCE can contribute with six decades of expertise. “The country’s sustained growth, together with the extremely important public and private investments as regards to roads and infrastructure, industrial and hospital projects along with high rise buildings, fields in which we have real distinctive assets, create a favorable environment for our development in Saudi Arabia,” said Daniel. Daniel added the consultancy firm is concentrating on consolidating and sustaining its approach.

THE BIG PICTURE

Five New Trends in Construction and Building Mike Miller, mid-Atlantic division leader for Southland Industries, in the USA, and Jim Snyder, director of operations for construction company, the Warrior Group, also in the USA, provide an insight into the trends to look out for this year

Single-Design Model

Materials

Energy Efficiency

Traditionally, engineering documents are given to the contractor to re-draw with different information. To save time and money, there’s a shift to have it all in-house from engineering to coordination. Through the proper coordination, models can and should go from engineering to construction.

Miller says materials such as adapted sheet metal are popular as a guaranteed pressure class for high quality, but it’s how materials are being used that makes the difference. Going to prefabrication off-site for construction fits right into the ongoing theme of improving schedules.

Energy consumption is always on the mind in construction, says Miller. He notes systems that recover energy through heat wheels and occupancy sensors are becoming vital. By recognising CO2 in the room, a sensor changes the ventilation and, therefore, the energy needed.

Potentially a huge trend in the coming decades.The key is changing people’s minds about what they envision. “They see it as boxes,” Snyder says, “but it can be so many things that you want it to be.”

Possibly…You Well-rounded mechanical engineers who can go beyond calculations to fitting into these coordinated engineering design models will render themselves invaluable. Source: www.ASME.org

SEPTEMBER 2013

MIDDLE EAST

Permanent Modular ConstructioN

NEWS ANALYSIS

bigprojectME.com

Paying the Price Big Project ME examines how prevalent bribery and corruption are in the Middle East region, and the challenges that come with eradicating such practices

“

MIDDLE EAST

Any competitive advantage gained through corruption is a mirage.” That is a quote attributed to Robert S Khuzami, director of Enforcement, US Securities and Exchange Commission in an Ernst & Young report that addresses the challenge facing regional governments and companies as they battle to stamp out the practices of bribery and corruption in the Middle East. The report, entitled ‘Managing Bribery and Corruption risks in the Construction and Infrastructure Industry’, covers the global challenge of combating the issues that arise in regions and countries that see these negative practices flourish. With regards to the Middle East, Robert Chandler, partner, Assurance – Middle East and North Africa, for Ernst & Young Middle

SEPTEMBER 2013

East, says that despite all appearances to the contrary, corruption in the Middle East is fairly widespread and is a legitimate cause for concern for both governments and companies in the region. “Many Middle Eastern countries fall in the lower half of the Corruption Perceptions Index (the GCC countries and Jordan are notable exceptions). Several high-profile corruption investigations in Western countries have related to activities

in the region,” he explains in the report. “We have been seeing increasing AntiBribery and Corruption (ABAC) measures in many countries in the Middle East, but bribery and corruption is still prevalent, as shown by the numerous Foreign Corrupt Practices Act (FCPA) cases involving conduct in the region,” Chandler adds. This is often because companies fail to provide clear guidance to their employees over what is regarded as acceptable and

“Several high-profile corruption investigations in Western countries have related to activities in the region”

NEWS ANALYSIS

“Even though in many countries here, it (bribery) is an offence, but nobody treats it very seriously”

michael adlem

“I think the problem is that nobody has done very much about it, apart from the US. If you look at the statistics, most of the prosecutions around bribery and corruption, 95% of them have come out of the US, in the last 20 years,” Adlem says. “I think the UK is in second place with about 3%. So the rest of the world has done very little and there’s very little prosecution here in the Middle East.” This urgently needs to change, he says, if there is to be any major change in the way business is done in the region. One of the most common methods of bribery comes in the form of ‘kickbacks’ and ‘gifts’, which in the context of business dealings, is almost viewed as normal business practice in the regional market. “Bribes, particularly in the form of kickbacks, are still regarded as an accepted part of doing business in the Middle East, often with little thought for potential to corporate reputation damage,” says a research survey entitled ‘Bribery, Corruption and Fraud in the Middle East,’ which was released by Ernst & Young Middle East and polled 63 respondents from organisations in eight countries in the region, between August 2011 and January 2012. The countries included were: UAE, Jordan, Kuwait, Egypt, Oman, Saudi Arabia and Bahrain.

kickbacks Are an accepted part of doing business in the Middle East.

Middle East Corruption Survey Results

n 36% Strongly agree that corruption is a problem in the region

n 32% Agree that corruption is a problem in the region

n 22% Neither agree nor disagree that corruption is a problem

n 10% Disagree that corruption is a problem

SEPTEMBER 2013

MIDDLE EAST

robert chandler

unacceptable business practices specific to the region, or the procedures to manage such a situation, should it arise, the report says. However, Michael Adlem, partner – Fraud Investigation & Dispute Services, Middle East and North Africa, also with Ernst & Young, tells Big Project ME that the problem actually goes much deeper than that. “We spend a lot of our time working for companies that are mostly US, UK and European (owned), doing reviews of their agency companies out here in the region. And often we will find issues around bribery when we do these reviews,” he says. “I think it’s pretty much everywhere, to be honest. We surveyed companies around the region and it came back that everybody saw it as a major problem in the region, as a whole.” “Even though in many countries here, it (bribery) is an offence, but nobody treats it very seriously. There is a UN convention against corruption, which most of the countries in the region have signed up to, and that requires that they put better legislation in place to bring about prosecution and those sort of things. There is an international initiative to move things, but as with a lot of these things, it’s not happening as quickly as the UN would like,” he explains further. In an alarming observation, the Ernst & Young report states that although most of the Middle Eastern countries have ratified the United Nations Convention against Corruption (UNCAC), there are still gaping holes in the defence against negative practices. The Sultanate of Oman has not signed up to UNCAC, while Saudi Arabia and Syria are both signatories to it, but have not ratified it. Furthermore, the implementation of the specific policies of the convention continue to pose challenges to enforcers of the law.

NEWS ANALYSIS

bigprojectME.com

“some efforts are being made to get rid of it (corruption) and to crack down on it”

five Anti-bribery measures to consider n Introduce Portionate Procedures

n Show demonstrable Top-level commitment

n Identify Areas of High Bribery risk

n Police Treasury and Accounts Payable

n Monitor high risk transactions

MIDDLE EAST

Competitive advantage Firms with anti-bribery measures in place will attract Western partnerships.

SEPTEMBER 2013

Of those respondents, 36% said that they strongly agreed that bribery and corruption were major problems in the Middle East. 32% said that they agreed that it was a major issue. Only 10% said that they disagreed with it being a major problem. The remaining 22% neither disagreed nor agreed. Adlem does point out that the UAE is putting in motion legislation that will bring it in line with UN requirements, but says that the proof of its effectiveness will only come when the legislation is in place and prosecutions take place. He draws a parallel between the UK Bribery Act, which was introduced in 2010. “It (the UK Bribery Act) came into force in 2011. We’ve not seen too many prosecutions at the moment, though I understand that there are one or two ones in the pipeline. So when these countries out here do put the legislation in place, I think there will be some eyes watching to see what will happen, to see if they actually do enforce (the legislation).” However, as alluded to earlier, the culture of ‘gift giving and kickbacks’, especially in this region, is a tricky concept to tackle. On one hand, Adlem says, the practice of giving ‘gifts’ is almost

cultural, and has been going on for a long time. On the other hand, it can veer into murkier territories when those gifts become excessive and force or move individuals into making a decision they wouldn’t normally make otherwise. “It’s not going to change overnight. I think it’s going to be a gradual shift. But I think what you’ve got to see is that some efforts are being made to get rid of it and to crack down on it. I certainly don’t believe it’s going to happen overnight, it’s going to take a long time,” he points out. But he does encourage his clients, and other companies operating in the Middle East, to actively pursue Anti-Bribery and Corruption policies, as he says it could ultimately be to their benefit. Citing an example of a local client, who declined to introduce ABAC measures into his business, despite working with US, UK and European partners, Adlem said that it lead to further complications down the line when those same partners asked to see his ABAC policies, his anti-fraud policies, his audit policies and so on. “My view is that you can turn that into a competitive advantage and have all those things in place and have them embedded in your business. When you’re able to demonstrate that, you’ll be able to win these contracts because European and US companies are really going to jump on to that,” he explains. This is because under some of these acts, these companies can get caught and prosecuted in their home nations. “We’re already seeing this in the pharmaceutical industry, with what’s happening in China,” he says. “Certainly the construction industry is no different in that respect, because it’s a big industry, and the spend is huge, it ticks all the boxes.” “We investigate this stuff all the time,” he says. “Bids get opened, information is shipped to other suppliers, so that they can come in at the right price or underneath… so they win the work and people get kickbacks for providing that information. I think anywhere you’ve got significant spend, whether it’s in the construction industry, the oil industry, or any industry, there’s a massive risk of bribes being paid. People will want to win contracts and they’re prepared to pay money to win it.” n

NOVEMBER 25, 2013 JUMEIRAH EMIRATES TOWERS, DUBAI

www.bigprojectme.com/awards/2013

THE INDUSTRY EVENT

THAT HAS THE WHOLE REGION TALKING RECOGNISING INDUSTRY EXCELLENCE

FOR FURTHER INFORMATION

NOMINATION ENQUIRIES

SPONSORSHIP OPPORTUNITIES

MARKETING MANAGER Carole McCarthy | +971 4 375 5498 carole.mccarthy@cpimediagroup.com

GROUP EDITOR Stephen White | +971 4 375 5477 stephen.white@cpimediagroup.com

COMMERCIAL DIRECTOR Michael Stansfield | +971 4 375 5497 michael.stansfield@cpimediagroup.com

PLATINUM SPONSOR

CATEGORY SPONSORS

 

SUPPORTING PARTNERS

ENDORSED BY

MIDDLE EAST

IN PROFILE Alan Robertson

SEPTEMBER 2013

bigprojectME.com

IN PROFILE Alan Robertson

Reading

the Pattern Alan Robertson, chief excutive officer of Jones Lang LaSalle MENA, speaks to Gavin Davids about how the Dubai real estate market is shaping up

“It’s generally going to be a growth story, but there will be some ups and downs along the way”

“So it’s generally going to be a growth story, but there will be some ups and downs along the way, and one potential danger sign would be if the residential prices get carried away,” he warns. “If they rise too fast, they could get over heated again, and that wouldn’t be too good for the market in the long-term.” Having joined Jones Lang LaSalle MENA as CEO in 2011, Robertson has been involved in the property market for a couple of decades. Prior to his current role, Robertson was the managing director of JLL Turkey, a position he held since 2008. Before that, he worked in commercial property markets in the UK from 1983 to 2008, and took over the firm’s Scottish operations from 2005. Given his wealth of experience and knowledge, perhaps it’s interesting to note that that he’s quick to point out that the real estate market in the region is in recovery mode and that this is good news for contractors. “If you take Dubai, the residential market began to recover 18 months ago. Throughout 2012 we saw progressive recovery. It started with the very best locations and the very best projects and the very best developers, but gradually, as we come through 2013, the recovery has become more widespread.” “That’s one of the key points in the way the market has evolved over the last 18 months. The recovery started at the very best and it has now expanded across a wide range of sectors,” Robertson explains.

dubai population growth (2013) n 4.8% Dubai

population growth as of 25/08/2013

n 2,174,000 Estimated number of people living in Dubai in August 2013

n 2,068,000 Estimated number of people living in Dubai in August 2012

n 85% Estimated

percentage of population that are expatriates

Recovery path Dubai’s real estate recovery started in the best markets in the emirate.

SEPTEMBER 2013

MIDDLE EAST

nalysts are paid to be smart. They’re paid to look at the data, the facts and the information and make the smart decisions. Whether a real estate analyst, a financial analyst or even an IT analyst, the job description tends to remain the same. They discover meaningful patterns within the data, and then use those patterns to guide their clients towards making the decisions that bring in profit and success. Alan Robertson, the chief executive officer of Jones Lang LaSalle for the Middle East and North Africa, is certainly a man who knows a pattern when he sees it, and luckily for local real estate investors, the ones he sees in the Middle East are very promising. “Generally, it’ll be a pattern of growth. There will be ups and downs of course, but there will be growth patterns,” he tells Big Project ME. “If you look at Dubai, last year, the population increased by about 3%. So if we say that Dubai’s population is about 2 million, then that’s roughly about 60,000 people who will all need to have somewhere to work, somewhere to shop and somewhere to stay.”

IN PROFILE Alan Robertson

bigprojectME.com

“The recovery has now expanded across a wide range of sectors”

hotel market summary

safe Haven Dubai’s calm and stability has attracted investors back to the market.

n 58,100 rooms Current hotel supply

n 10,900 rooms Future supply (2013-2015)

n 85% 2013 YTD Occupancy

n $267 2013 YTD ADR

MIDDLE EAST

Active development Alan Robertson says the UAE is one of the most active development markets in the world.

SEPTEMBER 2013

It would be fair then to ask just what it is that is driving this growth in the market. Robertson admits that there is no one clear definite reason. Rather, he attributes the recovery to a variety of factors, which include the strength of the regional economies and their visibility as ‘safe havens’ for investment. “This is especially true for Dubai,” Robertson says, “it has benefited from being a safe haven, both on a regional basis and on a broader basis.” “As a result of the Arab Spring, we’ve seen Syrians, Egyptians and so on, invest their money into the market here. It’s not only from the (surrounding countries), the GCC and the wider Middle East are probably the biggest single sectors, but as a result of problems in the Eurozone, for example, we’ve seen a lot of European and Russian money coming into Dubai. We’re also seeing money from the Asia-Pacific region,” he asserts. “As for the tourism market, again, Dubai has benefited from the Arab Spring. People who used to go to Lebanon or Egypt are now coming here. So there has been an increase in tourism, and that obviously benefits the hospitality and tourism sectors,” Robertson adds.

