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HVAC
UPDATEO
NPAGE12
MIDDLE EASTNEWS UPDATE |03
BIG PICTURE |07
COMMENT |14
ANALYSIS |16
PRODUCTS |52
THE LAST WORD |56An ITP Business Publication |April 2011 Vol. 6 Issue ssential information for mechanical, electrical, plumbing and HVAC professionals An ITP Business Publication |April 2013 Vol. 8 Issue 04
BREAKINGHabtoor Leighton Specons ThrasosThrasyvoulouon why his companyis looking ahead to new markets
NEW GROUND
INTO THE
UNKNOWNThe mystery of the KuwaitiMEP market and themen in its midst
KUWAIT FOCUS
COMMISSION MAN
Paul Kirby
of Commtechonhis companysrace to the top
PIPEWORK
Future PipeIndustries
and itsprogressiveAbu Dhabi
facility
This year will see
our efforts in 2012
to move into other
countries materialising,
particularly in Iraq and
Saudi Arabia.
Thrasos Thrasyvoulou
ALSO: ENGINEERING GENIUS - A NEW WAY OF WORKING
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www.constructionweekonline.com April 2013|MEP Middle East 1
APRIL 2013VOLUME 8 ISSUE 04
CONTENTS
03 NEWS
Drake and Scull lands $83.5mmixed-use contract in Doha
08 NEWS UPDATEMEDC to invest $431.2m inMuscat grid and substations
14 COMMENT
Dr. Ozan Koseoglu on how BIM can transform the MENA region
16 ANALYSISWhat will Dubais 2014 greenbuilding regulations mean?
52 PRODUCT FOCUS
Check out the latest MEPrelated products in the market
56 THE LAST WORD
Kirk Rosenbaum of KEOConsultants on fire safety
COMMISSION MAN
Commtechs Paul Kirby on why he thinks
his company will soon be number one.
ENGINEERING GENIUS
Lee Hall from Atkins analyses the effectsof the trend towards design and build.
INTO THE UNKNOWNMEP Middle Eastunravels the mysteriesof the Kuwaiti MEP market.
20
28
26
BIG INTERVIEWThrasos Thrasyvoulou tellsMEP Middle East that his company is ready for anassault on new markets across the Gulf.
SITE VISITMEP Middle Eastvisits Future Pipe Industries manufacturing facility in Abu Dhabi to
discover what lies ahead for the pipe producer.
20
42
36
32
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EDITORS NOTE
2MEP Middle East |April 2013
The cost of
undercuttingI
n my discussions with MEP contrac-
tors recently, a recurring theme has
been their difficulty in securing pro-
jects due to the unrealistic pricing strate-
gies of some of their competitors. While
competition is healthy for any industry
driving innovation, encouraging crea-
tive business strategies and improving
standards there is a point where it can
become an insanely destructive force.
From what I can gather, the MEP industry may have reachedthis point. Reports of contracts being awarded at less than most
bidders costs have become depressingly common and have left
many scratching thier heads as to how the winning contractors
hope to make a profit from these projects. Some have exhausted
all avenues in their determination to find out how these figures
might add up, but have had to reach the infuriating conclusion
that it cannot be done without making a loss. Which begs the
question, what are these undercutting contractors up to? What
magic formula have they uncovered that has escaped some of
the best estimation minds in the industry?
In this issues Big Interview, Thrasos Thrasyvoulou, man-
aging director of Habtoor Leighton Specon, decries the un-
dercutting trend which has beset the industry in recent times,
asking what is the point of running a business if not to make aprofit. Those making these reckless decisions to bid at such low
prices are inevitably risking the security of their own businesses
and those who work for them. But they are also damaging the
wider industry, depriving reputable contractors the oppor tunity
to deliver quality jobs at a reasonable price, and damaging the
reputation of the MEP industry as a whole.
Of course, main contractors are not blameless in all of this
either. They have encouraged this price war and have benefitted
from it on those occasions when undercutting MEP contractors
have surprisingly managed to struggle their way to delivery,
even if the standard of material and MEP engineering on such
projects have a damaging question mark over them. Other pro-
jects have seen undercutting MEP contractors run into trouble,
requiring the assistance of those they undercut initially.Thankfully, as Thrasyvoulou reveals in his interview, many
main contractors seem to have realised the danger of squeezing
sub-contractors to danger point. It can only be hoped that those
MEP contractors more inclined towards quality and realism are
rewarded for their values in future.
