big project me september 2013

090SEPTEMBER 2013

GCC Quantity Surveying comes of age

MAKING AN EARLY START

ALSO INSIDE HOSPITALITY HERE TO STAYDUBAI’S NEW MARVEL IN PROFILE: ALAN ROBERTSONCHINA IN AFRICA

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http://www.al-futtaim.com

http://www.famcosaudi.com

mailto:[email protected]

http://www.famcouae.com

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CONTENTS

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SEPTEMBER 2013

PAGE 32Hospitality is the third

largest project sector in the GCC and growth is

accelerating.

07 The Big picTure

iNTErNaTiONal CONTraCTOrS iN qaTar warNEd

contractors warned of pitfalls in the Qatari contractors market

14 News aNalysis

payiNg ThE priCE

how prevalent is bribery and corruption in the Middle east?

18 iN profile

rEadiNg ThE paTTErN

Jll’s alan robertson on the resurging Dubai real estate market

24 siTe visiT

ThE MET rEbOrN

Big project Me visits the habtoor palace complex construction site

32 MaiN feaTure

hOSpiTaliTy MaTTErS

how hospitality is going to shake up regional construction

40 siTe visiT

ridE Of a lifETiME

Big project Me goes on an adventure with iMg

44 QuaNTiTy surveyors

ChaNgiNg pErCEpTiONS

examining the changing role of Middle eastern quantity surveyors

54 MarkeT aNalysis

whaT arE ThE ChiNESE dOiNg iN afriCa?

examining why the booming east african construction market is

attracting chinese contractors

60 special feaTures

MadE TO MEaSurE

Big project Me finds out how fM is adapting to a new market

puTTiNg ON a faCadE

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

70 TeNDers

TOp TENdErS

listing the top tenders in the Middle east region

82 coNsTrucTive criTicisM

a wOrld Of advENTurE awaiTS

gavin Davids says iMg’s theme park is just the beginning

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EDITOR’s COMMENT bigprojectMe.COM

Stephen whiteGroup Editor

There’s a lot riding on Dubai’s bid to win the right to host the World Expo in 2020, and I don’t mean the seven members of Dubai Riders, the city’s oldest motorcycle club, who are biking across Europe as I type. Personally I wouldn’t choose to ride a Honda from Athens to Hamburg to enhance a bid celebrating a greener more connected future for the Gulf’s hub metropolis. I will presume the bikes are being recycled into a compost silo.

Coming out of summer, there’s a real feeling in the industry that should Dubai beat Izmir, Sao Paulo and Yekaterinburg then the floodgates will open for a devopment boom, not seen since, well, the last one. Certainly there are a lot of people willing to tell me they’ve heard non-too-quiet whispers that the momentum within the judging circle is with the city. The New York Times covered the build-up to the decision last month and described Dubai as the “frontrunner in the race”. Considering the competition contains one city that has already seen rioting relating to spending on the World Cup and two others which are embroiled in “political tensions” – saying Dubai is the outstanding candidate is like having a Harlem Globetrotter apply for a job fixing light bulbs.

Dubai, which has frequently drawn comparisons with Las Vegas, maybe banking on itself but it is playing a high stakes game. The expected 25 million visitors, 270,000 jobs and related projects are a tantilising prospect – but the city of New Orleans went bankrupt hosting the event and Shanghai allegedly spent $50 billion on its expo, so economic viability should at least be considered. However I would like to see what Dubai would come up with in terms of its own Eiffel Tower. Although by 2020 we’ll already have one of those in Falcon City, won’t we?

World Expo go?

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30 mm, in corrugation glued with PC® 11 adhesive

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7SEPTEMBER 2013 MID

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THE BIGGEST piCTurE

BIG PRojEcT ME TalkS To jll’S alan RoBERTSon aBouT duBaI’S REal ESTaTE REcovERy – PaGE 18

urBacoN’s coNTracT DirecTor highlighTs The MoDificaTioN MaDe To iNTerNaTioNal coNTracTs iN QaTar aND The raMificaTioNs of This for exTerNal coNTracTors NoT waTchiNg where They sTep iN The MarkeT

CONTRACTING HINGES ON its

contracts, naturally, and in most

countries around the world these

are standardised international

forms of contract like FIDIC, but

Qatar tends to be a different story.

“One of the main issues is that

the employers over here tend to

use their own form of contract, so

they take a FIDIC and amend with

clauses that make it a more onerous

contract for the contractor,” explains

Alexander Milne, contracts director

at UrbaCon Trading & Contracting

(UCC). “Any contracts department

must make sure to identify the

risks in each of the contracts

and address those risks either by

qualification or by pricing.”

An early identification of these

risks is therefore a key step as

contractors look to safeguard

themselves from otherwise

unnecessary arbitrations at a later

date down the project timeline.

“That’s one of the issues that

make it difficult out here – if

there is a major dispute you can

obviously go to arbitration,” says

Milne. “But that’s certainly not a

route that I would recommend

if you want to keep the client

on-side. You want to keep a

good relationship. It’s all about

relationships, and about nipping

things in the bud before they

become a major problem. A

contract’s a contract, but it’s how

the personalities interpret it.”

UCC, for its part, has never been

involved in arbitration, and this can

be put down to both its attention

to its contractual obligations and

its local harmonisation. Moutaz

Khayyat, CEO of UCC, comments

that accomodating client needs

and establishing understanding

between stakeholders reduces

chance of any major legal action.

“You do not want to head

towards arbitrations as a

contractor or a client, because it

destroys the relationship between

the two parties, and in terms of

trust that makes it very expensive.”

UCC managing director Ramez

Khayyat adds: “Contracting is

about trust between client and

contractor, and if the client

shares the risk then it is so much

the better – it makes for a much

happier project.”

Qatar has seen relatively little

arbitration, with the exception of

works on NDIA, but as FIFA World

Cup 2022 projects begin many

new contracts will see ink on

paper, and then the system truly

be tested.

“Arbitration is relatively new

in Doha, but there have been one

or two test cases,” says Milne.

“Looking at those I think it will go

much like Dubai, which should

give confidence to contractors.”

$200 billion To be invested in construction projects by 2022

$140 billion amount Qatar will invest into transportation infrastructure $20 billionamount to be invested into tourism infrastructure

big project, big numbers

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

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

Roof system1 Existing PU-panel, 50 mm2 FOAMGLAS® T4+ filler,

30 mm, in corrugation glued with PC® 11 adhesive

3 FOAMGLAS® READY BOARD, 70 mm, glued with PC® 11 adhesive and mechanical fixation

4 Two layers of bituminous waterproofing membrane; top layer UV-resistant

5 Anchor F fixed into existing PU-Panel

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

FOAMGLAS® Insulation

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

Roof Upgrade to High ThermalPerformance

ASTM E84, E136

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InTERnaTIonal conTRacToRS In QaTaR wARnEd ABouT PiTfAllS

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THE BIG PICTURE bigprojectMe.Com

empower to build first green plant in region

Plant has been designed to meet additional cooling requirements of buildings in Business Bay

Empower, the largest district cooling provider in the Middle East, has awarded a $42 million contract to the uaE’s Transgulf for the construction of the first district cooling plant in the region built in line with green building principles.

The contract covers the construction of one building which will comprise district cooling infrastructure such as pumps, chillers, water tanks, cooling towers and office space. The plant will be built in two phases based on capacity distribution, with the majority of cooling load being available in phase one.

The district cooling plant, which is Empower’s second in business bay is expected to be complete by mid-2014 and will have a full capacity of 45,000 refrigeration Tonnes (rT).

The plant has been designed to meet the additional cooling requirements of the buildings in business bay. it will also be the first district cooling plant in the region to be built in line with green building principles, and to follow the guidelines of Treated Sewage Effluent (TSE) and Thermal Energy Storage (TES).

green buildings adopt measures which ensure the building is sustainable and energy efficient. These measures include reducing fresh water usage and carbon dioxide emissions, using more environmentally-friendly construction materials and also integrating energy-efficient lighting.

oMaN To awarD $65BN iN proJecTs over NexT four years

Projects to be awarded double the combined value of projects awarded over last five years

BIG PRojEcT ME HIGHlIGHTS HoSPITalITy’S IMPacT on conSTRucTIon In THE REGIon – PaGE 32

$65

OMAN HAS ANNOUNCED that it will award as much as $65

billion worth of projects between 2013 and 2017, which is double

the combined value of projects awarded over the last five years.

Among the projects at the forefront of Oman’s aggressive

expansion programme are BP’s $15 billion Khazzan tight

gas project, the development of a $10 billion refinery and

petrochemical complex at Duqm and a nationwide railway

construction project.

Some of the largest projects expected to be completed this year

include the $560 million Sohar Steel Complex Expansion (Phase

3) and the $480 million Musandam Oil & Gas Processing Plant.

Capturing a bigger share of Oman’s projects market will be

among the highlights of the forthcoming Oman Projects Forum

2013, which will address the latest project developments,

opportunities as well as in-country value initiatives across the

sultanate’s energy and non-energy related infrastructure market.

hlg seeks $272 MillioN iN coMpeNsaTioN froM QaTari sheikh

contractor says al Faisal Holding owes hundreds of millions in late payments for doha city centre hotel project

AL HABTOOR LEIGHTON, the Dubai

arm of the Australian contractor, is seeking

more than $272 million in compensation

from a prominent member of the Qatari

royal family for late payments on a hotel

project in Doha.

According to a Reuters report, HLG has

launched a series of suits against Sheikh

Faisal Bin Qassim Al Thani’s Al Faisal

Holding in relation to the Doha City Centre

Hotel development. Khalaf Habtoor,

chairman of the Al Habtoor Group and part

owner of HLG, has said that it planned to

initiate legal action internationally against

the Qatari company. However, Al Faisal has

countered HLG’s suits with accusations

of mismanagement and a failure to take

responsibility for several delays.

A statement by the Qatari company

said that these delays have affected the

construction of several hotel towers, which

were scheduled to be completed in 2007.

“The company wants more than a $272

million dirhams in compensation from Al

Faisal,” Habtoor told Reuters.

He said the suits were in response to Al

Faisal Holding cashing in a $100 million

performance bond which HLG had put up

as a guarantee against work on Marriott,

Renaissance and Shangri-La properties.

Billion

VAluE of PRojEcTS oMAn will AwARd

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THE BIG PICTURE

THE SPACE FRAME at IMG Worlds of Adventure (IMGWOA), a

themed entertainment facility within the City of Arabia project,

has been erected, the developers behind the project have

announced.

Owned by the Ilyas and Mustafa Galadari Group, the IMG

Worlds of Adventure is a multi-faceted themed entertainment

facility comprising of four zones including; MARVEL, Cartoon

Network, Lost Valley and IMG Entertainment Zone.

The park will be in excess of 1.5 million square feet overall in

its first stage and will be the largest temperature controlled indoor

themed entertainment destination in the world.

“With the structural columns in place, we have entered a new

phase of development. IMG Worlds of Adventure is one of the

most anticipated developments in the region offering a number of

world firsts,” an official from the Ilyas and Mustafa Galadari Group

said in a statement.

space fraMe for iMg worlDs of aDveNTure erecTeD

BIG PRojEcT ME FIndS ouT wHaT nEw PowERHouSE cHIna IS uP To In EaSTERn aFRIca – PaGE 50

tata steel to manufacture 60,000 tonnes of steel for Holy cities railway

new railway will carry millions of pilgrims across 444km of desert

TaTa Steel has won an order to manufacture 60,000 tonnes of high-quality rails for a new high-speed line linking the Saudi arabian cities of Makkah and Madinah.

The new railway will allow millions of pilgrims to cross the 444km between the two holy cities at speeds of 320kmph, traversing desert and withstanding temperatures ranging from freezing to 50°C, as well as sandstorms, flash flooding and shifting dunes.

The steel for the project will be made in the steel giant’s Scunthorpe plant, before being rolled into rail in lengths of 25 metres both at the uK plant and TaTa’s hayange facility in Northern france.

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

rMJM Merges europeaN operaTioNs iN MiDeasT BusiNess

RMjM International will manage offices in uk, abu dhabi, Bahrain, Saudi arabia and Turkey as architectural and planning company promises fresh approach

RMJM, THE INTERNATIONAL

has merged its European

operations into its Middle

Eastern business to form

an enlarged multi-regional

company that will be

headquartered in Dubai.

Known as RMJM

International, the firm will

manage offices in London and

Glasgow in the UK, as well as

offices in Abu Dhabi, Bahrain,

Saudi Arabia and Turkey.

Harry Downie will lead

RMJM International as CEO,

while Boran Agoston will be the

design principal.

“I am particularly proud

to announce this merger”

commented Peter Morrison,

RMJM Group CEO. “Our

Middle East business has been

a beacon of light within the

RMJM Group throughout a dark

and difficult global recession.”

“The strength of the RMJM

brand in the Middle East is

testament to the extraordinary

strength of character

encapsulated within our

regional team and serves as a

constant reminder of why we

have been able to maintain a

constant presence and sustain

a successful business here for

more than 40 years.,” he added.

Commenting specifically

on the design capabilities of

RMJM’s European team, Boran

Agoston, design principal of

RMJM International said that

RMJM’s European team was

very experienced and had a

range of skills and talents that

would complement existing

Middle East projects.

“This merger significantly

expands the range of design

capabilities RMJM can offer to

its long standing Middle East

clients and will also open up

new market sectors for us.”

“At the same time our

Middle East design team will

be able to offer a new and

fresh design approach to our

European clients,” Agoston

added in the statement.

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

Million SqfT

SizE of iMG woRldS of AdVEnTuRE

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THE BIG PICTURE bigprojectMe.Com

al futtaim engineering wins multi-million dollar HVac contract for etiHad rail

MEP division awarded contract by Italy’s Saipem, to provide Hvac works for depots, track and line side alignment facilities

al futtaim Engineering has announced that it has been awarded the contract to provide hvaC works for the Etihad rail project. The uaE based company’s MEp division was awarded the contract by Saipem, the main contractor for the multi-billion dollar project. The multi-million dollar contract will see the al futtaim group company provide hvaC works for depots, track and line side alignment facilities at Mirfah in abu dhabi.

“we are extremely honored to be awarded this prestigious contract,” said Murali S, acting managing

director of al-futtaim Engineering. “Once complete the rail project is expected to significantly boost the economy and we are proud to participate in the development of the country. The Etihad rail contract underlines al-futtaim Engineering’s expertise in major infrastructure projects after having previously successfully delivered the dubai Metro project and presently executing the dubai Tram project.”

Etihad rail’s $10.89 billion, 1,200km route network will connect urban and remote communities throughout the country.

DUBAI HOLDING, THE main promoter of

SmartCity Kochi, has received permission

to begin construction on the first building

on the project, from the single window

clearance board, it has been announced.

Baju George, managing director of

SmartCity Kochi, told Gulf News that

construction work would start at the end

of August, with the tendering of piling

works set to be completed first. He added

that land development activities had

already started. Different activities have

been taking place on site from July, prior

to the construction of the first IT building,

George said.

“We expect piling to start this month

and the first building to be given out for

fit-out by December 2014. The fit-out is

expected to take three months,” he added.

The agreement for SmartCity Kochi was

signed in 2007 when the new government

took charge but the land was registered

in February 2011, a Gulf News newspaper

report said. The total area of the project is

246 acres.

Abdul Latif Al Mulla, CEO of

SmartCity Dubai and the chief

business development officer of Dubai

Holding, said that all major regulatory

requirements had been obtained.

DuBai holDiNg’s sMarTciTy kochi receives perMissioN To BegiN coNsTrucTioN

construction set to start at the end of august, managing director says

Makkah’s eMployMeNT crisis

although more than $30 billion has been invested into projects in the Holy city through the Makkah development Plan, young Saudi arabians are failing to make the most of the opportunities on offer

dEcEMBER

TARGET dATE foR SMARTciTy kochi fiTouT

2014

joBS cREATEd By MAkkAh TouRiST-RElATEd PRojEcTS

foREiGn woRkERS

100,000 SAudiS SEEkinG woRk in

MAkkAh

20%

MAlE joBSEEkERS

80%

fEMAlE joBSEEkERS

PERcEnTAGES of SAudi joBSEEkERS:

BA dEGREE VS SEcondARy cERTificATES

SAudi nATionAlS

30% BAchEloR dEGREES

70% SEcondARy oR inTERMEdiATE cERTificATES

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THE BIG piCTurE BigproJecTMe.COM

imdaad succeeds in its reView of iso certificationFM company has successfully passed a rigorous review of its ISo certifications

imdaad’s attempts to expand its services in overseas markets has been boosted by the completion of a rigorous examination of its sustainability and safety credentials.

The company said it has successfully passed a rigorous review of its iSO 14001:2004, iSO 9001:2000, and OhSaS 18001:1999 certifications, which it explained “creates a procedural framework that will help support the company’s international expansion plan”.

“The periodic review is a clear testament of its unwavering commitment to international standards and strict compliance with environmental management systems, quality

management systems and health and safety measures,” said imdaad.