Terming the UAE as one of the most active development markets in the world, Robertson points out that it’s quite likely that the Middle East will end up playing a massive role in shaping the global construction industry. “If you look at Europe, it’s pretty slow in terms of new development and that’s likely to remain that way for some time. The US, that’s also been slow. Perhaps it’ll recover quicker than Europe, but I think it would be difficult to find a place in the world where there’s more happening in the way of new projects being rolled out, than we’re seeing here,” he explains. The success of the ‘Dubai Story’, he says, lies in the continual development of its infrastructure, which makes it more and more attractive to foreign investors as it continues to grow. “The better the infrastructure gets, the bigger the airport gets, the more direct routes there are, the more attractive it becomes to corporates as a regional headquarters location,” Robertson says. “And the more tourist facilities there are, the more attractive it will be to a large number of people who get to come here. So it’s accessibility, as a place and its quality of life, whether building or infrastructure, all make a very positive contribution.” Tied into this infrastructure development is Dubai’s desire to host the 2020 World Expo, he adds. With the emirate making a concerted push towards winning its bid for the six month expo, Robertson says that the long term benefits to the country and city will be immense. “I think it would be fantastic, not just for Dubai, but for the whole UAE, if Dubai was selected as the host venture for Expo 2020. One of the strengths of Dubai and the location of Dubai World Central, is that there’s a lot of infrastructure already there. The site has got a fantastic road network already and it’s got an airport on its doorstep. There are already plans to bring the metro to the site and it’s already master-planned,” he points out.

xyleminc.com | Bell & Gossett | Lowara | Goulds Water Technology ÂŠ 2013 Xylem Inc. Lowara and Bell & Gossett are trademarks of Xylem Inc. or one of its subsidiaries. Goulds is a registered trademark of Goulds Pumps, Inc. and is used under license.

IN PROFILE Alan Robertson

bigprojectME.com

ticks the boxes Dubai’s pre-existing infrastructure makes it a strong contender for World Expo 2022.

Real estate oversupply Jones Lang LaSalle’s second quarter Abu Dhabi Market Overview report for 2013 has found that the UAE capital’s real estate markets (across all sectors) remain in oversupply, with additional new supply still in the pipeline leading to further increases in market-wide vacancy rates. “There continues to be a significant distinction between high grade and low grade product - while the prime market is showing signs of stability and early recovery, the performance of lower grade stock continues to decline,” the report says. It added that during Q2, 2013, prime residential rents remained stabled,

MIDDLE EAST

“With the activities of Dubai World Trade Centre expanding on to the Expo site, there’s a permanent long-term use, a sort of legacy, after the Expo. From that point of view, Dubai ticks a lot of boxes, and it’s not like they’re starting with a clean sheet of paper, a lot of it is already done. In my view, that makes it a very strong contender.” As a result of this planned expansion and growth, Robertson says that Jones Lang LaSalle has decided to expand its operations in the Middle East. “We started project management, and a few years ago, we started property management. These are core businesses across the world for Jones Lang LaSalle, but they’re relatively new here. Project management accounts for about 20% of our global revenue, so it’s a big part of the wider business. Here, we’re primarily serving our corporate clients, so we’re doing some new build projects for multinational corporates, and what we really specialise in is fit-out for corporate offices, but we’re also branching out into some retail projects and one or two industrial ones, but it’s mainly in offices that we’re providing project management services for fit out. “We are also equipped to do new build project management. We don’t expect to take on specialist PM companies for the really massive projects, but for small to medium new size builds, we believe we

SEPTEMBER 2013

can offer a good service.” With construction work in the UAE set to continue to boom, Robertson concedes that there needs to be some caution exercised, with certain sectors likely to be tough markets for new investors. “I don’t think there are many opportunities in the very large shopping malls, because these have been done, by and large, and they’re very tightly held, so they don’t really come out in the market.” “But for smaller retail developments, such as a supermarket with an arcade of 10 shops beside it, (I think) Dubai needs more of them, and they would be good investment packages.” “In the office market, you need to be selective, but we do see some good opportunities where some of the corporates will need to do ‘built to suit’ deals to get the space that they want. So you’ll end up with a single-tenant buildings which are on long term lease, and we think this will be very attractive to investors”, he concludes. n

following an 8% growth during the first quarter. Furthermore, the real estate research consultancy pointed out that the overall office market remained over-supplied, ‘pending further progress with government economic development initiatives to diversify the economy and generate new jobs’. However, the report did state that prime office rents had remained stable for the last four quarters. Finally, the report said that although hotel occupancy levels had increased by 8% during the first five months of 2013, average daily rates have continued to remain under pressure, declining by 2%. “Due to the positive growth in occupancies, RevPAR levels in the Year to May 2013 have experienced an increase of nearly 11% compared to the same period last year,” it added.

“The better the infrastructure gets, the bigger the airport gets, the more direct routes there are, the more attractive it becomes to corporates as a regional headquarters location”

Big Project ME will be hosting a Buyer & Sponsor only Golf Day in October. The aim is for you to meet the consultants and architects on a one to one basis and network in a relaxed, fun-filled environment!

GOLF DAYS 24TH OCTOBER, 2013 VENUE: EMIRATES GOLF CLUB, DUBAI. FALDO COURSE

CONSULTANTS AND ARCHITECTS CUP CONTACT: PUBLISHING DIRECTOR Raz Islam +971 4 375 5483 raz.islam@cpimediagroup.com

COMMERCIAL DIRECTOR Michael Stansfield +971 4 375 5497 michael.stansfield@cpimediagroup.com

MARKETING MANAGER Carole McCarthy +971 4 375 5498 carole.mccarthy@cpimediagroup.com

 

The Global Leader in Managing Construction Risk

ON SITE Habtoor Palace Complex

Al Habtoor Island (Habtoor Palace Complex)

Location

Sheikh Zayed Road

Site Area

92,903m 2 (GFA: 357,000m 2)

Building Type

Hospitality

Construction Cost

$544.5 million

MIDDLE EAST

Project Name

SEPTEMBER 2013

bigprojectME.com

ON SITE Habtoor Palace Complex

The Met

Reborn

Big Project ME visits the redevelopment of the old Metropolitan Hotel, which is set to become the Habtoor Palace complex. With just 44 months to complete four projects, the pressure is on, Gavin Davids reports

or most of the 1980s and 1990s the Metropolitan Hotel on Sheikh Zayed Road was considered to be one of Dubai’s most recognisable landmarks. Helped in no small part by being one of the first hotels in the city, the Metropolitan became a gathering point for expats from all over the world, who were working in a city and country that was yet to undergo the prodigious rate of development that is now taken for granted. As Dubai continued to grow and expand, the 33-year-old hotel became something of an anachronism as newer and glitzier rivals sprung up across Dubai and down Sheikh Zayed Road. With Dubai Marina and Jumeirah Lake Towers growing in size and becoming more popular with tourists and residents, a number of hotels opened branches there as well, further intensifying the pressure on the Al Habtoor Group owned property. The result was that the Metropolitan became displaced in an ultracompetitive

marketplace and soon fell by the wayside, unable to attract sufficient clientele to be financially viable. Dwarfed by the world’s tallest hotel, the gigantic JW Marriot Marquis, it was eventually decided to bring the shutters down on what was once a Dubai icon. So it was in May 2012, following an extravagant send off, the hotel’s owners decided to demolish the entire property, levelling the whole hotel and bringing to a close nearly three decades of memories and stories. However, this was only phase one of an ambitious plan by the Al Habtoor Group, a plan that will revitalise the site and see the development of a massive complex that will house three top of the line hotels, a state of the art ‘Water Theatre’ and gardens modelled on the ones in Versailles. Martyn Wild, the projects director for the Al Habtoor Group, explains that the three new hotels due in 2015 will all be managed by the Starwood Hotels

SEPTEMBER 2013

MIDDLE EAST

“It’s about creating a culture in the project where the overall project is the most important”

ON SITE Habtoor Palace Complex

Al Habtoor Island Complex Principals:

Upmarket destination The project will be an upmarket tourist resort once complete.

n Main Contractor

Habtoor Leighton Group

n Project Manager Habtoor Group

n Hotel Operator

Starwood Hotels and Resorts

n Theatre Operator Franco Dragone Entertainment

n Concept John R Harris

n After Concept Khatib & Alami

and Resorts, with around 1,600 rooms available to guests. “There are three hotels, there’s the Westin, which is a business hotel. That’s the big one with 1,000 rooms,” he tells Big Project ME during a site visit to the project. “The St Regis is a very upmarket, six star hotel offering, with about 250 rooms. The rest of the rooms are in the W. The W is something different. I suppose the target market (for it) is young, affluent people. It’s everything you don’t expect.” “I think it’s something like July, September and November for the openings of the hotels, they’ll all open before the end of September. I think it’s the St Regis first, then the W and then the Westin, which is the big one,” he adds. Furthermore, the complex will see the development of three levels of basement

MIDDLE EAST

“MEP isn’t a walk in the park, but everybody’s done hotels before (so they know what to do). It has to be done properly, but the theatre is where the real challenge is (for this project)”

SEPTEMBER 2013

bigprojectME.com

car parking, which will stretch out under the gardens and avenue that lead up to the St Regis hotel. In addition, the complex will be built on a podium that will stretch across nine levels, housing mezzanine and service levels, along with parts of the hotel. “The site is 92,903m2, and the gross floor area is 357,000m2. There are three basements over the whole site. At the end of the site (the entrance) we’re not able to build above ground level. That’s because of government zoning. So we have parking only, but on top of the parking, we’ve got this classical type garden, a Versailles type garden, with a grand entry up to the hotel, with trees on both sides and the St Regis at the end,” Wild explains, painting a vivid picture. “This is a classy, six star hotel. It’s all period, the building and the inside. It feels like a country house rather than a hotel. It’s very intimate and highly serviced, this is the jewel in the crown. So all the building is at the (north) end. And again, there are three levels under this, and it’s a combination of parking and back of house.” Holding more than 3,000 parking spaces, the vast basement levels will also hold kitchens, laundries and other hotel services in them, Wild says.

ON SITE Habtoor Palace Complex

“If you want to do something like this well, and quickly, then you’ve got to buy the right expertise. You can’t shortchange that process”

left it after it was established and created his own company called Franco Dragone Entertainment Group and he’s done two or three in Las Vegas, one in Macau, he’s doing one in China and he’s doing ours next,” Wild enthuses. “It’s a more elaborate Cirque de Soleil, it’s like it times five. We’ve designed a building around the show. Franco Dragone Productions design the show, give us the concept and we design and build the building around the show. It’s specific to the show, and it may run for ten or 15 years. So it’s a long running affair.” “The auditorium 1,400 seats and it’s a water show. So the stage is a pool. Some of it is solid, but the rest of it is a pool and the seats are built around that. The auditorium is 37 m high, and you get performers diving from the top, into the water, with boats coming in. It’s extremely elaborate

SEPTEMBER 2013

MIDDLE EAST

“We have a podium that’s actually nine levels high. Some of those levels are mezzanine levels, some are service levels, but it’s a significant podium. The St Regis is in the front of that podium and the bottom of the Westin and W hotels are also in that podium,” he explains. Designed as two towers, the Westin hotel will go up to 56 floors, while the W will go up to 45 floors. The St Regis will have six public levels plus the basement. The top of the podium will also have landscaped areas, pools and other facilities. Although the hotels will take up the bulk of the complex, the main attraction of the complex will be a $15 million dollar ‘Water Theatre’ that will host an extravagant and elaborate Cirque de Soleil inspired show, similar to ones in Las Vegas, Macau and China. Guests will enter the theatre through the W hotel, walking through an atrium that will be populated with restaurants and retail outlets that will be managed by the Al Habtoor Group. “The theatre is something a bit unusual. It’s more of a show theatre, it’s certainly not a Shakespeare-type theatre. The producer is a guy called Franco Dragone. He started Cirque De Soleil,

ON SITE Habtoor Palace Complex

Time challenge Contractors only have 44 months to complete the four projects.

and I think it’ll be extremely successful in Dubai,” Wild says, adding that the first show is pencilled in for April 2016. Despite his excitement about the water theatre project, Wild does concede that it has posed the biggest challenge for his contractors. Although there are only 44 months for the entire project to be completed, he remains confident that the target date will be met, thanks to the expertise of the site’s main contractor, Habtoor Leighton Group. “A problem that runs through the entire project is the timescale. 44 months to complete a project like this is challenging. So the design and construction are happening simultaneously, so a very tight

MIDDLE EAST

“It’s the organisational skills that are key to a contractor’s performance, and this they have. Managing a geographically large space, with a lot of people, a lot of subcontractors, the number of specialists is astronomical”

SEPTEMBER 2013

bigprojectME.com

relationship between the consultant, designer and contractor is absolutely essential,” Wild asserts. “This is what we’ve got, very good communication and cooperation. It’s about creating a culture in the project where the overall project is the most important. Each person’s individual requirements have to be put second. The first priority is the project.” “To get people in that state of mind is not easy, but this is what we’ve done. We’ve got a very good, intercompany team feeling, and this is the key to any project. It’s about creating a team, instead of individual companies operating independently, if you can generate that team culture, you’re half way there,” he explains. “That’s what we’ve done here. There isn’t the fear that the next problem is going to hurt us. The next problem, we’ll solve like the last problem, and the problem before that. That’s not easy to do. At the beginning, people are nervous and suspicious, but eventually trust builds and builds, till eventually, if one person in the team falls down, someone will support them instead of exploiting a problem someone else has got. At the end of the day, if one of the team fails, then we all fail.

