Top Banner
Strategising Growth Hill International’s regional president for the Middle East, Mohammed Al Rais, talks about project management in the region and its way forward Understanding building information modelling, experts say, is key to expanding its use in the region Upgrading district cooling systems with the use of tri-generation which could help curb energy use by 75% Transport infrastructure development is worth billions in every country of the GCC APRIL 2015 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
64

Construction Business News ME - April 2015 issue

Jul 21, 2016

Download

Documents

BNC Publishing

This month's cover story follows Hill International’s new regional president for the Middle East, Mohammed Al Rais. He talks about the project management sector and how it could move forward in the region.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Construction Business News ME - April 2015 issue

StrategisingGrowth

Hill International’s regional president for the Middle East, Mohammed Al Rais, talks about project management in the region and its way forward

Understanding building information modelling, experts say, is key to expanding its use in the region

Upgrading district cooling systems with the use of tri-generation which could help curb energy use by 75%

Transport infrastructure development is worth billions in

every country of the GCC

APR

IL 2

015

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

Page 2: Construction Business News ME - April 2015 issue

OH

SAS

1800

1 ce

rtifi

edIS

O 9

001,

140

01 a

nd

130+

year

s of

pro

ject

exp

erie

nce

LEED

Pla

tinum

, LEE

D G

old

and

LEED

Silv

er C

apab

ility

End

to E

nd In

tegr

ated

Sol

utio

ns

Pioneering Engineering Construction since 1881

www.drakescull.com

700+Projects Delivered

For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.

Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

Page 3: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 3

14 StrategiSing growth

Hill international’s regional president for tHe Middle east talks about tHe project ManageMent

sector in tHe region and its way forward

24 SPECIAL FEATUREconstruction business news Me looks into

tHe regional trends for developing transport networks, including ports and airports

nEwS

AnALySIStHe effect of sHaMs dubai on solar power providers in tHe eMirate and possible opportunities for contractors and consultants

In ThE FIELdsdic sHowcases innovative designs, landscapes and arcHitecture at tHe upcoMing Hidd al saadiyat project

CommEnTandrew sibley writes about indoor air quality and its iMportance in building design and functionality

SUSTAInAbILITyceo of dc pro engineering speaks about upgrading tHe district cooling systeMs witH tri-generation and tHe use of renewables

“at tHe end of

tHe day, tHe client and

tHe project is tHe target, and acHieving quality on tHe project is tHe

Most iMportant tHing for us”

above: How tHe dubai seven-star Hotel works

8

18

30

34

36

CovER SToRy

24

9

MohaMMed al Rais

contents

Page 4: Construction Business News ME - April 2015 issue

construction business news me APriL 20154

S U B S C R I B E

C o n t R I B U t o R S

[email protected]

Managing Director

Walid [email protected]

Director Rabih Najm

[email protected]

Director Wissam Younane

[email protected]

Group Publishing DirectorDiarmuid O'Malley

[email protected]

Features Editor Lorraine Bangera

[email protected]

Business Development DirectorRabih Naderi

[email protected]

Sales ManagerElly Shirkhan

[email protected]

Marketing Executive Mark Anthony Monzon

PO Box 502511 Dubai, United Arab EmiratesP +971 4 4200 506 | F +971 4 4200 196

For all commercial enquiries related to Construction Business News ME contact

[email protected] T +971 55 339 5097All rights reserved © 2015.

Opinions expressed are solely those of the contributors.Construction Business News ME and all subsidiary

publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by

Construction Business News ME.No part of this magazine may be reproduced or

transmitted in any form or by any means without written permission of the publisher.

Printed by International Printing Press www.ippuae.com

Stuart Matthews Marlow McGuinness Ltd

architecture ConstruCtion Business news Me analyses the use of BiM in the region and why is it taking so long to Be eMBraCed By the industry

construction machineryindia’s latest “world truCk” enters the Middle eastern Market

commentCraig giBson writes aBout how the regional ConstruCtion industry often relies on the idea that good faith will proteCt it froM a ContraCtual devianCe

event previewthis Month we feature the longest running exhiBition in the uae –Middle east eleCtriCity

save the date

editor's pick

48

52

54

56

60

62

40 q&a

faizal e. kottikollon, ChairMan of kef holding on why offsite ConstruCtion is the future

44 project reviewthis Month we look at alila JaBal akhdar, reCently awarded as the first leed Certified proJeCt in oMan

48

18

CONTENTS

Page 5: Construction Business News ME - April 2015 issue

Porto Arabia TowersDoha, Qatar

b

©2014 Hill International, Inc.

Hill InternationalThe Global Leader in Managing Construction Risk

www.hillintl.com 1.800.283.4088www.hillintl.com

For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion.

Hill is also the leading construction claims firm in the world, having helped resolve problems on some of the most complex projects throughout the Middle East and around the world. To minimize risk and maximize results on your next project, turn to Hill International

Dubai Office: 971 4 227 0078Doha Office: 974 4 435 8381Corporate HQ: 800 283 4088

If you can imagine it, we can manage it.

Qatar National MuseumDoha, Qatar

Mall of QatarDoha, Qatar

Viva Bahriya TowersDoha, Qatar

Page 6: Construction Business News ME - April 2015 issue

construction business news me APriL 20156

Enabling EfficiEncy in thE MiddlE East

in PROcEss

This month Construction Business News ME concentrates on ways to derive the most ef-ficient solutions. Efficiency is a word used to describe a performance done in the best possible manner with the least waste of time and effort. In construction, as the industry progresses day by day, there are over a hun-dred ways to be more efficient.

Our cover story follows Hill Interna-tional’s new regional president for the Mid-dle East, Mohammed Al Rais. The regional manager talks about the project manage-ment sector and how it could move forward in the region. He talks about how knowl-edge transfer is key, training is unavoidable and how “giving back” leads to success.

We also speak with industry experts to crack the code about why the adoption of building information modelling (BIM) in the region is dawdling compared to the UK and the US. Experts emphasise that under-standing BIM is the first step, which is why this month we’ve looked into what BIM re-ally is and how applying it could change the way buildings function forever.

We also analyse the new solar initiative in the UAE, Shams Dubai, and how it will change the way firms work, now that re-newables are officially on the table. We look

at upcoming opportunities for contractors and consultants as the emirate will provide a new electricity feed-in tariff structure.

Our special feature covers transport infra-structure, which is key to building an effi-cient urban space. A report released by Ti-metric suggests that an estimated US$300 billion will be spent in transport in the GCC over the next five years. The invest-ment will surely derive opportunities for construction contractors and those in the project management and consultancy areas.

Keeping efficiency in mind, we also have a look at new trends to watch out for such as offsite construction. Working through offsite construction, not only requires less manpower but also takes almost half the time to complete any building project.

We also observe the adoption of LEED certification by US Green Building Coun-cil in GCC countries. Our site visits cover projects including Oman’s first LEED certi-fied building, Alila Jabal Akhdar Resort and SDIC’s Hidd Al Saadiyaat.

Finally, we discern the use of tri-genera-tion with renewable sources for cooling is much more efficient compared to district cooling which according to the CEO of DC Pro Engineering is “outdated.”

editor's note

Page 7: Construction Business News ME - April 2015 issue
Page 8: Construction Business News ME - April 2015 issue

construction business news me APriL 20158

Hansgrohe, a German bath-room specialist, showcased its latest range for kitchens and washbasin, Axor Citte-rio E and Axor Starck V at the ISH show organised by Messe Frankfurt this March.

“Our innovations for bath-rooms and kitchens give our customers genuine added value,” said Rich-ard Grohe, Deputy CEO of Hansgrohe SE. “After all, they make everyday life in kitchens and bathrooms easier and enable us to use water more efficiently. They intensify the water expe-rience and provide com-pletely new solutions in the field of shower design.”The Axor Citterio E is de-veloped by the designer brand of Hansgrohe SE in collaboration with Antonio Citterio. The Axor Starck V has a glass mixer featuring a visible water vortex and is more of a fountain than a faucet.

Nshama launched Zahra Townhouses, a residential community, in its flagship proj-ect, Town Square, in Dubai this March. Town Square is spread over 750 acres, with a central space spread out as far as 16 football fields. The Zahra Townhouses are the first residential phase in Town Square, and offer 3 to 4 bedroom houses. Nshama has joined hands with three lead-

ing financial institutions – Noor Bank, First Gulf Bank, ADIB – for home finance services.

Town Square will feature over 3,000 townhouses and 18,000 apartments as well as substantial retail, hospi-tality and commercial space. With a total area of 31 million square feet, it will have a high land-to-building ratio, thus opening up more spaces for a greener community.

Last month, Nakheel delivered 90 new villas at the Jumeirah Village Circle (JVC) in Dubai. The sell-out JVC villas project launched in December 2013 sold for a combined value of AED275 million. It consists of homes built in

a circular pattern at the heart of Na-kheel’s JVC master community. The vil-las are 3,655 square feet each consist-ing of four bedrooms with an extensive indoor and outdoor living space, includ-ing an expansive roof terrace. Other

Nakheel-constructed developments at JVC include 615 villas and townhouses, which were delivered in 2013, and the upcoming one million square feet Circle Mall, a new retail, dining and entertain-ment hub due for completion in 2017.

Hansgrohe showcasesnew products at ISH 2015

Nshama launches Zahra Townhouses

NEWS

Nakheeldelivers New villas at JvC

Model of Town Square

Nakheel Jumeirah Village Circle Villas

Axor Cit ter io E washbasin mixer

Page 9: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 9

Habtoor Leighton Specon and Drake & Scull Engineer-ing have announced their agreement to jointly deliver the AED395 million MEP contract on the Jewel of the Creek Package 8 complex. HLS has been nominated by Dubai International Real Estate (DIRE) as the MEP contractor of the project.The package forms a signifi-cant part of the AED 4 billion Jewel of the Creek project being developed by Dubai International Real Estate.

Construction work on Jewel of the Creek Package 8, a mixed-used development designed by Kling Consult

and Kieferle & Partner Joint Venture, has commenced and completion is targeted for Q2, 2017.

The marine and infrastructure works for AED1 billion Falcon Island development at Al Hamra Village in Ras Al Khaimah has been awarded to China Harbour Engineer-ing Company under the AED 150 million contract. The China Harbour Engineering Company will be responsible for landscaping private and public beaches, and power, sewage, and road networks. The work would also include a built central canal which will split the island into two. The marine features are said to be the main attraction of the island. The existing beaches at Al Hamra Village will also be enhanced as part of the contract.

China harbour wins contract for marine works

Oil price fluctuatiOns tO impact glObal real estate

HLS and DSE work together on Jewel of the Creek

HLS and DSE work together on Jewel of the CreekAccording to Tasweek Real

Estate Development & Marketing based in Abu Dhabi, there could be shifts in regional and global real estate activities as the oil price shifts, in the past six months barrel rates have been their lowest since the 2007-2008 financial crisis. After observing changes in the investor’s options, Tasweek says that main markets should prepare to adjust to the effects on property prices particularly the shifts in the housing and commercial sections.Masood Al Awar, CEO of Tasweek, said: “While price drops in oil and variations in currency rates are trig-gering a real estate frenzy in many parts of the world, key markets could face a reverse slump in business. The best strategy is to an-ticipate unfavourable mar-ket changes and broaden horizons especially towards high-potential regions and plan to adopt new smart products and services that can match and sustain mar-ket growth.”