The Norway-based dNv Classification agency, the specialist global entity in auditing the compliance with iSO specifications, carried out an extensive assessment of all certifications including the environmental management mechanism through which the environmental performance of the departments affiliated to imdaad is followed up and improved.

The registered standard is an assurance that customers receive the same level of efficiency from imdaad, regardless of their requirement or locality.

FRENCH CONSULTANCY OTCE,

“Omnium Technique d’études de la

Construction et de l’Equipement” says it

has taken advantage of the construction

boom in the GCC.

Based in Lebanon and Saudi Arabia

it is extending its expertise to provide

customers with high-quality, innovative

engineering solutions more efficiently and

cost effectively.

Over the past few years, OTCE has

increased the number of its potential clients

through the achievement of outstanding

and innovative solutions in the fields of

engineering and construction. Last year

it established an office in Riyadh and says

that it is now positioned to make its mark in

the Kingdom’s construction sector.

General manager Simon Daniel in

the Middle East identified several areas

where OTCE can contribute with six

decades of expertise.

“The country’s sustained growth,

together with the extremely important

public and private investments as regards

to roads and infrastructure, industrial

and hospital projects along with high

rise buildings, fields in which we have

real distinctive assets, create a favorable

environment for our development in

Saudi Arabia,” said Daniel.

Daniel added the consultancy firm

is concentrating on consolidating and

sustaining its approach.

oTce reaches TurNiNg poiNT iN sauDi araBia

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

gcc healThcare speND

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

yEARS

oTcE’S ExPERiEncE in conSTRucTion

42% hoSPiTAlS cuRREnTly undERwAy

37.9%

GRo

wTh

of

ThE ho

SPiTA

lS

in k

SA o

VER

nEx

T fouR

yEARS

Gcc hEAlThcARE

GRowTh

oVER ThE

nExT 10

yEARS

17%

46 million nuMBER of hoSPiTAl TREATMEnTS AcRoSS ThE Gcc in 2008

1020304050

1,200hEAlThcARE

PRojEcTS SchEdulEd in

kuwAiT duRinG 2011-2012

X100

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possibly…you

well-rounded mechanical engineers who can go beyond calculations to fitting into these coordinated engineering design models will render themselves invaluable.

five New TreNDs iN coNsTrucTioN aND BuilDiNg

Mike Miller, mid-atlantic division leader for Southland industries, in the uSa, and Jim Snyder, director of operations for construction company, the warrior group, also in the uSa, provide an insight into the trends to look out for this year

source: www.asMe.org

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

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

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

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


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“Any competitive advantage gained

through corruption is a mirage.”

That is a quote attributed

to Robert S Khuzami, director of

Enforcement, US Securities and Exchange

Commission in an Ernst & Young report

that addresses the challenge facing

regional governments and companies as

they battle to stamp out the practices of

bribery and corruption in the Middle East.

The report, entitled ‘Managing Bribery

and Corruption risks in the Construction

and Infrastructure Industry’, covers the

global challenge of combating the issues

that arise in regions and countries that see

these negative practices flourish.

With regards to the Middle East, Robert

Chandler, partner, Assurance – Middle East

and North Africa, for Ernst & Young Middle

East, says that despite all appearances to

the contrary, corruption in the Middle

East is fairly widespread and is a legitimate

cause for concern for both governments

and companies in the region.

“Many Middle Eastern countries

fall in the lower half of the Corruption

Perceptions Index (the GCC countries and

Jordan are notable exceptions). Several

high-profile corruption investigations in

Western countries have related to activities

in the region,” he explains in the report.

“We have been seeing increasing Anti-

Bribery and Corruption (ABAC) measures

in many countries in the Middle East, but

bribery and corruption is still prevalent, as

shown by the numerous Foreign Corrupt

Practices Act (FCPA) cases involving

conduct in the region,” Chandler adds.

This is often because companies fail to

provide clear guidance to their employees

over what is regarded as acceptable and

“SEVERAl hiGh-PRofilE coRRuPTion inVESTiGATionS in wESTERn counTRiES hAVE RElATEd To AcTiViTiES in ThE REGion”

payiNg ThE priCEBig Project ME examines how prevalent bribery and corruption are in the Middle East region, and the challenges that come with eradicating such practices


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NEWS ANALYSIS

unacceptable business practices specific

to the region, or the procedures to

manage such a situation, should it arise,

the report says.

However, Michael Adlem, partner –

Fraud Investigation & Dispute Services,

Middle East and North Africa, also with

Ernst & Young, tells Big Project ME that

the problem actually goes much deeper

than that.

“We spend a lot of our time working

for companies that are mostly US, UK and

European (owned), doing reviews of their

agency companies out here in the region.

And often we will find issues around

bribery when we do these reviews,” he says.

“I think it’s pretty much everywhere,

to be honest. We surveyed companies

around the region and it came back that

everybody saw it as a major problem in

the region, as a whole.”

“Even though in many countries here,

it (bribery) is an offence, but nobody

treats it very seriously. There is a UN

convention against corruption, which

most of the countries in the region have

signed up to, and that requires that they

put better legislation in place to bring

about prosecution and those sort of

things. There is an international initiative

to move things, but as with a lot of these

things, it’s not happening as quickly as the

UN would like,” he explains further.

In an alarming observation, the Ernst

& Young report states that although most

of the Middle Eastern countries have

ratified the United Nations Convention

against Corruption (UNCAC), there are

still gaping holes in the defence against

negative practices.

The Sultanate of Oman has not signed

up to UNCAC, while Saudi Arabia and

Syria are both signatories to it, but

have not ratified it. Furthermore, the

implementation of the specific policies

of the convention continue to pose

challenges to enforcers of the law.

“I think the problem is that nobody

has done very much about it, apart from

the US. If you look at the statistics, most

of the prosecutions around bribery and

corruption, 95% of them have come out of

the US, in the last 20 years,” Adlem says.

“I think the UK is in second place

with about 3%. So the rest of the world

has done very little and there’s very little

prosecution here in the Middle East.”

This urgently needs to change, he says,

if there is to be any major change in the

way business is done in the region. One

of the most common methods of bribery

comes in the form of ‘kickbacks’ and ‘gifts’,

which in the context of business dealings,

is almost viewed as normal business

practice in the regional market.

“Bribes, particularly in the form

of kickbacks, are still regarded as an

accepted part of doing business in the

Middle East, often with little thought

for potential to corporate reputation

damage,” says a research survey entitled

‘Bribery, Corruption and Fraud in the

Middle East,’ which was released by

Ernst & Young Middle East and polled 63

respondents from organisations in eight

countries in the region, between August

2011 and January 2012.

The countries included were: UAE,

Jordan, Kuwait, Egypt, Oman, Saudi

Arabia and Bahrain.

“EVEn ThouGh in MAny counTRiES hERE, iT (BRiBERy) iS An offEncE, BuT noBody TREATS iT VERy SERiouSly”

kickBAckSAre an accepted part of doing business in the Middle East.

middle east corruption surVey results

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

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

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

n 10% disagree that corruption is a problem

RoBERT chAndlER

MichAEl AdlEM


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Of those respondents, 36% said that

they strongly agreed that bribery and

corruption were major problems in the

Middle East. 32% said that they agreed

that it was a major issue. Only 10% said

that they disagreed with it being a major

problem. The remaining 22% neither

disagreed nor agreed.

Adlem does point out that the UAE

is putting in motion legislation that will

bring it in line with UN requirements, but

says that the proof of its effectiveness will

only come when the legislation is in place

and prosecutions take place.

He draws a parallel between the UK

Bribery Act, which was introduced in 2010.

“It (the UK Bribery Act) came into

force in 2011. We’ve not seen too many

prosecutions at the moment, though I

understand that there are one or two ones

in the pipeline. So when these countries

out here do put the legislation in place,

I think there will be some eyes watching

to see what will happen, to see if they

actually do enforce (the legislation).”

However, as alluded to earlier, the

culture of ‘gift giving and kickbacks’,

especially in this region, is a tricky

concept to tackle. On one hand, Adlem

says, the practice of giving ‘gifts’ is almost

cultural, and has been going on for a

long time. On the other hand, it can veer

into murkier territories when those gifts

become excessive and force or move

individuals into making a decision they

wouldn’t normally make otherwise.

“It’s not going to change overnight. I

think it’s going to be a gradual shift. But I

think what you’ve got to see is that some

efforts are being made to get rid of it

and to crack down on it. I certainly don’t

believe it’s going to happen overnight, it’s

going to take a long time,” he points out.

But he does encourage his clients, and

other companies operating in the Middle

East, to actively pursue Anti-Bribery and

Corruption policies, as he says it could

ultimately be to their benefit. Citing an

example of a local client, who declined

to introduce ABAC measures into his

business, despite working with US, UK

and European partners, Adlem said that

it lead to further complications down

the line when those same partners asked

to see his ABAC policies, his anti-fraud

policies, his audit policies and so on.

“My view is that you can turn that into a

competitive advantage and have all those

things in place and have them embedded

in your business. When you’re able to

demonstrate that, you’ll be able to win

these contracts because European and US

companies are really going to jump on to

that,” he explains.

This is because under some of these

acts, these companies can get caught and

prosecuted in their home nations. “We’re

already seeing this in the pharmaceutical

industry, with what’s happening in

China,” he says.

“Certainly the construction industry is

no different in that respect, because it’s

a big industry, and the spend is huge, it

ticks all the boxes.”

“We investigate this stuff all the time,”

he says. “Bids get opened, information is

shipped to other suppliers, so that they can

come in at the right price or underneath…

so they win the work and people get

kickbacks for providing that information.

I think anywhere you’ve got significant

spend, whether it’s in the construction

industry, the oil industry, or any industry,

there’s a massive risk of bribes being paid.

People will want to win contracts and

they’re prepared to pay money to win it.” n

“SoME EffoRTS ARE BEinG MAdE To GET Rid of iT (coRRuPTion) And To cRAck down on iT”

fiVe anti-bribery measures to consider

n introduce portionate Procedures

n show demonstrable Top-level commitment

n identify areas of High Bribery risk

n police Treasury and accounts Payable

n Monitor high risk transactions

coMPETiTiVE AdVAnTAGEFirms with anti-bribery measures in place will attract Western partnerships.

NOVEMBER 25, 2013JUMEIRAH EMIRATES TOWERS, DUBAI

THE INDUSTRY EVENT

THAT HAS THE WHOLE REGION

TALKINGRECOGNISING INDUSTRY

EXCELLENCE

SPONSORSHIP OPPORTUNITIES

COMMERCIAL DIRECTOR Michael Stansfield | +971 4 375 [email protected]

FOR FURTHER INFORMATION

MARKETING MANAGER Carole McCarthy | +971 4 375 [email protected]

NOMINATION ENQUIRIES

GROUP EDITOR Stephen White | +971 4 375 [email protected]

www.bigprojectme.com/awards/2013

ENDORSED BY

PLATINUM SPONSOR

SUPPORTING PARTNERS

CATEGORY SPONSORS

BPME2013AWARDS_Sept_v2.indd 1 9/4/13 4:22 PM


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In PRoFIlE alaN rObErTSON BigproJecTMe.COM


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analysts are paid to be smart. They’re

paid to look at the data, the facts

and the information and make the

smart decisions.

Whether a real estate analyst, a

financial analyst or even an IT analyst, the

job description tends to remain the same.

They discover meaningful patterns within

the data, and then use those patterns to

guide their clients towards making the

decisions that bring in profit and success.

Alan Robertson, the chief executive

officer of Jones Lang LaSalle for the

Middle East and North Africa, is certainly

a man who knows a pattern when he

sees it, and luckily for local real estate

investors, the ones he sees in the Middle

East are very promising.

“Generally, it’ll be a pattern of growth.

There will be ups and downs of course,

but there will be growth patterns,” he tells

Big Project ME.

“If you look at Dubai, last year, the

population increased by about 3%. So if

we say that Dubai’s population is about

2 million, then that’s roughly about

60,000 people who will all need to have

somewhere to work, somewhere to shop

and somewhere to stay.”

“So it’s generally going to be a growth

story, but there will be some ups and

downs along the way, and one potential

danger sign would be if the residential

prices get carried away,” he warns. “If they

rise too fast, they could get over heated

again, and that wouldn’t be too good for

the market in the long-term.”

Having joined Jones Lang LaSalle

MENA as CEO in 2011, Robertson has

been involved in the property market for a

couple of decades.

Prior to his current role, Robertson

was the managing director of JLL Turkey,

a position he held since 2008. Before

that, he worked in commercial property

markets in the UK from 1983 to 2008, and

took over the firm’s Scottish operations

from 2005.

Given his wealth of experience and

knowledge, perhaps it’s interesting to

note that that he’s quick to point out that

the real estate market in the region is in

recovery mode and that this is good news

for contractors.

“If you take Dubai, the residential

market began to recover 18 months ago.

Throughout 2012 we saw progressive

recovery. It started with the very best

locations and the very best projects and

the very best developers, but gradually, as

we come through 2013, the recovery has

become more widespread.”

“That’s one of the key points in the way

the market has evolved over the last 18

months. The recovery started at the very

best and it has now expanded across a

wide range of sectors,” Robertson explains.

“iT’S GEnERAlly GoinG To BE A GRowTh SToRy, BuT ThERE will BE SoME uPS And downS AlonG ThE wAy”

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

dubai population growtH (2013)

n 4.8% dubai population growth as of 25/08/2013

n 2,174,000 Estimated number of people living in dubai in august 2013

n 2,068,000 Estimated number of people living in dubai in august 2012

n 85% Estimated percentage of population that are expatriates

REcoVERy PAThDubai’s real estate recovery started in the best markets in the emirate.

rEadiNg ThE paTTErN


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It would be fair then to ask just what it

is that is driving this growth in the market.

Robertson admits that there is no one

clear definite reason. Rather, he attributes

the recovery to a variety of factors, which

include the strength of the regional

economies and their visibility as ‘safe

havens’ for investment.

“This is especially true for Dubai,”

Robertson says, “it has benefited from

being a safe haven, both on a regional

basis and on a broader basis.”

“As a result of the Arab Spring, we’ve

seen Syrians, Egyptians and so on, invest

their money into the market here. It’s not

only from the (surrounding countries),

the GCC and the wider Middle East are

probably the biggest single sectors, but as

a result of problems in the Eurozone, for

example, we’ve seen a lot of European and

Russian money coming into Dubai. We’re

also seeing money from the Asia-Pacific

region,” he asserts.

“As for the tourism market, again,

Dubai has benefited from the Arab Spring.

People who used to go to Lebanon or

Egypt are now coming here. So there has

been an increase in tourism, and that

obviously benefits the hospitality and

tourism sectors,” Robertson adds.

Terming the UAE as one of the most

active development markets in the world,

Robertson points out that it’s quite likely

that the Middle East will end up playing

a massive role in shaping the global

construction industry.

“If you look at Europe, it’s pretty slow

in terms of new development and that’s

likely to remain that way for some time.

The US, that’s also been slow. Perhaps it’ll

recover quicker than Europe, but I think

it would be difficult to find a place in the

world where there’s more happening in

the way of new projects being rolled out,

than we’re seeing here,” he explains.

The success of the ‘Dubai Story’, he

says, lies in the continual development

of its infrastructure, which makes it more

and more attractive to foreign investors as

it continues to grow.

“The better the infrastructure gets, the

bigger the airport gets, the more direct

routes there are, the more attractive it

becomes to corporates as a regional

headquarters location,” Robertson says.

“And the more tourist facilities there are,

the more attractive it will be to a large

number of people who get to come here. So

it’s accessibility, as a place and its quality of

life, whether building or infrastructure, all

make a very positive contribution.”

Tied into this infrastructure

development is Dubai’s desire to host

the 2020 World Expo, he adds. With

the emirate making a concerted push

towards winning its bid for the six

month expo, Robertson says that the

long term benefits to the country and

city will be immense.

“I think it would be fantastic, not just

for Dubai, but for the whole UAE, if Dubai

was selected as the host venture for Expo

2020. One of the strengths of Dubai and

the location of Dubai World Central, is

that there’s a lot of infrastructure already

there. The site has got a fantastic road

network already and it’s got an airport on

its doorstep. There are already plans to

bring the metro to the site and it’s already

master-planned,” he points out.

“ThE REcoVERy hAS now ExPAndEd AcRoSS A widE RAnGE of SEcToRS”

AcTiVE dEVEloPMEnTAlan Robertson says the UAE is one of the most active development markets in the world.

SAfE hAVEnDubai’s calm and stability has attracted investors back to the market.Hotel market

summary

n 58,100 rooms current hotel supply

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

n 85% 2013 yTd occupancy

n $267 2013 yTd adR

Big Project

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234 mm x 290 mm

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2-15-2013 1:50 PM

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

S:194 mmS:250 m

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m

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real estate oVersupply

jones lang laSalle’s second quarter abu

dhabi Market overview report for 2013

has found that the uaE capital’s real estate

markets (across all sectors) remain in over-

supply, with additional new supply still in

the pipeline leading to further increases in

market-wide vacancy rates.

“There continues to be a significant

distinction between high grade and low

grade product - while the prime market

is showing signs of stability and early

recovery, the performance of lower

grade stock continues to decline,” the

report says.