ON SITE Habtoor Palace Complex

It doesn’t matter who it is, the project fails and we simply won’t allow that to happen.” He admits however, that building the water theatre will be a challenge, especially from an MEP perspective, thanks to the unique challenges it poses. “MEP isn’t a walk in the park, but everybody’s done hotels before (so they know what to do). It has to be done properly, but the theatre is where the real challenge is (for this project). You’ve got water jets that are 20-30m high, the pumps and pipes to send water, huge amounts of water. The pool is emptied and filled before your eyes. The services that deal with that are unusual. Now the theatre consultant helps with that, but the team has to be on the ball to deal with it as well,” says Wild. With a construction schedule that will run 24/7 and a labour force that will hit close to 6,000 once construction hits its peak and it all sub-contractors start work, Wild cannot stress enough how important it is to have a main contractor that is well versed in dealing with massive projects such as the Habtoor Island complex. “They’re a company with international expertise, and they bring a lot of knowledge to this project,” he says. “The management of time and resources is

Hotels principals n St Regis Interior Design Bilkey Llinas

n W Hote Silverfox Studios

n Westin WA International

n Theatre and Public Atrium Luxe Interior International

n Theatre Consultant Auerbach Pollock Friedlander

n Lighting Maurice Brill Lighting Design

SEPTEMBER 2013

MIDDLE EAST

Project planner Martyn Wild outlines plans for the massive hotel complex.

at the centre of that knowledge. You can bring in 6,000 people and the productivity can still be negligible if they’re not managed properly. The right number of supervisors, the distribution and the sequence of work and so on, this is real contracting expertise.” “From the contractor’s point of view, that’s mainly taken care of by the consultants and the design work. It’s the organisational skills that are key to a contractor’s performance, and this they have. Managing a geographically large space, with a lot of people, a lot of subcontractors, the number of specialists is astronomical. Managing all those people is the real challenge for the contractor, and they have the expertise for that,” Wild insists. With between 50 to 75 subcontractors set to be hired on the project, these attributes will certainly be needed. The selection process is set to be rigorous, with Al Habtoor seeking out views from the main contractor and consultant on the project. An initial ‘long list’ is whittled down to a select few, who are then invited to tender and have their bids assessed. With construction contracts for the hotel worth $544.5 million there is clearly a lot riding on these projects for the Habtoor Group. However, if Wild is feeling the pressure, he certainly isn’t showing it. “We’re doing the superstructure at the moment, we’re up to ground level in some places. The superstructure is well underway and we’ve just appointed the MEP contractor, who is beginning work.” “Next will be the façade contractor, so we’ve done the foundations, then the substructure in the basement, now we’re on the superstructure above ground,” he says, adding that the completion dates will be staggered, despite all the working happening at once. Clearly then, Wild’s initial point about choosing the right team is extremely valid. With so much work to do on what is effectively four construction sites in one, all within 44 months, having a team you can trust and rely on is critical, a viewpoint he readily agrees with. “If you want to do something like this well, and quickly, then you’ve got to buy the right expertise. You can’t short-change that process,” he insists. n

www.cat.com ÂŠ 2013 Wolverine World Wide. CAT, CATERPILLAR, their respective logos, "Caterpillar Yellow" and "Caterpillar Corporate Yellow," as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Al Garawi Group, an authorized distributor of Cat Footwear for Wolverine World Wide, a global licensee for Caterpillar Inc.

Al Garawi Group

Al Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya, P.O. Box 41122, Riyadh 11521, Saudi Arabia Tel.+966 1 4196096 / 4195058 Fax. +966 1 4196101 / 4196103, email:algarawigroup@saudi.net.sa / www.algarawigroup.com

Al Garawi Group an authorized distributor of the following licensee for Saudi Arabia, U.A.E., Bahrain, Qatar, Oman, Jordan, Lebanon, Kuwait and Yemen. Wolverine World Wide, the global footwear licensee for Caterpillar Inc.

Medco

P.O. Box: 17301, Jebel Ali, Dubai, U.A.E., Tel.: +971 4 881 8821 Fax: +971 4 8818944, Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.E Tel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600, email:medcodxb@emirates.net.ae

HOSPITALITY IN FOCUS

bigprojectME.com

Hospitality

Matters

Big Project ME talks to some of the leading authorities in regional construction, to get a sense of where the hospitality sector is going and what that means for contractors and consultants

hroughout most of recorded history, the Arabian Peninsula has been regarded as the crossroads for the East and the West to meet and trade. Records show that as long as 1,500 years ago, traders from India, the Mediterranean and Egypt converged on places like Muscat and Aden to trade and exchange goods. As time went by, the region became strategically important, with Britain establishing alliances and a significant presence in Saudi Arabia and the rest

of dollars into its development plan, and Saudi Arabia investing even more into its infrastructure and future planning. Business is booming in the GCC, and the region continues to see an influx of travellers, both for business and pleasure. According to statistics released by Dubai’s Department of Tourism and Commerce Marketing, an estimated 9.89 million international visitors will travel to Dubai this year. Experts have predicted that Dubai could be the world’s number one travel

“month by month, budgets are becoming more restricted and that the world here is becoming a lot more cost conscious”

MIDDLE EAST

of the region. But this all paled into insignificance once oil was discovered in the region in the 1930s. Since then the GCC region has been one of the most vital and significant areas in the world. The oil wealth has led to extreme changes in the region, funding a surge in development and growth that has continued at an ever increasing pace. With these changes came an increased surge of trade. Leading this surge was Dubai, which transformed itself into a global hub for trade of all kinds, whether financial, commercial or retail. Now the rest of the region is starting to catch up, with Qatar investing billions

SEPTEMBER 2013

destination by 2020, should it win the right to host the World Expo. By all accounts, the government is quite confident that this will happen. This then explains why construction industry trackers have noted a surge in the development of hospitality projects in the city and beyond. This is no small thing, with many experts predicting that the regional hospitality industry could have a major and defining impact on regional construction, and by extension, the regional economies. According to a February report by Ventures ME and commissioned by dmg :: events, the construction sector is set

HOSPITALITY IN FOCUS

Hospitality sector figures n $27 billion Value

of hospitality construction in 2013

n $5.5 billion Value

of hospitality construction in 2012

n 250 Number of hotel rooms needed to be built in Dubai

n 80,000 Number of

SEPTEMBER 2013

MIDDLE EAST

beds needed ahead of Expo 2020

HOSPITALITY IN FOCUS

to grow by 19% in 2013, with completed construction projects set to be worth a staggering $81.6 billion. In 2012, the largest sectors in the GCC projects market were residential, commercial and hospitality, the report said. Each were valued at $29.4 billion, $12.2 billion and $5.5 billion respectively, in terms of projects completed. However, by 2013, the value of completed hospitality projects is expected to be $27 billion. This comes as no surprise to Andrew Johnson, director for Middle East and North Africa, at Mace International, a construction consultancy that has a wellearned reputation as a ‘go-to’ firm when it comes to hotel construction. “Approximately 30% of our business is related to the hospitality sector, one way or the other,” he tells Big Project ME. “Since we began operating in the UAE, we have delivered 20 hotels around the GCC region, which amounts to around 6,500 to 7,000 keys over the last ten years, so it’s quite a big part of our business.”

bigprojectME.com

Expo factor World Expo 2020 is a major factor in Dubai’s surging hospitality construction growth.

ANDREW JOHNSON

Cecilia clason

“We’re looking forward to the UAE winning the 2020 Expo bid. I think that would add great impetus to the construction industry here, and especially the hospitality sector”

MIDDLE EAST

“We’re looking forward to the UAE winning the 2020 Expo bid. I think that would add great impetus to the construction industry here, and especially the hospitality sector. I think the focus in Dubai, in fact Abu Dhabi and the whole of the UAE, has moved back into social building. When I say social building, I mean the attractions for tourism. In Dubai, that’s certainly going to increase,” Johnson says. This sense that the UAE’s bid to host Expo 2020 is driving increased hospitality construction is one that’s shared by Cecilia Clason Skjorten, director of Cecilia Clason Interiors, a furniture, fixtures and equipment consultant based in Dubai that has worked on a number of luxury hotels in the region, including the Kempinski Hotel and Beach Resort in Oman.

SEPTEMBER 2013

“Well, I think the biggest point that’s happening is the Expo, and I think that Dubai has a very high chance of winning it. So I think with the basis of that, something like 250 new hotels need to be built. They’ll need around 80,000 beds and they’ll need to be in all sorts of price brackets,” she points out. “The tourism (market) here has tended to be five star hotels, and that’s tended to be 50% to 60% of the market share. So I think that the future trends, and where we’re going to see a lot of development, is in the three to four-star sector, which is quite an unexplored market share.” While there are construction costs to consider, generally they don’t vary greatly when building the physical structure of a hotel, whether it’s five- or four- or three star. However, there are a number of variable factors that contractors and consultants have to be aware of during the design and build phase, that could see their costs rise. “I think we typically find that month by month that budgets are becoming more restricted and that the world here is becoming a lot more cost-conscious than it was ten to15 years ago,” says John Wolfenden, director of Architecture and Engineering at KEO International. “I think business plans are now something that are being discussed, whereas in the past it was an unknown thing. I think there has been an

Industrial sectional doors

Rolling shutters and high-speed doors

Loading technology

Europe’s largest industrial door programme • Europe’s no. 1 with more than 75 years of experience

in the door construction business

• Sustainably produced and certiﬁed • 24-hour service: there for you around the clock

TEL: +971-4-8807677 E-mail: info.dxb@hormann.com

HOSPITALITY IN FOCUS

bigprojectME.com

evolution and that obviously puts constraints on us as consultants in being able to deliver the full services to the quality that we want to deliver, on what is ultimately a reduced budget for ourselves. We’ll have to think smarter and design more efficiently,” he warns. Skjorten adds that while the actual cost of building a hotel is dependent of the cost of building materials and so on, the trend towards smaller, less opulent and lower rated hotels has meant that designers, contractors and consultants have had to be careful about their choices when it comes to fitting out a hotel for a client. “I was doing a bit of research on this actually, about how a three- or four-star hotel, versus a five-star hotel, how they make their money and stuff. It’s basically just by providing less facilities. So that means less restaurants, no room service,

“we’re going to see a lot of development in the three to four star sector, which is quite an unexplored market share”

MIDDLE EAST

less fancy spas and gyms. I guess that’s how they manage,” she explains. “Because the construction costs are the same, you have less operating costs and also the material selections may be less. You may not use marble, but use ceramics. You use cheaper fabrics and you just have less materials, for example. When I arrived here from the UK, I was shocked at the amount of finishes you could see in hotels, and obviously the more finishes, the more expensive it is.” While Andrew Johnson admits that the Mace Group tends to focus on more highend projects, he says that in his opinion, he sees Dubai focusing more on the business end of the market. However, he does point out that other markets are picking up whatever slack there may be in the sector. “The UAE hospitality sector is running at, they tell us, 18% growth. Tourism is up, with the increased development activity in places like Dubailand, once they start building future tourist attractions. The prospects for the

SEPTEMBER 2013

Darrel Stroebel

john wolfenden

Cultural tourism Abu Dhabi is pushing cultural tourism, especially on Saadiyat Island.

hospitality sector is very good. We’ve just finished building the largest Ritz-Carlton in the world in Abu Dhabi, which is a different market. “It doesn’t focus so much on tourism for the hotel guests, though I’m sure that’s changing. Abu Dhabi has recommenced the museums on Saadiyat Island, they’re moving towards cultural tourism rather than bulk tourism. We’ve been working Abu Dhabi for 16 years now, it goes through various cycles, but basically, the hospitality sector has never been quite as robust as Dubai’s because it’s a different market, but hopefully there’s potential for more there,” he adds. Another city that is likely to be a massive hospitality market in the near future is Qatar. With plans for the 2022 FIFA World Cup gathering steam, a number of people are now turning their thoughts towards the logistical nightmare that will be housing the millions of fans that are likely to descend on to the Gulf country once the tournament starts. ‘They’re talking about 15,000 rooms needed by 2022,” says Johnson, “That’s a lot of hotels. If you divide 15,000 by… an average hotel has 300 keys…well that’s about 50 new hotels,” he calculates. “They have a different logistical challenge, in terms of how do they provide that much accommodation for what is

HOSPITALITY IN FOCUS

going to be a single event in their history. Qatar probably doesn’t need 15,000 hotel rooms past 2022. It’s a challenge for them and I’m sure they’re working through it and will come to a solution.” Darrel Strobel, managing director of MEP Engineering at KEO International, adds that while Qatar’s hotels tend to fill up at what he calls ‘strategic times’, he sees the country moving towards being more of a tourist destination, like Dubai, as it tries to ensure supply matches demand. “You always mention 2022 when you’re talking about any market in Qatar. In terms of the FIFA directives for Qatar, they’re well short of that (for now). So they’ll have to build a significant number of hotels between now and then. When you look at the future, in the short to medium term, you’ll get a lot of activity in this sector in Qatar,” he predicts. “Right now, there is an increasing trend towards small and medium boutique hotels, of course there’s still the five-star luxury end of the market, but (smaller hotels) are growing in popularity.” Both Strobel and Wolfenden agree that Saudi Arabia is another major market for the hospitality industry, fuelled as it is by the annual religious tourism that sees millions of Muslims visit the holy cities of Mecca and Medina. “Saudi Arabia, in terms of religious tourism, is taking off at the rate of knots. The development in KSA, particularly around the Mecca area, there are some huge megaprojects, and they’re all based around religious tourism,” Wolfenden says.

bigprojectME.com

“Saudi Arabia, in terms of religious tourism, is taking off at the rate of knots. The development in KSA, particularly around the Mecca area, there are some huge megaprojects”

“That’s something we can’t really ignore, because the scope is actually huge. I’m not sure that’s publicised or heard about much as it’s obviously very local, but the numbers are quite staggering. I believe most of the major operators are already there, or are planning on being there over the next two or three years,” he asserts. Although Johnson is cautious about how difficult it is for an expatriate company to work in Mecca, he concedes that Mace is likely to be looking at the KSA construction market with interest. “Logistically, it’s quite hard for us,” he says. “But one thing I can say is that we’ve been appointed on the Kingdom Tower in Jeddah, which contains a Four Season’s hotel, and that will be one of our first forays into the hospitality sector in KSA.” “We are also bidding for another hotel in Jeddah. It remains to be seen if we win that, but yes, we are putting our toe into the Saudi market. “Hospitality is where we’re comfortable. We know the operators, we think we’re pretty good at delivering hotels, so it would seem like a natural extension for us to move across there.” n

Despite being lower than previously forecast, the value of the GCC interior contracting and fit-out market in 2012 was $7.86 billion – an increase of 56% against the 2011 figure of $5.04billion and is expected to rise by 17% in 2013 to $9.2 billion. In 2012, the UAE was once again the largest interiors and fit-out market in the GCC and, at $2.83 billion, made up 36% of the $7.86 billion GCC market. It was followed by Saudi Arabia and Qatar which were valued at $2.6 billion and $1.49 billion respectively. The Kuwait interiors and fit-out market was valued at US$472 million, Oman’s at $314 million and Bahrain’s at $157 million. In 2013, the hospitality sector of the GCC interior contracting and fit-out market is set to overtake the commercial sector and take the second largest share of the market – increasing in value by 31% from $1.2 billion to $1.57 billion. “The interiors and fit-out market is seeing a marked evolution, with owners refurbishing existing properties, managing space better and enhancing their environments’ sustainability. This trend is being driven by investors acquiring partly completed properties and renovating, expanding or adding value rather than initiating new developments. The interiors and fit-out sector is responding well to these changes in demand, and beginning to see growth in new projects. Together, this puts the market firmly on an upward trajectory,” said Frederique Maurell, event director for INDEX, a regional interiors and design

MIDDLE EAST

exhibition.