Upcoming canal at Falcon Island

Jewel of the CreekMasood Al Awar, CEO of Tasweek

Page 10: Construction Business News ME - April 2015 issue

construction business news me APriL 201510

Last year, RAK Ceramics’ profits have risen by 14.1%, sharply at 338.3 million in 2014 over 281.7 million in the previous year. The

growth is a result of a new dividend policy adopted by the board of directors, who are now committed to return capital to share-holders. This sustainable policy aims at a pay-out ratio of at least 60% of consolidat-ed net income subject to consideration of the business outlook, capital requirements for growth opportunities, expansion plans, optimal leverage levels and healthy cash reserve in addition to regulatory approvals. Abdallah Massaad, CEO of RAK Ceramics, said: “Our financial performance in 2014 confirms the success of our re-focused strategy and ‘Value Creation Plan’. As we continue to invest in our ‘core-business’ activities across core markets, we expect to strengthen our ability to expand our cus-tomer base, significantly improve profitabil-ity and increase returns for our sharehold-ers. We have started seeing the benefits of

the ‘non-core business’ divestments and we have set a proactive strategy to strengthen our distribution network and energise our B2B sales, they currently contribute 35 – 40 % of our top line and we want to grow this to over 50%.”

UpWardprojEctIoN

raK ceramics predicts a strong year ahead with a net profit of aEd 281.7 million in 2014

Key highlights for the period•Overallrevenuein2014decreasedby6.4%toAED 3.28 billion.

•‘Corerevenues’decreasedby1.9%toAED 2.8 billionand‘non-corerevenues’decreasedby26.3%toAED 482.5 millioninlinewiththestrategytoscaledowncontractingoperations.

•Consolidatedgrossmar-ginwas25.9% for2014

•GrossProfitdecreasedby10%toAED 809 mil-lion duetotheperfor-manceofChina,SudanandIran.

•FinanceExpenditure(ex-cludingforex),decreasedby24.5%toAED 67.9 million.

NEWS

Abdallah Massaad, CEO of RAK Ceramics

Page 11: Construction Business News ME - April 2015 issue

Last month, Morocco began the US$30 million regeneration of its historic Old Medina in Casablanca. The project is part of Wessal Capital’s $570 million Casa-Port project to help restore the city. The restoration of Old Medina is the second phase of the project, with

work on the port redevelopment starting mid-March. When completed, Wessal's Casa-Port will offer tourist-friendly in-frastructure, including the development of the city’s first marina, an upgraded port, and new commercial and cultural spaces. The public-private partner-

ship is due for completion in five years. The project reflects His Majesty the King Mohammed VI’s personal interest in the social and economic development of Casablanca, as well as the improve-ment of the standard of living of the city’s inhabitants.

restOratiOn wOrks at casablanca

MADE IN UAEwww.intermetal.com www.verdadoors.com

Dubai, UAE Tel: +971 4 884 1650 Email: [email protected]

MANUFACTURING QUALITY DOORS, KITCHENS & INTERIOR FIT-OUT

Wessal Capital's Casa-Port project

Page 12: Construction Business News ME - April 2015 issue

construction business news me APriL 201512

This year marks the 12th edition of Project Qatar, held from May 4 to 7 at the Qatar National Convention Cen-tre (QNCC). Well ahead of the 2014's exhibition, 19 pavilions have already been confirmed, with 34 previously participating countries returning to this year’s exhibition. Firas Bin Abdul Aziz Aba Al-Khail,

Marketing and Corporate Communi-cations Director at the Saudi Export Development Authority (SEDA) , con-firmed that authority’s participation in the event, highlighting how solid and big the GCC market is for Saudi building and construction products. The Saudi Pavilion will see 46 par-ticipating national factories.

The Middle East Covering exhibition, held in May 18-21 will feature the Surface Design School. Sponsored by Interface Europe, Kare-lia and Woodfloors, the three-day Surface Design School will provide an edu-cational platform allowing interior designers, archi-tects, retailers, flooring experts and contractors to get the most up-to-date information on surface solutions and techniques. Regional and internation-ally-renowned experts will share their insights and facilitate the exchange of ideas on surface covering, interior design and new in-dustry trends.

“The projects currently un-der construction will add an approximate 30,000km of rail across the Arab World, that's nearly five times the length of The Great Wall of China," said Mark Loader, CH2M HILL's Global Rail

Director. He also said that the Middle East is one of the fastest growing rail mar-kets in the world. CH2M Hill presented its urban metros, freight railways and high speed rail systems at this year’s Middle East Rail. The

exhibition also showcased the company's technical depth, global perspective, local understanding, and delivery expertise through a 360° visualisation of iconic infrastructure projects from around the world.

Middle east Covering to organise 3-day design sChool

Project Qatar 2015 to feature over 30 pavillions

CH2M Hill sHowCases work at Me rail

Nakheel Jumeirah Village Circle Villas

NEWS

Project Qatar 2014

Page 13: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 13

Real estate consultancy, Clut-tons, announced this March that Dragon City, the new 115,000 square metre mall under construction in Bahrain, has already pre-let more than 60% of space. Appointed by Chinamex, Chinese trad-ing company, Cluttons is the

official leasing agent of the multi-million dollar retail proj-ect. The mall design is infused with Chinese architectural and cultural aspects and will incorporate 750 retail store units with 4,500 square me-tres designated for ware-house space.

GCC projects account for more than a fifth of the global natu-ral stone market, with US$5 billion out of the total of $24 bil-lion globally. Stone products account for approximately 15% of the total value of a construction project. Mark Goodchild, Event Director of Middle East Stone said it is the perfect time to launch a show dedicated to the stone industry. The event, ME Stone, will run from the May 18 to 21 at the Dubai World

Trade Centre this year. He said: “The growing number of peo-ple wanting to live, work and visit the UAE, Qatar and Saudi Arabia, has been a huge driver for the construction industry’s robust performance. There will be hundreds of hotels, new residential buildings and commercial spaces to be built over the next few years. As such, the massive demand for natural and artificial stones cannot be ignored.”

stone products to be showcased this May

Majority of retail space leased at Dragon City

GE announced a US$100 million investment in new programmes in KSA that will help create jobs in ad-vanced manufacturing and software analytics. The new research and manu-facturing programmes are set to improve energy ef-ficiency and sustainability efforts of the country. The programmes include a 'Hot & Harsh' global research & development programme,

which will study the effect of high temperature, dust, corrosion, erosion, duty cycle, and fuel harshness which have a critical im-pact on the reliability and efficiency of power plants. This R&D programme will design gas turbine and auxiliaries components for testing at a simulated 'hot and harsh' environment at GE Manufacturing Tech-nology Center.

Dragon City, Bahrain

GE laUNcHES NEW proGrammES IN KSa

Marble entrance of Emirates Palace

Page 14: Construction Business News ME - April 2015 issue

construction business news me APriL 201514

Hill International’s regional president for the Middle East Mohammed Al Rais talks to Aby Sam Thomas about the project management sector in the region, and its way forward in what is now a booming construction market

StrategiSinggrowth

COVER STORY

construction business news me APriL 201514

Page 15: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 15

With more than 35 years of

experience in the man-agement of construction projects

around the world, Mohammed Al Rais looks to be extremely well placed in his role as re-

gional president for the Middle East for the New York Stock Exchange-listed construction consultancy, Hill International. Al Rais

was appointed to this position in January this year (he was earlier the Senior Vice President and Managing Director for the firm), and to say that he has a lot

on his plate right now might be a bit of an understate-ment, given the dynamics of the region he oversees. “The Middle East is the biggest region for Hill Inter-national, both numbers-wise and revenue-wise,” Al Rais explains. “We are doing something in the region of, I think, 62 projects today, with value worth about US$82 billion of construction costs.” Given the amount of work the company is dealing with right now, it should then come as no surprise that Hill International has been on a recruitment spree of sorts as well — Al Rais says the company has been hiring an average of 70 people per month for the region, with the total number of employees it has in the Arabian Peninsula reaching 1800 now.

Now, if Hill International’s regional staff numbers sound impressive, wait till you hear about the proj-ects it has under its belt — the company’s current portfolio includes several prestigious undertakings like the Midfield Terminal Complex at the Abu Dhabi International Airport in the UAE, the expan-sion and modernisation of the Salalah and Muscat airports in Oman, the 57-acre Jabal Omar develop-ment in Saudi Arabia, the Doha Metro Green Line in Qatar and a lot, lot more. In addition, Hill Interna-tional is also enjoying renewals and repeat projects from many of its existing customers – for instance, in February this year, the company announced that it had received three new project management and site supervision contracts from the Civil Projects Division of one of its long-term clients, Abu Dhabi National Oil Company, which were estimated to be worth a total of $25 million. As far as Al Rais is concerned, such happenings are indicative of Hill International’s expertise in the sector: “I think that is the evidence of the success of our services, the quality of services we provide, and so on, where people come and keep us onboard for longer and longer.”

When asked about the reasons why Hill Interna-tional has been able to succeed in the market, Al Rais pointed to the singular focus the company had on the field of project management, and as a result,

construction business news me APriL 2015 15

Page 16: Construction Business News ME - April 2015 issue

construction business news me APriL 201516

AnAlYSiS

winning — and retaining — projects in the region. “We understand the culture in this market,” Al Rais says. “I think that is critical. People cannot expect to come from the West or the Far East and expect the Middle East to behave like they do- it’s the reverse that is actually expected. You’re coming here to do business, so you need to understand the locality, the culture, so on and so forth — and we do, big time.” In addition, Al Rais also drew attention to the way Hill International actually did business with clients in the Middle East. “Al-though we are a public company on the

its particular expertise in that field. “At the end of the day, we are specialised in project and construction management, because we have the systems, we have done our own procedures, we have done our own QA/QCs, and so on — so we have all our processes in place,” he explains. “The people we put in at the start of a project — they bring in the system, the Hill processes, and then ex-plain these to the consultants or contrac-tors, who are then expected to follow [the procedures]. Because standardisa-tion for us is critical — so everybody understands how to talk to everybody else, who’s responsible for what, and so on, and that will basically delete a lot of the ambiguity that normally takes place in projects. This is one of the differences that we bring in- we have those [sys-tems] in place, and we make them work for the project, but based on the client. And I think this is why we have been so successful in this area to this level.”

Al Rais also noted that having had a presence in the Arab world for over 25 years is also a significant advantage for Hill International when it comes to

Nakheel Jumeirah Village Circle Villas

“People cannot expect to come from the West or the Far East and expect the Middle East to behave like they do – it’s the reverse that is actually expected.”

Mohammed Al Rais, Regional President for the Middle East, Hill International

Palm Jumeirah

COVER STORY

Page 17: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 17

NYSE, we have a very simplistic format of moving,” he explains. “So decisions are made very quickly, because of the amount of authority and responsibility we have and send down the line. This quick response [format] that we have set up [in the company], and given to all of our clients makes a huge difference, because people expect swift answers in this market.”

Al Rais is also extremely keen on en-

At the same time, the construction sector in the region is booming, and the sheer deluge of projects being an-nounced (and already being worked on) here has caused Hill International to also consider alliances with fellow compa-nies in the project management field to take on this load. “Projects are becoming much bigger, much more complex,” Al Rais says. “There is so much going on that you will reach a stage where [for] certain projects, you’ll have to partner with reputables. So what we do is we actually seek these relationships with companies similar to us, if not better than us — because, at the end of the day, the project is the most important thing, and if we can achieve a relation-ship with other consultants that allows us to actually provide the service with the support of others, then we shall — we don’t shy away from that. We don’t have a problem with that. At the end of the day, the client and the project is the target, and achieving quality on the project is the most important thing for us.”

couraging the understanding of project management in the region, and increas-ing local participation in the field. Hill International, for its part, has launched training programmes in Saudi Arabia and Oman, and Al Rais reports that the resounding interest these initiatives have seen have spurred the company to increase its offerings in this particular area. “Knowledge transfer is critical — but it’s not just hiring people for the sake of meeting quotas,” he says. “It’s an issue of training people… Project management firms in the area are not giving back to their localities as much as they should. I think there should be a lot more done, us included. We should give back more to the areas we are working in — this is income, this is revenue, and I think we should give some of this back to the local people through training, educa-tion, bringing people on board… We’ve started this in Saudi Arabia, we’re starting it now in Muscat — but I think we are lagging behind, and we need to do a lot more. Having said that, I think we’re do-ing a lot more than a lot of others.”