It added that during Q2, 2013, prime

residential rents remained stabled,

following an 8% growth during the first

quarter.

Furthermore, the real estate research

consultancy pointed out that the overall

office market remained over-supplied,

‘pending further progress with government

economic development initiatives to

diversify the economy and generate new

jobs’. However, the report did state that

prime office rents had remained stable for

the last four quarters.

Finally, the report said that although hotel

occupancy levels had increased by 8%

during the first five months of 2013,

average daily rates have continued to

remain under pressure, declining by 2%.

“due to the positive growth in

occupancies, RevPaR levels in the year to

May 2013 have experienced an increase

of nearly 11% compared to the same

period last year,” it added.

“With the activities of Dubai World

Trade Centre expanding on to the Expo

site, there’s a permanent long-term use, a

sort of legacy, after the Expo.

From that point of view, Dubai ticks

a lot of boxes, and it’s not like they’re

starting with a clean sheet of paper, a lot of

it is already done. In my view, that makes

it a very strong contender.”

As a result of this planned expansion

and growth, Robertson says that Jones

Lang LaSalle has decided to expand its

operations in the Middle East.

“We started project management,

and a few years ago, we started property

management. These are core businesses

across the world for Jones Lang LaSalle,

but they’re relatively new here. Project

management accounts for about 20% of

our global revenue, so it’s a big part of

the wider business. Here, we’re primarily

serving our corporate clients, so we’re

doing some new build projects for

multinational corporates, and what we

really specialise in is fit-out for corporate

offices, but we’re also branching out

into some retail projects and one or two

industrial ones, but it’s mainly in offices

that we’re providing project management

services for fit out.

“We are also equipped to do new build

project management. We don’t expect to

take on specialist PM companies for the

really massive projects, but for small to

medium new size builds, we believe we

can offer a good service.”

With construction work in the UAE set

to continue to boom, Robertson concedes

that there needs to be some caution

exercised, with certain sectors likely to be

tough markets for new investors.

“I don’t think there are many

opportunities in the very large shopping

malls, because these have been done, by

and large, and they’re very tightly held, so

they don’t really come out in the market.”

“But for smaller retail developments,

such as a supermarket with an arcade of

10 shops beside it, (I think) Dubai needs

more of them, and they would be good

investment packages.”

“In the office market, you need

to be selective, but we do see some

good opportunities where some of the

corporates will need to do ‘built to suit’

deals to get the space that they want.

So you’ll end up with a single-tenant

buildings which are on long term lease,

and we think this will be very attractive to

investors”, he concludes. n

TickS ThE BoxESDubai’s pre-existing infrastructure makes it a strong contender for World Expo 2022.

“ThE BETTER ThE infRASTRucTuRE GETS, ThE BiGGER ThE AiRPoRT GETS, ThE MoRE diREcT RouTES ThERE ARE, ThE MoRE ATTRAcTiVE iT BEcoMES To coRPoRATES AS A REGionAl hEAdquARTERS locATion”

CONSULTANTS AND ARCHITECTS CUP

CONTACT:

PUBLISHING DIRECTORRaz Islam +971 4 375 [email protected]

COMMERCIAL DIRECTORMichael Stansfield +971 4 375 [email protected]

MARKETING MANAGERCarole McCarthy+971 4 375 [email protected]

GOLF DAYS

Big Project ME will be hosting a Buyer & Sponsor only Golf Day in

October. The aim is for you to meet the consultants and architects on a one

to one basis and network in a relaxed, fun-filled

environment!

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

FALDO COURSE

The Global Leader in Managing Construction Risk

BPME_GolfDay_Sept_v2.indd 1 9/4/13 4:28 PM


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on SITE habTOOr palaCE COMplEx BigproJecTMe.COM

Project Name

Location

Site Area

Building Type

Construction Cost

Al Habtoor Island (Habtoor Palace Complex)

Sheikh Zayed Road

92,903m2 (GFA: 357,000m2)

Hospitality

$544.5 million

for most of the 1980s and 1990s the

Metropolitan Hotel on Sheikh Zayed

Road was considered to be one of

Dubai’s most recognisable landmarks.

Helped in no small part by being one of

the first hotels in the city, the Metropolitan

became a gathering point for expats from

all over the world, who were working in a

city and country that was yet to undergo

the prodigious rate of development that is

now taken for granted.

As Dubai continued to grow and

expand, the 33-year-old hotel became

something of an anachronism as newer

and glitzier rivals sprung up across Dubai

and down Sheikh Zayed Road.

With Dubai Marina and Jumeirah Lake

Towers growing in size and becoming

more popular with tourists and residents,

a number of hotels opened branches there

as well, further intensifying the pressure

on the Al Habtoor Group owned property.

The result was that the Metropolitan

became displaced in an ultracompetitive

marketplace and soon fell by the wayside,

unable to attract sufficient clientele to be

financially viable. Dwarfed by the world’s

tallest hotel, the gigantic JW Marriot

Marquis, it was eventually decided to

bring the shutters down on what was once

a Dubai icon.

So it was in May 2012, following an

extravagant send off, the hotel’s owners

decided to demolish the entire property,

levelling the whole hotel and bringing to

a close nearly three decades of memories

and stories. However, this was only

phase one of an ambitious plan by the Al

Habtoor Group, a plan that will revitalise

the site and see the development of a

massive complex that will house three

top of the line hotels, a state of the art

‘Water Theatre’ and gardens modelled on

the ones in Versailles.

Martyn Wild, the projects director

for the Al Habtoor Group, explains that

the three new hotels due in 2015 will

all be managed by the Starwood Hotels


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“iT’S ABouT cREATinG A culTuRE in ThE PRojEcT whERE ThE oVERAll PRojEcT iS ThE MoST iMPoRTAnT”

ThE MET rEbOrN

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


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ON SITE Habtoor Palace comPlex bigprojectMe.com

and Resorts, with around 1,600 rooms

available to guests.

“There are three hotels, there’s the

Westin, which is a business hotel. That’s

the big one with 1,000 rooms,” he tells

Big Project ME during a site visit to the

project. “The St Regis is a very upmarket,

six star hotel offering, with about 250

rooms. The rest of the rooms are in the W.

The W is something different. I suppose

the target market (for it) is young, affluent

people. It’s everything you don’t expect.”

“I think it’s something like July,

September and November for the

openings of the hotels, they’ll all open

before the end of September. I think it’s

the St Regis first, then the W and then the

Westin, which is the big one,” he adds.

Furthermore, the complex will see the

development of three levels of basement

car parking, which will stretch out under

the gardens and avenue that lead up to the

St Regis hotel. In addition, the complex

will be built on a podium that will stretch

across nine levels, housing mezzanine and

service levels, along with parts of the hotel.

“The site is 92,903m2, and the gross

floor area is 357,000m2. There are three

basements over the whole site. At the

end of the site (the entrance) we’re not

able to build above ground level. That’s

because of government zoning. So we

have parking only, but on top of the

parking, we’ve got this classical type

garden, a Versailles type garden, with a

grand entry up to the hotel, with trees on

both sides and the St Regis at the end,”

Wild explains, painting a vivid picture.

“This is a classy, six star hotel. It’s all

period, the building and the inside. It feels

like a country house rather than a hotel.

It’s very intimate and highly serviced,

this is the jewel in the crown. So all the

building is at the (north) end. And again,

there are three levels under this, and it’s a

combination of parking and back of house.”

Holding more than 3,000 parking

spaces, the vast basement levels will also

hold kitchens, laundries and other hotel

services in them, Wild says.

“MEP iSn’T A wAlk in ThE PARk, BuT EVERyBody’S donE hoTElS BEfoRE (So ThEy know whAT To do). iT hAS To BE donE PRoPERly, BuT ThE ThEATRE iS whERE ThE REAl chAllEnGE iS (foR ThiS PRojEcT)”

uPMARkET dESTinATionThe project will be an upmarket tourist resort once complete.al Habtoor island

complex principals:

n Main contractor Habtoor leighton Group

n project Manager Habtoor Group

n hotel operator Starwood Hotels and Resorts

n Theatre operator Franco dragone Entertainment

n concept john R Harris

n after concept khatib & alami


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“We have a podium that’s actually

nine levels high. Some of those levels

are mezzanine levels, some are service

levels, but it’s a significant podium. The

St Regis is in the front of that podium and

the bottom of the Westin and W hotels are

also in that podium,” he explains.

Designed as two towers, the Westin hotel

will go up to 56 floors, while the W will go

up to 45 floors. The St Regis will have six

public levels plus the basement. The top

of the podium will also have landscaped

areas, pools and other facilities.

Although the hotels will take up the

bulk of the complex, the main attraction

of the complex will be a $15 million

dollar ‘Water Theatre’ that will host an

extravagant and elaborate Cirque de Soleil

inspired show, similar to ones in Las

Vegas, Macau and China.

Guests will enter the theatre through

the W hotel, walking through an atrium

that will be populated with restaurants

and retail outlets that will be managed by

the Al Habtoor Group.

“The theatre is something a bit

unusual. It’s more of a show theatre, it’s

certainly not a Shakespeare-type theatre.

The producer is a guy called Franco

Dragone. He started Cirque De Soleil,

left it after it was established and created

his own company called Franco Dragone

Entertainment Group and he’s done two

or three in Las Vegas, one in Macau, he’s

doing one in China and he’s doing ours

next,” Wild enthuses.

“It’s a more elaborate Cirque de Soleil,

it’s like it times five. We’ve designed

a building around the show. Franco

Dragone Productions design the show,

give us the concept and we design and

build the building around the show. It’s

specific to the show, and it may run for ten

or 15 years. So it’s a long running affair.”

“The auditorium 1,400 seats and it’s a

water show. So the stage is a pool. Some of

it is solid, but the rest of it is a pool and the

seats are built around that. The auditorium

is 37 m high, and you get performers

diving from the top, into the water, with

boats coming in. It’s extremely elaborate

“if you wAnT To do SoMEThinG likE ThiS wEll, And quickly, ThEn you’VE GoT To Buy ThE RiGhT ExPERTiSE. you cAn’T ShoRT-chAnGE ThAT PRocESS”


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“iT’S ThE oRGAniSATionAl SkillS ThAT ARE kEy To A conTRAcToR’S PERfoRMAncE, And ThiS ThEy hAVE. MAnAGinG A GEoGRAPhicAlly lARGE SPAcE, wiTh A loT of PEoPlE, A loT of SuBconTRAcToRS, ThE nuMBER of SPEciAliSTS iS ASTRonoMicAl”

and I think it’ll be extremely successful

in Dubai,” Wild says, adding that the first

show is pencilled in for April 2016.

Despite his excitement about the water

theatre project, Wild does concede that

it has posed the biggest challenge for

his contractors. Although there are only

44 months for the entire project to be

completed, he remains confident that

the target date will be met, thanks to the

expertise of the site’s main contractor,

Habtoor Leighton Group.

“A problem that runs through the entire

project is the timescale. 44 months to

complete a project like this is challenging.

So the design and construction are

happening simultaneously, so a very tight

relationship between the consultant,

designer and contractor is absolutely

essential,” Wild asserts.

“This is what we’ve got, very good

communication and cooperation. It’s

about creating a culture in the project

where the overall project is the most

important. Each person’s individual

requirements have to be put second. The

first priority is the project.”

“To get people in that state of mind

is not easy, but this is what we’ve

done. We’ve got a very good, inter-

company team feeling, and this is the

key to any project. It’s about creating a

team, instead of individual companies

operating independently, if you can

generate that team culture, you’re half

way there,” he explains.

“That’s what we’ve done here. There

isn’t the fear that the next problem is going

to hurt us. The next problem, we’ll solve

like the last problem, and the problem

before that. That’s not easy to do. At

the beginning, people are nervous and

suspicious, but eventually trust builds and

builds, till eventually, if one person in the

team falls down, someone will support

them instead of exploiting a problem

someone else has got. At the end of the

day, if one of the team fails, then we all fail.

TiME chAllEnGEContractors only have 44 months to complete the four projects.


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Hotels principals

n st regis interior Design Bilkey llinas

n w hote Silverfox Studios

n westin wa International

n Theatre and public atrium luxe Interior International

n Theatre consultant auerbach Pollock Friedlander

n lighting Maurice Brill lighting design

It doesn’t matter who it is, the project fails

and we simply won’t allow that to happen.”

He admits however, that building

the water theatre will be a challenge,

especially from an MEP perspective,

thanks to the unique challenges it poses.

“MEP isn’t a walk in the park, but

everybody’s done hotels before (so they

know what to do). It has to be done

properly, but the theatre is where the

real challenge is (for this project). You’ve

got water jets that are 20-30m high, the

pumps and pipes to send water, huge

amounts of water. The pool is emptied

and filled before your eyes. The services

that deal with that are unusual. Now the

theatre consultant helps with that, but the

team has to be on the ball to deal with it

as well,” says Wild.

With a construction schedule that will

run 24/7 and a labour force that will hit

close to 6,000 once construction hits its

peak and it all sub-contractors start work,

Wild cannot stress enough how important

it is to have a main contractor that is well

versed in dealing with massive projects

such as the Habtoor Island complex.

“They’re a company with international

expertise, and they bring a lot of

knowledge to this project,” he says. “The

management of time and resources is

at the centre of that knowledge. You can

bring in 6,000 people and the productivity

can still be negligible if they’re not

managed properly. The right number

of supervisors, the distribution and the

sequence of work and so on, this is real

contracting expertise.”

“From the contractor’s point of

view, that’s mainly taken care of by the

consultants and the design work. It’s

the organisational skills that are key to

a contractor’s performance, and this

they have. Managing a geographically

large space, with a lot of people, a lot of

subcontractors, the number of specialists

is astronomical. Managing all those

people is the real challenge for the

contractor, and they have the expertise for

that,” Wild insists.

With between 50 to 75 subcontractors

set to be hired on the project, these

attributes will certainly be needed. The

selection process is set to be rigorous,

with Al Habtoor seeking out views from

the main contractor and consultant on

the project. An initial ‘long list’ is whittled

down to a select few, who are then invited

to tender and have their bids assessed.

With construction contracts for the

hotel worth $544.5 million there is clearly

a lot riding on these projects for the

Habtoor Group. However, if Wild is feeling

the pressure, he certainly isn’t showing it.

“We’re doing the superstructure at

the moment, we’re up to ground level in

some places. The superstructure is well

underway and we’ve just appointed the

MEP contractor, who is beginning work.”

“Next will be the façade contractor,

so we’ve done the foundations, then the

substructure in the basement, now we’re

on the superstructure above ground,” he

says, adding that the completion dates

will be staggered, despite all the working

happening at once.

Clearly then, Wild’s initial point about

choosing the right team is extremely

valid. With so much work to do on what

is effectively four construction sites in

one, all within 44 months, having a team

you can trust and rely on is critical, a

viewpoint he readily agrees with.

“If you want to do something like this

well, and quickly, then you’ve got to buy

the right expertise. You can’t short-change

that process,” he insists. n

PRojEcT PlAnnERMartyn Wild outlines plans for the massive hotel complex.

MedcoP.O. Box: 17301, Jebel Ali, Dubai, U.A.E., Tel.: +971 4 881 8821 Fax: +971 4 8818944,

Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.ETel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600, email:[email protected]

Al Garawi GroupAl Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya, P.O. Box 41122, Riyadh 11521, Saudi ArabiaTel.+966 1 4196096 / 4195058 Fax. +966 1 4196101 / 4196103, email:[email protected] / www.algarawigroup.com

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

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BigproJecTMe.COM

throughout most of recorded

history, the Arabian Peninsula has

been regarded as the crossroads

for the East and the West to meet

and trade. Records show that as long as

1,500 years ago, traders from India, the

Mediterranean and Egypt converged on

places like Muscat and Aden to trade and

exchange goods.

As time went by, the region became

strategically important, with Britain

establishing alliances and a significant

presence in Saudi Arabia and the rest

of the region. But this all paled into

insignificance once oil was discovered

in the region in the 1930s. Since then the

GCC region has been one of the most vital

and significant areas in the world.

The oil wealth has led to extreme

changes in the region, funding a surge

in development and growth that has

continued at an ever increasing pace.

With these changes came an increased

surge of trade. Leading this surge was

Dubai, which transformed itself into a

global hub for trade of all kinds, whether

financial, commercial or retail.

Now the rest of the region is starting

to catch up, with Qatar investing billions

of dollars into its development plan, and

Saudi Arabia investing even more into its

infrastructure and future planning.

Business is booming in the GCC, and

the region continues to see an influx of

travellers, both for business and pleasure.

According to statistics released by Dubai’s

Department of Tourism and Commerce

Marketing, an estimated 9.89 million

international visitors will travel to Dubai

this year.

Experts have predicted that Dubai

could be the world’s number one travel

destination by 2020, should it win the right

to host the World Expo. By all accounts,

the government is quite confident that

this will happen.

This then explains why construction

industry trackers have noted a surge in

the development of hospitality projects

in the city and beyond. This is no small

thing, with many experts predicting that

the regional hospitality industry could

have a major and defining impact on

regional construction, and by extension,

the regional economies.