SEPTEMBER 2013

ON SITE IMG Worlds of Adventure

bigprojectME.com

Total size of the project

139,354m 2

Total area of Marvel Zone

32,516m 2

Total area of Lost Valley

25,083m 2

Total number of park components

Scheduled opening date

Early 2014

Ride of a lifetime Big Project ME visits the site of the upcoming IMG Worlds of Adventure theme park, as the ‘Space Frame’ that marks a key phase of construction is completed

A 40

MIDDLE EAST

s commuters drive down the Sheikh Mohammed Bin Zayed Road on the outskirts of Dubai, they’d be forgiven in thinking that aliens have finally decided to make contact with humanity. Rising above the dusty hoardings that ring the under construction residential and mix-used projects that are coming up as part of the continued expansion of the city is an odd structure that is actually the herald for one of Dubai’s most enticing tourism projects.

SEPTEMBER 2013

The giant dome-shaped steel structure actually marks the completion of a key stage in the construction of the IMG Worlds of Adventure, a theme park that is owned and being developed by the Ilyas

and Mustafa Galadari Group, the sibling owned off-shoot of the Galadari Group. “IMG Worlds of Adventure is essentially a themed indoor entertainment facility aka a theme park,” says Adam Alexander

“There are no theme parks in Dubai, so that in itself makes this a massively demanded entity”

ON SITE IMG Worlds of Adventure

“There will not be a Phase I, Phase II or Phase III opening. All the rides, attractions, food and beverage outlets, all of them will open when the doors open”

Key location The theme park is within half an hour of key areas of Dubai.

coming attraction The park will complete in 2014 with no further phases planned.

he concedes. However, Page remains confident that the schedule would be kept, and that all the park’s elements will open as one. “There will not be a Phase I, Phase II or Phase III opening. All the rides, attractions, food and beverage outlets, all of them will open when the doors open,” he insists. “The space frame is due to be finished, it covers the entire roofing structure of the park. It is scheduled to be finished within the next eight to ten weeks and that is obviously a huge movement forward. What’s interesting is that the content for the park is also being manufactured off site,” Page explains. “There is a huge amount of work happening on a global scale, we’re dealing with specialist suppliers, ride makers, vendors and so on, with different parts being done. The intention is that they will be brought in by the end of this year, for a full installation in the park.”

Park figures n 139,354m2 Total

size of the IMG World of Adventure project

n 32,516m2 Size of the Marvel Zone

n 25,083m2 Size of the Lost Valley

n 21,367m2 Size of the Cartoon Network Zone

SEPTEMBER 2013

MIDDLE EAST

Page, the vice president – Marketing, for the Ilyas and Mustafa Galadari Group. “The park comprises of four different zones, with the largest zone being Disney’s Marvel brand, which is 32,516m2. The second largest element is the Lost Valley, which is 25,083m2. The third largest is the Cartoon Network Zone, which is 21,367m2. The last zone is the IMG Boulevard, which is 18,580m2.” Covering a total of 139,354m2, the IMG Worlds of Adventure is a huge development that aims to attract the millions of tourists that pass through Dubai every year. “There are no theme parks in Dubai, so that in itself makes this a massively demanded entity,” Page says. “With the infrastructure we’re building around City of Arabia, you’re talking about a location that’s 25 minutes from the airport that is 15 minutes from Dubai Marina, 10 minutes from Dubai Mall, and surrounded by (projects like) The Villa, Falcon City, Arabian Ranches, Al Barawi and the heart of Dubailand. It’s an upcoming area, so for us it’s a very unique proposition to be in,” he tells Big Project ME during a tour of the park site. “We’ve now signed up some of the best intellectual properties that can be done for this sort of arena. We have Cartoon Network’s first theme park property, Marvel, who have done it before in other Disney areas, the Lost Valley, with is our own intellectual property, and IMG Boulevard, which is the entertainment neutral zone that separates the different zones out and is also somewhere where people can relax and have a sort of neutral experience in a vibrant setting,” Alexander explains. Each zone will have its own elements and attractions, he adds, with rides for both young kids and whole families. These will include roller coasters or ‘dark rides’, which are enclosed rides. Inside each zone will be retail and beverage outlets, along with the rides and attractions. “The reason we’re calling it Worlds of Adventure, is because we almost have four different parks in one, with the concept being that we can give guests circulation of all the zones in one visit,” says Page. With a scheduled opening date in 2014, there remains a lot of work to be done,

ON SITE IMG Worlds of Adventure

bigprojectME.com

IMG Worlds of Adventure components: IMG Boulevard The welcome zone of the park, with an entertainment area focused on leisure and fun based activities. The IMG Boulevard spans across 18,580m2 and is the central zone providing access to the other three zones that comprise the makeup of IMG Worlds of Adventure. MARVEL Zone: The ground-breaking ceremony for MARVEL Zone took place in June 2012. It will offer a range of ‘key entertainment experiences’ from renowned Super Hero Icons from the MARVEL Universe including Spider-Man, The Hulk, Iron Man, Thor and The Avengers. The zone will also feature retail outlets and dining facilities. Cartoon Network Zone: The ground-breaking ceremony for Cartoon Network Zone took place in Feb 2013. The zone will deliver a number of world firsts including the world’s first themed attractions such as; The Amazing World of Gumball, Adventure Time, and LazyTown. The CN Zone will also feature the world’s largest Ben 10 retail store and the first ever Ben 10 5D ride, along with branded restaurants and other branded immersive experiences The Lost Valley Zone The ground-breaking ceremony for Lost Valley took place in April 2013. The Lost Valley Zone will aim to bring the prehistoric kingdom of dinosaurs back to life through rides and attractions including animatronic dinosaurs and sound and light technology, along with multiple other attractions in the zone.

With this in mind, Page says that that the owners were mindful to work with some of the best people in the theme park industry, so as to ensure that IMG Worlds of Adventure measures up to any rival in the world. “We have some of the leading people in the industry working for our group, to make sure that the processes and the timelines on those elements are followed,” he explains. “Obviously health and safety are our priority, so we need to make sure that everything is done to the best ability possible. The process of working with the IPs is a very close one.” “We have a very fluid transparency with them, our design agency, who helped design the park, hand in hand with Ilyas and Mustafa, and obviously our architects as well, report and work with us and the IPs themselves,” he asserts. With that in mind, the American creative services firm, Falcon’s Treehouse, was brought in to be design partners for the park.

MIDDLE EAST

“There is a huge amount of work happening on a global scale, we’re dealing with specialist suppliers, ride makers, vendors and so on, with different parts being done”

SEPTEMBER 2013

As such, they’ve worked with both the Ilyas and Mustafa Galadari Group and the other intellectual property owners, to pick and choose what goes into the IMG Worlds of Adventure. “The vision and direction obviously comes from Ilyas and Mustafa. What we have here, and I can’t disclose too much, but we have an amazing mix of rides and attractions, even within each zone, and that makes me very confident that when the park opens, it will sell itself, because it really is a great offering to the public,’ Page says. So confident are the developers that they’ve already allocated space for the future expansion of the park, he adds. “The theme park has obviously been designed with future plans in mind, in terms of expansion zones within the park, so there will be areas that can expand in the future, each zone, each area.” “The theme park and the development are also phased to grow and expand as time goes on. However, the first part of the puzzle to reinvigorate the development is the theme park,” Page asserts as the tour of draws to a close. “I personally think from a travel and trade perspective, with the amount that’s on offer in this area alone, along with the housing developments and the Dubai Autodrome, along with the up and coming developments, it’s a very key development (for Dubai),” he concludes. n

MIDDLE EAST

QUantity SURVEYORS

SEPTEMBER 2013

bigprojectME.com

QUantity SURVEYORS

Changing

Perceptions Big Project ME talks to quantity surveyors to find out how their evolving role in the construction industry could bring about a change in perceptions

“We’re trying to get the client to engage the quantity surveyor in the early stages”

need their services. This attitude is often a source of much frustration for the QS industry, given that it has so much more to offer the market. “I think clients have got this conception of a quantity surveyor doing building quantities and cost estimates and so on. That’s when they tend to employ them, when there is a need for their services” says Azar Ul-Haq, associate director – Commercial Services for Faithful + Gould Middle East and India, and a quantity surveyor with more than 15 years of experience. “What we’re trying to do is to get the client to engage the quantity surveyor in the early stages (of a project) and then be provided with the full service, assisting them from inception to completion.” Ul-Haq points out that Faithful + Gould has been providing added value services for a long time now, and that there are services that the firm is providing clients with on regular basis. For instance, he says, dispute management is becoming very popular at the moment, spurred on by all the problems of the financial crisis and all the claims from the contractors and so forth. “Previously, it was a service that we were providing and it was popular,” he explains. “But now due to the financial crisis, we’re noticing a greater involvement with

SEPTEMBER 2013

MIDDLE EAST

rguably, when one constructs a building of any size, the most important factor to consider, above the design, planning or even the build process, is the cost of the project and the budget available to contractors. These controls and checks need to be in place to ensure that a project is completed at a reasonable cost to a developer or client, and that there are funds available for the duration of the construction process, from inception to completion. As such, one of the most important and necessary roles on a construction project is that of a quantity surveyor. While the role is by no means a new one, there persists a few common misconceptions in the GCC market that limit the ability of a quantity surveyor to be able to bring about a wholly positive impact on a project. Traditionally expected to provide approximate estimates and cost planning to clients, quantity surveyors operating in the region tend only to be called on a project only when clients decide that they

QUantity SURVEYORS

bigprojectME.com

“we’re noticing a greater involvement with clients, both from the private sector and the contracting sector”

top 5 QS firms in the world by value of work (July 2013) n EC Harris $1.02 billion

n Aecom $319.3 million

n Faithful + Gould $54.4 million

n Rex Procter $53.5 million

n Gardiner &

MIDDLE EAST

Theobald $43.3 million

clients, both from the private sector and the contracting sector, to get involved and resolve some of the disputes that have been hanging around for a long time. I think it’s going to become more popular as well. Not only in the UAE, but also in Saudi Arabia and Qatar.” However, one of the main challenges that quantity surveyors still face is a basic lack of understanding of what they offer, says James Costello, director of Cost Consultancy for the Sweett Group MENA. “There are instances where there is often an underlying reluctance from contractors to adhere to their administrative responsibilities under the conditions of contract relating to time and cost. This has often led to major issues with claims, variations and payments, and presents challenges when trying to perform our services effectively,” he explains to Big Project ME. “The reason for this, we have found, is generally a basic lack of understanding of the implemented contract, and more specifically that it is for all parties’ mutual benefit to adhere to the terms and conditions stated. Our approach under these circumstances is to clearly

SEPTEMBER 2013

Changing roles Quantity surveyors now face increased demands from clients.

set out the contractor’s obligations and requirements under the contract at each stage and work with the contractor through every stage of delivery,” he says. “This process of collaboration results in a reduction of misunderstandings and conflicts that would otherwise escalate into claims.” While Clive De Villiers, vice president of the Cost and Quantity Surveying Division at KEO International Consultants, does agree that clients in the region are starting to become more understanding about what quantity surveyors can offer them, he points out that this can bring its own pressures to the role as well. “The major change of the quantity surveyor role is that there is a demand, or an anticipation, to provide cost data which is far more accurate, coupled with the provision of financial modelling for certain clients to help them with their decision making process,” De Villiers explains. “Certain clients certainly require far more verification of the amounts/values and they question QS’s a lot more about verifying all such data. This is one of the biggest changes we’ve found since the end of 2008 or the beginning of 2009.” Another challenge that he points out is quantity surveyors now have to deal with forecasting escalation, a situation that has been amplified by the current global financial climate. “One of the challenges is forecasting escalation, which is particularly true in Qatar, with all the workload that’s forecast and the debates as to what level escalation will peak,” he says. “During the height of 2008, escalation peaked at 2% per month. Of course, if that happens now, then people would be extremely concerned. So, the issue of escalation is a challenge and everybody’s got a different opinion or different idea (of how to deal with it).” he points out. In order to ensure that clients understand that what their quantity surveyors can offer them, companies are now striving to educate their clients of the benefits, services and possibilities that are on offer. Both Clive De Villiers and Azar Ul-Haq say that they insist on being present throughout every stage of the project,

QUantity SURVEYORS

Quantity surveyor duties and responsibilities n Preperation of Bills and Schedules of Quantities of materials

n Visit building sites to monitor progress

n Prepare tender and contract documents

n Undertake cost

analysis for project work

nAssist in establishing a client’s requirements

n Perform risk and

value management

MIDDLE EAST

Market readers Quantity Surveyors are able to predict and inform their clients about changing market trends.

so as to ensure that their clients have complete awareness of any decision being made. “It’s always about education,” says De Villiers, “For example, we’ve been keeping track of the pricing of major primary materials, for example steel rebar, copper and aluminium. In the case of the former two, they have a dramatic impact on the construction cost of any project. We’ve been tracking those since 2006 and you get a sense of the way those costs have gone and what we’re trying to do is use those bases to forecast the future.” “During the mid-2000s, the market was extremely flooded with work opportunities. But now that we’ve reached a more “normal type of market”, it’s probably unlikely that you’ll see the extreme escalation that you’ve seen earlier. And doing a check on how the pricing has gone in the past two or three years, you can sort of predict that it’s not something that’s going to jump drastically this year or the next year. So it’s about providing that sort of information to them and using other sources like MEED and other available data. You have to talk to the clients and make sure they understand you,” he asserts. Azar Ul-Haq concurs very strongly with this sentiment, telling Big Project ME that by getting involved at an early stage, a quantity surveyor can not only help

SEPTEMBER 2013

bigprojectME.com

establish the budget, but also help clients with their procurement strategies. “Gaining value for money depends on the strategies adopted. We can provide advice and expertise in those strategies in order to minimise any problems later on in the project. We also provide value for money at the end of the project as well, towards the final accounting and the defects liability,” he explains. “Hopefully there shouldn’t be, but as we all know that there are problems at the later stages of the project when these items need to be closed out.” “It’s about adequate design management. Making sure that we’re actively involved in the project team. We get involved in all the design meetings and any changes in design, to educate the client that any change in design may reflect quite largely in the costs,” he says. “We provide cost advice during these meetings, so that designers can actually design to cost. And also, in the procurement of materials, and the selection of materials and alternatives, so that we can manage that as well.” James Costello adds that the implementaion of active cost control during the pre and post construction phases is vital, citing two key reasons as to why this is so: “Firstly, involvement of the cost manager at the outset of the project

azar ul-haq

clive de villiers

VE LI

DE M ON ST RA TI ON S

16-20 February 2014

DAMMAM

Dhahran International Exhibition Center, Dammam - Kingdom of Saudi Arabia Show timings: 9:30-12:00 and 16:00-22:00