Projects OverviewA few of Hill International’s past and current projects in the Middle East:•Sheikh Zayed Bin Sultan Al Nahyan Mosque, Abu Dhabi, UAE•The Palm Jumeirah, Dubai, UAE•Jabal Omar Development, Makkah, Saudi Arabia•Pearl Qatar Development•Bahrain International Airport•Abu Dhabi International Airport Midfield Terminal Complex, UAE•Muscat International Airport, Oman•Salalah Airport, Oman•Mall of Qatar•Riyadh Metro, Saudi Arabia•Doha Metro Green Line, Qatar

Source: www.hillintl.com

Sheikh Zayed Mosque

Abu Dhabi International Airport

Page 18: Construction Business News ME - April 2015 issue

construction business news me APriL 201518

Bright future for solar providers

A new electricity feed-in tariff structure in Dubai has signalled changes to the way

that firms may power their business premises, with

renewable energy sources now a viable option. Alison

Luke examines how the Shams Dubai initiative will

affect solar power providers in the Emirate and asks what

opportunities may arise for contractors and consultants?

Bright future for solar providers

ANALYSIS

construction business news me APriL 201518

Page 19: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 19

Bright future for solar providers T

he potential for solar power application in Dubai has risen dra-matically following the implementation of a new initiative by Dubai Elec-

tricity and Water Authority (DEWA). Announced in mid-March, the Shams Dubai initiative will regulate the gen-eration of solar energy in individual buildings and enable their connection to the DEWA grid.

In essence, the initiative encourages businesses and consumers to install pho-tovoltaic (PV) panels on their premises to generate electrical power for their use onsite, then ‘sell’ any excess power back to the grid. This offers two positive outcomes: a shift from demand on elec-tricity produced by traditional energy resources; and financial savings for the

participating end-users. “DEWA is introducing a net-metering

legislation, which has two parts,” ex-plains Erik Voldner, executive director of operations at PV system integrator En-viromena. “The first part will allow users to feed electricity into the DEWA grid; the second will credit the end-user with energy, so it essentially allows them to reduce electricity bills.”

The move aims to increase the use of renewable energy resources and diversify the energy supply chain in the emirate. This follows the targets of Dubai Plan 2021 and the Dubai Integrated Energy Strategy 2030 to raise renewable energy use in the emirate’s energy mix to 7% by 2020 and 15% by 2030. But how will the initiative operate in practice and how will it affect the cur-rent MEP providers?

PV aPPlicationAlthough improved technology and a significant drop in the cost of PV panels are making such systems financially vi-able, they may not be cost-effective for all projects. This will be reflected in the initial implementation of Shams Dubai.

One of the main factors to consider is the available space for the panels on a project. Brian Dryburgh of MEP consultancy Black & White Engineer-ing explains: “To make any signifi-cant impact on your bills, you need a relatively big area to install panels, so large industrial units or warehouse roofs immediately spring to mind as being the most feasible buildings to accommodate large areas of panels.”

Thus, the legislation may not affect skyscraper design in the short-term due to the smaller roof space available, for

Bright future for solar providers

construction business news me APriL 2015 19

Page 20: Construction Business News ME - April 2015 issue

construction business news me APriL 201520

ANALYSIS

Enviromena – Mamoura Parking

Enerwhere - Remraam 5 - solar field helicopter view

ANALYSIS

plant needed, but the first people to use PV will be the large electricity users,” Voldner predicts.

“We expect a lot of interest from the free zones, where a lot of roofs are large and south-facing,” adds Daniel Zywietz, CEO of solar power provider Ener-where. “[We will] market initially at this industrial sector because the economics work out. The economics of installing a small villa system are not there, at least not for those looking for a fast invest-ment return,” states Zywietz.

GettinG ready for installationWith the expected surge in applications for PV installations, a large market of work is set to emerge. But which firms can undertake this work and what quali-fications are required?

With a limited number of specialist solar firms in the emirate, one of the obvious answers to this is the MEP

professionals. “There certainly appear to be diversification opportunities

for MEP engineers towards the specialisation in the field where the solar panels are contained upon the building,” says Dryburgh.

“The design and feasibility of solar panels is not as overly complex as to merit separate specialist consultants,” he says. “Many MEP consultants and/or architects, I'm sure, are capable of ensur-ing that the necessary requirements are included in the building design, but I cer-tainly would expect to see manufacturers and specialist installers involved in the final design and installation,” he stresses.

In order for a firm to design or install PV systems under Shams Dubai they must meet a number of criteria. Firstly, firms must be enrolled with DEWA as an electrical consultant or contractor, hav-ing qualified to hold the relevant trade licences. These firms must also employ a certain number of employees that have been certified as ‘solar PV experts’ by DEWA. To gain ‘expert’ status, indi-viduals must hold a degree in electrical or electrical and electronics engineering and have relevant professional experi-ence. In addition, all of these individuals must also have completed the DEWA Solar PV Certification Training Session.

“The first certification training took place in March and the first systems are expected to be connected in the next month or two,” says Zywietz.

example. Plus, the largely expatriate nature of Dubai’s population may have an effect on the initial uptake from the domestic market, with new, large-scale developments expected as more likely to include the scheme rather than indi-vidual end-users.

“[Shams Dubai] has been set up so that it is open for everyone, but those that will gain the greatest economic benefits will be the large power us-ers such as industrial sites, malls and schools,” agrees Voldner. “The econom-ics [of an individual project] will depend on a lot of factors such as the size of

Nakheel Jumeirah Village Circle Villas

“A PV system] typically costs AED5000/kW, so if you have a 500kW system it will cost AED2.5 million to install and produce about 800,000kW/yr, so can save around AED350-400,000/yr.”

– Daniel Zywietz

Top: Enviromena - ADDC Panorama1

Left: Enviromena – Mamoura Parking

Below: Enerwhere - Remraam 5 - solar field helicopter view

Page 21: Construction Business News ME - April 2015 issue

02 - 04 March 2015

Page 22: Construction Business News ME - April 2015 issue

construction business news me APriL 201522

“DEWA has qualified the first round of suppliers and is in the process of quali-fying consultants and contractors,” adds Voldner. “A lot of firms are interested in completing the training courses and we expect this to grow each time that there is an opportunity.”

The initial training courses have been provided free of charge and are being sought by MEP contractors seeking to diversify their trade, as well as existing solar integrators.

“The programme is open to everyone as long as they meet the qualification criteria,” explains Voldner. “This will generate a lot of interest from three main areas: existing pv installers in the Emirates; PV installers from overseas; and local companies [such as MEP con-tractors] moving into the solar industry,” he predicts.

In addition to the installation of the systems, a further market will be system maintenance and many within the industry expect this to be the main area targeted by traditional electrical and MEP contractors, at least in the short-term.

Maintenance costs of PV systems are also minimal, with no moving parts in the panels and improved technology meaning there is no dramatic drop in power supply even in a sandstorm. “It is a proven technology and proven in the region, so any concerns over climac-tic conditions or dust are manageable

and predictable,” assures Voldner. A scheduled weekly or fortnightly cleaning programme should be applied in addi-tion to regular plant checks, providing a long-term work opportunity for DEWA-approved contractors.

cost issuesCurrent costs of both PV technology and grid electricity make this an optimal time for applying solar power. “[Solar power] is a reliable electrical source with decreasing costs: the capital costs of PV panels dropped by 80% over the past 5-6 years, so costs are now in competi-tion with other electrical sources,” says Voldner. “This is why DEWA has intro-duced a net metering scheme now; it is the right time from both technology and cost points of view.”

In general, the larger the PV system installed, the lower the payback period. For optimal payback, systems should be designed to cut into the red tariff usage of end-users, which is currently 44.5fils per kWh.

“At that price a solar system can have a payback period of seven to eight years,” says Zywietz. “[A PV system] typi-cally costs AED5000 per kW, so if you have a 500kW system it will cost AED2.5 million to install and produce about 800,000kW per yr, so can save around AED350-400,000 per yr,” explains Zywi-etz. “A payback of six to seven years is possible on this depending on a number of factors including the orientation of the roof, but consumers must also account for maintenance costs [when calculating payback],” he stresses.

DEWA will charge a one-off fee of AED1,500 for each grid-connected

“This will change the market from one with little

installed capacity to being one of

the main regional leaders in PV

electricity supply.”– Erik Voldner

ANALYSIS

Enviromena senior management team, Eric Voldner is on the lhs with blue tie

Page 23: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 23

Software for facilities, property & maintenance management

Understanding your requirements

T: +971 (0)4 449 5380 E: [email protected] W: www.fsime.ae

Asset, helpdesk, maintenance & facilities software Single User to enterprise scalability Onsite or fully hosted Accessible anywhere

Cross-platform mobility for smart phones & tablets

Standalone or integrated with Concept Evolution

Innovative FM Technology for Smart Buildings

FSI ME Half page ad March 2015.indd 1 17/03/2015 09:10

renewable generator as part of the connection process. Further equipment costs are possible for installations of 400kW and above to ensure the proper integration of the renewable generator into the DEWA distribution network. Two meters will be needed - a bi-directional smart meter that measures the electricity exported to and imported from grid will be installed free by

DEWA; the second meter, which will measure the electricity generated by the PV system, forms part of the one-off connection fees.

lonG-term market outlook The Shams Dubai initiative will un-doubtedly play a major role in Dubai’s future energy use. The government wants to expand the use of solar energy

and to do that alone by solar fields would require a lot of space that could be used for other developments, hence it appears to be a wise decision to offer this solution.

“[Shams Dubai] is part of the inte-grated plan to increase the renewable energy capacity of Dubai,” reports Vold-ner. “This will change the market from one with little installed capacity to being one of the main regional leaders in PV electricity supply,” Voldner predicts.

The first project to be announced under the initiative is the installation of PVs at Al Maktoum International Airport in collaboration with Dubai Airports to supply 30kW of electricity to the site.

Enerwhere - SAV Phase 2 setup 1

Page 24: Construction Business News ME - April 2015 issue

construction business news me APriL 201524

moveTransport infrastructure development is worth billions in every country of the GCC.Stuart Matthews writes

Page 25: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 25

move

View over the br idges at Dubai Internet Cit y

Page 26: Construction Business News ME - April 2015 issue

construction business news me APriL 201526

Transport infrastructure is at the heart of any urban development, with mobility of goods, services and people essential to oil the wheels of the economy. It’s no surprise then that the last decade has seen the nations that make up the

GCC invest billions in building a transport network that rivals any in the world.

Figures for the combined value of investment still to come are hard to pin down, but regardless of their variety they all have size in common. A report released late last year by Timetric, a research analyst, suggested the GCC is likely to invest US$121.3 billion in boosting its land transport infrastruc-ture alone.

Those with a head for numbers can add to this figures for air-port developments around the Middle East –something research firm Ventures estimates at $300 billion worth of spending over the next five years –all aimed at accommodating GCC passenger numbers which are expected to reach almost 4 billion by 2017.

With this money set to go into transport infrastructure, opportunities for construction contractors and those in the project management and consultancy areas are likely to continue. Investing in projects of this scale is not without risk, but in some local markets this risk shows signs of declining. In its most recent update to its Construction Risk Index, a global ranking of 50 key construction markets, Timetric noted that the UAE had improved in its overall risk profile, despite the decline in oil prices, thanks to what the analysts described as ‘fiscal buffers’ supporting non-oil growth, while efforts at economic diversification in the country continue.