According to a February report by

Ventures ME and commissioned by dmg

:: events, the construction sector is set

“MonTh By MonTh, BudGETS ARE BEcoMinG MoRE RESTRicTEd And ThAT ThE woRld hERE iS BEcoMinG A loT MoRE coST conSciouS”

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

hOSpiTaliTy

MaTTErS

HoSPITalITy iN fOCuS

33MID

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HoSPITalITy iN fOCuS

SEPTEMBER 2013

Hospitality sector figures

n $27 billion value of hospitality construction in 2013

n $5.5 billion value of hospitality construction in 2012

n 250 number of hotel rooms needed to be built in dubai

n 80,000 number of beds needed ahead of Expo 2020


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HOSPITALITY IN FOCUS bigprojectMe.COm

to grow by 19% in 2013, with completed

construction projects set to be worth a

staggering $81.6 billion.

In 2012, the largest sectors in the

GCC projects market were residential,

commercial and hospitality, the report

said. Each were valued at $29.4 billion,

$12.2 billion and $5.5 billion respectively,

in terms of projects completed. However,

by 2013, the value of completed hospitality

projects is expected to be $27 billion.

This comes as no surprise to Andrew

Johnson, director for Middle East and

North Africa, at Mace International, a

construction consultancy that has a well-

earned reputation as a ‘go-to’ firm when it

comes to hotel construction.

“Approximately 30% of our business is

related to the hospitality sector, one way or

the other,” he tells Big Project ME. “Since

we began operating in the UAE, we have

delivered 20 hotels around the GCC region,

which amounts to around 6,500 to 7,000

keys over the last ten years, so it’s quite a

big part of our business.”

“We’re looking forward to the UAE

winning the 2020 Expo bid. I think

that would add great impetus to the

construction industry here, and especially

the hospitality sector. I think the focus in

Dubai, in fact Abu Dhabi and the whole

of the UAE, has moved back into social

building. When I say social building, I mean

the attractions for tourism. In Dubai, that’s

certainly going to increase,” Johnson says.

This sense that the UAE’s bid to host

Expo 2020 is driving increased hospitality

construction is one that’s shared by

Cecilia Clason Skjorten, director of Cecilia

Clason Interiors, a furniture, fixtures and

equipment consultant based in Dubai that

has worked on a number of luxury hotels in

the region, including the Kempinski Hotel

and Beach Resort in Oman.

“wE’RE lookinG foRwARd To ThE uAE winninG ThE 2020 ExPo Bid. i Think ThAT would Add GREAT iMPETuS To ThE conSTRucTion induSTRy hERE, And ESPEciAlly ThE hoSPiTAliTy SEcToR”

AndREw johnSon

“Well, I think the biggest point that’s

happening is the Expo, and I think that

Dubai has a very high chance of winning

it. So I think with the basis of that,

something like 250 new hotels need to be

built. They’ll need around 80,000 beds

and they’ll need to be in all sorts of price

brackets,” she points out.

“The tourism (market) here has tended

to be five star hotels, and that’s tended

to be 50% to 60% of the market share. So

I think that the future trends, and where

we’re going to see a lot of development,

is in the three to four-star sector, which is

quite an unexplored market share.”

While there are construction costs to

consider, generally they don’t vary greatly

when building the physical structure

of a hotel, whether it’s five- or four- or

three star. However, there are a number

of variable factors that contractors and

consultants have to be aware of during

the design and build phase, that could see

their costs rise.

“I think we typically find that month

by month that budgets are becoming

more restricted and that the world here

is becoming a lot more cost-conscious

than it was ten to15 years ago,” says John

Wolfenden, director of Architecture and

Engineering at KEO International.

“I think business plans are now

something that are being discussed,

whereas in the past it was an unknown

thing. I think there has been an

cEciliA clASon

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

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evolution and that obviously puts

constraints on us as consultants in

being able to deliver the full services to

the quality that we want to deliver, on

what is ultimately a reduced budget for

ourselves. We’ll have to think smarter

and design more efficiently,” he warns.

Skjorten adds that while the actual cost

of building a hotel is dependent of the cost

of building materials and so on, the trend

towards smaller, less opulent and lower

rated hotels has meant that designers,

contractors and consultants have had to be

careful about their choices when it comes

to fitting out a hotel for a client.

“I was doing a bit of research on this

actually, about how a three- or four-star

hotel, versus a five-star hotel, how they

make their money and stuff. It’s basically

just by providing less facilities. So that

means less restaurants, no room service,

less fancy spas and gyms. I guess that’s

how they manage,” she explains.

“Because the construction costs are the

same, you have less operating costs and

also the material selections may be less.

You may not use marble, but use ceramics.

You use cheaper fabrics and you just have

less materials, for example. When I arrived

here from the UK, I was shocked at the

amount of finishes you could see in hotels,

and obviously the more finishes, the more

expensive it is.”

While Andrew Johnson admits that the

Mace Group tends to focus on more high-

end projects, he says that in his opinion, he

sees Dubai focusing more on the business

end of the market. However, he does point

out that other markets are picking up

whatever slack there may be in the sector.

“The UAE hospitality sector is running

at, they tell us, 18% growth. Tourism

is up, with the increased development

activity in places like Dubailand,

once they start building future tourist

attractions. The prospects for the

“wE’RE GoinG To SEE A loT of dEVEloPMEnT in ThE ThREE To fouR STAR SEcToR, which iS quiTE An unExPloREd MARkET ShARE”

culTuRAl TouRiSMAbu Dhabi is pushing cultural tourism, especially on Saadiyat Island.

dARREl STRoEBEl

john wolfEndEn

hospitality sector is very good. We’ve just

finished building the largest Ritz-Carlton

in the world in Abu Dhabi, which is a

different market.

“It doesn’t focus so much on tourism

for the hotel guests, though I’m sure that’s

changing. Abu Dhabi has recommenced

the museums on Saadiyat Island, they’re

moving towards cultural tourism rather

than bulk tourism. We’ve been working

Abu Dhabi for 16 years now, it goes

through various cycles, but basically, the

hospitality sector has never been quite as

robust as Dubai’s because it’s a different

market, but hopefully there’s potential for

more there,” he adds.

Another city that is likely to be a

massive hospitality market in the near

future is Qatar. With plans for the 2022

FIFA World Cup gathering steam, a

number of people are now turning their

thoughts towards the logistical nightmare

that will be housing the millions of fans

that are likely to descend on to the Gulf

country once the tournament starts.

‘They’re talking about 15,000 rooms

needed by 2022,” says Johnson, “That’s

a lot of hotels. If you divide 15,000 by…

an average hotel has 300 keys…well that’s

about 50 new hotels,” he calculates.

“They have a different logistical

challenge, in terms of how do they provide

that much accommodation for what is

AL0003 Fitout Ad_224x280_FA.indd 2 8/29/13 5:12 PM


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“SAudi ARABiA, in TERMS of REliGiouS TouRiSM, iS TAkinG off AT ThE RATE of knoTS. ThE dEVEloPMEnT in kSA, PARTiculARly ARound ThE MEccA AREA, ThERE ARE SoME huGE MEGAPRojEcTS”

despite being lower than previously

forecast, the value of the Gcc interior

contracting and fit-out market in 2012

was $7.86 billion – an increase of 56%

against the 2011 figure of $5.04billion

and is expected to rise by 17% in 2013

to $9.2 billion.

In 2012, the uaE was once again the

largest interiors and fit-out market in the

Gcc and, at $2.83 billion, made up

36% of the $7.86 billion Gcc market.

It was followed by Saudi arabia and

Qatar which were valued at $2.6 billion

and $1.49 billion respectively. The kuwait

interiors and fit-out market was valued at

uS$472 million, oman’s at $314 million

and Bahrain’s at $157 million.

In 2013, the hospitality sector of the Gcc

interior contracting and fit-out market is

set to overtake the commercial sector and

take the second largest share of the market

– increasing in value by 31% from $1.2

billion to $1.57 billion.

“The interiors and fit-out market is seeing a

marked evolution, with owners refurbishing

existing properties, managing space

better and enhancing their environments’

sustainability. This trend is being driven

by investors acquiring partly completed

properties and renovating, expanding or

adding value rather than initiating new

developments. The interiors and fit-out

sector is responding well to these changes

in demand, and beginning to see growth

in new projects. Together, this puts the

market firmly on an upward trajectory,”

said Frederique Maurell, event director for

IndEX, a regional interiors and design

exhibition.

going to be a single event in their history.

Qatar probably doesn’t need 15,000 hotel

rooms past 2022. It’s a challenge for them

and I’m sure they’re working through it

and will come to a solution.”

Darrel Strobel, managing director of

MEP Engineering at KEO International,

adds that while Qatar’s hotels tend to fill

up at what he calls ‘strategic times’, he sees

the country moving towards being more

of a tourist destination, like Dubai, as it

tries to ensure supply matches demand.

“You always mention 2022 when

you’re talking about any market in Qatar.

In terms of the FIFA directives for Qatar,

they’re well short of that (for now). So

they’ll have to build a significant number

of hotels between now and then. When

you look at the future, in the short to

medium term, you’ll get a lot of activity in

this sector in Qatar,” he predicts.

“Right now, there is an increasing trend

towards small and medium boutique

hotels, of course there’s still the five-star

luxury end of the market, but (smaller

hotels) are growing in popularity.”

Both Strobel and Wolfenden agree that

Saudi Arabia is another major market for

the hospitality industry, fuelled as it is

by the annual religious tourism that sees

millions of Muslims visit the holy cities of

Mecca and Medina.

“Saudi Arabia, in terms of religious

tourism, is taking off at the rate of knots.

The development in KSA, particularly

around the Mecca area, there are some

huge megaprojects, and they’re all based

around religious tourism,” Wolfenden says.

“That’s something we can’t really ignore,

because the scope is actually huge. I’m not

sure that’s publicised or heard about much

as it’s obviously very local, but the numbers

are quite staggering. I believe most of the

major operators are already there, or are

planning on being there over the next two

or three years,” he asserts.

Although Johnson is cautious about

how difficult it is for an expatriate

company to work in Mecca, he concedes

that Mace is likely to be looking at the KSA

construction market with interest.

“Logistically, it’s quite hard for us,” he

says. “But one thing I can say is that we’ve

been appointed on the Kingdom Tower in

Jeddah, which contains a Four Season’s

hotel, and that will be one of our first

forays into the hospitality sector in KSA.”

“We are also bidding for another hotel

in Jeddah. It remains to be seen if we win

that, but yes, we are putting our toe into the

Saudi market.

“Hospitality is where we’re comfortable.

We know the operators, we think we’re

pretty good at delivering hotels, so it would

seem like a natural extension for us to

move across there.” n

as commuters drive down the

Sheikh Mohammed Bin Zayed

Road on the outskirts of Dubai,

they’d be forgiven in thinking

that aliens have finally decided to make

contact with humanity.

Rising above the dusty hoardings that

ring the under construction residential

and mix-used projects that are coming up

as part of the continued expansion of the

city is an odd structure that is actually the

herald for one of Dubai’s most enticing

tourism projects.

The giant dome-shaped steel structure

actually marks the completion of a key

stage in the construction of the IMG

Worlds of Adventure, a theme park that is

owned and being developed by the Ilyas

and Mustafa Galadari Group, the sibling

owned off-shoot of the Galadari Group.

“IMG Worlds of Adventure is essentially

a themed indoor entertainment facility

aka a theme park,” says Adam Alexander


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on SITE iMg wOrldS Of advENTurE BigproJecTMe.COM

Total size of the project

Total area of Marvel Zone

Total area of Lost Valley

Total number of park components

Scheduled opening date

139,354m2

32,516m2

25,083m2

4

Early 2014

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

“ThERE ARE no ThEME PARkS in duBAi, So ThAT in iTSElf MAkES ThiS A MASSiVEly dEMAndEd EnTiTy”


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“ThERE will noT BE A PhASE i, PhASE ii oR PhASE iii oPEninG. All ThE RidES, ATTRAcTionS, food And BEVERAGE ouTlETS, All of ThEM will oPEn whEn ThE dooRS oPEn”

Page, the vice president – Marketing, for

the Ilyas and Mustafa Galadari Group.

“The park comprises of four different

zones, with the largest zone being

Disney’s Marvel brand, which is 32,516m2.

The second largest element is the Lost

Valley, which is 25,083m2. The third

largest is the Cartoon Network Zone,

which is 21,367m2. The last zone is the

IMG Boulevard, which is 18,580m2.”

Covering a total of 139,354m2, the

IMG Worlds of Adventure is a huge

development that aims to attract the

millions of tourists that pass through

Dubai every year.

“There are no theme parks in Dubai,

so that in itself makes this a massively

demanded entity,” Page says. “With the

infrastructure we’re building around

City of Arabia, you’re talking about a

location that’s 25 minutes from the

airport that is 15 minutes from Dubai

Marina, 10 minutes from Dubai Mall,

and surrounded by (projects like) The

Villa, Falcon City, Arabian Ranches, Al

Barawi and the heart of Dubailand. It’s an

upcoming area, so for us it’s a very unique

proposition to be in,” he tells Big Project ME during a tour of the park site.

“We’ve now signed up some of the best

intellectual properties that can be done

for this sort of arena. We have Cartoon

Network’s first theme park property,

Marvel, who have done it before in other

Disney areas, the Lost Valley, with is

our own intellectual property, and IMG

Boulevard, which is the entertainment

neutral zone that separates the different

zones out and is also somewhere where

people can relax and have a sort of

neutral experience in a vibrant setting,”

Alexander explains.

Each zone will have its own elements

and attractions, he adds, with rides for

both young kids and whole families. These

will include roller coasters or ‘dark rides’,

which are enclosed rides. Inside each

zone will be retail and beverage outlets,

along with the rides and attractions.

“The reason we’re calling it Worlds of

Adventure, is because we almost have four

different parks in one, with the concept

being that we can give guests circulation

of all the zones in one visit,” says Page.

With a scheduled opening date in 2014,

there remains a lot of work to be done,

he concedes. However, Page remains

confident that the schedule would be

kept, and that all the park’s elements will

open as one.

“There will not be a Phase I, Phase

II or Phase III opening. All the rides,

attractions, food and beverage outlets, all

of them will open when the doors open,”

he insists.

“The space frame is due to be finished,

it covers the entire roofing structure of

the park. It is scheduled to be finished

within the next eight to ten weeks and that

is obviously a huge movement forward.

What’s interesting is that the content for

the park is also being manufactured off

site,” Page explains.

“There is a huge amount of work

happening on a global scale, we’re

dealing with specialist suppliers, ride

makers, vendors and so on, with different

parts being done. The intention is that

they will be brought in by the end of this

year, for a full installation in the park.”

park figures

n 139,354m2 Total size of the IMG world of adventure project

n 32,516m2 Size of the Marvel Zone

n 25,083m2 Size of the lost valley

n 21,367m2 Size of the cartoon network Zone

coMinG ATTRAcTionThe park will complete in 2014 with no further phases planned.

kEy locATionThe theme park is within half an hour of key areas of Dubai.


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ON SITE IMG Worlds of Adventure bigprojectMe.coM

With this in mind, Page says that that

the owners were mindful to work with

some of the best people in the theme park

industry, so as to ensure that IMG Worlds

of Adventure measures up to any rival in

the world.

“We have some of the leading people

in the industry working for our group,

to make sure that the processes and the

timelines on those elements are followed,”

he explains. “Obviously health and safety

are our priority, so we need to make sure

that everything is done to the best ability

possible. The process of working with the

IPs is a very close one.”

“We have a very fluid transparency with

them, our design agency, who helped

design the park, hand in hand with Ilyas

and Mustafa, and obviously our architects

as well, report and work with us and the

IPs themselves,” he asserts.

With that in mind, the American

creative services firm, Falcon’s Treehouse,

was brought in to be design partners for

the park.

As such, they’ve worked with both the

Ilyas and Mustafa Galadari Group and

the other intellectual property owners, to

pick and choose what goes into the IMG

Worlds of Adventure.

“The vision and direction obviously

comes from Ilyas and Mustafa. What we

have here, and I can’t disclose too much,

but we have an amazing mix of rides and

attractions, even within each zone, and

that makes me very confident that when

the park opens, it will sell itself, because

it really is a great offering to the public,’

Page says.

So confident are the developers that

they’ve already allocated space for the

future expansion of the park, he adds.

“The theme park has obviously been

designed with future plans in mind, in

terms of expansion zones within the park,

so there will be areas that can expand in

the future, each zone, each area.”

“The theme park and the development

are also phased to grow and expand as

time goes on. However, the first part of the

puzzle to reinvigorate the development is

the theme park,” Page asserts as the tour

of draws to a close.