QUantity SURVEYORS

bigprojectME.com

Sweett Group has acquired the Thailandbased quantity surveyor, Boulter Stewart, to grow its operations in Asia. A leading quantity surveying consultant, Boulter Stewart provides quantity surveying, contract administration, project financial services, due diligence and

MIDDLE EAST

when key decisions are made which fundamentally shape how the scheme develops through design.” “The cost manager can bring expert advice at this stage which can both improve the value of the project and avoid implementation of aspects of design which may become hugely costly and difficult to change later due to pressure to continue on programme,” he outlines. “The second key factor is the skill, experience and quality of your cost manager, together with commitment of time and resource. Without this combination a client may never realise the added value and cost savings that could be driven into their project and end up simply with a reactive, cost reporting ‘messenger’.” “During the post-contract phase, it is also important to implement rigid communication procedures, and to ensure that a regular dialogue between the client, consultants and the contractor is maintained in order to identify potential changes or problems which may impact the project.” “If such issues are detected at an early enough stage, they can be addressed and preventative measures taken where possible,” Costello clarifies. By taking a proactive stance like this, quantity surveyors say that they can

SEPTEMBER 2013

ensure they get the right contractors on board during the tendering process. In turn, this will help ensure that clients get value for their money. “We can prequalify and provide tender documents to subcontractors and then evaluation of submitted bids to give to clients for value for money,” says Ul-Haq. “We also look at the reputation of subcontractors. We work with a lot of contractors and subcontractors, so we know what they’re capable of. It’s sad to admit, but there are subcontractors which clients don’t really want to work with, they’ve had bad experiences previously. We can benchmark them and categorise them and make sure that clients aren’t subjected to them,” he adds. During the construction phase, quantity surveyors also have a role to play, in terms of being able to keep a check on any revisions that take place to the design, and advising the client about the cost of the changes. Ultimately, it comes down to the relationship between client and QS. “We are seeing the early signs of a return of cost management services being tendered directly by the client. This is a clear indication that developers are looking for independent advice to optimise the value of the investment,” Costello says, perhaps optimistically. n

dispute resolution services. Established in 1997, the Bangkok based consultantcy focuses on the industrial, commercial, hotel and leisure sectors. Over the last five years, Sweett Group’s Thailand office, acting as project managers, and Boulter Stewart, acting as quantity surveyors, have conducted a strategic alliance collaborating on joint delivery of several commissions for clients including Merlin Entertainments, Bank of America and Kingdom Properties. “By combining the QS expertise and local knowledge of Boulter Stewart with our established Sweett Group Project Management business under South Asia Managing director Andrew Wigg and Thailand director Ben Sedgewick, we are creating a diversified and flexible consultancy, specifically targeted at the requirements of our local and international clients operating in the Thai market. This is very much in line with our current business plan which focuses on the twin benefits of coverage across Asian hub cities and service diversification,” explained Kim Berry, Asia Pacific managing director of Sweett Group.

Geberit concealed cisterns

Hidden innovation. With the tried-and-tested Geberit installation technology, cisterns and piping can be securely located behind the wall. This makes the bathroom larger. And a lot more attractive. â&#x2020;&#x2019; www.geberit.ae

â&#x2020;? Geberit installation element with concealed cistern

Qs PROFILE

bigprojectME.com

The Sweett Group Global property and infrastructure consultancy outlines how it manages the costs associated with delivering projects in the built environment

rom building the tallest tower in Riyadh to major hotels and resorts in the UAE to expanding Hong Kong’s mass-transit network to delivering some of the UK’s most popular retail and leisure destinations, the Sweett Group portfolio is vast and covers a diversified range of sectors. The group advises clients worldwide on cost prediction, cost planning, cost management, value for money, procurement strategy and delivery issues. The consultancy also has a leading track record in sustainability having published research on ways to reduce the carbon footprint of both existing operational assets and buildings under development with proven long-term commercial and environmental benefits.

MIDDLE EAST

What’s their secret? “We employ the best talent the industry has to offer, individuals who are aligned with our organisational values and demonstrate a professionalism that our clients have come to expect from us. In cost management, we align ourselves with the Royal Institute of Chartered Surveyors (RICS) being the industry benchmark for quality in the profession. We have a strong

SEPTEMBER 2013

commitment towards ensuring all our staff is RICS qualified or are progressing towards full membership,” says James Costello, director of Cost Consultancy. The Sweett Approach “We align ourselves with our clients’ objectives. At the outset we engage with our clients to define the project’s aspirations and work collaboratively with them to optimise their capital investments while retaining the design intent, integrity and overall project value,” says Costello. The same ethos extends throughout the life cycle of a project and includes engaging the main contractor during the construction phase. Sweett Group’s people pride themselves on implementing good working practices, transparent procedures and agreements that cultivate a relationship of mutual trust, cooperation and yield effective results, earning the Group its hard won reputation. n

cost management services n Feasibility and

Master planning

n Cost Planning n Procurement and contract advice

n Value Engineering n Risk advice n Post contract cost control

“We align ourselves with our clients’ objectives”

3rd SESSION

EXHIBITORS IncludeAttachments, Components, Accessories & Spare Parts Building Material Production Building & Construction Machinery Concrete, Concrete Production & Concrete Products Construction Materials Construction Services Health & Safety

BLOG

#intermatme

Heavy Machinery & Equipment Lifting & Elevation Machinery Quarrying, Mining & Aggregates Rental Companies Roads & Transport Infrastructure Machinery Scaffolding & Formwork Site Equipment & Products Technology

www.intermatme.com

Your Contacts

Organised by

France Office

UAE Office

Asmaa CHERRAF +33 (0)1 76 77 12 08 asmaa.cherraf@comexposium.com

Matthew ROBARTS +971 4 4356101 matthew.robarts@clarioneventsme.com

MIDDLE EAST

MARKET ANALYSIS

SEPTEMBER 2013

bigprojectME.com

MARKET ANALYSIS

What are the Chinese doing in

Africa?

Big Project ME looks at the booming East Africa construction market and the domination of Chinese contractors

“Indian companies do the risk assessment in a more systematic manner. The Chinese jump upon the work and do it very fast – and they get the result”

dominant forces in a rapidly expanding construction market. East Africa’s construction market is predicted to be a major growth sector over the coming years, and it seems to be a closely guarded secret. The 19-country region – the largest in terms of number of states on the continent – is led by both Ethiopia and Tanzania. In Tanzania activities in the construction sector have grown at an annual rate of eight percent over the past five years. For the Tanzanian economy to grow, it needs developed transport infrastructure like roads, bridges and railways, as well as efficient telecommunication networks. And who is reaping the benefit of this need and government spending? A recent BBC report stated: ‘Throughout Africa – at building sites, on the street, and at ports and airports – the Chinese presence is growing.’ Big Project ME recently ran an article about how cheap government finance was helping Korean construction companies to grow. Similarily, the Chinese government is helping their companies to win contracts in East Africa. The campus of Nairobi University is a good example of this. Workers from

SEPTEMBER 2013

MIDDLE EAST

ig Project ME has spent much time debating whether the boom is returning to Dubai. Whether it is or not a capitalist market relies on two features: supply and demand. The simplest form of this phenomenon is the man who has an ice cream van in a European summer. He has to buy upfront without knowing the weather, if it’s hot he sells out and if not he has a lot of ice cream left. Andy Grove, head of Intel, once wrote a book which warned that every manager must expect everything to change – and very soon. In the Middle East, local and western contractors are fighting companies from China, Korea and to a lesser degree India for contracts. However in East Africa they, especially the Chinese, are the

MARKET ANALYSIS

bigprojectME.com

“China for the past three decades has been investing in Africa and increasing its bilateral and trade relationship with African governments”

MIDDLE EAST

Indian initiatives Individual companies are leading India’s push in Eastern Africa.

the China Wu Yi company are building a futuristic 21-storey tower, complete with lecture halls, for up to 3,000 students. “Once it is finished in two years, this building will be the tallest structure around,” says Professor Sa Dequan, head of the university’s Chinese language and cultural teaching centre. China Wu Yi was helped by the Chinese government to gain access to Kenya, but now it is handling 18 projects here. Not long ago, it completed a section of the eight-lane, 50km Thika Superhighway, described as Kenya’s pride. This kind of push by the Chinese government, say Indian companies, is helping their neighbour to steal a march on them. The Chinese are in competition with the Indian contractors for most of this work. With demand for resources to fuel both their growing economies, the contest between these two giants is playing out in different parts of the world. If you want a picture of how the Chinese work it is also good to hear what the competitors think: “Indians have been

SEPTEMBER 2013

China’s African infrastructure support n $40.83 billion

Value of construction contracts completed by Chinese firms in 2012

n 45% Percentage

increase from 2009

n $11.3 billion

Concessional loans approved by China between 2010 and May 2012

n 92 Number of

African projects granted loans

in Kenya and this continent for more than 200 years. Why have they not developed the industry like the Chinese have done in the last 10 to 15 years?” asks Kenyanborn businessman Muljibhai Pindolia, of Indian descent. He says the reason lies with the active involvement of Beijing. “With our own resources, we cannot develop the way those with government support can.” Ethiopian Industry Minister Tadesse Haile agrees: “I urge Indian financial institutions to support Indian businesses, as other countries like China are doing.” And according to Manoj Gupta Jindal of Steel and Power in Mozambique there is a huge difference in the approach to the work: “Indian companies do the risk assessment in a more systematic manner, whereas the Chinese just jump upon the work and they do it very fast – and they get the result.” Chinese companies are active across the continent with big infrastructure projects, including ports, railways and sports stadiums. By contrast, Indian initiatives are led by individual companies looking to expand in sectors such as telecoms, agriculture, the automotive industry and education. India’s $65 billion of trade with Africa is dwarfed by China’s $200 billion. China insists it is looking at a wholesome, reciprocal relationship with East Africa. In Nairobi, Xia Lu, of Kenya China Travels and Tours, says: “The number of Chinese tourists coming to Africa is growing by 45% each year.” But the Chinese presence has also raised questions. “The Chinese come with their own people, leaving the locals in the lurch,” a man outside a Nairobi office complains. Asked about such concerns, Xiong Kaihua, of China Wu Yi, insists his company has hired locals to do the work, although he does not know how other companies behave. “We have seen in Tanzania illegal immigrants from China being deported. We have seen that in Ghana too,” says Nairobi journalist Mark Kapchanga. In June this year, Ghanaian authorities arrested 168 Chinese for illegal gold mining while Gabon plans to recover

MARKET ANALYSIS

assets from a subsidiary of Chinese oil giant Sinopec. There is a growing wave of resentment across Africa against Beijing. Lamido Sanusi, Nigeria’s central bank governor, spoke out against Chinese exploitation of Africa and its vast resources, and warned that Africa “is opening itself up to a new form of imperialism.” In a scathing commentary he cautioned: “China takes from us primary goods and sells us manufactured ones. This was also the essence of colonialism.” Nairobi-based analyst Anil Bhandari says the African pie is too big for anyone to fret about: “Most African countries are growing at 7% to 9%. Players like India, China, Brazil and the European countries have a role to play.” The Confederation of Tanzania Industries (CTI) Director of Policy and Research Hussein Kamote said recently:

African governments. It has played a fundamental role in helping Africa achieve social betterment, economic growth and development, especially in the infrastructure sector.” According to Firsing, in 2012 China’s trade with African was almost double that of America and this made the White House realise that it is missing out in Africa. “These opportunities won’t last forever,” he noted. It would be fair to say that Africa has not always come out of every trade deal ahead. Its history is largely one of exploitation. One of the finest observations of this came from Bishop Desmond Tutu. “When the missionaries came to Africa they had the Bible and we had the land. They said ‘Let us pray.’ We closed our eyes. When we opened them we had the Bible and they had the land,” he said, in a sombre warning to the continent. n

Trouble in Africa Disputes, extortion and kidnappings continue to blight African countries trying to develop. Construction in Nigeria and Sudan has been under scrutiny this year as the continent’s attempt to develop its infrastructure continues to be blighted by violence and distrust. In Nigeria seven foreign contractors were executed after being kidnapped while working for construction firm Setraco in the Nigerian town of Jama’are. They had been taken following an assault on the construction company’s compound in February with the group claiming they were taken in retaliation for British forces being spotted in the air over the region. The British Foreign Office later claimed the aircraft had been ferrying troops for aid in Mali.

“Most African countries are growing at 7% to 9%. Players like India, China, Brazil and the European countries have a role to play”

The head of the Nigerian Federation of Construction Industry Solomon Ogunbusola claimed the attacks on foreign contractors was threatening to derail the construction industry in the country.

SEPTEMBER 2013

MIDDLE EAST

“There is a direct relationship between the construction sector and the growth of national income which is also a sign of improved living standards.” The Chinese have a strong economy and like to gamble, and they can afford to. Traditionally corporate environments require predictability, which historically hasn’t been one of Africa’s strongest characteristics; but analyse the continent’s progress over the past decade and there is cause for optimism. In fact, regional “pockets of excellence” have emerged where significant investments can be made with both predictability and confidence. Scott Firsing is Head of International Studies at Monash University in South Africa. He thinks that the USA is missing out big time in opportunities in Africa. “China for the past three decades have been investing in Africa and increasing its bilateral and trade relationship with

www.thebig5.ae

GET YOUR FREE VISITOR PASS and save AED 100 by registering online on www.thebig5.ae/bp11

8 DEDICATED PRODUCT ZONES

Diamond Sponsor

Platinum Sponsor

Gold Sponsors

Silver Sponsor

Free Zone Partner

Official Broadcast Partner

Organised by

SPECIAL FEATURE FM

bigprojectME.com

Made to Measure Big Project ME finds out how the FM industry in the UAE is evolving to measure up to a market that is becoming increasingly aware of the benefits it can bring to their projects

MIDDLE EAST

s you wander around the towering skyscrapers of Dubai Marina or the glitzy boulevards of Downtown Dubai, it’s easy to forget just how rapidly the city has changed in the span of two decades. Long-term residents of the emirate remain slightly bemused when they think back to when the Dubai World Trade Centre, now dwarfed on Sheikh Zayed Road, was the tallest structure in the Arab World, until the Burj Al Arab was built. As Dubai marched into the future, the emirate continues to rack up record after record, from the world’s tallest hotel, to the world’s tallest building, to what is now being proposed as the world’s tallest commercial tower. Along the way, its feats of engineering and construction marked it out as a special place to be if you were a construction industry professional.