When Dubai published its 2015 budget the figures showed that while infrastructure spending would slow compared to 2014, it still counted for some 13% of the emirate’s total expected outlay. Across the UAE public transport programmes have continued to attract investment. This shift has devel-oped, not least because it had to. Abu Dhabi’s Department of Transport (DoT) estimated that by 2015, the annual cost of

SPECIAL FEATURE

View over the br idges at Dubai Internet Cit y

Monorail station on a man-made island Palm Jumeirah in Dubai

Page 27: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 27

time spent in congested traffic would be about $680m, rising to $1.6 billion by 2030.

While major roadwork programmes had eased access into and out of the capital, the relief would be temporary if other solutions weren’t put in place, and population and vehicle numbers just kept growing. DoT has a stated target of getting 33% of all trips taken in the city to be conducted via public transport.

The development of multimodal transportation is a pattern repeated around the region, where road and bridge building is combining with primarily rail options to ease congestion in increasingly crowded cities.

“We saw some positive momentum towards the launching of the rail network creation activities in our region in 2014,” says Khaldoun Al Tabari, CEO and vice-chairman of Drake & Scull International (DSI), speaking on the sidelines of the Middle East Rail Summit.

“Regional governments have recognised that rising popu-lations have exerted pressure on existing road infrastruc-

ture, and only a dedicated rail and metro network can ensure swift and efficient transport of people and goods.

“According to an Ashurst study in November 2014, the GCC Rail alone is expected to span 2100km in length, with the UAE and KSA constituting the bulk of the rail network. However, the recent un-certainty regarding the 2018 launch target for the ambitious GCC rail has tempered the regional industry’s expectations to realistic levels.”

Tabari points to examples of potential development around the region such as Saudi Arabia, where the Saudi Railways Commission is developing the $5.3 billion Saudi Railway Company Line, the Land-bridge project, the $7 billion Haramain High Speed Rail and the $15 billion Makkah Mass Rail Transit project, among others. In Qatar estimates of the spend on the Qatar Inte-grated Rail programme are in region of $40 billion, with the Doha Metro being a crucial component in the country’s hosting of the 2022 FIFA World Cup.

Massive programmes such as this could develop into a peak for regional construc-tion between now and 2019, according to consultants EC Harris. In it’s Middle East Major Construction Programmes report, it estimated that 1.2 million additional labourers will be needed to deliver the 117 major programmes it identified from 2014 to 2019. These major programmes - anything worth more than $1 billion - will also need 135,000 professional staff at peak. Some 22% of these programmes

Riyadh, Riyadh MetroWith a total project budget of some $22.5 billion the Riyadh Metro drew global attention when the contract awards were first announced back in 2013. With the projects six lines split into three packages, three separate consortia all won work, spreading the risk for the project’s developers. The BACS consor-tium led by Bechtel and including Almabani General Contractors, Consolidated Contractors Company and Siemens is to design and build lines 1 and 2, total-ling 63·3 km. The ArRiyadh New Mobility consortium won the design and build of Line 3, the longest at 40·7 km. The FAST consortium led by Spanish construction group FCC and including Samsung C&T, Alstom, Strukton, Freys-sinet Saudi Arabia, Typsa and Setec is to build lines 4, 5 and 6 covering a total of 64.6km. As work on the project progresses, smaller specialist packages continue to be awarded.

Abu Dhabi, Midfield Terminal BuildingIt was one of the UAE’s most anticipated contract awards. Thirteen con-tractors across four consortia were in the running but it was the Arabtec-TAV-CCC partnership that was to emerge the winner, signing a $2.94 billion deal to build the Midfield Terminal Building at Abu Dhabi Airport. Since the signing progress has been scrupulously documented, with the building due to be ready for airline operations in July 2017. The landmark project is progressing on schedule, according to Abu Dhabi Airports, a public joint-stock company, wholly owned by the Abu Dhabi Government, with five airports under its control.

Doha, New Port ProjectJust south of Doha, the Qatari capital’s new $7.4 billion port project, one of the largest greenfield port projects in the world, is being dug, walled, levelled and prepared for operation. The new port, which is to include a new base for the Qatar Emiri Naval Forces and the Qatar Economic Zone 3, will span 26.5 km2 and is expected to be complete in 2016. With seven major contractors undertaking construction work on site, and a workforce knocking around 9,000 people the most recent milestone was the flooding of the port basin. Approxi-mately 76 million m³ of water is required to fill both the port basin and access channel, all of which was scheduled for completion by the end of March 2015. A major contract award is expected in the second quarter of 2015, with work on the construction of all the buildings for the naval base up for grabs, a total of some 225 buildings.

Muscat, Al Batinah ExpresswayCredited with having one of the most transparent tender processes in the region Oman has some $56 billion worth of infrastructure projects planned between now and 2017, including the high profile Al Batinah Expressway. The ambitious roading project is split into 11 separate packages, with six already awarded. Packages 7 to 10 are currently under offer with up to a dozen differ-ent contractors in the running for the main construction work. The Al Batinah Expressway will stretch over 265km and has been estimated at $2.6 billion. When finally complete it will provide a direct link between Oman’s capital, Muscat, and the emerging Sohar Port and industrial area near the UAE border.

HOT SPOTS

Page 28: Construction Business News ME - April 2015 issue

construction business news me APriL 201528

fall into the transport sector and again, metro and rail programmes are the leading area identified.

With these pressures come risks. For instance, EC Harris suggests that securing a suitably skilled workforce to build and then test the rail network in Qatar is seen as a major challenge to delivering on the country’s $36 billion rail plans. Other risks around the region include the return of inflation as procure-ment for the projects starts to heat up.

This may translate into some welcome news for the region’s construction suppliers, who are starting to see some of these major programmes reach mobilisation stage.

“At the moment Qatar is very active in the transport sector, in terms of bridge works and freeway construction, with the added opportunities rising out of the Doha Metro project coming on stream as well, in terms of mobilisation,” says Paul Williams, divisional operations director, for RMD Kwikform, a formwork company.

“Equally in Saudi Arabia we have a lot of involvement in bridge and airport projects, but the bigger prospect looking forward and including recently secured work is on the Riyadh Metro. That’s a massive project and we’re hopeful for much more work on it yet.”

The company also has formwork in place on the Abu Dha-bi’s Midfield Terminal Building project as well as a number of recently secured bridge work contracts in Dubai, which Wil-liams describes as an ‘improving market’ for RMD Kwikform. With nearly half of the company’s revenues in the region coming from transport-related work, the business works hard to deliver on its projects.

“The Riyadh Metro is such a huge development we es-tablished an independent team to track the work, so that an extra resource added to run a project of that size,” explains Williams.

Williams says that this is something the company does on the larger projects it services, which also bring with them a need for ideas and innovation.

“They require innovation in the design process and the equipment we use and supply to these jobs,” he says. “This is both for efficiency and getting the right end result in terms of concrete finish, programme times and safety.”

It will take many providers throughout the construction sup-ply chain, who can deploy similar levels of skill and resource, to complete the region’s transport projects to schedule. Those that can manage it, may find it a lucrative line of business.

“Regional governments have recognised that rising populations have exerted

pressure on existing road infrastructure, and only a dedicated rail and metro

network can ensure swift and efficient transport of people and goods.”

– Khaldoun Al Tabari, CEO & Vice Chairman of DSI

Riyadh Metro

A Road in the Omani mountains

A tunnel on Kalba - Sharjah highway, UAE

Riyadh-Mecca highway in Saudi Arabia

SPECIAL FEATURE

Page 29: Construction Business News ME - April 2015 issue

Construction Business News ME ER Secure 203x273 E.indd 1 3/25/15 11:55 AM

Page 30: Construction Business News ME - April 2015 issue

Along the coast

Saadiyat Development and Investment Company showcases innovative designs, landscapes and architecture at the upcoming Hidd Al Saadiyat development

IN THE FIELD

Along the

coast

Mock villa at Hidd Al Saadiyat

Page 31: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 31

Last month, Saadiyat Develop-ment and Investment Company (SDIC) showcased its first villas at the Hidd Al Saadiyat devel-

opment, a 1.5 million square metres of natural waterfront land on the north-east part of the Island. The Abu Dhabi-based real estate de-velopment started infrastructure work on Hidd Al Saadiyat in October 2012 and the construction of the villas for the community in July of 2013, the first villas are now available for viewing by its cli-ents and potential buyers. The commu-nity is also covered with seven kilome-tres of beaches on Saadiyat Island.

The villas combine contemporary, Mediterranean and modern Arabic architecture designed to complement the spectacular beachfront location and surrounding landscapes.

The area will be inhabited by 4,000 people with 453 villas and 15 low-rise

apartment buildings. The estimated demographics of the residents would be 60% local Emiratis and 40% expats.

Mahmoud Dandashi, Commercial Director at SDIC says: “The management highly appreciates the support of Abu Dhabi Urban Planning Council, Abu Dhabi Municipality and all government authorities in turning this vision into a reality. Project success is the result of SDIC’s pursuit for service excellence with a mission to deliver the most healthy and sustainable lifestyle, in line with Abu Dhabi’s 2030 plan.”

The private beach is conveniently accessible from all areas throughout the development and will be reachable through a three-minute walk from any villa in the community. The coastal dune habitat adds value to the entire project with a potential turtle-nesting area. The island is organically developed with vegetation that is native to the area,

LaNDscaPE

• The landscape includes interconnected park spaces featuring fitness trails, cycle and walking paths, children’s play areas, open lawn spaces and shaded seating areas.

• Key aspects of the open space have been designed for water conservation, plant-ing design species selection, material selections for solar reflection (SRI values), shad-ing of walkways, seating areas and children’s play areas.

• 90% plant species that are native and adaptive, drought or saline tolerant species

Aerial view of the construction at Hidd Al Saadiyat

Page 32: Construction Business News ME - April 2015 issue

construction business news me APriL 201532

IN THE FIELD

porting and security, energy consumption, video, unified billion integration, climate, and real time monitoring.

The buildings are designed specifical-ly to respond to climatic conditions and minimise energy demand for cooling. In addition, majority of buildings align north-west to south-east to accommo-date local climatic conditions.

The construction includes optimal opportunities for water, energy and solid waste reduction for buildings along with the use of efficient fixtures and fittings. SDIC has also made a pro-vision to use solar energy for hot water in the entire development.

Apart from the villas, the area is being designed and landscaped to prioritise pedestrian and bicycle connectivity, and walkability through linear parks. The public areas are provided with shading through shading structures. “Even the walk to the beach is convenient and accessible”, says Dandashi. The natural systems management of landscape design is done through relevant plant selection, avoidance of pesticide use and efficient irrigation systems to ultimately reduce water demand for irrigation. Even the use of native vegetation was appropriately executed to reduce water use. The community will also include a solid waste management strategy in-cluded in its infrastructure that includes provision for recycling facilities.

The villas include a home automation system from UT Technology to provide potential residents with the experience and convenience to manage and control the different automation systems at home from a variety of interfaces. UT Technology home automation fulfills the Estidama initiative of supporting the Abu Dhabi Urban Planning vision 2030 for energy efficiency and green buildings.

The home automation includes a light-ing, community portal, audio, curtains, re-

requiring minimal water and is aligned with the overall natural system manage-ment of the development.

The villas and low rise residential buildings are designed to respond and adapt to climatic conditions, utilising active and passive design principles, thus minimising the need for cooling and reducing energy demands. In addition the lighting of the buildings, streets and public areas will feature control mechanisms that minimise overall light spill and limit impact on the natural beachfront. The project was awarded the Estidama Pearl 2 rating for compliance with Abu Dhabi’s sustainability standards for new projects. Dandashi says: "Achieving the Estidama rating is particularly special to us as it adds to our value and validates our sustainability credentials." Craig Slingerland, Project Director at SDIC, says that the systems installed in the villas are smart systems, which adjust temperatures, fan speed, etc. via Ipads. “It also tells you your consump-tion enabling you as a customer to be more aware of your usage.”