“I personally think from a travel and

trade perspective, with the amount that’s

on offer in this area alone, along with the

housing developments and the Dubai

Autodrome, along with the up and coming

developments, it’s a very key development

(for Dubai),” he concludes. n

“ThERE iS A huGE AMounT of woRk hAPPEn-inG on A GloBAl ScAlE, wE’RE dEAlinG wiTh SPEciAliST SuPPliERS, RidE MAkERS, VEndoRS And So on, wiTh diffEREnT PARTS BEinG donE”

img worlds of adVenture components:

iMg BoulevarD

The welcome zone of the park, with an

entertainment area focused on leisure and

fun based activities. The IMG Boulevard

spans across 18,580m2 and is the central

zone providing access to the other three

zones that comprise the makeup of IMG

worlds of adventure.

Marvel ZoNe:

The ground-breaking ceremony for

MaRvEl Zone took place in june 2012.

It will offer a range of ‘key entertainment

experiences’ from renowned Super Hero

Icons from the MaRvEl universe including

Spider-Man, The Hulk, Iron Man, Thor and

The avengers. The zone will also feature

retail outlets and dining facilities.

carTooN NeTwork ZoNe:

The ground-breaking ceremony for

cartoon network Zone took place in Feb

2013. The zone will deliver a number

of world firsts including the world’s first

themed attractions such as; The amazing

world of Gumball, adventure Time, and

lazyTown. The cn Zone will also feature

the world’s largest Ben 10 retail store and

the first ever Ben 10 5d ride, along with

branded restaurants and other branded

immersive experiences

The losT valley ZoNe

The ground-breaking ceremony for lost

valley took place in april 2013. The lost

valley Zone will aim to bring the pre-

historic kingdom of dinosaurs back to life

through rides and attractions including

animatronic dinosaurs and sound and

light technology, along with multiple other

attractions in the zone.


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QuanTITy SurvEyOrS BigproJecTMe.COM


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QuanTITy SurvEyOrS

arguably, when one constructs

a building of any size, the most

important factor to consider, above

the design, planning or even the build

process, is the cost of the project and the

budget available to contractors.

These controls and checks need to be in

place to ensure that a project is completed

at a reasonable cost to a developer or

client, and that there are funds available for

the duration of the construction process,

from inception to completion.

As such, one of the most important and

necessary roles on a construction project is

that of a quantity surveyor. While the role

is by no means a new one, there persists a

few common misconceptions in the GCC

market that limit the ability of a quantity

surveyor to be able to bring about a wholly

positive impact on a project.

Traditionally expected to provide

approximate estimates and cost planning

to clients, quantity surveyors operating

in the region tend only to be called on a

project only when clients decide that they

need their services. This attitude is often

a source of much frustration for the QS

industry, given that it has so much more

to offer the market.

“I think clients have got this

conception of a quantity surveyor doing

building quantities and cost estimates

and so on. That’s when they tend to

employ them, when there is a need

for their services” says Azar Ul-Haq,

associate director – Commercial Services

for Faithful + Gould Middle East and

India, and a quantity surveyor with more

than 15 years of experience.

“What we’re trying to do is to get the

client to engage the quantity surveyor in

the early stages (of a project) and then be

provided with the full service, assisting

them from inception to completion.”

Ul-Haq points out that Faithful + Gould

has been providing added value services

for a long time now, and that there are

services that the firm is providing clients

with on regular basis. For instance, he

says, dispute management is becoming

very popular at the moment, spurred on

by all the problems of the financial crisis

and all the claims from the contractors

and so forth.

“Previously, it was a service that we were

providing and it was popular,” he explains.

“But now due to the financial crisis,

we’re noticing a greater involvement with

“wE’RE TRyinG To GET ThE cliEnT To EnGAGE ThE quAnTiTy SuRVEyoR in ThE EARly STAGES”

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

ChaNgiNg pErCEpTiONS


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QUantity SURVEYORS bigprojectMe.cOm

clients, both from the private sector and

the contracting sector, to get involved and

resolve some of the disputes that have

been hanging around for a long time. I

think it’s going to become more popular

as well. Not only in the UAE, but also in

Saudi Arabia and Qatar.”

However, one of the main challenges

that quantity surveyors still face is a basic

lack of understanding of what they offer,

says James Costello, director of Cost

Consultancy for the Sweett Group MENA.

“There are instances where there

is often an underlying reluctance

from contractors to adhere to their

administrative responsibilities under the

conditions of contract relating to time and

cost. This has often led to major issues

with claims, variations and payments,

and presents challenges when trying

to perform our services effectively,” he

explains to Big Project ME.

“The reason for this, we have found, is

generally a basic lack of understanding

of the implemented contract, and more

specifically that it is for all parties’

mutual benefit to adhere to the terms

and conditions stated. Our approach

under these circumstances is to clearly

“wE’RE noTicinG A GREATER inVolVEMEnT wiTh cliEnTS, BoTh fRoM ThE PRiVATE SEcToR And ThE conTRAcTinG SEcToR”

set out the contractor’s obligations and

requirements under the contract at

each stage and work with the contractor

through every stage of delivery,” he says.

“This process of collaboration results

in a reduction of misunderstandings and

conflicts that would otherwise escalate

into claims.”

While Clive De Villiers, vice

president of the Cost and Quantity

Surveying Division at KEO International

Consultants, does agree that clients in

the region are starting to become more

understanding about what quantity

surveyors can offer them, he points out

that this can bring its own pressures to the

role as well.

“The major change of the quantity

surveyor role is that there is a demand, or

an anticipation, to provide cost data which

is far more accurate, coupled with the

provision of financial modelling for certain

clients to help them with their decision

making process,” De Villiers explains.

“Certain clients certainly require far

more verification of the amounts/values

and they question QS’s a lot more about

verifying all such data. This is one of the

biggest changes we’ve found since the end

of 2008 or the beginning of 2009.”

Another challenge that he points out is

quantity surveyors now have to deal with

forecasting escalation, a situation that

has been amplified by the current global

financial climate.

“One of the challenges is forecasting

escalation, which is particularly true in

Qatar, with all the workload that’s forecast

and the debates as to what level escalation

will peak,” he says. “During the height of

2008, escalation peaked at 2% per month.

Of course, if that happens now, then

people would be extremely concerned.

So, the issue of escalation is a challenge

and everybody’s got a different opinion or

different idea (of how to deal with it).” he

points out.

In order to ensure that clients

understand that what their quantity

surveyors can offer them, companies are

now striving to educate their clients of

the benefits, services and possibilities

that are on offer.

Both Clive De Villiers and Azar Ul-Haq

say that they insist on being present

throughout every stage of the project,

top 5 Qs firms in tHe world by Value of work (july 2013)

n ec harris $1.02 billion

n aecom $319.3 million

n faithful + gould $54.4 million

n rex procter $53.5 million

n gardiner & Theobald $43.3 million

chAnGinG RolESQuantity surveyors now face increased demands from clients.


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so as to ensure that their clients have

complete awareness of any decision

being made.

“It’s always about education,” says De

Villiers, “For example, we’ve been keeping

track of the pricing of major primary

materials, for example steel rebar, copper

and aluminium. In the case of the former

two, they have a dramatic impact on the

construction cost of any project. We’ve

been tracking those since 2006 and you

get a sense of the way those costs have

gone and what we’re trying to do is use

those bases to forecast the future.”

“During the mid-2000s, the market

was extremely flooded with work

opportunities. But now that we’ve

reached a more “normal type of market”,

it’s probably unlikely that you’ll see the

extreme escalation that you’ve seen

earlier. And doing a check on how the

pricing has gone in the past two or three

years, you can sort of predict that it’s not

something that’s going to jump drastically

this year or the next year. So it’s about

providing that sort of information to them

and using other sources like MEED and

other available data. You have to talk to

the clients and make sure they understand

you,” he asserts.

Azar Ul-Haq concurs very strongly with

this sentiment, telling Big Project ME that by getting involved at an early stage,

a quantity surveyor can not only help

establish the budget, but also help clients

with their procurement strategies.

“Gaining value for money depends on

the strategies adopted. We can provide

advice and expertise in those strategies

in order to minimise any problems later

on in the project. We also provide value

for money at the end of the project as

well, towards the final accounting and the

defects liability,” he explains. “Hopefully

there shouldn’t be, but as we all know that

there are problems at the later stages of

the project when these items need to be

closed out.”

“It’s about adequate design

management. Making sure that we’re

actively involved in the project team. We

get involved in all the design meetings

and any changes in design, to educate

the client that any change in design may

reflect quite largely in the costs,” he says.

“We provide cost advice during

these meetings, so that designers can

actually design to cost. And also, in

the procurement of materials, and the

selection of materials and alternatives, so

that we can manage that as well.”

James Costello adds that the

implementaion of active cost control

during the pre and post construction

phases is vital, citing two key reasons as to

why this is so:

“Firstly, involvement of the cost

manager at the outset of the project

AzAR ul-hAq

cliVE dE VilliERS

Quantity surVeyor duties and responsibilities

n preperation of Bills and Schedules of Quantities of materials

n visit building sites to monitor progress

n prepare tender and contract documents

n undertake cost analysis for project work

nassist in establishing a client’s requirements

n perform risk and value management

MARkET REAdERSQuantity Surveyors are able to predict and inform their clients about changing market trends.

LIVEDE

MONST

RATIO

NS

16-20 February 2014

Dhahran International Exhibition Center,Dammam - Kingdom of Saudi Arabia

Show timings: 9:30-12:00 and 16:00-22:00

DAMMAM

CMShowAD_Sept_Left_v1(outlined).indd 1 9/4/13 3:38 PM


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Sweett Group has acquired the Thailand-

based quantity surveyor, Boulter Stewart,

to grow its operations in asia.

a leading quantity surveying consultant,

Boulter Stewart provides quantity

surveying, contract administration, project

financial services, due diligence and

dispute resolution services.

Established in 1997, the Bangkok based

consultantcy focuses on the industrial,

commercial, hotel and leisure sectors.

over the last five years, Sweett Group’s

Thailand office, acting as project

managers, and Boulter Stewart, acting

as quantity surveyors, have conducted a

strategic alliance collaborating on joint

delivery of several commissions for clients

including Merlin Entertainments, Bank of

america and kingdom Properties.

“By combining the QS expertise and

local knowledge of Boulter Stewart with

our established Sweett Group Project

Management business under South asia

Managing director andrew wigg and

Thailand director Ben Sedgewick, we

are creating a diversified and flexible

consultancy, specifically targeted at the

requirements of our local and international

clients operating in the Thai market. This is

very much in line with our current business

plan which focuses on the twin benefits

of coverage across asian hub cities and

service diversification,” explained kim

Berry, asia Pacific managing director of

Sweett Group.

when key decisions are made which

fundamentally shape how the scheme

develops through design.”

“The cost manager can bring expert

advice at this stage which can both

improve the value of the project and avoid

implementation of aspects of design

which may become hugely costly and

difficult to change later due to pressure to

continue on programme,” he outlines.

“The second key factor is the skill,

experience and quality of your cost

manager, together with commitment

of time and resource. Without this

combination a client may never realise the

added value and cost savings that could be

driven into their project and end up simply

with a reactive, cost reporting ‘messenger’.”

“During the post-contract phase, it

is also important to implement rigid

communication procedures, and to

ensure that a regular dialogue between

the client, consultants and the contractor

is maintained in order to identify potential

changes or problems which may impact

the project.”

“If such issues are detected at an early

enough stage, they can be addressed

and preventative measures taken where

possible,” Costello clarifies.

By taking a proactive stance like this,

quantity surveyors say that they can

ensure they get the right contractors on

board during the tendering process. In

turn, this will help ensure that clients get

value for their money.

“We can prequalify and provide tender

documents to subcontractors and then

evaluation of submitted bids to give to

clients for value for money,” says Ul-Haq.

“We also look at the reputation of

subcontractors. We work with a lot of

contractors and subcontractors, so we

know what they’re capable of. It’s sad to

admit, but there are subcontractors which

clients don’t really want to work with,

they’ve had bad experiences previously.

We can benchmark them and categorise

them and make sure that clients aren’t

subjected to them,” he adds.

During the construction phase,

quantity surveyors also have a role to play,

in terms of being able to keep a check on

any revisions that take place to the design,

and advising the client about the cost of

the changes. Ultimately, it comes down to

the relationship between client and QS.

“We are seeing the early signs of a

return of cost management services

being tendered directly by the client.

This is a clear indication that developers

are looking for independent advice to

optimise the value of the investment,”

Costello says, perhaps optimistically. n

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QS prOfilE BigproJecTMe.COM

ThE SwEETT grOupGlobal property and infrastructure consultancy outlines how it manages the costs associated with delivering projects in the built environment

from building the tallest tower in

Riyadh to major hotels and resorts in

the UAE to expanding Hong Kong’s

mass-transit network to delivering

some of the UK’s most popular retail and

leisure destinations, the Sweett Group

portfolio is vast and covers a diversified

range of sectors.

The group advises clients worldwide

on cost prediction, cost planning,

cost management, value for money,

procurement strategy and delivery issues.

The consultancy also has a leading

track record in sustainability having

published research on ways to reduce

the carbon footprint of both existing

operational assets and buildings under

development with proven long-term

commercial and environmental benefits.

whaT’s Their secreT? “We employ the best talent the industry

has to offer, individuals who are aligned

with our organisational values and

demonstrate a professionalism that our

clients have come to expect from us. In

cost management, we align ourselves with

the Royal Institute of Chartered Surveyors

(RICS) being the industry benchmark for

quality in the profession. We have a strong

commitment towards ensuring all our

staff is RICS qualified or are progressing

towards full membership,” says James

Costello, director of Cost Consultancy.

The sweeTT approach“We align ourselves with our clients’

objectives. At the outset we engage

with our clients to define the project’s

aspirations and work collaboratively with

them to optimise their capital investments

while retaining the design intent, integrity

and overall project value,” says Costello.

The same ethos extends throughout

the life cycle of a project and includes

engaging the main contractor during the

construction phase.

Sweett Group’s people pride

themselves on implementing good

working practices, transparent procedures

and agreements that cultivate a

relationship of mutual trust, cooperation

and yield effective results, earning the

Group its hard won reputation. n

cost management serVices

n feasibility and Master planning

n cost Planning

n procurement and contract advice

n value Engineering

n risk advice

n post contract cost control

“wE AliGn ouRSElVES wiTh ouR cliEnTS’ oBjEcTiVES”

Organised byYour Contacts

UAE Office Matthew ROBARTS+971 4 4356101 [email protected]

France Office Asmaa CHERRAF+33 (0)1 76 77 12 08 [email protected]

www.intermatme.com#intermatmeBLOG

3rdSESSION

Attachments, Components, Accessories & Spare PartsBuilding Material ProductionBuilding & Construction MachineryConcrete, Concrete Production & Concrete ProductsConstruction MaterialsConstruction ServicesHealth & Safety

Heavy Machinery & EquipmentLifting & Elevation MachineryQuarrying, Mining & AggregatesRental CompaniesRoads & Transport Infrastructure MachineryScaffolding & FormworkSite Equipment & ProductsTechnology

EXHIBITORS Include-


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MaRkET aNalySiS BigproJecTMe.COM


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MaRkET aNalySiS

big Project ME has spent much

time debating whether the boom is

returning to Dubai. Whether it is or

not a capitalist market relies on two

features: supply and demand.

The simplest form of this phenomenon

is the man who has an ice cream van in a

European summer. He has to buy upfront

without knowing the weather, if it’s hot

he sells out and if not he has a lot of ice

cream left.

Andy Grove, head of Intel, once wrote

a book which warned that every manager

must expect everything to change – and

very soon.

In the Middle East, local and western

contractors are fighting companies from

China, Korea and to a lesser degree India

for contracts. However in East Africa

they, especially the Chinese, are the

dominant forces in a rapidly expanding

construction market.

East Africa’s construction market is

predicted to be a major growth sector

over the coming years, and it seems to be

a closely guarded secret. The 19-country

region – the largest in terms of number

of states on the continent – is led by both

Ethiopia and Tanzania.

In Tanzania activities in the

construction sector have grown at

an annual rate of eight percent over

the past five years. For the Tanzanian

economy to grow, it needs developed

transport infrastructure like roads,

bridges and railways, as well as efficient

telecommunication networks.

And who is reaping the benefit of

this need and government spending? A

recent BBC report stated: ‘Throughout

Africa – at building sites, on the street,

and at ports and airports – the Chinese

presence is growing.’

Big Project ME recently ran an article

about how cheap government finance was

helping Korean construction companies

to grow. Similarily, the Chinese

government is helping their companies to

win contracts in East Africa.

The campus of Nairobi University is

a good example of this. Workers from

“indiAn coMPAniES do ThE RiSk ASSESSMEnT in A MoRE SySTEMATic MAnnER. ThE chinESE juMP uPon ThE woRk And do iT VERy fAST – And ThEy GET ThE RESulT”

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

whaT arE ThE ChiNESE dOiNg iN

afriCa?


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MARKET ANALYSIS bigprojectMe.com

the China Wu Yi company are building a

futuristic 21-storey tower, complete with

lecture halls, for up to 3,000 students.

“Once it is finished in two years, this

building will be the tallest structure

around,” says Professor Sa Dequan, head

of the university’s Chinese language and

cultural teaching centre.