Cathal [email protected]
or views on this issue, please [email protected]. For subscriptionsand more information, visitwww.itp.com/subscription. More storiesat www.
constructionweekonline.com
If youhave any
comment
PRINCIPALS
OUR SPECIALIZATION
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NEWS UPDATE
April 2013|MEP Middle East3
CONTRACT
Drake & Scull Qatarhas landed an $83.5mdeal for the design,supply and installa-tion of MEP works for
a mixed-use projectin Doha.The company said
that the works coversubstructure and su-perstructure workson a project contain-ing three superblockshousing various struc-tures including residen-tial buildings, schools,ultilities, offices andretail buildings.
Drake & Scull Qa-
tars area general man-ager Karem Akawisaid: The develop-ment serves as one ofour flagship projectsin Qatar that stronglydemonstrates thefull spectrum of ourservice portfolio.
Our integrated EPC
The news of the Qatarwin was followed by con-tract awards for Drake& Scull International(DSI) worth $100.5mfor the construction ofthree projects in Saudi
Arabia and the UnitedArab Emirates.
The contracts include
$78m worth of workawarded by Al Rajhi Bankto construct the bankscash centre, operationscentre and a data cen-tre facility in Riyadh. Afurther contract worth$22m was secured forthe construction of a gov-ernment utility project in
Abu Dhabi.Commenting on the
award Saleh Muradweij,executive director ofDrake & Scull Construc-tion, said: These proj-ects are indicative of thefavourable market condi-tions and the aggressivepace of development be-
Dubai-based contractor announces contract win which will see company execute design,supply and installation of MEP works as group wins in KSA and UAE promise further work
Karem Akawi, Qatar general manager, Drake & Scull lauded the win.
ing undertaken acrossthe public and privatesectors in two of ourmain growth markets.DSIs broad expertisein general contract-ing and our deep un-derstanding of theregional constructionlandscape will allow us
to deliver on time ournew contracts with AlRajhi Bank in KSA andthe utility project in
Abu Dhabi.He added that DSI is
well suited to executedata centre projectsgiven their experiencein electrical systems.
Drake & Scull secures $83.5mQatar deal for mixed-use project
366.7%:
2012increa
sein
netloss
FAIR SHAREPROFIT AND PAYOUT
ARABIAN PIPES COMPANY LAST 12 MONTHS TRADING Source: Bloomberg
ARABIAN PIPES COMPANY:
2012 results
$181.3M:2012 turnover
247.3%:2012 rise in
turnover
-$5.5M:2012 net loss
solutions and particularlythe MEP and the Water& Power are vital factorsthat will strengthen ourpresence in Qatar, which
we expect to develop intoa long-term market on par
with other regional pow-erhouse markets such asKSA and the UAE.
The development serves as
one of our flagship projects in Qatar
that strongly demonstrates the full
spectrum of our service portfolio.Karem Akawi, Qatar general manager, Drake & Scull
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NEWS UPDATE
4 MEP Middle East |April 2013 www.constructionweekonline.com
Wasim Haider, general manager, Al-Futtaim Engineering BPD. Tawar Mall will include over 100 retail shops and a Cineplex.
CONTRACT
CONTRACT
Al -Futtaim Engineering has signed multi -mil lion dir-ham contracts with two UAE hotels for the supply of
various sanitary ware and plumbing products .The contract wil l see Al-Futtaims Building Prod-
ucts Division (BPD) provide the Waldorf Astoria Hotelon Dubais Palm Jumeriah and Abu Dhabis SouthernSun Hotel clients with TOTO sanitary ware, faucetsand accessories.
Wasim Haider, general manager of Al -Futt aim En-gineerings BPD, said: These prestigious contractsdemonstrate strong confidence in Al-Futtaim Engi-neerings reputation for quality products and excellent
project management capabilities. Our expertise, yearsof experience and support from our principals, willenable our project teams to meet the highest levels ofdelivery standards.
Headquartered in Dubai, Al-Futtaim EngineeringsBPD has delivered hospitality projects such as thePark Hyatt Hotel, Dusit Thani, Eastern Mangrovesand Crowne Plaza in Abu Dhabi, and Intercontinen-tal Hotel, Radisson Royal, Conrad Hotel, Novotel andPullman Hotel in Dubai amongst others.