This March, SDIC has successfully managed the complete 78% of the infra-structure and 40% of the villa construc-tion. The construction is still in progress and the project is due for completion at the end of 2016.

“Achieving the Estidama rating is particularly

special to us as it adds to our value

and validates our sustainability

credentials.” – Mahmoud Dandashi, commercial

Director at sDIc

Miniature mock-up community of Hidd Al Saadiyat

Page 33: Construction Business News ME - April 2015 issue
Page 34: Construction Business News ME - April 2015 issue

construction business news me APriL 201534

While air pollution and ozone layer depletion are being tackled at the highest levels of government, the issue of indoor air pollution is still languishing behind the times when it comes to office and building design and functionality. Andrew Sibley writes

Working in an enclosed space without any fresh air for up to eight hours or more, may sound

like a nightmare, but for many white collar workers, it’s simply a typical day at the office.

The American Society of Heating, Refrigerating, and Air Conditioning En-gineers recommends that office building ventilation systems pump in 20 cubic feet of fresh air per minute per person, but in reality, a mere five cubic feet is the average.

A report from the World Health Organ-isation (WHO) stated that a total of 3.3 million people died globally in 2012 from

indoor air pollution, and with the majority of us spending 90% of our time inside – especially in the Middle East region – the ergonomics of our environment are vital for our personal wellbeing.

According to the US’ Environmental Protection Agency, the number of ‘sick building syndrome’ cases being re-ported is on the increase, with one in every four buildings officially classified as unhealthy. The resulting knock-on effect of employees suffering building-related illnesses, costs companies and economies, billions each year in lost productivity. In fact researchers found the financial benefits of improv-ing office climates (e.g. less absence due to illness) can be 8 to 17 times

greater than the costs of making those improvements.

A study authored by William Fisk of California’s Lawrence Berkeley Na-tional Laboratory, revealed that improved indoor air quality can actually boost productivity, with a half-percent increase to 5% resulting in estimated savings of US$20-200 billion per year in the US, and this is why we specifically engineered the patented Desso AirMaster carpet range.

Investment into R&D is non-negotia-ble when it comes to developing prod-ucts that we are confident will deliver on quality - both in terms of customer satisfaction and, ultimately, positive long term health implications.

The consequences of our unassuaged fondness for a hi-tech, high-rise 21st century way of life mean that sick building syndrome is not set to change anytime sooner, but with sustainable floor to ceil-ing solutions becoming ever more readily available, The Office saga may just have a happy – and healthy - ending.

Andrew Sibley is the Regional Manag-ing Director of Emerging Markets at Desso. His all-encompassing role ensures continuity of delivering quality products with health, wellness and wellbeing at the forefront of his vision.

Breaking the cycle of poor indoor quality

Desso’s AirMaster carpet

COMMENT

Page 35: Construction Business News ME - April 2015 issue

THE NEW GATEWAYTO THE GULF

seabury report

Sohar-Andre-EntrepreneurME-203X273mm-Eng.pdf 1 9/9/14 10:08 AM

Page 36: Construction Business News ME - April 2015 issue

construction business news me APriL 201536

George Berbari started his journey in 1995 with a natu-ral gas fed district cooling scheme in Zayed Military City, Abu Dhabi. Having set

up this one-of-a-kind system in the Mid-dle East, he jokingly calls himself the “Godfather” of the district cooling in-

dustry. District cooling is the centralised production and distribution of cooling energy, where chilled water is delivered via pipelines to office, industrial and residential buildings to cool the indoor air of the buildings within a district. According to Berbari, district cooling systems reduces power consumption by

around 40% as compared to traditional and predominantly used air condition-ing systems. Currently almost 20% of cooling is provided by district cooling and this is set to increase by 20 to 40% by 2030. That being said, Berbari states that district cooling faces the danger of stagnation as its technology is advanc-ing at a much slower rate than other heating, ventilation and air condition-ing (HVAC) applications. He says: “The district cooling industry uses a 10 year old technology with the only advance-ment coming from chiller manufacturers improving their efficiency.

The industry has recently respond-ed to the customer complaints and reduced the district cooling fees to maximise profits and increasing number of customers. Berbari says: “There is nothing wrong with that, but I think district cooling needs to evolve into an industry that embraces the future

SUSTAINABILITY

George Berbari, Chief Executive Officer of DC Pro Engineering

Centrifugal water cooled chillers used for district cooling

Page 37: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 37

As the use of air conditioning continues to rise in the region,

the power demand also is increases astronomically. At

this point sustainable solutions are not only a wise choice, but imperative. District cooling, a wise choice, might be gaining

popularity at this point, but CEO of DC Pro Engineering, George

Berbari, says it is not enough. He speaks with Lorraine Bangera about upgrading the system

with tri-generation and using renewables as better source in order to save exhaustible fuels

like oil and gas

and offers a serious solution to global warming at competitive rates that the customer can afford.”

He says that as the GCC in particu-lar is showing a big increase in power, the industry needs to pick up the pace and come up with better solutions. Tri-generation or Combined Cool-ing, Heat & Power (CCHP), a process

that is slowly gaining recognition in the industry, provides 45% electricity efficiency and 87% total efficiency. This will provide a 30% reduction in primary energy sources and much more if renewables are integrated. The solution, he says, is a synchronisa-tion of district cooling tri-generation with renewable energy sources which

can result in 75% savings in primary energy as compared to electric pow-ered district cooling. “Already, district cooling systems offer a 40% saving on power consumption compared to air-cooled systems. The synchronisation can increase that.”

Tri-generation in district cooling syn-chronised with renewable energy has

COOLINGeFFeCT

Page 38: Construction Business News ME - April 2015 issue

construction business news me APriL 201538

already captured the attention of intel-lectuals. He says that while tri-gener-ation comprises of less than 2% of all district cooling plants, it is a growing trend with interest from governments to integrate renewables.

"The system curbs the exorbitant use of oil and gas for internal power generation, which has been increasing at around 7% annually," he says.

Berbari states that the industry needs to be cautious. If it does not develop and include renewable energy such as solar or deep geothermal on one side, and conserve primary energy sources such as natural gas or petroleum on another, traditional district cooling systems may become obsolete.

“Currently the UAE has committed to have 7% of renewable energy by 2020. This is indeed a step in the right direction for tri-generation systems.”

A model example of a tri-generation system using renewables would be the district cooling plant that DC Pro Engineering designed for the Research Council Innovation Park in Oman. The project synchronises local produced power with 1 MW photovoltaic and with the national electric grid to save 75% of primary energy.

According to Berbari while tri-generation is an obvious solution,

affordability is one of the key chal-lenges, the traditional air cooling equipment that dominates the market place are quite inefficient but afford-able, hence they are the systems of choice. “Which is why basic district cooling can still claim to be sustain-able as people are using systems that are even more outdated.

He says that the systems used are designed in the 1960s, with customers including some of the major interna-tional companies. “This is probably because we are not liable to anyone in the region, there is no regulation that has been passed to make things more sustainable yet.

“If we keep going at this rate we will end up losing 50% and eventu-ally 100% of our gas and oil produc-tion internally.”

“It is simple, half of the electricity produced in this region is done for air conditioning which increases to 70% of electricity produced during peak summer. District cooling, which is an outdated system, can help by reducing said production by 30%. But today we have a way through tri-generation and the use of renewables which can help reduce the consumption by 75%. It’s just a matter of time before the right choice is made.”

Cooling demand is expeCTed To

inCrease by 5 To 7% every year

5 million Tonnes oF disTriCT

Cooling sys-Tems have been insTalled over

The pasT 15 years in The gCC

region

gCC’s Cooling demand ex-

Ceeded 45 mil-lion reFrigera-Tion Tons, wiTh

disTriCT Cooling ConTribuTing 6% oF The en-

Tire region and more Than 20% in

dubai

SUSTAINABILITY

Combined cycle power plant

Page 39: Construction Business News ME - April 2015 issue

HAMRIYAH FREE ZONE AUTHORITY, SHARJAH, UAE [email protected] - www.hfza.ae

UNPARALLELED INDUSTRIAL LANDSCAPEHamriyah Free Zone houses more than 6,000 businesses from 155 countries engaged in over 500 activities; from large-scale steel fabrication through maritime and rig maintenance to food packaging production.

With its own deep-water port, strategic location, modern facilities and quick setup Hamriyah Free Zone offers unparalleled advantages.

Page 40: Construction Business News ME - April 2015 issue

construction business news me APriL 201540

Could you tell us more about the KEF Industrial Park?Last year, KEF Holding launched the KEF Industrial Park, which is India’s only offsite construction facility. The 42-acre park will manufacture building components such as columns, beams, hollow core slabs, wall panels, stair-cases, windows, doors, bathroom units and façades. The facility will help cut construction tenure and costs by almost 50% and 30% respectively.

How is offsite construction different from traditional construction methods?In a normal construction project every-thing is done on the ground, in offsite construction most of the work (around 90%) is done in the factory. It is quite

Design to builDKEF Holding plans to boost its operations with its expertise in offsite construction technology. The company is offering design, engineering, manufacturing, and assembling as one holistic service. Chairman of KEF holding, Faizal E. Kottikollon, tells Lorraine Bangera why offsite construction is the future

simple, we call it ‘design, manufacture and assemble.’ Is offsite construction popular in the Middle East?The UAE needs to increase its use of offsite construction, it is used here but only partly. The real value comes in when the entire project is completely planned, designed, and manufactured offsite. The whole concept has yet to take shape in Dubai, even though there are some projects where we are enabling full integration. Full integra-tion includes spaces such as kitchen and bathrooms being constructed in the factory and then transported to the construction site. Currently we are designing a 100 bed hospital in

Dubai which is constructed completely offsite, and it will be commissioned in July next year. Since we started this method of construction, we have noticed a positive response from the market in the region. Our current backlog is upto US$300 million.

What are some of the benefits of offsite construction?Firstly, offsite construction literally takes half the time a regular construc-tion will take. For example, we can do a 200 bed hospital which usually takes three to four years in just 12 months. We pre-design it and all the major construction is done precisely in the factory. Otherwise on the site there would be too much work and way too

Q&A

Page 41: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 41

Design to builD

many corrections which could slow down the process. In a normal project there are way too many subcontractors and other parties that the project is reliant on. In offsite construction, everything falls in place in the factory under one roof and is assembled at the site. In this region particularly, with the ex-orbitant rate of construction and tight deadlines to deliver, this would be an optimal solution.

Even the challenge of managing a large number of unskilled labour is is resolved, as offsite construction is done in factories by robotics.

Taking the first two advantages i.e. less time and manpower, we could derive to the third advantage that

is reduced costs. If you can finish a project in a year, which would usually take three years to complete, you’re cutting down cost considerably. Also the faster the project is complete the sooner you can generate revenue. So instead of waiting for three years, you could get the revenue from the second year onwards. This makes the business more viable.

What are some of the key challenges faced during offsite construction?One of the main challenges at the moment is finding skilled labour. At KEF, we have people from Ireland and Scotland training people in India and though we have less people, they are very highly skilled. I think the lack of knowledge and training employees are the key challenges.

Do you use building information mod-elling (BIM) solutions?We can only work with BIM. All our work, even with mechanical, plumb-ing and electrical is always created on BIM. Once created it is transferred to the factory. We have over 150 people trained to use BIM that are all based in our Bangalore branch in India.

What are your plans for the Middle East?Our next factory is going to be in the UAE, and we are planning to launch it next year. From the UAE, we plan to spread to the rest of the Middle East countries and North Africa, we are especially looking into Qatar and Saudi Arabia. The advantage of doing business in Dubai particularly is the supportive government and how easy it is to attract talent from across the globe to come here.