China Wu Yi was helped by the Chinese

government to gain access to Kenya, but

now it is handling 18 projects here. Not

long ago, it completed a section of the

eight-lane, 50km Thika Superhighway,

described as Kenya’s pride.

This kind of push by the Chinese

government, say Indian companies, is

helping their neighbour to steal a march

on them.

The Chinese are in competition with

the Indian contractors for most of this

work. With demand for resources to fuel

both their growing economies, the contest

between these two giants is playing out in

different parts of the world.

If you want a picture of how the

Chinese work it is also good to hear what

the competitors think: “Indians have been

“chinA foR ThE PAST ThREE dEcAdES hAS BEEn inVESTinG in AfRicA And incREASinG iTS BilATERAl And TRAdE RElATionShiP wiTh AfRicAn GoVERnMEnTS”

in Kenya and this continent for more than

200 years. Why have they not developed

the industry like the Chinese have done

in the last 10 to 15 years?” asks Kenyan-

born businessman Muljibhai Pindolia, of

Indian descent.

He says the reason lies with the active

involvement of Beijing.

“With our own resources, we cannot

develop the way those with government

support can.”

Ethiopian Industry Minister Tadesse

Haile agrees: “I urge Indian financial

institutions to support Indian businesses,

as other countries like China are doing.”

And according to Manoj Gupta Jindal

of Steel and Power in Mozambique there

is a huge difference in the approach to

the work: “Indian companies do the risk

assessment in a more systematic manner,

whereas the Chinese just jump upon the

work and they do it very fast – and they get

the result.”

Chinese companies are active across

the continent with big infrastructure

projects, including ports, railways and

sports stadiums.

By contrast, Indian initiatives are led by

individual companies looking to expand

in sectors such as telecoms, agriculture,

the automotive industry and education.

India’s $65 billion of trade with Africa is

dwarfed by China’s $200 billion.

China insists it is looking at a

wholesome, reciprocal relationship with

East Africa. In Nairobi, Xia Lu, of Kenya

China Travels and Tours, says: “The

number of Chinese tourists coming to

Africa is growing by 45% each year.”

But the Chinese presence has also

raised questions. “The Chinese come

with their own people, leaving the locals

in the lurch,” a man outside a Nairobi

office complains.

Asked about such concerns, Xiong

Kaihua, of China Wu Yi, insists his

company has hired locals to do the work,

although he does not know how other

companies behave.

“We have seen in Tanzania illegal

immigrants from China being deported.

We have seen that in Ghana too,” says

Nairobi journalist Mark Kapchanga.

In June this year, Ghanaian authorities

arrested 168 Chinese for illegal gold

mining while Gabon plans to recover

indiAn iniTiATiVESIndividual companies are leading India’s push in Eastern Africa.

cHina’s african infrastructure support

n $40.83 billion value of construction contracts completed by chinese firms in 2012

n 45% Percentage increase from 2009

n $11.3 billion concessional loans approved by china between 2010 and May 2012

n 92 number of african projects granted loans


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MARKET ANALYSIS

assets from a subsidiary of Chinese oil

giant Sinopec.

There is a growing wave of resentment

across Africa against Beijing. Lamido

Sanusi, Nigeria’s central bank governor,

spoke out against Chinese exploitation of

Africa and its vast resources, and warned

that Africa “is opening itself up to a new

form of imperialism.”

In a scathing commentary he

cautioned: “China takes from us primary

goods and sells us manufactured ones.

This was also the essence of colonialism.”

Nairobi-based analyst Anil Bhandari

says the African pie is too big for anyone

to fret about: “Most African countries are

growing at 7% to 9%. Players like India,

China, Brazil and the European countries

have a role to play.”

The Confederation of Tanzania

Industries (CTI) Director of Policy and

Research Hussein Kamote said recently:

“There is a direct relationship between

the construction sector and the growth

of national income which is also a sign

of improved living standards.”

The Chinese have a strong economy

and like to gamble, and they can afford

to. Traditionally corporate environments

require predictability, which historically

hasn’t been one of Africa’s strongest

characteristics; but analyse the

continent’s progress over the past decade

and there is cause for optimism.

In fact, regional “pockets of excellence”

have emerged where significant

investments can be made with both

predictability and confidence.

Scott Firsing is Head of International

Studies at Monash University in South

Africa. He thinks that the USA is missing

out big time in opportunities in Africa.

“China for the past three decades have

been investing in Africa and increasing

its bilateral and trade relationship with

African governments. It has played

a fundamental role in helping Africa

achieve social betterment, economic

growth and development, especially in

the infrastructure sector.”

According to Firsing, in 2012 China’s

trade with African was almost double that

of America and this made the White House

realise that it is missing out in Africa.

“These opportunities won’t last

forever,” he noted.

It would be fair to say that Africa has not

always come out of every trade deal ahead.

Its history is largely one of exploitation.

One of the finest observations of this

came from Bishop Desmond Tutu.

“When the missionaries came to Africa

they had the Bible and we had the land.

They said ‘Let us pray.’ We closed our

eyes. When we opened them we had the

Bible and they had the land,” he said, in a

sombre warning to the continent. n

trouble in africa

disputes, extortion and kidnappings

continue to blight african countries trying

to develop. construction in nigeria and

Sudan has been under scrutiny this year

as the continent’s attempt to develop its

infrastructure continues to be blighted by

violence and distrust.

In nigeria seven foreign contractors were

executed after being kidnapped while

working for construction firm Setraco in the

nigerian town of jama’are.

They had been taken following an assault

on the construction company’s compound

in February with the group claiming they

were taken in retaliation for British forces

being spotted in the air over the region.

The British Foreign office later claimed the

aircraft had been ferrying troops for aid

in Mali.

The head of the nigerian Federation

of construction Industry Solomon

ogunbusola claimed the attacks on

foreign contractors was threatening to de-

rail the construction industry in the country.

“MoST AfRicAn counTRiES ARE GRowinG AT 7% To 9%. PlAyERS likE indiA, chinA, BRAzil And ThE EuRoPEAn counTRiES hAVE A RolE To PlAy”

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SPECIAL FEATURE FM bigprojectMe.coM

as you wander around the towering

skyscrapers of Dubai Marina or

the glitzy boulevards of Downtown

Dubai, it’s easy to forget just how

rapidly the city has changed in the span of

two decades.

Long-term residents of the emirate

remain slightly bemused when they think

back to when the Dubai World Trade

Centre, now dwarfed on Sheikh Zayed

Road, was the tallest structure in the Arab

World, until the Burj Al Arab was built.

As Dubai marched into the future, the

emirate continues to rack up record after

record, from the world’s tallest hotel, to

the world’s tallest building, to what is

now being proposed as the world’s tallest

commercial tower. Along the way, its feats

of engineering and construction marked

it out as a special place to be if you were a

construction industry professional.

So fast was the pace of development

in the city, it seemed that the developers

and contractors building them did not

pause to think about what happened after

the towers were built and completed.

What did happen was that it soon became

apparent that no one actually knew how

to maintain these complex and highly

technical structures.

Hugh Henderson, director of

Consultancy at Mace Macro International

Limited, the FM arm of the worldwide

giant, Mace Group, says that there was

a lot of ignorance as to what facilities

management was all about when Macro

first entered the UAE market in 2007.

“We see a lot happening in the region

and facilities management is growing in

significance. The market is huge, if you

see the numbers that are bandied about.

But it’s a matter of understanding what

facilities management is. Some people

think that facilities management is like

MEP. But it’s not so simple,” he tells Big

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

“wE SEE A loT hAPPEninG in ThE REGion And fAciliTiES MAnAGEMEnT iS GRowinG in SiG-nificAncE. ThE MARkET iS huGE, if you SEE ThE nuMBERS ThAT ARE BAndiEd ABouT”


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“wE PREfER To GET inVolVEd RiGhT AT ThE START, BEcAuSE ThAT wAy wE cAn MAkE A diffEREncE All ThE wAy ThRouGh”

Project ME during an interview at Macro’s

Sheikh Zayed Road headquarters.

“I think you’re now seeing a better

understanding of what FM is about, but

there is still a huge chunk of the market

that thinks FM is about cleaning and MEP

and service delivery.”

As disconcerting as this is, given the

progress that has been made, Henderson

remains optimistic about the growing

awareness in the market, especially in the

wake of the collapse of Dubai’s real estate

market a few years ago.

“Demand is a little bit more discerning

now. Clients are more informed, they’ve

learnt a lot over the last five years,” he

says. “They’re now asking more probing

questions and they want to get more for

their money.

“I think generally the clients have

recruited a good core of in-house experts,

so they’ve got a clear idea of what they

want. They might not be too sure of

the direction and they may have some

concrete objectives that they need to

meet, but in terms of the actual buildings,

developments or properties, they know

that they want to get FM involved and

quite often they want to get FM involved

early days, especially if it’s a new project,”

Henderson explains.

This push for early involvement is

something that Steve Bartley, facilities

management and technology director

at Serco Middle East, thinks has been a

long time coming in the GCC region. With

FM becoming more than just a provision

of services, clients are now looking for

FM providers who are experienced and

knowledgeable enough to take a problem

off their hands so that they can go back to

their core business.

“We talk about all the efficiencies we

can make when we come in, but to be

honest, they’re probably limited because

the asset and its shape and its feel, is all

done and we have to work with the tools

that we have,” he says. “We find that the

real savings, the long-term savings, is if we

come in at the early stages and work with

the architects and designers.”

“We appreciate that there needs to be

aesthetics and that there is a dream, a

vision, behind these facilities, but we can

work with the designers to say, ‘how about

if you change this and change that?’ Its

simple things,” Bartley adds, pointing out

FM firms come thinking as an operator

rather than a designer or an architect, and

thereby helping increase the building’s

functionality.

“The real long-term savings for a project

is truly about bringing the real value

that we think we can bring when you’re

building the building, which will totally

and utterly reduce the maintenance costs

for the life of the building.”

Henderson adds that he’s seen many

instances where the early involvement of

FM has paid off handsomely for the client,

leading to better designed and longer

lasting buildings. In addition, by being

brought in early on the project, the FM firm

has a stockpile of data and information that

is vital to the future smooth operation of

the building or facility.

“We prefer to get involved right at the

start, because that way we can make a

difference all the way through,” he says.

“We look at it from the lifecycle perspective,

because the developer’s priority may

be slightly different to the owner or the

operator, the occupants, whatever. We

tend to look at it from the holistic view

serco 2013 Half year results

n $3.96 billion adjusted revenue - ongoing activities

n $3.28 billion Revenue

n $227.8 million adjusted operating profit – ongoing activities

n $194.5 million operating profit

62 AuGuST 2013MID

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SPEcIal FEaTuRE biM BigproJecTMe.COM

over the life of the building. In 20 or 30

years’ time, if somebody’s still got to

maintain that building, their priorities will

still be the same. They’ll want the same

secure building that they can manage

cost effectively, it supports them in their

business, because ultimately, the owner

wants his return on investment.”

“The real long-term savings for

a project is truly about bringing the

real value that we think we can bring

when you’re building the building

that will totally and utterly reduce the

maintenance costs for the life of the

building,” Steve Bartley adds.

“I think before they used to build

buildings to last 20 years and then just

knock them down and not worry about

the maintenance. I think in this part of the

world, they’ve now accepted that they can

build a building and make it last for a 100

years. If you lie it right and look after it, it

can last for 100 years. That has definitely

changed, and it shows they are thinking

about getting FM operators in at the early

stages of construction,” he explains.

Furthermore, there is now significant

progress being made when it comes to

adoption of technology in the FM industry.

While this has been somewhat of an

accepted practice in the West, for the most

part, clients and FM providers have been

content to stick to tried and true methods.

Henderson says that this is something

Macro are keen to educate their clients

about. Given that BIM has been adopted

by architects, consultants and contractors,

he feels that it is now time for FM

professionals to adopt and adapt the

technology for their own uses.

“We’ve used technology in terms of

the way we manage our buildings, we’ve

been doing that for quite a while. But the

technology is evolving all the time. Now,

I guess from the big project perspective,

“qATAR And ABu dhABi hAVE lEARnT A loT fRoM duBAi. ThEy’RE MoRE cAuTiouS, MoRE diScERninG, MoRE MEASuREd in ThEiR APPRoAch. duBAi TAkES A VERy BulliSh, oPTiMiSTic, ‘Go And do iT’ ATTiTudE”

huGh hEndERSon

TRiEd And TESTEdFM providers in the region have been content to stick with what they know.

STEVE BARTlEy


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SPECIAL FEATURE FM

there is BIM, and that, I would say it’s still

in its infancy from the FM perspective.”

“It’s certainly been adopted by

architects and contractors, but in terms

of its adoption by FM, it’s still early days.

Without a doubt, it’s got a lot of use. We

want to understand how the building

works, have the building data from the

very early days, so that the more we buy

into BIM, the more we can understand

it, learn about it and develop. And that’s

happening very rapidly, though it’s still

early days,” Henderson explains.

“(But) it’s not just about BIM. In

terms of FM, it’s always had a strong

base in technology, you’ve got what we

call Computer Aided FM systems out

there, there’s also been maintenance

management systems, procurement

systems, there’s a lot of management

systems out there, but there are now fairly

mature technology-based terms and

systems for FM.”

“We’re a good example of that, we’ve

got asset management systems that

provide the FM data you need and they

also support 24/7 helpdesks that we have

here.”

“Not everybody is as far advanced, but

when you put all those things together

and use mobile technology, handheld

technology, it’s a real boon for the

industry, because we’re able to report real

time, services, managers can see what the

staff are doing, what are the problems,

prioritise what, allocate resources and get

much better value, because that’s what

the clients want,” he asserts.

Bartley adds that while the UAE

remains the clear leader in terms of FM

innovation in the region, the rest of the

GCC is catching up rapidly, which can

only be a good thing for the industry.

“There are clients out there who

understand that (the benefits of early

mace macro projects

n 3,500 government buildings abu dhabi

n National exhibitions company abu dhabi

n Dubai Marina dubai

n old Town dubai

n Jumeirah Beach residences dubai

n skycourts dubai

“in TERMS of fAciliTiES MAnAGEMEnT, iT’S AlwAyS hAd A STRonG BASE in TEchnoloGy. ThERE ARE now fAiRly MATuRE TEchnoloGy-BASEd TERMS And SySTEMS”

involvement and technology). Is it across

the board? I don’t think it’s quite there

yet. There are certain territories that are

more familiar with it and there are others

territories that are catching up, but they’re

catching up fast,” he points out.

“We’re now seeing and having

conversations with both asset owners and

facilities owners and other players in that

market who know they need to mature

and are coming to companies like Serco

to say, ‘can we join up in some way so that

we can learn from you?”

Henderson does concede that there

remain a number of challenges ahead,

especially when it comes to convincing

clients to shell out extra cash up front to

pay for these technologies, but he remains

confident that Dubai will ultimately show

neighbouring markets that it would be

right to go the extra mile in expenditure.

“Qatar and Abu Dhabi have learnt a

lot from Dubai. They’re more cautious,

more discerning, more measured in their

approach. Dubai takes a very bullish,

optimistic, ‘go and do it’ attitude,” he says.

“Qatar and Abu Dhabi take their time,

take stock and do it in a very measured

way. But their ambitions are no less than

Dubai, so they want to get on. So I would

say that they’ve learnt a lot, not just from

Dubai, but internationally. They’ve got

international consultants there, they

know the standards they want and they’ll

go for it.” n

TEchnoloGy BoonFM experts are advocating the adoption of mobile technology to help operations.


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SPEcIal FEaTuRE faCadES BigproJecTMe.COM

in the beginning it was fairly simple.

You found a cave and lived in it,

ensuring the mouth of the cave was big

enough to let you in and fire fumes out.

Accommodation moved on slightly

during the next few hundred years.

In England windows were kept small

because there was a tax on glass. So the

inside of homes were dark, damp and

cold, partially explaining the English.

Eventually during the Georgian era

in England, from 1714 to 1830, buildings

were used to impress other people rather

than for shelter. This was the birth of the

Paladin mansion and the true beginning

of the façade.

The Georgians made nice square

buildings with big rectangular windows,

high ceilings, graceful rooms and pleasing

perspectives. But then someone had the

idea of slapping a few Doric columns on

the front and the madness began.

There are several examples of buildings

of this period when the façade became the

reason for the building. Think of St Paul’s

Cathedral, Buckingham Palace and even

wander over to India (mentally obviously)

for the Taj Mahal. Versailles in France is

another example.

The twin of the façade is the atrium.

Surprisingly this was a feature of buildings

in Ancient Rome but it fell out of fashion

until the twentieth century.

There is an economy of scale in facades

in the Middle East, and of course in cold

climates such as in New York. In northern

Big Project ME looks at the development of facades in the region

puTTiNg ON a façadE

“ThE fAçAdE of Any BuildinG iS fAR MoRE ThAn iTS AESThETic fAcE – iT fulfillS VARiouS funcTionS, All of EquAl iMPoRTAncE To ThE STRucTuRE AS A wholE”


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Europe there is an equitable climate,

which means a temperature change of

1oC between summer and winter and the

same temperature outside and inside.