The Saudi Electricit y Company (SEC) has signed three deals worth $263m forprojects to improve the power grid in a number of major Saudi cities.The first of the deals is a 29-month contract worth $59.74m to establish a sub-
station and a series of transmission lines and underground cables in Madinah.The second deal is a $141m contract to build a 380kv network of cables within
the city of Makkah. According to Saudi Electr icity Companys CEO, the dealwill strengthen cable links in the holy cit y and is estimated to take 23 monthsto complete.The third contract to install underground 380kv cables in Jeddah is worth
$71.5m and is expected to take 29 months to complete.
SEC revealed that all of the contracts were awarded to Saudi companies.
CONTRACT
Arabian MEP Contracting has won a contract for theMEP works on the Tawar Mall project in Dohas Du-hail area. The contract was awarded directly by theclient for an undisclosed sum.
With a tota l built up area of 241,50 0m, Tawar Mallwill be comprised of three basement floors, a groundfloor and three aboveground floors.
Arabian MEP Contract ings scope of work involvesproviding MEP building services which includes a6,250 TR (tonnes of refrigeration) capacity HVAC(heating, ventilation, and air-conditioning) water-cooled centrifugal chiller system, plumbing, drainage,
firefighting, electrical and ELV (extra-low voltage)systems including a car parking management system.
Commenting on the award, Vasanth Kumar, CEO ofArabian MEP Contracting, said: We are del ighted towin this prestig ious Tawar Mall contract which adds toour large port folio of mall projects.
Tawar Mall will include an entertainment area andin the basement levels, hundreds of retail shops in theground and first floor levels, and a 12-screen Cineplex,large food court and 80-room hotel in the upper floors.
SEC awards $263m worth of contracts
Al-Futtaim inks twoUAE hotel supply deals
Arabian MEP winsdeal for Tawar Mall
COPPER
NICKEL
STEEL
METALS PRICES
Source: London MetalExchange Prices per tonne
$7,55018 March
$8,21615 February
$20518 March
$26515 February
$16,55018 March
$18,23015 February
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Domestic boilers,
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NEWS UPDATE
6 MEP Middle East |April 2013 www.constructionweekonline.com
AL RAHBA HOSPITAL IN ABU DHABI ISSUES TENDER FOR MEP MAINTENANCE
MEP firms are being invited totemder for a three-year contract totaintain electro-mechanical servicesat Al Rahba Hospital in Abu Dhabi.Firms interested in bidding
for the contract can collect ten-der documents from the hospi-tals purchasing section between8.00am-2pm daily.
Companies looking for more infor-mation can contact the hospital on02 506 4035.Al Rahba Hospital opened in 2003and has been managed by health-care group John Hopkins Interna-tional since 2008.The facility is licensed for 163beds, but currently operates 116
beds and has recently expanded itsneo-natal intensive care unit.Located on the Sheikh Maktoum
Bin Rashid Road in the northernpart of the UAEs capital city, thehospital is managed by John Hop-kins International under patron-age of SEHA & Health Authority of
Abu Dhabi.
PROJECT
Work on Abu Dhabis $1.6bn ClevelandClinic project has been delayed by aroundfour months.
The joint venture partnership buildingthe hospital was initially due to hand overthe hospital in March following a three-
year construction period, but will not nowcomplete the work until July.The hospital is being built under a
$1.4bn contract by partners Six Construct(which owns 60% of the joint venture)and South Korean firm Samsung C&T(40%) - the same team which built DubaisBurj Khalifa.
In a filing to the South Korean stockmarket, Samsung said that its contracthad been varied from an initial period of36 months to 40 months, and that insteadof completing it by March 3 it will now behanded over to the client , Abu Dhabi Gov-
ernment-owned Mubadala DevelopmentCompany, on July 2.
The huge new facility at Al Maryah Is-land (formerly Sowwah Island) was initial-ly meant to accept new patients from June.Once complete, the building will be thelargest structural steel building in theUAE, weighing in at more than 30,000tonnes. The project has been developedfor Mubadala by Aldar Properties and hasbeen designed by Aedas, with Henning-son, Durham and Richardson serving asproject architects.
ClevelandClinic to bedelayed by upto four months
Qatar Solar Technologies
powers Passivhaus projectSOLAR POWER
Qatar Solar Technologies (QSTec) has presented Barwawit h the first of 136 solar modules that will be used to powerQatars Passivhaus-Baytna project.
When installed, the SolarWorld-QSTec photovoltaic mono-crystalline silicon panels will provide all of Passivhaus electric -ity requirements, with excess power being exported back intoKahramaas power grid.