“Offsite construction literally takes half the time a regular

construction will take.”

Faizal E. Kott ikol lon, Chairman of KEF

Holding

Aerial v iew of KEF Industr ia l Park at Kr ishnagir i , India

R&D block at KEF Industr ia l Park, Kr ishnagir i , Tamil Nadu

Page 42: Construction Business News ME - April 2015 issue

C

M

Y

CM

MY

CY

CMY

K

DPS_406x273_25_AW_HR.pdf 1 3/19/15 9:50 AM

Page 43: Construction Business News ME - April 2015 issue

C

M

Y

CM

MY

CY

CMY

K

DPS_406x273_25_AW_HR.pdf 1 3/19/15 9:50 AM

Page 44: Construction Business News ME - April 2015 issue

construction business news me APriL 201544

ToTalconservaTion

Settled 2,000 metres above sea level in the western part of Al Hajar Mountains, Alila Jabal Akhda re-sort aims to be a hotspot for high-end tourists in the Gulf region. The resort has won many acco-lades since it first opened in May last year. Jabal

Akhdar which translates to ‘The Green Mountain,’ is said to be one of the most scenic regions in the Sultanate of Oman. The resort, developed by Oman Tourism Development Company SAOC (Omran), is the first to acquire the international Leader-ship in Energy & Environmental Design (LEED) certification and represents a milestone achievement for the development of infrastructure in Oman. Omran is responsible for Oman’s rapidly growing tourism sector and focuses on major tourism, heritage, urban and mixed-use projects.

Eng. Wael Al Lawati, CEO of Omran says that the vision of sustainability for Alila Jabal Akhdar goes beyond the architec-tural design and construction phase, it also reflects the guiding principles of Omran, as well as the day to day operation and management of the resort which is centered on the principles of sustainability and environmental safety.

Alila Jabal Akhdar has been awarded LEED Silver Certification in the Building Design and Construction rating system for New Construction by the U.S. Green Building Council (USGBC), making it the first LEED certified project in the Sultanate of Oman. Lorraine Bangera speaks with construction manager on the project, Ammar Al Kharusi, about its development and achievement

PROJECT REVIEW

Page 45: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 45

ToTalconservaTion

Mark Edleson, President of Alila Hotels & Resorts admits he is proud to be partnering with Omran in this “meaningful quest.” He highlights the company’s vision to integrate natural conservation, community and commerce. He says: “Our green efforts extend to and beyond the operational aspects so that we can make a positive impact on the community – economi-cally, socially and culturally.”

Ammar Al Kharusi. Construction Manager for Alila Jabal Akhdar, emphasises the importance of being LEED certified. He says that apart from being recognised as a worldwide achievement for green building standard, the nature of the award ensures that projects awarded contribute to conserv-ing scarce resources, promoting the health of occupants and workers and protecting the surrounding environment. Al Kharusi is also a LEED Accredited Professional certified by the US Green Building Council.

Richard Fedrizzi, CEO and Founding Chairman of U.S. Green Building Council, sincerely hopes that Alila Jabal Akh-dar’s new green credentials will raise awareness of the impor-tance of sustainable development. He says: “We hope it will

LEED certification Leadership in Energy and Environmental Design certification is recognised across the globe as the premier mark of achievement in green building. To receive the LEED certification, building projects require multiple energy saving and environmental criteria to be met including; sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation in design.

Alila Jabal Akhdar amid Al Hajar Mountain

Ammar Al Kharusi, Construction Manager for Alila Jabal Akhdar

Page 46: Construction Business News ME - April 2015 issue

construction business news me APriL 201546

“Our green efforts extend to and beyond the operational aspects so that we can make a positive impact on the community - economically, socially and culturally”Mark Edleson, President of Alila Hotels & Resorts

Alila Jabal Akhdar resort

to minimise the amount of material sent to landfill. The choice of materials in the building was carefully considered to maximise recycled content, ensuring that the VOC content is kept at minimum.

According to the Al Kharusi, all materials used in the construction of the resort were sourced from within an 800km radius of the site. The building façade which is 12,800 square metres, was constructed using natural Jabal Akhdar stone extracted from the site itself. The cement, steel, and aggregate were extract-ed locally or sourced through local distributors. Moreover the use of alternative transportation was encouraged by providing bicycle storage, and low-emission vehicles were provided for movement within the resort.

serve as a model for environmental standards for construction in the Middle East.”

Al Kharusi says that it is essential to concen-trate on the environmental impact of all new projects as the tourism and hospitality sectors in Oman grows rapidly. He says: “Development must take into ac-count the environment, flora and fauna, and the benefits for the local community.”

Focussed on maximising the use of local materials during construction and minimising en-ergy usage in the long run, the project incorpo-rates many elements to promote sustainability.

During construction particularly, the project had a strict policy of pollution and waste re-duction. There was an emphasis on segregat-ing and recycling construction waste in order

PROJECT REVIEW

Page 47: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 47

Other measures included the storm water runoff which was controlled to avoid erosion and sedimentation. He says: “These water saving measures were introduced by using an onsite STP to cater for most of the irrigation re-quirements and low flow fixtures were installed to reduce up to 30% of water consumption.”

Currently, the resort contains an efficient heating and cooling through the utilisation of VRF (Variable Refrigerant Flow) technol-ogy that ensures the cycle occurs only when it is needed. Al Kharusi says: “This approach, combined with the controllability of the thermal and lighting system, renewable energy (photovoltaic cells) for the hot water supply and high performance insulation result in a significant reduction in the energy perfor-mance baseline.”

In terms of maintenance, he says there is no difference in maintaining buildings with and without sustainable credentials. As with any building, a well-trained facilities management team is essential to reduce maintenance issues and complications.

SoME EnviRonMEnt fRiEnDLy ELEMEntS of ALiLA JAbAL AkHDAR incLuDE:•Innovative water treatment facilities for irrigation•Solar panels that provides up to 60% of the energy •Energy saving lighting and thermal control systems•Policy of pollution prevention during construction•Recycling scheme for the re-use of building materials

Page 48: Construction Business News ME - April 2015 issue

construction business news me APriL 201548

Building information modelling (BIM) solutions has been in the market for more than a decade but the transition to BIM has been taking longer than expected. Experts say this is probably because of the lack of knowledge in the market about what BIM really is. Lorraine Bangera writes L

et’s get one thing straight, BIM is not something to get done with and checked off. It’s a process. Peter Gertler, Consult-ing Director at Autodesk, ex-

plains it well when he says it’s like the accounts department in an organisation that is carried out through the whole lifecycle of a company. BIM solutions can be used from the conception of the building, all the way through construc-tion and operations to the demolition.

Basically BIM is a management system that helps you design, build, and oper-ate a project. Director of Infrastructure Owners at Bentley Systems Europe B.V, Chris Palfreyman, says that it is a process by which an organisation could enrich information through a particu-lar lifecycle of an asset. “So instead of drafting a design and trying to recreate it, we progressively increase the value of the information as we go through the process.”

“The region is at the present time very much on the radar

of global practices.”

Processing theright solution

ARCHITECTURE

Page 49: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 49

In a typical process before BIM was introduced, preliminary designs would be shared through paper. As the designs were handed over to the next stage, the person in charge would have to interpret it, which was time-consuming. Palfreyman says that it wasn’t a good handover between the various stages of a project. “BIM eliminates all those handover issues, making it easier to transfer information from one person to the other.”

It increases efficiency, reduces mistakes, and gives the person who comes in much later in the process better information.

Currently the common technology used is AutoCAD, which has been used since the 1980s. Professor Alex Albani, Associate Professor of Architecture at American University of Dubai, says: “When AutoCAD was introduced, it brought about some efficiency. It was faster to use AutoCAD and you could

share information in a much more articulate way.” At the time the transition from paper to AutoCAD was rather smooth, but now the transition from AutoCAD to BIM (which was introduced in 1998), is taking a lot of time. The transition is necessary as even though AutoCAD brought higher efficiency, it is still rather “abstract,” whereas BIM is “integrated.”

He says: “I constantly remind my students that this period will go down

HeART of SHARjAH

Page 50: Construction Business News ME - April 2015 issue

construction business news me APriL 201550

“People say they are going to ‘BIM-ify’

your building without actually explaining the benefits or the process of BIM. So even though there

is a lot of talk about BIM, there is no real

understanding of what it entails.”

– Adrian Jarvis

schedules under which they have to be completed. “BIM is definitely a solution to meet these challenges.”

“The transition is possible”, says Pal-freyman. “People here are willing and well prepared to learn from other parts of the world.”

Though the diversity in this region does pose a challenge to enable the use of BIM solutions widely. He says that the market here is extremely diverse, people who handle the projects come from all over the world. They come from different cultures, different back-grounds, and different levels of experi-ence. “So you have a sort of melting pot of skills, disciplines, and cultures.”

Suchocki also agrees that diversity could be a barrier. He explains, “The di-versified workforce come from Europe, US and Asia. They work as professional consultants, in managerial positions and in the workforce. Compared to western countries where the education levels among professionals are similar, here it is quite different. Here there is a cultural imbalance, which is not a problem but it is different. So you can’t just transfer what is done in the UK here.”

Palfreyman says that this barrier must be spotted earlier on, and dealt with immediately. He says that the most effective way to solve this problem

in history as the time the transition from AutoCAD to BIM took place. We are still going through the transition and not everybody is on board yet.”

The professor calls BIM a powerful tool. He says the process is exemplar-ily efficient. For example he says that, when you make a change on the sys-tem, this change is automatically carried through without any manual effort. In AutoCAD on the other hand, if someone updates a window, they have to make changes manually on every window that is cross-referenced.

Even though BIM is used extensively in the UK and the US, it hasn’t been picked up as much in the Middle East. Marek Suchocki, Infrastructure Sales Development at Autodesk, says, “This region is beginning its journey with BIM in terms of knowledge and understand-ing, so there is a lot of talk about it.”

Gertler says that there are signs that BIM is being adopted gradually in this region. He says, “It is being used extensively in the engineering and de-sign community but the construction business owners are slower to adopt because it will significantly change their organisation.”

He calls this region unique, observing the sheer magnitude of the projects de-livered here along with the “aggressive”

ARCHITECTURE

Page 51: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 51

would be putting in place training programmes and knowledge transfer programmes, so that everyone gets up to the same level.

He says: "It could be as simple as making a person experienced in using BIM work with someone who has less experience.”

Apart from the diversity of the workforce in the Middle East, another point to consider would be how new the market really is compared to the UK and the US, where construction has been ongoing for centuries. Gertler ad-mits that the UK and the US are prob-ably the more mature markets in terms of the use of BIM solutions. However, he says that these markets have their own issues of dealing with aging infrastructure and legacies. Whereas in the Middle East, there is no burden of dealing with a 100 year old legacy. In fact, he says that the rate of adoption is much faster in this region compared to the West as there a lot more emerging companies here.

Mature markets like the US and the UK have passed BIM mandates that seem to help in accelerating the adop-tion of BIM solutions. But experts don’t believe that mandating BIM solutions in this region is the right approach.

Palfreyman says, that there are examples of countries where govern-ments have imposed BIM, and there are examples where governments have recommended BIM as best practice. The reaction to mandating and recom-mending are very different depending on the experience the region has with BIM. “For example,” he says. “In an organisation, if a management team makes BIM a mandate without telling the company what it’s all about—it is going to meet with resistance.

“We should consider the people first, the process second and then the tech-nology that makes the process possible. Where we sit now is probably too early to say which approach is right. But what I can say is doing something is better than doing nothing for sure.”

Regardless of government regula-tion, the demand for BIM solutions in the Middle East is definitely growing. Prof. Albani says that this growth is more prominent amongst construction

companies than architects. “The benefits in terms of efficiency and cost are key reasons.”