SEPTEMBER 2013

So fast was the pace of development in the city, it seemed that the developers and contractors building them did not pause to think about what happened after the towers were built and completed. What did happen was that it soon became apparent that no one actually knew how to maintain these complex and highly technical structures. Hugh Henderson, director of Consultancy at Mace Macro International Limited, the FM arm of the worldwide

giant, Mace Group, says that there was a lot of ignorance as to what facilities management was all about when Macro first entered the UAE market in 2007. “We see a lot happening in the region and facilities management is growing in significance. The market is huge, if you see the numbers that are bandied about. But it’s a matter of understanding what facilities management is. Some people think that facilities management is like MEP. But it’s not so simple,” he tells Big

“We see a lot happening in the region and facilities management is growing in significance. The market is huge, if you see the numbers that are bandied about”

SPECIAL FEATURE FM

“We prefer to get involved right at the start, because that way we can make a difference all the way through”

serco 2013 half year results n $3.96 billion

Adjusted revenue ongoing activities

n $3.28 billion Revenue

n $227.8 million

Adjusted operating profit – ongoing activities

n $194.5 million

Operating profit

FM becoming more than just a provision of services, clients are now looking for FM providers who are experienced and knowledgeable enough to take a problem off their hands so that they can go back to their core business. “We talk about all the efficiencies we can make when we come in, but to be honest, they’re probably limited because the asset and its shape and its feel, is all done and we have to work with the tools that we have,” he says. “We find that the real savings, the long-term savings, is if we come in at the early stages and work with the architects and designers.” “We appreciate that there needs to be aesthetics and that there is a dream, a vision, behind these facilities, but we can work with the designers to say, ‘how about if you change this and change that?’ Its simple things,” Bartley adds, pointing out FM firms come thinking as an operator rather than a designer or an architect, and thereby helping increase the building’s functionality. “The real long-term savings for a project is truly about bringing the real value that we think we can bring when you’re building the building, which will totally and utterly reduce the maintenance costs for the life of the building.” Henderson adds that he’s seen many instances where the early involvement of FM has paid off handsomely for the client, leading to better designed and longer lasting buildings. In addition, by being brought in early on the project, the FM firm has a stockpile of data and information that is vital to the future smooth operation of the building or facility. “We prefer to get involved right at the start, because that way we can make a difference all the way through,” he says. “We look at it from the lifecycle perspective, because the developer’s priority may be slightly different to the owner or the operator, the occupants, whatever. We tend to look at it from the holistic view

SEPTEMBER 2013

MIDDLE EAST

Project ME during an interview at Macro’s Sheikh Zayed Road headquarters. “I think you’re now seeing a better understanding of what FM is about, but there is still a huge chunk of the market that thinks FM is about cleaning and MEP and service delivery.” As disconcerting as this is, given the progress that has been made, Henderson remains optimistic about the growing awareness in the market, especially in the wake of the collapse of Dubai’s real estate market a few years ago. “Demand is a little bit more discerning now. Clients are more informed, they’ve learnt a lot over the last five years,” he says. “They’re now asking more probing questions and they want to get more for their money. “I think generally the clients have recruited a good core of in-house experts, so they’ve got a clear idea of what they want. They might not be too sure of the direction and they may have some concrete objectives that they need to meet, but in terms of the actual buildings, developments or properties, they know that they want to get FM involved and quite often they want to get FM involved early days, especially if it’s a new project,” Henderson explains. This push for early involvement is something that Steve Bartley, facilities management and technology director at Serco Middle East, thinks has been a long time coming in the GCC region. With

SPECIAL FEATURE BIM

bigprojectME.com

hugh henderson

over the life of the building. In 20 or 30 years’ time, if somebody’s still got to maintain that building, their priorities will still be the same. They’ll want the same secure building that they can manage cost effectively, it supports them in their business, because ultimately, the owner wants his return on investment.” “The real long-term savings for a project is truly about bringing the real value that we think we can bring when you’re building the building that will totally and utterly reduce the maintenance costs for the life of the building,” Steve Bartley adds. “I think before they used to build buildings to last 20 years and then just knock them down and not worry about the maintenance. I think in this part of the world, they’ve now accepted that they can build a building and make it last for a 100 years. If you lie it right and look after it, it can last for 100 years. That has definitely changed, and it shows they are thinking about getting FM operators in at the early stages of construction,” he explains. Furthermore, there is now significant progress being made when it comes to adoption of technology in the FM industry.

MIDDLE EAST

steve bartley

AUGUST 2013

While this has been somewhat of an accepted practice in the West, for the most part, clients and FM providers have been content to stick to tried and true methods. Henderson says that this is something Macro are keen to educate their clients about. Given that BIM has been adopted by architects, consultants and contractors, he feels that it is now time for FM professionals to adopt and adapt the technology for their own uses. “We’ve used technology in terms of the way we manage our buildings, we’ve been doing that for quite a while. But the technology is evolving all the time. Now, I guess from the big project perspective,

tried and tested FM providers in the region have been content to stick with what they know.

“Qatar and Abu Dhabi have learnt a lot from Dubai. They’re more cautious, more discerning, more measured in their approach. Dubai takes a very bullish, optimistic, ‘go and do it’ attitude”

SPECIAL FEATURE FM

involvement and technology). Is it across the board? I don’t think it’s quite there yet. There are certain territories that are more familiar with it and there are others territories that are catching up, but they’re catching up fast,” he points out. “We’re now seeing and having conversations with both asset owners and facilities owners and other players in that market who know they need to mature and are coming to companies like Serco to say, ‘can we join up in some way so that we can learn from you?”

“In terms of fACILITIES mANAGEMENT, it’s always had a strong base in technology. There ARE now fairly mature Technologybased terms and systems”

“(But) it’s not just about BIM. In terms of FM, it’s always had a strong base in technology, you’ve got what we call Computer Aided FM systems out there, there’s also been maintenance management systems, procurement systems, there’s a lot of management systems out there, but there are now fairly mature technology-based terms and systems for FM.” “We’re a good example of that, we’ve got asset management systems that provide the FM data you need and they also support 24/7 helpdesks that we have here.” “Not everybody is as far advanced, but when you put all those things together and use mobile technology, handheld technology, it’s a real boon for the industry, because we’re able to report real time, services, managers can see what the staff are doing, what are the problems, prioritise what, allocate resources and get much better value, because that’s what the clients want,” he asserts. Bartley adds that while the UAE remains the clear leader in terms of FM innovation in the region, the rest of the GCC is catching up rapidly, which can only be a good thing for the industry. “There are clients out there who understand that (the benefits of early

Henderson does concede that there remain a number of challenges ahead, especially when it comes to convincing clients to shell out extra cash up front to pay for these technologies, but he remains confident that Dubai will ultimately show neighbouring markets that it would be right to go the extra mile in expenditure. “Qatar and Abu Dhabi have learnt a lot from Dubai. They’re more cautious, more discerning, more measured in their approach. Dubai takes a very bullish, optimistic, ‘go and do it’ attitude,” he says. “Qatar and Abu Dhabi take their time, take stock and do it in a very measured way. But their ambitions are no less than Dubai, so they want to get on. So I would say that they’ve learnt a lot, not just from Dubai, but internationally. They’ve got international consultants there, they know the standards they want and they’ll go for it.” n

mace macro projects n 3,500 government buildings Abu Dhabi

n National Exhibitions Company Abu Dhabi

n Dubai Marina Dubai n Old Town Dubai n Jumeirah Beach Residences Dubai

n Skycourts Dubai

technology boon FM experts are advocating the adoption of mobile technology to help operations.

SEPTEMBER 2013

MIDDLE EAST

there is BIM, and that, I would say it’s still in its infancy from the FM perspective.” “It’s certainly been adopted by architects and contractors, but in terms of its adoption by FM, it’s still early days. Without a doubt, it’s got a lot of use. We want to understand how the building works, have the building data from the very early days, so that the more we buy into BIM, the more we can understand it, learn about it and develop. And that’s happening very rapidly, though it’s still early days,” Henderson explains.

SPECIAL FEATURE FACADES

bigprojectME.com

Putting on a façade Big Project ME looks at the development of facades in the region

MIDDLE EAST

n the beginning it was fairly simple. You found a cave and lived in it, ensuring the mouth of the cave was big enough to let you in and fire fumes out. Accommodation moved on slightly during the next few hundred years. In England windows were kept small because there was a tax on glass. So the inside of homes were dark, damp and cold, partially explaining the English. Eventually during the Georgian era in England, from 1714 to 1830, buildings were used to impress other people rather than for shelter. This was the birth of the Paladin mansion and the true beginning of the façade. The Georgians made nice square buildings with big rectangular windows,

SEPTEMBER 2013

high ceilings, graceful rooms and pleasing perspectives. But then someone had the idea of slapping a few Doric columns on the front and the madness began. There are several examples of buildings of this period when the façade became the reason for the building. Think of St Paul’s Cathedral, Buckingham Palace and even wander over to India (mentally obviously)

for the Taj Mahal. Versailles in France is another example. The twin of the façade is the atrium. Surprisingly this was a feature of buildings in Ancient Rome but it fell out of fashion until the twentieth century. There is an economy of scale in facades in the Middle East, and of course in cold climates such as in New York. In northern

“The façade of any building is far more than its aesthetic face – it fulfills various functions, all of equal importance to the structure as a whole”

SPECIAL FEATURE FACADES

Europe there is an equitable climate, which means a temperature change of 1oC between summer and winter and the same temperature outside and inside. In this region the 20oC temperature change between exterior and interior explains the constant colds we suffer, that we can’t make our European friends believe. Budget is, or should be, a major factor in any decision. Chet Atkins, the world’s best guitar player once said that he decided to get a guitar-shaped swimming pool. But having seen the estimate he decided to get one shaped like an amplifier (rectangular). And so we come to the point of the façade question. How big can it be? How much heat will it lose and can you clean it? Will it still operate during the 50oC summer months? Those questions are wrapped around the central theme of any architectural plan. First question. Do you want the building to be iconic? Dubai may be the only city in the world where literally every building is iconic, and in a city where there are no addresses every single building is ‘The Address’. Ironically if one person actually gave their building a proper address we could put four thousand PR ladies and their superlatives out of business. Those of you who are reading this article in the vain hope of actually garnering any information are about to be rewarded. We now move onto the part, which may inform you as well as hopefully entertaining you. We will explore the arcane world of heat reflective façades, shading and ventilation. American company Foamglas explains: “The façade of any building is far more than its aesthetic face – it fulfills various functions, all of equal importance to the structure as a whole. Primarily it needs to protect the fabric of the building from the effects of weather – cold, heat and rain.

energy reduction Facade installations see energy consumption on buildings reduce by 20%.

It also plays a key part in sound proofing the building and providing fire protection. Thermal protection is, of course, the most essential performance.” Their cellular foamed glass and constitutes of millions of closed, gas filled glass cells, which provide superior insulation characteristics. Due to the all glass cell geometry, the ‘vapour-control layer’ is already built-in. As a massive plus this glass has recycling capabilities as well. But don’t take this writer’s word for it. “The most important part is that we have 66% recycling content and in the production use only renewable energy,” explains Middle East sales director Marco Vincenz, adding: “We do not need water to produce FoamGlas and it has a very long durability.” View inc, based in Milpitas, California, is developing ‘dynamic glass’ that changes tint in response to environmental conditions and user preferences, controlling the amount of sunlight and heat in buildings. Energy consumed by lighting, heating and air conditioning systems is reduced by about 20 percent a year in a ’typical commercial installation.’ The glass tints when an electrical voltage is applied, it can be programmed to occur or triggered on-demand by building occupants with software or control systems. About 100W of power is

various types of building facades n Dynamic Facades n High-R Window and Framest

n Double Skin Facades

SEPTEMBER 2013

MIDDLE EAST

“the façade itself is dematerialised and turned into an advertising medium for sending Messages”

SPECIAL FEATURE FACADES

bigprojectME.com

Installing the world’s largest LED façade The largest working video screen on the King’s Road Tower in Jeddah, Saudi Arabia measures almost 10,000 sqm and was designed, built and installed by French company Citiled, a world leader in tailor-made “Media Façade” projects for integration into architecture. This technological achievement places Jeddah firmly in the forefront of largescale architectural innovation and gives a dynamic image to this city resolutely rooted in the future. Citiled was the company chosen by the project initiators to take up the technological challenge of this unprecedented project, in view of its expertise and their prestigious past achievements (including the Agbar Tower designed by architect Jean Nouvel in Barcelona, the Hermes Building in Singapore and the Cocor luxury shopping centre in Bucarest). 21 floors on the north and south façades and 16 floors on the west façade have been equipped with LED screens developed by Citiled, totalling 9,850 sqm and comprising more than 5 million LEDs, making the structure the largest Media Façade in the world installed on an inhabited building. It took more than six months to produce the 10,000sqm of this media façade, occupying a team of around 20 engineers and craftsmen for three months during the project design phase and then six months for installation and testing. Citiled used patented technology and was able to develop and implement systems that

used for every 1,000 panes of View’s fivefoot by 10ft glass. The world’s addressable glass market is about $100 billion, assuming about 10% of the world’s windows could use dynamic glass. About 25 billion sq ft of glass a year is installed globally as external windows. When you talk about glass you have to talk about polymer manufacturer Bayer Material Science. Its polycarbonate sheet, made of the company’s trademarked Makrolon, can be used for application on interior and exterior windows, walls and ceilings. The surface provides heat insulation that is comparable to that of triple glazed glass, without the weight or bulk of actual glass, according to the company. “Transparent Makrolon sheets offer a similar level of light permeability, plus they are safer and provide more freedom of design. That is why they are a good alternative to glass,” explains Bayer Material Science global project manager Dr Volker Benz. Big Project ME often wonders about the future of building. Thirty years ago the movie Blade Runner introduced the visionary idea of turning entire building façades into large digital screens. Today this vision is becoming reality in an

increasing number of cities across the world. So stand back LG with your 84in flat screen. Here is a definition of the term from author Susanne Fritz: “the façade itself is dematerialised and turned into one huge advertising medium for sending messages. At the onset of dusk the building moves into the background and serves only as a backdrop for the light show, which then becomes the main attraction.” Using buildings as televisions is a more difficult idea in this region because we have so much light and heat. But it has been done. King’s Road Tower in Jeddah is one of the largest video screens in the world, with 10,000square metres of façade. One other major consideration is severely toughened glass. In hurricanes, tornadoes or bomb attacks a leading cause of injury and death is often fastflying shards of glass. Explosions and high winds can cause windows in buildings to shatter, projecting jagged pieces of glass in every direction. This glass could save lives in a lot of situations. There is also the added attraction that people in glass houses will finally be able to throw stones. n

are almost transparent when mounted on the façades, guaranteeing daylight for the building’s occupants and preserving visibility. This design is said to demonstrate how the city will look in the future, a future where buildings will be interactive with

MIDDLE EAST

controlled energy consumption.