In this region the 20oC temperature

change between exterior and interior

explains the constant colds we suffer, that

we can’t make our European friends believe.

Budget is, or should be, a major factor

in any decision. Chet Atkins, the world’s

best guitar player once said that he

decided to get a guitar-shaped swimming

pool. But having seen the estimate

he decided to get one shaped like an

amplifier (rectangular).

And so we come to the point of the

façade question. How big can it be? How

much heat will it lose and can you clean

it? Will it still operate during the 50oC

summer months?

Those questions are wrapped around

the central theme of any architectural

plan. First question. Do you want the

building to be iconic? Dubai may be

the only city in the world where literally

every building is iconic, and in a city

where there are no addresses every single

building is ‘The Address’. Ironically if

one person actually gave their building

a proper address we could put four

thousand PR ladies and their superlatives

out of business.

Those of you who are reading this

article in the vain hope of actually

garnering any information are about

to be rewarded. We now move onto

the part, which may inform you as well

as hopefully entertaining you. We will

explore the arcane world of heat reflective

façades, shading and ventilation.

American company Foamglas explains:

“The façade of any building is far more

than its aesthetic face – it fulfills various

functions, all of equal importance to the

structure as a whole. Primarily it needs to

protect the fabric of the building from the

effects of weather – cold, heat and rain.

“ThE fAçAdE iTSElf iS dEMATERiAliSEd And TuRnEd inTo An AdVERTiSinG MEdiuM foR SEndinG MESSAGES”

It also plays a key part in sound proofing

the building and providing fire protection.

Thermal protection is, of course, the most

essential performance.”

Their cellular foamed glass and

constitutes of millions of closed, gas

filled glass cells, which provide superior

insulation characteristics. Due to the all

glass cell geometry, the ‘vapour-control

layer’ is already built-in.

As a massive plus this glass has

recycling capabilities as well. But don’t

take this writer’s word for it.

“The most important part is that we

have 66% recycling content and in the

production use only renewable energy,”

explains Middle East sales director Marco

Vincenz, adding: “We do not need water

to produce FoamGlas and it has a very

long durability.”

View inc, based in Milpitas, California,

is developing ‘dynamic glass’ that

changes tint in response to environmental

conditions and user preferences,

controlling the amount of sunlight and

heat in buildings.

Energy consumed by lighting, heating

and air conditioning systems is reduced

by about 20 percent a year in a ’typical

commercial installation.’

The glass tints when an electrical

voltage is applied, it can be programmed

to occur or triggered on-demand by

building occupants with software or

control systems. About 100W of power is

Various types of building facades

n Dynamic Facades

n high-r window and Framest

n Double skin Facades

EnERGy REducTionFacade installations see energy consumption on buildings reduce by 20%.


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used for every 1,000 panes of View’s five-

foot by 10ft glass. The world’s addressable

glass market is about $100 billion,

assuming about 10% of the world’s

windows could use dynamic glass. About

25 billion sq ft of glass a year is installed

globally as external windows.

When you talk about glass you have to

talk about polymer manufacturer Bayer

Material Science. Its polycarbonate sheet,

made of the company’s trademarked

Makrolon, can be used for application on

interior and exterior windows, walls and

ceilings.

The surface provides heat insulation

that is comparable to that of triple glazed

glass, without the weight or bulk of actual

glass, according to the company.

“Transparent Makrolon sheets offer

a similar level of light permeability, plus

they are safer and provide more freedom

of design. That is why they are a good

alternative to glass,” explains Bayer

Material Science global project manager

Dr Volker Benz.

Big Project ME often wonders about

the future of building. Thirty years ago

the movie Blade Runner introduced the

visionary idea of turning entire building

façades into large digital screens. Today

this vision is becoming reality in an

“TRAnSPAREnT MAkRolon ShEETS offER A SiMilAR lEVEl of liGhT PERMEABiliTy, PluS ThEy ARE SAfER And PRoVidE MoRE fREEdoM of dESiGn”

increasing number of cities across the

world. So stand back LG with your 84in

flat screen.

Here is a definition of the term from

author Susanne Fritz: “the façade itself is

dematerialised and turned into one huge

advertising medium for sending messages.

At the onset of dusk the building moves

into the background and serves only as a

backdrop for the light show, which then

becomes the main attraction.”

Using buildings as televisions is a

more difficult idea in this region because

we have so much light and heat. But it

has been done. King’s Road Tower in

Jeddah is one of the largest video screens

in the world, with 10,000square metres

of façade.

One other major consideration is

severely toughened glass. In hurricanes,

tornadoes or bomb attacks a leading

cause of injury and death is often fast-

flying shards of glass.

Explosions and high winds can

cause windows in buildings to shatter,

projecting jagged pieces of glass in every

direction.

This glass could save lives in a lot

of situations. There is also the added

attraction that people in glass houses will

finally be able to throw stones. n

installing tHe world’s largest led façade

The largest working video screen on

the king’s Road Tower in jeddah, Saudi

arabia measures almost 10,000 sqm

and was designed, built and installed

by French company citiled, a world

leader in tailor-made “Media Façade”

projects for integration into architecture.

This technological achievement places

jeddah firmly in the forefront of large-

scale architectural innovation and gives

a dynamic image to this city resolutely

rooted in the future.

citiled was the company chosen

by the project initiators to take up

the technological challenge of this

unprecedented project, in view of its

expertise and their prestigious past

achievements (including the agbar

Tower designed by architect Jean Nouvel

in Barcelona, the hermes Building

in singapore and the cocor luxury

shopping centre in Bucarest).

21 floors on the north and south façades

and 16 floors on the west façade

have been equipped with lEd screens

developed by citiled, totalling 9,850

sqm and comprising more than 5 million

lEds, making the structure the largest

Media Façade in the world installed on an

inhabited building.

it took more than six months to

produce the 10,000sqm of this media

façade, occupying a team of around

20 engineers and craftsmen for three

months during the project design phase

and then six months for installation and

testing.

citiled used patented technology and was

able to develop and implement systems that

are almost transparent when mounted on

the façades, guaranteeing daylight for the

building’s occupants and preserving visibility.

This design is said to demonstrate how

the city will look in the future, a future

where buildings will be interactive with

controlled energy consumption.

iHiB

İSTANBUL HALI İHRACATÇILARI BİRLİĞİ


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COMMENT ConstruCtion ContraCts bigprojectMe.Com

during the Middle East’s

construction boom, the traditional

tendency towards informal

commercial arrangements and

negotiations often got the job done.

We’ve seen a lot of changes since those

days and a clearer focus on contractual

terms has emerged. The established

business culture is still respected, but

the construction industry is increasingly

adopting common global practices to

protect the interests of all parties.

The FIDIC Red Book remains the

routine standard form of contract, often

chosen through habit and familiarity – yet

there is a widespread lack of understanding

of the contract’s provisions, and a lack of

engagement with its binding properties.

The Red Book is often amended

from its purpose as a re-measureable

contract to a lump sum contract, with

a further increase in the risk placed on

the contractor often by apportioning

of design responsibilities, but with

little thought to amended conditions

contained within or use of an alternative

appropriate form of contract.

Where the Red Book is amended to

lump sum and the employer wishes to

transfer some design obligations to the

contractor: wording often included in the

parts of the specifications and/or drawings

is for the contractor to develop the design

provided into a finished solution, making

a variation and/or claim unecessary for

the development in the scope to meet the

contract requirements.

The problem seems to be a lack of

clear understanding of the priority of

documents and the words and obligations

contained throughout, not just the reading

of the headings of the contract. These

misunderstandings then give rise to

confusion over what are a valid variation

and/or a claim against the contract.

A further common misconception

in the Middle East is that a claim is the

appropriate response to a change or

confirmation of the scope of the work or

a response to a request for information

from the contractor.

For requests for information the

engineer is often only confirming what

the contract allows for, yet this still gives

rise to unwarranted claims against the

contract. However, a claims culture is

time consuming and disruptive and when

Variations in Construction ContractsThe maturing Middle East construction industry has yet to fully adopt best practice around the handling of claims and variations. Faithful + Gould's Steven Batchelor maintains that correctly defining a variation is the first step

STEVEn BATchEloR

“A coMMon MiSconcEPTion in ThE MiddlE EAST iS ThAT A clAiM iS ThE APPRoPRiATE RESPonSE To A chAnGE oR confiRMATion of ThE ScoPE of ThE woRk oR A RESPonSE To A REquEST foR infoRMATion fRoM ThE conTRAcToR”

measured Quantities of Variation may be Valued in accordance witH

n rates containted in the Bills of Quantities or Schedule of Rates

n on the basis of rates analogous to those above

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

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


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a variation order is the correct course of

action for a change in scope. Noting each

and every claim notification must be

responded in specified time frame.

Variations and claims are not the

same and should not be confused. It is

often said that a contractor is claiming

a variation, but this actually means

that they are making an application for

a variation. A claim then only occurs

if the engineer/employer rejects the

application for the variation and the

contractor disagrees with the decision and

subsequently pursues a claim.

A variation to a contract can involve

changes to the contract provisions,

requirements or scope of works. Changes

are made for differing reasons such

as design development, stakeholder

requirements or cost, and can potentially

decrease the scope of works as well as

increase it.

It can also be said that a valid variation

can be evaluated and administered

against the provisions of the contract, with

measurement rules and applicable rates

stated clearly and agreed between the

parties to the contract. Whereas, a claim is

generally for events impacting the contract,

hence the use of industry formulas to

determine any applicable costs for any

valid event causing delay, disruption,

prolongation, loss of profit, etc. The

correct preparation of the contract helps

enormously, with best practice procedures

followed. A weak contract gives rise to

problems, so all clauses and specifications

should be unambiguous.

There is a tendency for contractors to

be demonised in this process, but it should

be remembered that they are playing their

part in a construction culture that does not

always treat them fairly. Problems can be

minimised if there is a clear and shared

understanding of the contract.

The contractual parties need to

understand the conditions and scope

of works, and they need a clear view of

those items that will impact upon them.

Facilitating this understanding is a big

part of Faithful+Gould’s work here in the

Middle East.

Faithful+Gould has local experience

gained from operating in this region for

over 15 years. This know-how can be

used to our client’s advantage to ensure

the correct contracts are selected and

the parties to the contract are aware of

their full responsibilities and obligations,

therefore minimising unecessary

applications for variations and claims

against the contract. n

Steven Batchelor is the associate director of

Commercial Services at Faithful + Gould

Middle East and India. He can be reached

at: [email protected]

Variation orders in construction project in oman: problems and remedies

The effects of variations in constructions

projects in oman were determined to be:

(1) delay completion date of the project;

(2) cost overruns; (3) contractors incur

additional costs due to variations; and (4)

claims and disputes.

also, it was determined that all three

parties (owner, designer/consultant, and

contractor) benefit from issuing variations

to the contract.

Recommendations determined from this

thesis were a set of remedies/activities to

minimise variations in construction projects

in oman and they are:

(1) a standard document should be

developed to establish the stages/steps

from the start of the project till completion

and close out;

(2) a permanent standard document

should be developed to cover all

construction regulations and permits

required for projects constructed in oman;

(3) a specialised quantity surveyor and a

project manager should be assigned to

large construction projects;

(4) a common learning data base system

should be developed and shared among

all governmental units;

(5) a technical committee should be

established to review overall planning, to

establish a construction procedure manual,

and to follow-up on its implementation;

(6) the registration of consulting

companies should be reviewed to reflect

their technical capabilities;

(7) a design engineer should not be

allowed to practice in oman without

having a professional license; and

(8) the General conditions should be

reviewed and updated.

source: ali al harthi, civil and

architectural engineering Department,

college of engineering, sultan Qaboos

university


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TENDERS bigprojectMe.com

www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]

INTEGRATED ESTIMATING, PROJECT CONTROL

AND ERP SOLUTION FOR CONTRACTORS

ToP TEndERS

BudGET $1,100,000,000

clieNT wijaya karya (indonesia)

regioN kingdom of Saudi Arabia

DescripTioN construction of a hotel complex comprising seven towers, each consisting of 1,000 rooms

sTaTus current Project

proJecT NaMe: lIwa PlaSTIcS PRojEcT

BudGET $3,600,000,000

clieNT oman Refineries & Petroleum industries company (oRPic)

regioN Sultanate of oman

DescripTioN Engineering, Procurement and con-struction (EPc) contract to build a steam cracker and petrochemicals complex

sTaTus new Tender

proJecT NaMe: Eva PlanT & PlaSTIc MoldS FacToRy PRojEcT

BudGET $60,000,000

clieNT Saudi international Petrochemical company (SiPchEM)

proJecT NaMe: HoTEl coMPlEX PRojEcT – MEcca

BudGET $3,500,000,000

clieNT Ministry of finance (Saudi Arabia)


DescripTioN construction of Abraj kudai mixed-use towers comprising a total of (12) buildings ranging in height from 30-45

sTaTus current Project

proJecT NaMe: cRudE oIl SToRaGE FacIlITIES PRojEcT

BudGET $2,000,000,000

clieNT State company for oil Projects - ScoP (iraq)

regioN iraq

DescripTioN Engineering, Procurement and construction (EPc) contract to build crude oil storage facilities comprising (29) tanks, each with a capacity of 66,000 cubic metres

sTaTus new Tender

proJecT NaMe: aBRaj kudaI MIXEd-uSE TowERS PRojEcT


DescripTioN construction of an ethylene vinyl ace-tate plant with capacity of 4,000 tonnes a year

sTaTus new Tender

RIMAL AL SAROOJ AL MOTHAHIDA L.L.C


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uae

coMMuNiTy ceNTre proJecT - iNTerNaTioNal ciTy DevelopMeNT

proJecT NuMBer MPP2807-uTerriTory dubaiclieNT nakheel PjSc (dubai)aDDress jebel AliciTy dubai posTal/Zip coDe 17777couNTry uAEphoNe (+971-4) 390 3333fax (+971-4) 390 3314eMail [email protected] construction of a community centre covering an area of 11,000 square metresperioD 2015 sTaTus new TenderDesigN coNsulTaNT Arif & Bintoak consulting Architects & Engineers (dubai)TeNDer caTegories construction & contractingTeNDer proDucTs construction & Addition works

fuJairah lNg sTorage TerMiNal proJecT - phase ii

proJecT NuMBer zPR1140-uTerriTory northern Emirates

clieNT Mubadala development company - Mdc (Abu dhabi)aDDress Mamoura Bldg, near Muroor (4th) Road & Mohammed Bin khalifa (15th) StreetciTy Abu dhabi posTal/Zip coDe 45005couNTry uAEphoNe (+971-2) 413 0000fax (+971-2) 413 0001weBsiTe www.mubadala.comDescripTioN Engineering, Procurement and construction (EPc) contract to build a floating storage and re-gasification unit with capacity of 4.5 million tonnes a year of liquefied natural gas (lnG)perioD 2016 sTaTus new TendercoNTacT persoN Mr Shehab kishwar (Project Manager)e-Mail [email protected] fEEd consultant: Technip (Abu dhabi)pre-feeD coNsulTaNT Poten & Partners ltd. (Greece)

saaDiyaT roTaNa resorT proJecT

proJecT NuMBer MPP743-uTerriTory uAEclieNT Rotana hotels, Suites & Resorts (Abu dhabi)aDDress 7th floor, East wing,

Abu dhabi MallciTy Abu dhabi posTal/Zip coDe 45200couNTry uAEphoNe (+971 2) 699 4444fax (+971-2) 699 4445eMail [email protected] www.rotana.comDescripTioN construction of 5-star Saadiyat Rotana Resort comprising (354) rooms and (13) beach villasperioD 2015 sTaTus new TenderMaiN archiTecT Gazi Awad Architects & Engineers (Abu dhabi)proJecT MaNager Ec harris international limited (Abu dhabi)TeNDer caTegories leisure & Entertainment, hotels, construction

& contractingTeNDer proDucTs hotel construction, Villas construction

DuBai fraMe Tower proJecT - ZaBeel park

proJecT NuMBer nPR026-uTerriTory uAEclieNT dubai MunicipalityaDDress deiraciTy dubai posTal/Zip coDe 67couNTry uAEphoNe (+971-4) 206 4620 / 324 3666 / 206 3030/800 900fax (+971-4) 221 0530 / 324 7465 / 224 8026eMail [email protected]

MIddlE EaST TEndERS proviDeD By

Tel +9712-6348495web www.MiddleEastTenders.com

email [email protected]

spoNsoreD By Tel +9714 346 6456 web www.ccsgulf.comemail [email protected]


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weBsiTe www.dm.gov.aeDescripTioN construction of dubai frame (Al Berwaz) Tower, a window-shaped, 150-metre by 105-metre complete glass, transparent structure resembling a huge window frameperioD 2014 sTaTus new TenderMaiN coNsulTaNT hyder consulting Middle East ltd. (dubai)fouNDaTioNs, eNaBliNg & piliNg coNTracTor Bin ladin contracting Group l.l.c. (dubai)TeNDer caTegories leisure & Entertainment, Prestige BuildingsTeNDer proDucTs high-rise Towers, Museums/Art Galleries