“Eventually everyone will have to work in the BIM format, especially now after the UAE mandate as well as some other countries mandating BIM policies like the UK.” The mandate in the UAE was announced last year by the Dubai Municipality. The mandate enforces the use of BIM for architectural and MEP works for all buildings 40 stories or higher, facilities or buildings that are 300,000 square feet or larger, all hospitals, universities and other similar specialised buildings, and all buildings that are being delivered by or through an international party.

Prof. Albani says, “In the UAE, the mandate is for everybody, everyone involved in building a building.”

Though BIM is talked about in the region and is gaining popularity at a rapid pace, one of the main problems that needs to be addressed immedi-ately is the lack of knowledge about what BIM really is. Adrian Jarvis, General Manager at FSI, says, “BIM is misunderstood to be just one piece of technology. It is actually a collaboration between various technologies through a project’s lifecycle.”

He says that the key issue faced in this region is the awareness level of the professionals. “People say they are going to ‘BIM-ify’ your building without actually explaining the benefits or the process of BIM. So even though there is a lot of talk about BIM, there is no real understanding of what it entails.”

Palfreyman says that the biggest bar-rier is not working out what BIM means to you. “If you don’t consider the pro-cess before you plan to implement BIM, what you probably would do is create your own barrier.”

He says that first they should under-stand what BIM really is and then how it applies to them. “This is like taking the crawl, walk, run approach. Everyone needs to crawl before they can walk and eventually run.

“In regards to BIM, I think it is under-standing the process before going out and buying it. The intelligent technology choices would come out of understand-ing the process.”

Chris Palfreyman

Adrian Jarvis

Prof. Alex Albani

Peter Gertler

Page 52: Construction Business News ME - April 2015 issue

construction business news me APriL 201552

Indian motor company breaks into the region with a brand new design and advanced

technology that competes with global standards

Tata Motors, one of India’s largest automobile manu-facturer, launched two new next-generation heavy duty trucks in Dubai in March

this year. The manufacturer along with UAE dealer-partners, United Diesel and Dalma motors launched the Prima range of commercial vehicles including the Prima 4438S (4X2) tractor head and the Prima 4038K (6X4) Construction tipper.

The Tata Prima range claims supe-rior technology, optimum power, fuel

efficiency and safety. RT Wasan, Head of International Business of Commercial Vehicle Business Unit at Tata Motors, says: “We observed specific regions separately, to see what the requirements and operations of these regions are and thus provide optimal solutions through our trucks.” He explains that these trucks are specifi-cally designed for the Middle East, the tonnage capacity of the truck is much heavier in the UAE compared to other markets. “This is because there are less

restrictions in UAE regarding heavy overloads compared to other countries such as South Africa. Thus the Prima is designed for South Africa is very dif-ferent from the Prima designed for the UAE here.”

Apart from the mechanics of the vehicle, the range also focuses on driver comfort. The cockpit is both functional and visually ergonomic with a separation in terms of the working and living area.

Wasan says, “We have consciously considered the ergonomics, not just for the driver but also for co-driver. A driver spends his life inside the truck—more than 70% of his time is spent in it. Hence it must be designed for optimal comfort.” Ravindra Pisharody, Executive Director of Commercial Vehicles Business Unit at Tata Motors, says, “The new range of commercial vehicles by Tata Motors is shaped by technology, know-how and expertise from across the globe.” It is built with technical inputs from across the world; with an Italian cab design, American and European engine technol-ogy, gearbox expertise from Germany, chassis frame know-how from Mexico, sheet metal dies from Japan and Korea, and Swedish precision on a robotic weld line, hence branding itself as a “world truck”.

World truck enters Gcc market

constructIon macHInerY

The Tata Prima Construction Tipper

Page 53: Construction Business News ME - April 2015 issue

CHRIS JOHNSONRIBA, ARB-Managing Principal, Gensler

HARRY DOWNIECEO, RMJM International

LEONARD CASTROSenior Vice President, Business Leader - Buildings, StantecBusiness Leader - Buildings, Stantec

SHAWN BASLERPrincipal and Executive Director, Perkins Eastman

STEVEN CHARLTONPrinicipal Managing Director, Perkins+Will MENADANIEL HAJJARDANIEL HAJJARSenior Vice President and Managing Principal, HOK

STEPHAN FRANTZÉNGroup Director, P&T Group

PEDRAM RADManaging Director, U+A Architects

ELIE GEBRAYELELIE GEBRAYELChairman/CEO, Erga

MOHAMED AL ASSAMExecutive Chairman, Dewan Architects

STEPHEN JOHNSONPresident, Cannon Design International

IAN APSLEYMain Board Director, Broadway Malyan

JAMIL JADALLAHJAMIL JADALLAHMD and Principal, National Engineering Bureau

BRIAN JOHNSONPrincipal and Managing Partner, Godwin Austen Johnson

RALF STEINHAUERVP Hospitality MENA, RSP ArchitectsVP Hospitality MENA, RSP Architects

SIMON FRASERMD Middle East and Asia, Hopkins Architects

PROF. SHAMS ELDIEN NAGAFounder, Director, NAGA Architects, Designers & Planners

NASSER ABULHASSANNASSER ABULHASSANPrincipal, AGi architects

.

SIMON MOONCEO, Atkins Middle East

CHARLES DALLUGEPresident, DLR Group

STEPHEN REDFERNPresident, Kuryłowicz & Associates

MICHAEL FOWLERMICHAEL FOWLERManaging Director Middle East, Aedas

MUFADHAL ABBAS SHKARASenior Vice President & Board Member, Zuhair Fayez PartnershipSIMON THOMASVice President, Middle East and North Africa, HKSMiddle East and North Africa, HKS

MARK POWELL KYFFINHead of Architecture, Abu Dhabi Tourism & Culture Authority

PHILLIP JONESPrincipal, Managing Director – Middle East and North Africa, B+H Architects

TIM MAKOWERTIM MAKOWERFounder, Makower Architects

Leaders in Architecture Events Series International Speakers

Leaders in Architecture Events Series Partners

20th-21st April 2015, Dubai

Page 54: Construction Business News ME - April 2015 issue

construction business news me APriL 201554

If you have worked in a civil code jurisdiction, such as UAE for example, the construction contract is in line with the country’s legal system. However, the parties in-

volved on site conduct their business-es fairly autonomously. The issue we have is understanding how empower-ing the principle of good faith is in the event of a dispute.

A good place to start is perhaps the condition precedent to many claims under construction contracts in the region: that is the building contractor’s requirement not to arouse contractual time-bar mechanisms.

Time-barring is the rejection of a claim based on the failure to submit a notice of intent to claim, followed by its detailed particulars within a prescribed number of days. The notice serves as the employer’s liability to the contractor; so if you work for a con-tractor, this notice is your friend.

Each circumstance is different, so the parties and their conduct, the value at stake and the complexity of the claim will have a big say in whether the execution of a time-bar

Let’s Be Faithful… ish

You may have heard of the legal principle of good faith, which is a Sharia Law principle that is recognised in many legal civil codes across the region. The regional construction industry often relies on the idea that good faith will protect it from a contractual deviance; let’s consider if it can.Craig Gibson writes

COMMENT

Page 55: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 55

clause as defence to a claim is consid-ered to uphold the principle of good faith. For example, if a claim based on complex calculations is presented a few days late, and a reasonable valuation could fairly compensate the contractor, it would be difficult to sug-gest good faith has been honoured by the employer in refusing to consider the contractor’s claim.

Likewise, the employer could not reasonably reject a claim which was not submitted on time, particularly if he was timeously aware of any reason giving rise to a claim and did not suf-fer any great loss because of it.

Let us consider the Sharia Law informed Egyptian Civil Code as a tool in evaluating the reasonableness of enforcing a time-bar. The Egyp-tian Civil Code states it is unlawful to exercise a legal right if: (a) the sole aim is to harm an other person, (b) the benefit is disproportionate to the harm caused to the other party, or (c) the benefit is unlawful.

If you are contemplating enforcing a time-bar, or have had a claim reject-

ed on the basis of a time-bar, consider the above as a practical barometer of good faith. This is because in the majority of civil law jurisdictions, the court can, taking stock of the circum-stances, engage its own judgement as to whether the contractual mechanism to time-bar a claim has been exer-cised in good faith, or not.

Ultimately, despite the civil codes requiring good faith, it is very dif-ficult to convince a court or arbitral tribunal that it would be fair to award additional time and/or money to the contractor despite him not complying

with the written terms of the contract. And that is the kind of complex legal argument one would have to succeed with in order to overcome a time-bar clause on the basis of good faith.

So, back to my comment that the notice is the contractor’s friend: The contract will hold the employer liable to his contractor for claims he can substantiate if presented on time.

But relying on good faith at civil law level is ones last option; best practice is to uphold your side of the contract and not worry about how faithful the other side is. As a contractor, this provides for more time to substantiate your claim, which is much more important. Industry pro-fessionals will help guide you with all of the above.

Craig Gibson, MRICS MCIArb MScL LLM Pg. Dip. Law BSc (Hons) – Omnium International. He is dual-qualified in law and quantity surveying. A Char-tered Surveyor with experience of ICC and DIFC arbitrations and a passion for simplifying conflict.

“The notice serves as the employer’s liability

to the contractor; so if you work for a

contractor, this notice is your friend.”

Page 56: Construction Business News ME - April 2015 issue

56 construction business news me APriL 2015

CBNME takes a

look at the longest

running exhibition

in the UAE and speaks

with power industry experts to analyse

new technologies and innovations

ElEctric ElEctric

rEliEf

EVENT PREVIEW

German and Romanian pavilions at the MEE 2015

Page 57: Construction Business News ME - April 2015 issue

57construction business news me APriL 2015

Launched in 1975 under a tent near Dubai Creek, Middle East Electricity (MEE) is UAE’s longest standing exhibition completing 40 years this year. Currently, the

event spreads across 54,000 square metres in the Dubai International Convention and Exhibition Centre. The exhibition and con-ference ran for three days from March 3. The show has also grown by 14% in ex-hibitor numbers, taking the total number to 1,400. Informa Energy Group’s Director Anita Matthews, organiser of the event, reveals the secret behind its success are the “stakeholders.” She says: “I don’t use the term lightly when I say ‘stakeholders are key’, and one of the main drivers of the event’s success has been maintaining our focus regarding the expectations of our stakeholders.”

With power demand in the Middle East increasing exponentially there are billions of dollars being invested in the sector. Matthews adds: “The substantial growth across the board in our country pavilions

ElEctric ElEctric

rEliEf

Visitors at the MEE 2015 in Dubai World Trade Centre

Himoinsa and Rolls Royce stands at the MEE 2015

Page 58: Construction Business News ME - April 2015 issue

construction business news me APriL 201558

included conferences running through-out the three days. Co-located with Solar Middle East and Lighting Middle East, the event focussed on a broader energy mix.

The Green Energy Conference, held on the first day of the show, highlighted the why we need sustainable energy solutions urgently and how we could combine traditional and alternative energy sources. These kinds of hybrid systems are the best way to minimise risk and incorporate sustainability.

According to Angus Jackson, Director of Business Development for Planetary Power, hybrid technology bridges the gap between modern and traditional energy sources, producing economi-cal and sustainable technology. The growing importance of hybrid systems in several sectors were highlighted throughout the show.

Among the wide range of exhibi-tors, Al Futtaim Auto & Machinery Co. (FAMCO), industrial equipment suppli-er, unveiled new technology in power generators in the region by launch-ing the Himoinsa hybrid generators. The Himoinsa hybrid generator will be available through official distribu-tor, FAMCO, in UAE, KSA and Qatar. Guillermo Elum, Sales & Marketing Director at Himoinsa, says: “This region is extremely significant, it is the fastest growing market in the world. We have over a thousands of units working in the Middle East. Our units are the strongest in the construction and tele-com industry.”