SEPTEMBER 2013

“Transparent Makrolon sheets offer a similar level of light permeability, plus they are safer and provide more freedom of design”

iHiB İSTANBUL HALI İHRACATÇILARI BİRLİĞİ

COMMENT Construction Contracts

bigprojectME.com

STEVEN BATCHELOR

Variations in Construction Contracts The maturing Middle East construction industry has yet to fully adopt best practice around the handling of claims and variations. Faithful + Gould's Steven Batchelor maintains that correctly defining a variation is the first step Measured quantities of variation may be valued in accordance with n Rates containted in the Bills of Quantities or Schedule of Rates

n On the basis of rates analogous to those above

n On the basis of a fair valuation, at fair rates or prices

n At Dayworks rates at the prices ruling at the date of work being carried out

uring the Middle East’s construction boom, the traditional tendency towards informal commercial arrangements and negotiations often got the job done. We’ve seen a lot of changes since those days and a clearer focus on contractual terms has emerged. The established business culture is still respected, but the construction industry is increasingly adopting common global practices to protect the interests of all parties. The FIDIC Red Book remains the routine standard form of contract, often chosen through habit and familiarity – yet there is a widespread lack of understanding of the contract’s provisions, and a lack of engagement with its binding properties. The Red Book is often amended from its purpose as a re-measureable contract to a lump sum contract, with a further increase in the risk placed on the contractor often by apportioning

MIDDLE EAST

“A common misconception in the Middle East is that a claim is the appropriate response to a change or confirmation of the scope of the work or a response to a request for information from the contractor”

SEPTEMBER 2013

of design responsibilities, but with little thought to amended conditions contained within or use of an alternative appropriate form of contract. Where the Red Book is amended to lump sum and the employer wishes to transfer some design obligations to the contractor: wording often included in the parts of the specifications and/or drawings is for the contractor to develop the design provided into a finished solution, making a variation and/or claim unecessary for the development in the scope to meet the contract requirements. The problem seems to be a lack of clear understanding of the priority of documents and the words and obligations contained throughout, not just the reading of the headings of the contract. These misunderstandings then give rise to confusion over what are a valid variation and/or a claim against the contract. A further common misconception in the Middle East is that a claim is the appropriate response to a change or confirmation of the scope of the work or a response to a request for information from the contractor. For requests for information the engineer is often only confirming what the contract allows for, yet this still gives rise to unwarranted claims against the contract. However, a claims culture is time consuming and disruptive and when

COMMENT Construction Contracts

Variation orders in construction project in Oman: problems and remedies The effects of variations in constructions projects in Oman were determined to be: (1) delay completion date of the project; (2) cost overruns; (3) contractors incur additional costs due to variations; and (4) claims and disputes. Also, it was determined that all three parties (owner, designer/consultant, and contractor) benefit from issuing variations to the contract. Recommendations determined from this thesis were a set of remedies/activities to minimise variations in construction projects in Oman and they are:

enormously, with best practice procedures followed. A weak contract gives rise to problems, so all clauses and specifications should be unambiguous. There is a tendency for contractors to be demonised in this process, but it should be remembered that they are playing their part in a construction culture that does not always treat them fairly. Problems can be minimised if there is a clear and shared understanding of the contract. The contractual parties need to understand the conditions and scope of works, and they need a clear view of those items that will impact upon them. Facilitating this understanding is a big part of Faithful+Gouldâ&#x20AC;&#x2122;s work here in the Middle East. Faithful+Gould has local experience gained from operating in this region for over 15 years. This know-how can be used to our clientâ&#x20AC;&#x2122;s advantage to ensure the correct contracts are selected and the parties to the contract are aware of their full responsibilities and obligations, therefore minimising unecessary applications for variations and claims against the contract. n

(1) a standard document should be developed to establish the stages/steps from the start of the project till completion and close out; (2) a permanent standard document should be developed to cover all construction regulations and permits required for projects constructed in Oman; (3) a specialised quantity surveyor and a project manager should be assigned to large construction projects; (4) a common learning data base system should be developed and shared among all governmental units; (5) a technical committee should be established to review overall planning, to establish a construction procedure manual, and to follow-up on its implementation; (6) the registration of consulting companies should be reviewed to reflect their technical capabilities; (7) a design engineer should not be allowed to practice in Oman without having a professional license; and (8) the General Conditions should be reviewed and updated. Source: Ali Al Harthi, Civil and Architectural Engineering Department,

Steven Batchelor is the associate director of Commercial Services at Faithful + Gould Middle East and India. He can be reached at: steven.batchelor@FGould.com

College of Engineering, Sultan Qaboos University

SEPTEMBER 2013

MIDDLE EAST

a variation order is the correct course of action for a change in scope. Noting each and every claim notification must be responded in specified time frame. Variations and claims are not the same and should not be confused. It is often said that a contractor is claiming a variation, but this actually means that they are making an application for a variation. A claim then only occurs if the engineer/employer rejects the application for the variation and the contractor disagrees with the decision and subsequently pursues a claim. A variation to a contract can involve changes to the contract provisions, requirements or scope of works. Changes are made for differing reasons such as design development, stakeholder requirements or cost, and can potentially decrease the scope of works as well as increase it. It can also be said that a valid variation can be evaluated and administered against the provisions of the contract, with measurement rules and applicable rates stated clearly and agreed between the parties to the contract. Whereas, a claim is generally for events impacting the contract, hence the use of industry formulas to determine any applicable costs for any valid event causing delay, disruption, prolongation, loss of profit, etc. The correct preparation of the contract helps

TENDERS

bigprojectME.com

TOP TENDERS Region Kingdom of Saudi Arabia Description Construction of an ethylene vinyl acetate plant with capacity of 4,000 tonnes a year

Status New Tender

Project name: Hotel Complex Project â&#x20AC;&#x201C; Mecca

Budget $1,100,000,000 Project Name: Crude Oil Storage Facilities Project

Budget $2,000,000,000 Client State Company for Oil Projects - SCOP (Iraq)

Project name: Liwa Plastics Project

Client Wijaya Karya (Indonesia)

Budget $3,600,000,000

Region Kingdom of Saudi Arabia

Client Oman Refineries & Petroleum Industries Company (ORPIC)

Description Construction of a hotel complex comprising seven towers, each consisting of 1,000 rooms

Region Sultanate of Oman

Status Current Project

Description Engineering, Procurement and Construction (EPC) contract to build a steam cracker and petrochemicals complex

Region Iraq Status New Tender Description Engineering, Procurement and Construction (EPC) contract to build crude oil storage facilities comprising (29) tanks, each with a capacity of 66,000 cubic metres

Status New Tender

Project name: Abraj Kudai Mixed-use Towers Project

Budget $3,500,000,000

Project name: EVA Plant & Plastic Molds Factory Project

Budget $60,000,000 Client Saudi International Petrochemical Company

Client Ministry of Finance (Saudi Arabia) Region Kingdom of Saudi Arabia Description Construction of Abraj Kudai mixed-use towers comprising a total of (12) buildings ranging in height from 30-45

(SIPCHEM)

Status Current Project

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

SEPTEMBER 2013

RIMAL AL SAROOJ AL MOTHAHIDA L.L.C

TENDERS

bigprojectME.com

MIDDLE EAST TENDERS SPONSORED by Tel +9714 346 6456 Web www.ccsgulf.com Email info@ccsgulf.com

UAE Community Centre Project - International City Development

Project Number MPP2807-U Territory Dubai Client Nakheel PJSC (Dubai) Address Jebel Ali City Dubai Postal/Zip Code 17777 Country UAE Phone (+971-4) 390 3333 Fax (+971-4) 390 3314 Email info@nakheel.ae Description Construction of a community centre covering an area of 11,000 square metres Period 2015 Status New Tender Design Consultant Arif & Bintoak Consulting Architects & Engineers (Dubai) Tender Categories Construction & Contracting Tender Products Construction & Addition Works

Client Mubadala Development Company - MDC (Abu Dhabi) Address Mamoura Bldg, Near Muroor (4th) Road & Mohammed Bin Khalifa (15th) Street City Abu Dhabi Postal/Zip Code 45005 Country UAE Phone (+971-2) 413 0000 Fax (+971-2) 413 0001 Website www.mubadala.com Description Engineering, Procurement and Construction (EPC) contract to build a floating storage and re-gasification unit with capacity of 4.5 million tonnes a year of liquefied natural gas (LNG) Period 2016 Status New Tender Contact Person Mr Shehab Kishwar (Project Manager) E-mail skishwar@technip.com FEED Consultant: Technip (Abu Dhabi) Pre-FEED Consultant Poten & Partners Ltd. (Greece)

Provided by Tel +9712-6348495 Web www.MiddleEastTenders.com Email sales@MiddleEastTenders.com

Abu Dhabi Mall City Abu Dhabi Postal/Zip Code 45200 Country UAE Phone (+971 2) 699 4444 Fax (+971-2) 699 4445 Email sales.abudhabi@rotana.com Website www.rotana.com Description Construction of 5-star Saadiyat Rotana Resort comprising (354) rooms and (13) beach villas Period 2015 Status New Tender Main Architect Gazi Awad Architects & Engineers (Abu Dhabi) Project Manager EC Harris International Limited (Abu Dhabi) Tender Categories Leisure & Entertainment, Hotels, Construction

& Contracting Tender Products Hotel Construction, Villas Construction

Dubai Frame Tower Project - Zabeel Park

Project Number NPR026-U Territory UAE Client Dubai Municipality Address Deira City Dubai Postal/Zip Code 67 Country UAE Phone (+971-4) 206 4620 / 324 3666 / 206 3030/800 900 Fax (+971-4) 221 0530 / 324 7465 / 224 8026 Email info@dm.gov.ae

Saadiyat Rotana Resort Project Fujairah LNG Storage Terminal Project - Phase II

Project Number ZPR1140-U Territory Northern Emirates

Project Number MPP743-U Territory UAE Client Rotana Hotels, Suites & Resorts (Abu Dhabi) Address 7th Floor, East Wing,

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

SEPTEMBER 2013

TENDERS

Website www.dm.gov.ae Description Construction of Dubai Frame (Al Berwaz) Tower, a window-shaped, 150-metre by 105-metre complete glass, transparent structure resembling a huge window frame Period 2014 Status New Tender Main Consultant Hyder Consulting Middle East Ltd. (Dubai) Foundations, Enabling & Piling Contractor Bin Ladin Contracting Group L.L.C. (Dubai) Tender Categories Leisure & Entertainment, Prestige Buildings Tender Products High-rise Towers, Museums/Art Galleries

New Cargo Terminal Project - Al Maktoum International Airport

Project Number WPR043-U Territory UAE Client Dubai World Central (DWC) Address Bldg. 1, 5th Floor, Emaar Business Park, Jebel Ali, Sheikh Zayed Road City Dubai Postal/Zip Code 282228 Country UAE Phone (+971-4) 321 4040 Fax (+971-4) 363 8119 Website www.dwc.ae Description Construction of a new cargo terminal at an international airport Period 15/05/2014 Status Current Project Main Contractor Amana Steel Buildings Contracting Company

bigprojectME.com

L.L.C (Dubai) Tender Categories Airport, Construction & Contracting Tender Products Airport Supply & Services, Construction & Addition Works

Saudi Arabia Fadhili Gas Plant Project

Project Number ZPR1186-SA Territory Saudi Arabia Client Saudi Arabian Oil Company (Saudi Aramco) City Dhahran 31311 Postal/Zip Code 5000 Country Saudi Arabia Phone (+966-3) 872 0115 Fax (+966-3) 873 8190 / 874 1655 Website www.saudiaramco.com Description Engineering, procurement and construction (EPC) contract to build a 1 billion cubic feet sour gas plant in Fadhili Period 2018

Status New Tender Contact Person Mr Mohammed Rabii Gouja (Contracts & Commercial Manager) Or Contact Person Mr Bruce Niven (Chief Financial Officer & Investment Director) Tender Categories Gas Processing & Distribution Tender Products Gas Exploration & Production, Gas Processing & Separation

Fax (+966-1) 225 9000 Email info@sabic.com Website www.sabic.com Description Engineering, Procurement and Construction (EPC) contract for the replacement of existing ethylene oxide reactors at four petrochemical plants Budget $260,000,000 Period 2015 Status New Tender Tender Categories Industrial & Special Projects Tender Products Chemical Plants

Ethylene Oxide Reactors Replacement Project

Project Number MPP2789-SA Territory Saudi Arabia Client Saudi Basic Industries Corporation (SABIC) City Riyadh 11422 Postal/Zip Code: 5101 Country Saudi Arabia Phone (+966-1) 225 8000/ 225 9701

Jeddah Calcium Carbonate Manufacturing Plant Project

Project Number ZPR1146-SA Territory Saudi Arabia Client Al-Jazeera Factory for Paints Company (Saudi Arabia) Address Al-Jazeera Factory for Paints Company Bldg., 1st Floor,

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

SEPTEMBER 2013

TENDERS

Oman Offshore Pipelines Installation Project Musandam Area

Project Number WPR038-O Territory Oman Client Oman Oil Company Exploration & Production (OOCEP) Address Bait Al Reem Bldg., 4th Floor, Al Thaqafa Street, Al Khuwair City Muscat Postal/Zip Code 200 Country Oman Phone (+968) 2464 0900 Fax (+968) 2460 5378 Website www.oocep.com Description Installation of two offshore pipelines in Musandam area Budget $40,000,000 Status Current Project Main Contractor National

Petroleum Construction Company NPCC (Abu Dhabi) Tender Categories Gas Processing & Distribution, Oilfields & Refineries Tender Products Crude Transportation, Storage & Distribution, Gas Distribution, Pipes, Tubes & Fittings (Metal)

Qatar Domestic Solid Waste Transfer Station Project Al Khor Area

Project Number MPP2797-Q Territory Qatar Client Public Works Authority ASHGHAL (Qatar) Address Al Faisal Tower, Al Corniche Street, Dafna City Doha Postal/Zip Code 22188 Country Qatar Phone (+974) 4495 0000 Fax (+974) 4495 0999 Email info@ashghal.gov.qa Website www.ashghal.gov.qa

Description Construction of a domestic solid waste management facility Status New Tender Tender Categories: Construction & Contracting, Sewerage & Drainage Tender Products Construction & Addition Works, Residential Buildings, Waste Management

Hilton Double Tree Sinyar Tower Project - West Bay

Project Number BPR615-Q Territory Qatar Client Al-Jazi Real Estate Investment Company (Qatar) City Doha Postal/Zip Code 22880 Country Qatar Phone (+974) 4483 8786 Fax (+974) 4493 4885. Description Construction of Hilton Double Tree Sinyar Tower comprising 2 basement levels, a

ground floor and 52 additional floors offering (340) serviced apartments Budget $100,000,000 Period 15/12/2014 Status Current Project Main Consultant Diwan Al Emara Architects, Engineers & Planners (Qatar) MEP Consultant Diwan Al Emara Architects, Engineers & Planners (Qatar) Design Consultant Diwan Al Emara Architects, Engineers & Planners (Qatar) Structural Consultant Salama Structural Engineers (Dubai) Main Contractor Derwind Trading & Contracting Company W.L.L (Qatar) MEP Contractor Trans Gulf International Electro Mechanical W.L.L (Qatar) Building & Construction Materials Supplier: Aluma Systems Middle East (Dubai) Tender Categories Hotels, Prestige Buildings Tender Products High-rise Towers, Hotel Construction

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

SEPTEMBER 2013

MIDDLE EAST

Al Ammarah Street, Khamis Mushait City Khamis Mushait 61961 Postal/Zip Code 1900 Country Saudi Arabia Phone (+966-7) 221 1111 Fax (+966-7) 238 2728 Email info@al-jazeerapaints.com Website www.al-jazeerapaints.com Description Construction of a calcium carbonate manufacturing plant with capacity of 100,000 tonnes a year Budget $15,000,000 Period 2014 Status New Tender Tender Categories Industrial & Special Projects Tender Products Chemical Plants

DIARY BIG 5 Preview

bigprojectME.com

BIG-5 set to return Big Project ME previews the upcoming edition of Big-5 Dubai, which will see thousands return to the biggest show in town With Saudi Arabia and the UAE’s projects estimated at $510 million and $274 million respectively, the total $1.3 trillion GCC market is catching the attention of regional and international players as they look to take advantage of the significant opportunities and longevity of the region. Held between 25-28 November at Dubai World Trade Centre, The Big 5 will host more than 2,500 exhibitors from 65 countries with an anticipated 60,000 construction industry professionals over the four-day event.