New cargo TerMiNal proJecT - al MakTouM iNTerNaTioNal airporT

proJecT NuMBer wPR043-uTerriTory uAEclieNT dubai world central (dwc)aDDress Bldg. 1, 5th floor, Emaar Business Park, jebel Ali, Sheikh zayed RoadciTy dubai posTal/Zip coDe 282228couNTry uAEphoNe (+971-4) 321 4040fax (+971-4) 363 8119weBsiTe www.dwc.aeDescripTioN construction of a new cargo terminal at an international airportperioD 15/05/2014 sTaTus current ProjectMaiN coNTracTor Amana Steel Buildings contracting company

l.l.c (dubai) TeNDer caTegories Airport, construction & contractingTeNDer proDucTs Airport Supply & Services, construction & Addition works

sauDi araBia

faDhili gas plaNT proJecT

proJecT NuMBer zPR1186-SATerriTory Saudi ArabiaclieNT Saudi Arabian oil company (Saudi Aramco)ciTy dhahran 31311 posTal/Zip coDe 5000couNTry Saudi ArabiaphoNe (+966-3) 872 0115fax (+966-3) 873 8190 / 874 1655weBsiTe www.saudiaramco.comDescripTioN Engineering, procurement and construction (EPc) contract to build a 1 billion cubic feet sour gas plant in fadhiliperioD 2018

sTaTus new TendercoNTacT persoN Mr Mohammed Rabii Gouja (contracts & commercial Manager)orcoNTacT persoN Mr Bruce niven (chief financial officer & investment director) TeNDer caTegories Gas Processing & distributionTeNDer proDucTs Gas Exploration & Production, Gas Processing & Separation

eThyleNe oxiDe reacTors replaceMeNT proJecT

proJecT NuMBer MPP2789-SATerriTory Saudi ArabiaclieNT Saudi Basic industries corporation (SABic)ciTy Riyadh 11422 Postal/zip code: 5101couNTry Saudi ArabiaphoNe (+966-1) 225 8000/ 225 9701

fax (+966-1) 225 9000eMail [email protected] www.sabic.comDescripTioN Engineering, Procurement and construction (EPc) contract for the replacement of existing ethylene oxide reactors at four petrochemical plantsBuDgeT $260,000,000 perioD 2015 sTaTus new TenderTeNDer caTegories industrial & Special ProjectsTeNDer proDucTs chemical Plants

JeDDah calciuM carBoNaTe MaNufacTuriNg plaNT proJecT

proJecT NuMBer zPR1146-SATerriTory Saudi ArabiaclieNT Al-jazeera factory for Paints company (Saudi Arabia)aDDress Al-jazeera factory for Paints company Bldg., 1st floor,


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Al Ammarah Street, khamis MushaitciTy khamis Mushait 61961 posTal/Zip coDe 1900couNTry Saudi ArabiaphoNe (+966-7) 221 1111fax (+966-7) 238 2728eMail [email protected] www.al-jazeerapaints.comDescripTioN construction of a calcium carbonate manufacturing plant with capacity of 100,000 tonnes a yearBuDgeT $15,000,000 perioD 2014 sTaTus new TenderTeNDer caTegories industrial & Special ProjectsTeNDer proDucTs chemical Plants

oMaN

offshore pipeliNes iNsTallaTioN proJecT - MusaNDaM area

proJecT NuMBer wPR038-oTerriTory omanclieNT oman oil company Exploration & Production (oocEP)aDDress Bait Al Reem Bldg., 4th floor, Al Thaqafa Street, Al khuwairciTy Muscat posTal/Zip coDe 200couNTry omanphoNe (+968) 2464 0900fax (+968) 2460 5378weBsiTe www.oocep.comDescripTioN installation of two offshore pipelines in Musandam areaBuDgeT $40,000,000 sTaTus current ProjectMaiN coNTracTor national

Petroleum construction company - nPcc (Abu dhabi)TeNDer caTegories Gas Processing & distribution, oilfields & RefineriesTeNDer proDucTs crude Transportation, Storage & distribution, Gas distribution, Pipes, Tubes & fittings (Metal)

QaTar

DoMesTic soliD wasTe TraNsfer sTaTioN proJecT - al khor area

proJecT NuMBer MPP2797-qTerriTory qatarclieNT Public works Authority - AShGhAl (qatar)aDDress Al faisal Tower, Al corniche Street, dafnaciTy doha posTal/Zip coDe 22188couNTry qatarphoNe (+974) 4495 0000fax (+974) 4495 0999eMail [email protected] www.ashghal.gov.qa

DescripTioN construction of a domestic solid waste management facilitysTaTus new TenderTender categories: construction & contracting, Sewerage & drainageTeNDer proDucTs construction & Addition works, Residential Buildings, waste Management

hilToN DouBle Tree siNyar Tower proJecT - wesT Bay

proJecT NuMBer BPR615-qTerriTory qatarclieNT Al-jazi Real Estate investment company (qatar)ciTy doha posTal/Zip coDe 22880couNTry qatarphoNe (+974) 4483 8786fax (+974) 4493 4885.DescripTioN construction of hilton double Tree Sinyar Tower comprising 2 basement levels, a

ground floor and 52 additional floors offering (340) serviced apartmentsBuDgeT $100,000,000 perioD 15/12/2014 sTaTus current ProjectMaiN coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)Mep coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)DesigN coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)sTrucTural coNsulTaNT Salama Structural Engineers (dubai)MaiN coNTracTor derwind Trading & contracting company w.l.l (qatar)Mep coNTracTor Trans Gulf international Electro Mechanical w.l.l (qatar)Building & construction Materials Supplier: Aluma Systems Middle East (dubai)TeNDer caTegories hotels, Prestige BuildingsTeNDer proDucTs high-rise Towers, hotel construction


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DIARY BIG 5 PrevIew bigprojectMe.com

BIG-5 set to return Big proJecT Me previews The upcoMiNg eDiTioN of Big-5 DuBai, which will see ThousaNDs reTurN To The BiggesT show iN TowN

wiTh sauDi araBia and the uAE’s projects estimated at $510 million and $274 million respectively, the total $1.3 trillion Gcc market is catching the attention of regional and international players as they look to take advantage of the significant opportunities and longevity of the region. held between 25-28 november at dubai world Trade centre, The Big 5 will host more than 2,500 exhibitors from 65 countries with an anticipated 60,000 construction industry professionals over the four-day event.

aDvaNciNg The iNDusTryThis year, the event includes a new area for building interiors, bringing together a wide range of products and services specifically catering to a sector currently worth around $10 million in the Gcc.

“we took the decision to form a dedicated space for the building interiors sector this year,” says group event director Andy white. “The industry has grown year-on-year in the region and is also of interest to a number of specific audience groups, so bringing all these products and services together makes it easier for suppliers to connect with potential buyers and vice versa. The Big 5 is known as a strong business facilitator, and we are

constantly looking for ways to make this process simpler and more effective.”

The exhibition will further focus on product-specific sectors for 2013, such as hVAc, coatings, adhesives and sealants, kitchens and bathrooms, windows and doors, steel, marble, slate and ceramics, water technology and, of course, general construction.

The popular schedule of live demonstrations continues in 2013, with exhibitors creating an ‘as-live’ environment showcasing their innovative technology and solutions directly to their target audience. creating knowledge-based content will continue to play a key role throughout, with free-to-attend seminars taking place in the theatres on the event floor. industry leaders will present research and insight and sharing upcoming trends and innovation, with a strong focus on sustainability, which remains a central theme the event.

Building on the success of the lEEd workshops that have taken place over the past few years at the event, The Big 5 is hosting sessions dedicated to Abu dhabi’s sustainable building code, Estidama, as well as workshops from dubai Municipality and dubai central laboratory. The Sustainable design &

construction conference will take place from 26-27 november and will invite debate and discussion across a range of industry topics, including ‘Master planning for sustainable cities of tomorrow’ and ‘new methods and strategies to drive sustainable building practices across the region’ as well as information on updated sustainable building guidelines from dubai Municipality.

“Education has been a strong platform for a number of years, and each year we aim to provide as many tailored opportunities as possible,” says white. “we want to ensure that there are forums to learn about the most up-to-date information and trends. Sustainability is a common thread across all platforms, and there will information available to attendees for sustainable construction.”

The event also marks the return of the Gaia Awards, now in its sixth consecutive year, rewarding innovation that supports sustainable construction.

white concludes: “The Gcc holds some of the most valuable business prospects for the building and construction industry for the foreseeable future and The Big 5 provides not only the regional industry, but also international players, to make their mark on these opportunities.”

Post-Tensioning ▲ Cable Systems ▲ Bearings ▲ Expansion Joints ▲ Ground Anchors ▲ Heavy Lifting

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

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

Dubai Municipality, Kuwaiti Ministry of Public Works, Kuwait National Petroleum Company, Saudi Ministry of Transport, Algerian Ministry of Public Works, etc.

With a solid financial standing and an impeccable technical grasp of pre-stressing technology, OVM has carefully engineered and implemented a plethora of its products in several hundreds of projects, including 240 projects worldwide of which 58 were in the GCC countries and a further 26 within the MENA region.

OVM Middle East & North Africa FZE, P.O.Box 42624, Sharjah, United Arab Emirates | Tel: +971 6 526 4795

PRESTRESSING SYSTEMS BRIDGE BEARINGS PC STRANDS & WIRES EXPANSION JOINTS GROUND ANCHORS

[email protected]

NAN NING DA QiAO BRIDGE

China

CROWNE PLAZA EXTENSION

Kuwait

OVM MENA_Ad artwork_v2.indd 1 9/5/13 2:47 PM

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

PROFILE OPTIONS AND ADD-ONS AVAILABLE - CONTACT US NOW

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SALES MANAGER

Carol D’Souza | +971 4 375 5496

carol.dsouza]@cpimediagroup.com

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Now in its 4th edition, the GCC 2014 CONSTRUCTION BOOK will be a celebration of the very best companies in their respective fields of expertise. Ensure that your company is the first to secure exclusivity in your category.

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The GCC 2014 CONSTRUCTION BOOK will be launched at The Big 5 show at the end of November so do not delay and register your profile now.

GCCBook2014Ad_Sept_v1.indd 2 9/4/13 3:58 PM


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DIARY INFRA OMAN

oN 30 sepTeMBer, 2013, the third edition of infra oman will open its doors, marking the return of the most successful and well-known infrastructure and construction exhibition in the Sultanate.

organised in cooperation with the Ministry of Transport and communications and the Ministry of commerce and industry, the exhibition brings together hundreds of local and international companies at the oman international Exhibition centre.

As a result, the exhibition will be supported by a host of international organisations such as the German

industry and commerce office, the German near & Middle East Association, the Public Establishment for industrial Estates, the Singapore Business federation, the Spanish Economic & Trade office, the Ministry of Economy, uk Trade & investment, the concrete Sawing

& drilling Association and the Vietnam Association of construction contractors.

with the omani government instigating a number of infrastructure-related projects, the Sultanate’s construction market is set to receive heavy interest from a number of

HaPPEnInG THIS MonTH... InFrA oMAn Big proJecT Me previews The ThirD eDiTioN of iNfra oMaN aheaD of The sepTeMBer 30 lauNch of The sulTaNaTe’s BiggesT coNsTrucTioN aND iNfrasTrucTure exhiBiTioN

“i Think wE’RE REAlly AT ThE START of EVERyThinG. wE’RE GoinG To SEE ThE PAcE of conSTRucTion PickuP”

EVEnT lAunchInfra Oman will open its doors for the third time on 30 September, 2013.

SEPTEMBER 2013MID

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DIARY INFRA OMAN bigprojectMe.cOM

80

international companies, including those already based in the Gcc region, says Matt Green, head of Research at cBRE.

“Tourism has clearly been one of the principal focuses for each and every market. oman generally has some pretty good credentials in that respect.”

Green adds that infrastructure is likely to play a massive part in the development of oman over the coming few years. he says that projects like the new Muscat international Airport and Salalah Port are just one part of the increased focus on infrastructure development.

Therefore, it comes as no surprise that the exhibition will focus on a number of different sectors across the industry,

including construction Requirements, Green and future Buildings, heavy Equipments and Technologies and hotel and Tourism Projects, amongst others.

“infra oman has grown significantly since its previous editions, thus establishing itself as the Middle East’s leading infrastructure and industrial projects exhibition,” says Salim omar Al hashmi, cEo of Al nimr Expo, the firm organising infra oman.

This growth has been significant, with the 2012 edition featuring more than 175 local and international exhibitors.

in comparison, the 2013 edition will have 200 exhibitors.

“The event is also meant to provide local and international companies the opportunity to introduce a range of their products, equipments, technologies and services to their target clients -- the decision makers and top officials of companies in oman’s vibrant building and construction industry,” says Melwin d’cunha, managing director of Al nimr Expo.

in its inaugural edition, infra oman won the cMo Asia-Event industry Award 2012 held in Singapore for the Most Admired Event in the Middle East. infra oman is the first exhibition in the Sultanate of oman to be “BPA Audited”.

The audit gives the sponsors & exhibitors certified and accurate number of trade visitors to compare with other exhibitions and invest their money in the right event.

infra oman was recently enlisted as a “ufi Approved Event” by the Global Association of the Exhibition industry.

with experts tipping the Sultanate to be the next major market for growth in the Gcc, exhibitions such as infra oman are clear indications that the country is set to be a major player in the regional construction industry.

“i think we’re really at the start of everything,” predicts Matt Green. “we’re going to see the pace of construction pick up. we’re seeing quite a few residential projects launch and we’re seeing a lot of hotel projects being launched as well,” he adds. n

“infRA oMAn hAS PRoVEd To BE An idEAl PlATfoRM foR All conTRAcToRS And dEVEloPERS To MEET”

infra oman details

n 200 Exhibitors at the event

n 8 number of industry sectors exhibited

n 8 number of country Pavilionst

n 27 number of countries participating in the exhibition

incREASEd ExPoSuRE200 exhibitors will take part in this year’s event.

additional details

To get more information about infra oman 2013, please visit: www.alnimrexpo.com/infraoman.

To reserve your stand in the exhibition, please contact: Jenitha Martin, project director, at telelphone: +968 24700656, mobile no: +968 94041616, or e-mail: [email protected]

JOB NO. CHL_017JOB NAME CHL_017_BigProjectME_SP_AD_RIGHT_vFN_3, (224mm (w) x 280mm (h) + 5mm bleed on all edges)CLIENT The ChilternsCOPY DATE 25/08/13 - Big Project MIDDLE EAST - RIGHT HAND PAGE!

YOU, 77 st martin’s lane, london WC2N 4AA, united kingdom +44 (0)20 7420 3550 - www.you-agency.com

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

a private view

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

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

Wahi Mohsen Nathan Gardner

+971 50 853 54 43 +971 56 392 17 45

[email protected] [email protected]

CHL_017_BigProjectME_SP_AD_RIGHT_vFN_3.indd 1 22/08/2013 16:56


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conSTRucTIvE CriTiCiSM BigproJecTMe.COM

GAVin dAVidS

WE’VE ALL HEARD about how Dubai

is the epicentre of the regional tourism

industry, with millions of tourists flocking

to the city to take advantage of its luxury

lifestyle, gigantic shopping malls and

constant sunshine and warmth.

Hundreds of hotels are dotted around

the city, ranging from the ultra-high end

Burj Al Arab, to the two and three star

establishments that are found in Deira

and Bur Dubai. With Dubai bidding for,

and expecting to win, the right to host

the World Expo in 2020, the pace of hotel

development is only set to increase.

Yet, with all the influx of tourism it

remains surprising that it’s taken so long

for Dubai to have a truly significant theme

park open within its boundaries.

Of course, places like Wild Wadi and

Aquaventure have existed for years, and

remain huge tourist attractions. However,

they don’t strictly classify as theme parks,

certainly not when compared to the likes

of Disneyworld in Florida or Universal

Studios Hollywood in Los Angeles. With

millions of visitors attracted annually,

these are massive revenue generators that

are vital to their local economies.

Therefore, I was pleasantly surprised

to hear that the Ilyas and Mustafa

Galadari Group are well under way with

their plans to launch the IMG Worlds

of Adventure theme park in the City of

Arabia. According to figures released by

the Group, the park is set to be a massive

139,355m2 in size.

As an unabashed theme park fan,

this is hugely exciting news for me, and

personally, I cannot wait to see what it

looks like when it’s open for business

sometime next year.

However, and while I may be greedy

here, I’m surprised that there haven’t

been any rumblings about a Disney theme

park opening in Dubai.

To me, it makes perfect sense to open

one here, given the ease of accessibility,

the ready-made tourist base and the

disposable income of GCC residents.

Not only does the infrastructure

for such a park exist, but the Dubai

government has consistently shown that

it is willing and able to back large-scale

ambitious projects.

So, hopefully, the success of IMG

Worlds of Adventure will see other

investors decide to take up the challenge

of enticing Mickey and Co over to the

Arabian Gulf, and we could be in for one

heck of a ride. n

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

A World of Adventure awaits

big project me september 2013

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