The hybrid generator saves up to 40% in fuel consumption compared to a standard generator. In comparison to other hybrid generators in the market, this generator consumes 20% less fuel. It includes variable speed Yanmar engines that are redesigned to oper-ate from 1200 to 3000 rpm. The engine comes with maintenance intervals of 1000 hours i.e. the generator can run effectively, without maintenance, for four months.

Terry McGuire, Regional General Manager at FAMCO International, says: “I am excited about the new hybrid generator. Before the high cost of power generation wasn’t a problem in

is an indication of the lucrative oppor-tunities the region holds for the global energy industry.”

The event encompasses exhibitors from various regions that are segregated through country pavilions. Matthews says: “As well as this significant growth in exhibitor numbers, all of the country pavilions have returned with a bigger presence this year – Saudi Arabia and Turkey being the largest. With support from the Saudi Export Development

Authority, the Saudi pavilion has grown from 252 square metre in 2014 to 780 square metre this year, an astonishing 210% growth. Turkey has witnessed an increase of 78%, going from 987 square metre in 2014 to 1761 square metre.”

She adds: “Three new national pavilions have also been introduced including Egypt, Morocco and Czech Republic, increasing the total country pavilion count to 24.”

Apart from exhibitions, the event also

EVENT PREVIEW

Catepillar’s stand at the MEE 2015

Page 59: Construction Business News ME - April 2015 issue

construction business news me APriL 2015 59

this region but as the oil price drops things are different. It is becoming more apparent to use sustainable and energy efficient products to cut costs.”

Caterpillar also launched its largest range of electric power products, the Cat Compact International product line, which will be available across the Middle East. The product line is powered by Cat diesel engines, with the Cat Compact International diesel generator offering a selection of weather-protective and sound-atten-uated enclosures. Each enclosure is manufactured with corrosion-resistant galvanised steel components and finished with scratch- and-rust-resistant powder-coated paint, along with high-grade thermoplastic components.

The show also showcased prod-ucts by Rolls-Royce such as the MTU Onsite Energy and Bergen Engines. The company showcased high and medium speed diesel and gas gensets in the 24 kWe to 9,400 kWe range. MTU Onsite Energy and Bergen Engines are part of Rolls-Royce Power Systems within the Land & Sea division of Rolls-Royce. Matthias Vogel, Head of Power Gen-eration Business at Rolls-Royce Power Systems, says: “We see great market po-tential in the Middle East which is why we have now strengthened our on-site presence with a new regional subsidiary based in Dubai.”

MTU Onsite Energy presented its range of highspeed diesel gensets up to 3,250 kWe and gas engine systems up to 2,530 kWe. The stand displayed a diesel genset based on the new genera-tion of MTU Series 2000 engines. Offer-ing common rail technology and deliv-ering up to 1,120 kWe, the new genset is quieter, more efficient and more compact than units previously available. Its power range is also around 12% greater than that of its predecessor.

CESI, provider of technical consult-ing and engineering, also participating at the MEE. The company showcased Mannheim Laboratory, which was basically its facilities in Mannheim for independent tests by the National Grid Saudi Arabia and the Saudi Electricity Company (SEC). The new lab is based on world-class technologies for testing

cables, components and innovative systems for High Voltage Direct Cur-rent (HVDC), a strategic asset for long distance energy transmission.

Matteo Codazzi, CESI's CEO, says: "As more and more countries adopt HVDC technology, a technology al-ready utilised among many European transmission operators, we will be able to reduce energy losses and improve interconnectivity within the region."

Recognising the importance of HVDC technology to the region, key entities like the GCC Interconnection Authority and SEC have established a specialised working group that focuses on develop-ments in the GCC.

Cummins Power Generation Inc., also launched game-changing QSK95 Series high-horsepower generator set. Rated at up to 3.5 MW, it is Cummins most pow-erful diesel generator set to date.

In Western Australia, the QSK95 gen-erator set is said to support round-the-clock production at Cloudbreak mine, one of the largest iron ore mines in the world. While in the remote township of Turbah, Saudi Arabia, the entire com-munity is benefitting from the additional power and performance provided by the QSK95, which was installed at the existing power plant. It has proven to be the perfect fit alongside the other 71 Cummins Power Generation generator sets at the site, demonstrating impres-sive fuel consumption, power density, maximum uptime and reduced opera-tion and maintenance costs.

Currently there are 1.3 billion people in

the world who do not have aCCess to eleC-triCity, 600 million of whom are in afriCa.

this year reCorded a 40% inCrease in visitor attendanCe over the past two years and aCquired 21% extra

floor spaCe

the growing mena power industry is

foreCasted to expand by us$70.7 billion per

year leading up to 2018.

dubai's renewable en-ergy target whiCh has tripled from 5% to 15%

of total share from renewables in the en-

ergy mix by 2030.

H.E. Eng Abdulla Mohammed Rafia, AssisDirector General at Dubai Municipality, opens the Green Energy Conference

H.E. Eng Abdulla Mohammed Rafia, Assistant Director General at Dubai Municipality, opens the Green Energy Conference

Himoinsa hybrid generator

Page 60: Construction Business News ME - April 2015 issue

construction business news me APriL 201560

Cityscape Abu Dhabi 21 – 23 April 2015 Abu Dhabi National Convention Centre, UAE The event is an annual meeting point for governmental authori-ties, key investors, developers, consultants, architects, designers and other professionals to drive growth in Abu Dhabi’s real es-tate market. The event will have over 15,000 participants and is used to reveal Abu Dhabi’s master plans and key developments.

Smart Skyscraper Summit 11 – 12 May 2015 Sofitel Dubai The Palm Resort & Spa, UAE With over 300 senior architects, engineers, policy-makers, developers, contractors and building managers attending from across the GCC, Smart Skyscraper Summit offers a platform for networking and knowledge sharing required for developing world-class skyscrapers in the Middle East. It will also showcase some of the most innovative building technologies, design prin-ciples and solutions from around the world and offers high-level networking opportunities.

Cityscape Qatar 11 – 13 May 2015 Doha Exhibition Center, Qatar Like Cityscape Abu Dhabi, Cityscape Qatar is dedicated to the

real estate industry and features the presence of wide variety of products and services. The event includes industrial goods and services, real estate services and solutions, and commercial products and services.

Emirates Green Building Council Awards 13 May 2015 Al Murooj Rotana Hotel in Dubai, UAE Emirates Green Building Council honours excellence in sustain-ability initiatives by organisations and individuals from across the MENA region at the EGBC 2015 Awards. This year’s awards will highlight the efforts by the different types of buildings and sec-tors to green their facilities and operations.

FM Expo 18 – 20 May 2015 Dubai World Trade Centre, UAE The FM Expo is co-located with Middle East Waste & Recycling and Commercial Cleaning & Hygiene and Elevators & Access Control. The Expo will unite FM professionals from across the region with suppliers and experts from integrated FM providers, waste management, elevator products and solutions, mainte-nance and environmental services, to IT solutions and health and safety products.

Middle East Stone 18 – 21 May 2015 Dubai World Trade Centre Middle East Stone will present the largest selection of marble, stone and ceramic products in the region. The technologies will range from machinery to complex processing equipment. The event will serve as a platform to discover products that save money, energy, reduce CO2 emissions and minimise waste.

This month, we pick the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry

UpCOMING EvENTS

SAVE THE DATE

Dubai World Trade Centre

Page 61: Construction Business News ME - April 2015 issue

21 - 23 April 2015 Abu Dhabi National Exhibition Centre, UAE

1,000sEXHIBITORS

ATTENDEES17,000+

18,000M2+

OF INVESTMENTOPPORTUNITIES

130+

EXHIBITION SPACE

Follow us on:

www.cityscapeabudhabi.com

+971 4 336 5161

[email protected]

Register now for FREE entry!�e largest and most influential property investment exhibition in Abu Dhabi is back! With hundreds of developments from the UAE and overseas being showcased, Cityscape Abu Dhabi is your prime location for real estate investment.

THE PRIME LOCATION FORREAL ESTATE INVESTMENT

Official BusinessPublication

Official OnlinePartner

Regional BroadcastingPartner

Platinum Sponsor Organised ByOfficial ArchitectureMagazine

Official VIPSponsor

Page 62: Construction Business News ME - April 2015 issue

construction business news me APriL 201562

Dubai Electricity and Water Authority (DEWA) launches the first smart initiative, Shams Dubai, to make solar energy available to all buildings in Dubai

At a local press conference on March 15, H.E. Saeed Mohammed Al Tayer, MD & CEO of DEWA an-nounced their first smart

initiative, Shams Dubai, to regulate the generation of solar energy in buildings and their connection to DE-WA’s grid. The initiative encourages tenants and building owners to install photovoltaic solar panels to generate electricity. While DEWA will connect the system to its network. Any place in Dubai could be connected to the grid, explains Al Tayer.

“Any customer who wishes to be connected to the grid, can.

“The service is available to all devel-

opers and though it is optional, I think companies should take this initiative as it goes in line with our vision for a clean city.”

He says that initiatives such as Shams Dubai helps establishing a culture of sustainability by encouraging customers to produce clean power.

He adds: “Customers can use the electricity they generate using pho-tovoltaic panels. An offset between exported and imported electricity units is conducted and the customer account is settled based on this offset.”

Earlier last month, DEWA an-nounced the first project under the initiative, in collaboration with Dubai Airports, to supply Dubai World Central - Al Maktoum International

Display of historical artifacts insiDe Dubai MuseuM

SmArt SolutionS

EDITOR'S PICK

DEWA solar press conference

H.E. Saeed Mohammed Al Tayer, MD & CEO of DEWA

Airport in Jebel Ali with solar energy. Al Tayer says: “The first step in imple-menting the initiative was installing photovoltaic panels to produce 30kW of electricity there.”

Shams Dubai has been launched with the full support of the UAE govern-ment and private organisations. It is the first smart initiative out of the three launched last year to make Dubai the smartest city in the world in the next three years. DEWA’s second upcom-ing smart initiative is to install smart meters and networks that contribute to fast-service connection and rationalise energy use. The third initiative will establish the infrastructure to build 100 electric vehicle charging stations, which DEWA calls the Green Charger.

Page 63: Construction Business News ME - April 2015 issue

It is, without doubt, one of the harshest environments on earth: the Empty Quarter in the Kingdom of Saudi Arabia – the largest and most barren sand desert in the world, spreading itself over four Arab nations and covering 650,000 km2 which is comparable in size to France. Temperatures range from 50° to -1°C in the course of a single day and the sand and dust are relentless. The nearest city is 1000 kilometres away. So the constructionof the road cutting through the desert, linking Saudi Arabia to the Sultanate of Oman, called for an extraordinary solution.The response: a eet of 95 Volvo machines was assembled. Together, they shifted over 130 million m3 of sand just to build the bridge of the road – an extraordinary feat in such harsh conditions, yet the quality and power of Volvo engineering was up to the challenge. The difculties createdby the remote isolation of the worksite were answered with excellent customer support from FAMCO, the authorised Volvo dealer in Saudi Arabia, which included the organisation of mobile 24/7 service workshops that moved forward with the construction operation. Discover a new way.

www.emptyquarter.volvoce.com

Watch video

Al-Futtaim Auto & Machinery Co. LLCUnited Arab Emirates: 800 32626 Saudi Arabia: 800 1244414e-mail: [email protected] www.al-futtaim.com

Exclusive distributor of Volvo Construction Equipment in the UAE and Saudi Arabia

www.famcouae.comwww.famcosaudi.com

Page 64: Construction Business News ME - April 2015 issue