MIDDLE EAST

Advancing the industry This year, the event includes a new area for building interiors, bringing together a wide range of products and services specifically catering to a sector currently worth around $10 million in the GCC. “We took the decision to form a dedicated space for the building interiors sector this year,” says group event director Andy White. “The industry has grown year-on-year in the region and is also of interest to a number of specific audience groups, so bringing all these products and services together makes it easier for suppliers to connect with potential buyers and vice versa. The Big 5 is known as a strong business facilitator, and we are

SEPTEMBER 2013

constantly looking for ways to make this process simpler and more effective.” The exhibition will further focus on product-specific sectors for 2013, such as HVAC, coatings, adhesives and sealants, kitchens and bathrooms, windows and doors, steel, marble, slate and ceramics, water technology and, of course, general construction. The popular schedule of live demonstrations continues in 2013, with exhibitors creating an ‘as-live’ environment showcasing their innovative technology and solutions directly to their target audience. Creating knowledgebased content will continue to play a key role throughout, with free-to-attend seminars taking place in the theatres on the event floor. Industry leaders will present research and insight and sharing upcoming trends and innovation, with a strong focus on sustainability, which remains a central theme the event. Building on the success of the LEED workshops that have taken place over the past few years at the event, The Big 5 is hosting sessions dedicated to Abu Dhabi’s sustainable building code, Estidama, as well as workshops from Dubai Municipality and Dubai Central Laboratory. The Sustainable Design &

Construction Conference will take place from 26-27 November and will invite debate and discussion across a range of industry topics, including ‘Master planning for sustainable cities of tomorrow’ and ‘New methods and strategies to drive sustainable building practices across the region’ as well as information on updated sustainable building guidelines from Dubai Municipality. “Education has been a strong platform for a number of years, and each year we aim to provide as many tailored opportunities as possible,” says White. “We want to ensure that there are forums to learn about the most up-to-date information and trends. Sustainability is a common thread across all platforms, and there will information available to attendees for sustainable construction.” The event also marks the return of the Gaia Awards, now in its sixth consecutive year, rewarding innovation that supports sustainable construction. White concludes: “The GCC holds some of the most valuable business prospects for the building and construction industry for the foreseeable future and The Big 5 provides not only the regional industry, but also international players, to make their mark on these opportunities.”

Post-Tensioning ▲ Cable Systems ▲ Bearings ▲ Expansion Joints ▲ Ground Anchors ▲ Heavy Lifting CROWNE PLAZA EXTENSION Kuwait

NAN NING DA QiAO BRIDGE China

For more than 40 years, OVM has been a leading systems supplier and specialist contractor in the field of prestressing and other specialist construction techniques. With a global reputation for reliability, professionalism and innovation, OVM systems have successfully been been applied in buildings, bridges, highways, high-speed railways, tunnels, harbours, dams and nuclear power plants. OVM was among the first Chinese prestressing and multi-disciplinary

PRESTRESSING SYSTEMS

engineering products manufacturers to be awarded the CE-marking, allowing its products and services to be sold across the EU. It operates under ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:1999. OVM’s facilities are under continuous inspection and quality-assurance routines from Germanischer Lloyd. OVM systems have been implemented globally, in projects conforming to almost all major standards; AASHTO, BS, EN, GB, JIS, ETA, FIP. Its systems have been approved for implementation in many projects by:

BRIDGE BEARINGS

PC STRANDS & WIRES

Dubai Municipality, Kuwaiti Ministry of Public Works, Kuwait National Petroleum Company, Saudi Ministry of Transport, Algerian Ministry of Public Works, etc. With a solid financial standing and an impeccable technical grasp of pre-stressing technology, OVM has carefully engineered and implemented a plethora of its products in several hundreds of projects, including 240 projects worldwide of which 58 were in the GCC countries and a further 26 within the MENA region.

EXPANSION JOINTS

enquiries@ovm-mena.com www.ovm-mena.com OVM Middle East & North Africa FZE, P.O.Box 42624, Sharjah, United Arab Emirates

| Tel: +971 6 526 4795

GROUND ANCHORS

Big Project ME, the region’s leading monthly B2B magazine for the construction industry, is proud to announce the GCC 2014 Construction Book

The GCC 20 14 CONSTRUC TION BOOK will be laun ched at The Big 5 s how at the end of Nove mber so do not delay a nd register your profile now.

n 2 OR 4 PAGE EXCLUSIVE IN DEPTH COMPANY n

PROFILE PROFILE ON WWW.BIGPROJECTME.COM FOR 12 MONTHS 12 MONTH SHELF LIFE

n n LAUNCHED AT THE BIG 5 SHOW n DISTRIBUTED TO 15,000 CONSTRUCTION n

PROFESSIONALS ACROSS THE GCC COMPILED AND DESIGNED BY OUR EXPERIENCED IN-HOUSE EDITORIAL AND DESIGN TEAM

Now in its 4th edition, the GCC 2014 CONSTRUCTION BOOK will be a celebration of the very best companies in their respective fields of expertise. Ensure that your company is the first to secure exclusivity in your category. PROFILE OPTIONS AND ADD-ONS AVAILABLE - CONTACT US NOW COMMERCIAL DIRECTOR

SALES DIRECTOR

SALES MANAGER

Michael Stansfield | +971 4 375 5497

Carlo Menezes | +971 4 375 5495

Carol D’Souza | +971 4 375 5496

Rodi Hennawi | +971 4 375 5482

michael.stansfield@cpimediagroup.com

carlo.menezes@cpimediagroup.com

carol.dsouza]@cpimediagroup.com

rodi.hennawi@cpimediagroup.com

DIARY INFRA OMAN

HAPPENING THIS MONTH...

Event launch Infra Oman will open its doors for the third time on 30 September, 2013.

INFRA OMAN Big Project ME previews the third edition of Infra Oman ahead of the September 30 launch of the Sultanate’s biggest construction and infrastructure exhibition Industry and Commerce office, the German Near & Middle East Association, the Public Establishment for Industrial Estates, the Singapore Business Federation, the Spanish Economic & Trade Office, the Ministry of Economy, UK Trade & Investment, the Concrete Sawing

& Drilling Association and the Vietnam Association of Construction Contractors. With the Omani government instigating a number of infrastructurerelated projects, the Sultanate’s construction market is set to receive heavy interest from a number of

“I think we’re really at the start of everything. We’re going to see the pace of construction pickup”

SEPTEMBER 2013

MIDDLE EAST

On 30 September, 2013, the third edition of Infra Oman will open its doors, marking the return of the most successful and well-known infrastructure and construction exhibition in the Sultanate. Organised in cooperation with the Ministry of Transport and Communications and the Ministry of Commerce and Industry, the exhibition brings together hundreds of local and international companies at the Oman International Exhibition Centre. As a result, the exhibition will be supported by a host of international organisations such as the German

DIARY INFRA OMAN

bigprojectME.com

international companies, including those already based in the GCC region, says Matt Green, head of Research at CBRE. “Tourism has clearly been one of the principal focuses for each and every market. Oman generally has some pretty good credentials in that respect.” Green adds that infrastructure is likely to play a massive part in the development of Oman over the coming few years. He says that projects like the new Muscat International Airport and Salalah Port are just one part of the increased focus on infrastructure development. Therefore, it comes as no surprise that the exhibition will focus on a number of different sectors across the industry,

“Infra Oman has proved to be an ideal platform for all contractors and developers to meet”

Infra Oman details n 200 Exhibitors at the event

n 8 Number of industry sectors exhibited

n 8 Number of

Country Pavilionst

n 27 Number

MIDDLE EAST

of Countries participating in the exhibition

including Construction Requirements, Green and Future Buildings, Heavy Equipments and Technologies and Hotel and Tourism Projects, amongst others. “Infra Oman has grown significantly since its previous editions, thus establishing itself as the Middle East’s leading infrastructure and industrial projects exhibition,” says Salim Omar Al Hashmi, CEO of Al Nimr Expo, the firm organising Infra Oman. This growth has been significant, with the 2012 edition featuring more than 175 local and international exhibitors. In comparison, the 2013 edition will have 200 exhibitors. “The event is also meant to provide local and international companies the opportunity to introduce a range of their products, equipments, technologies and services to their target clients -- the decision makers and top officials of companies in Oman’s vibrant building and construction industry,” says Melwin D’Cunha, managing director of Al Nimr Expo. In its inaugural edition, Infra Oman won the CMO Asia-Event Industry Award 2012 held in Singapore for the Most Admired Event in the Middle East. Infra Oman is the first exhibition in the Sultanate of Oman to be “BPA Audited”.

SEPTEMBER 2013

increased exposure 200 exhibitors will take part in this year’s event.

The audit gives the sponsors & exhibitors certified and accurate number of trade visitors to compare with other exhibitions and invest their money in the right event. Infra Oman was recently enlisted as a “UFI Approved Event” by the Global Association of the Exhibition Industry. With experts tipping the Sultanate to be the next major market for growth in the GCC, exhibitions such as Infra Oman are clear indications that the country is set to be a major player in the regional construction industry. “I think we’re really at the start of everything,” predicts Matt Green. “We’re going to see the pace of construction pick up. We’re seeing quite a few residential projects launch and we’re seeing a lot of hotel projects being launched as well,” he adds. n

Additional details To get more information about Infra Oman 2013, please visit: www.alnimrexpo.com/infraoman. To reserve your stand in the exhibition, please contact: Jenitha Martin, project director, at telelphone: +968 24700656, mobile no: +968 94041616, or e-mail: info@alnimrexpo.com

a private view

Just occasionally an opportunity comes along that is simply too good to miss. The Chilterns, located in the heart of London is one of those. Location, architecture, interior design. A development that quite simply redefines envy. One of One.

Our marketing team are now accepting bookings for private presentations of the project. For further information, or to arrange a meeting, please contact:

Wahi Mohsen

Nathan Gardner

+971 50 853 54 43

+971 56 392 17 45

wahi.mohsen@eu.jll.com

nathan.gardner@eu.jll.com

Details correct at time of going to press. Computer generated image is of The Chilterns and is indicative only. Jones Lang LaSalle UAE Ltd is appointed by and acting on behalf of Jones Lang LaSalle UK Ltd to provide marketing consultancy services for this project. The brokerage appointment is between the developer and Jones Lang LaSalle UK Ltd. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

CONSTRUCTIVE CRITICISM

bigprojectME.com

GAVIN DAVIDS

A World of Adventure awaits Gavin Davids says that Dubai is ready to become a theme park hub in the Middle East, which could open up all sorts of possibilities, including the arrival of a certain big eared mouse…

MIDDLE EAST

We’ve all heard about how Dubai is the epicentre of the regional tourism industry, with millions of tourists flocking to the city to take advantage of its luxury lifestyle, gigantic shopping malls and constant sunshine and warmth. Hundreds of hotels are dotted around the city, ranging from the ultra-high end Burj Al Arab, to the two and three star establishments that are found in Deira and Bur Dubai. With Dubai bidding for, and expecting to win, the right to host the World Expo in 2020, the pace of hotel development is only set to increase. Yet, with all the influx of tourism it remains surprising that it’s taken so long for Dubai to have a truly significant theme park open within its boundaries. Of course, places like Wild Wadi and Aquaventure have existed for years, and remain huge tourist attractions. However, they don’t strictly classify as theme parks, certainly not when compared to the likes of Disneyworld in Florida or Universal Studios Hollywood in Los Angeles. With millions of visitors attracted annually, these are massive revenue generators that are vital to their local economies. Therefore, I was pleasantly surprised to hear that the Ilyas and Mustafa

SEPTEMBER 2013

Galadari Group are well under way with their plans to launch the IMG Worlds of Adventure theme park in the City of Arabia. According to figures released by the Group, the park is set to be a massive 139,355m2 in size. As an unabashed theme park fan, this is hugely exciting news for me, and personally, I cannot wait to see what it looks like when it’s open for business sometime next year. However, and while I may be greedy here, I’m surprised that there haven’t been any rumblings about a Disney theme park opening in Dubai. To me, it makes perfect sense to open one here, given the ease of accessibility, the ready-made tourist base and the disposable income of GCC residents. Not only does the infrastructure for such a park exist, but the Dubai government has consistently shown that it is willing and able to back large-scale ambitious projects. So, hopefully, the success of IMG Worlds of Adventure will see other investors decide to take up the challenge of enticing Mickey and Co over to the Arabian Gulf, and we could be in for one heck of a ride. n