Dr Khalid K. Al Hajri, QSTec chairman and CEO,said: QSTec aims to bring solar into the mainstream of Qa-
tars energy mix. Solar is recognised as Qatars primary renew-able energy technology and an essential part of our sustainableenergy future.
Barwas Passivhaus-Baytna project will demonstrate that,by using solar and environmental technologies, you can buildquality homes and buildings, complete with all the latest mod-ern conveniences, while substantially reducing our carbonfootprint and protecting the environment for future genera-tions, he added.
The QSTec-supplied high-efficiency panels have an installedpower of 34 kilowatt peak and will produce around 58,000kilowatt hours of electricity per year. Using this solar powersystem to supply Barwas Passivhaus will help avoid approxi-mately 35 metric tons of CO emissions per year.
The Passivhaus-Baytna project will have two identical 225mvillas built side-by-side in Barwa City to compare the energyuse and environmental footprint of each dwelling.
A regular villa is being constructed to a one-star GlobalSustainability Assessment System (GSAS) standard while thePassivhaus villa, with all the comforts of a modern home, willconsume 50% less energy and water, resulting in a halving ofof its carbon footprint. The villas will be ready for occupationlater this year.
QSTec and its partners are leading the way in providinghigh quality solar solutions to Qatar and the region and weare proud to be a part of this ground-breaking project, Dr AlHajri added.
Barwa receives first of 136 solar modules set to power eco-villa
The project will have 136 solar modules.
QSTec aims
to bring solar into
the mainstream
of Qatars energy
mix. Solar is
recognised asQatars primary
renewable energy
technology and
an essential part
of our sustainable
energy future.
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NEWS UPDATE
April 2013|MEP Middle East 7
Installed in Over 500 Prestigious Project
A I R H A N D L I N G U N I T S
GROUPI N D O O R C L I M A T E S O L U T I O N S
www.mekar.it - [email protected]
Mekar is an Italian manufacturer of
high quality chillers, air handling units
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exibility in design and manufacturing
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For Inquiries, Please contact us at:
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(HQ) Dubai:Abu Dhabi:Qatar:Riyadh:Jeddah:
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Burj Al Arab - Dubai Bahrain City Centre and Hotel Burj Khalifa - Dubai The Business Park & Hotel - Doha YAS Marina Hotel - Abu Dhabi
PROJECT: Burj Al Salam
LOCATION: Number One Sheikh
Zayed Road, Dubai
MAIN CONTRACTOR:Dubai
Construction Company
MEP CONTRACTOR:ETA Star
CLIENT:Abdulsalam Al Rafi Group
The Burj Al Salam project has one of the most exclusive addresses in Dubai.Situated just opposite the citys World Trade Centre at Number One Sheikh ZayedRoad, the project will be home to a 477-room hotel, offices and 180 servicedapartments. The development comprises three towers linked at the base by alarge podium and boasts four basement levels, a ground floor, mezzanine, 54upper floors, two mechanical floors, and a 14-storey car park at its rear.
BIGPICTUR
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NEWS UPDATE
8 MEP Middle East |April 2013 www.constructionweekonline.com
Contractors [areventuring] into
Oman, with littleknowledge of theresponsibility oftraining and em-ployingnationalyouth.
SURESH VIRMANI,Head of BahwanEngineer-ing Group[BEC]
ga
.
MANI,wan
The technical com-plexities of con-
necting embeddedgeneration schemesto distribution net-works are every-where.
RICHARD SAXON,
director of powerdistribution, ParsonsBrinckerhoff
ns
INFRASTRUCTURE
Muscats electricity network is to receive $431.2m of investment inhigh-voltage (33kV and 11kV) and low-voltage networks as well asa number of new stations, according to Eng Abdullah bin Said alBadri, CEO of Muscat Electricity Distribution Co. (MEDC).
The new stations, which will be developed in associationwith Oman Electricity Transmission Co (OETC), are part ofthe companys 2012-14 project plans and are designed to meet
increasing demand for energy in Muscat governorate.This will include meeting the needs of residential layouts forenergy, as well as enhancing existing distr ibution networks andexpanding them to include residential layouts in the wilayats ofSeeb, Amerat and Bausher.
Badri also revealed that MEDC is preparing a strategyto deal with customer complaints over meter readings anddelayed bills. He said that the company is working closely withproviders of meter-reading, billing and collection services toimprove performance.
MEDC has recently starteda self-reading service anddeveloped solutions that help thecostumer be part of the solution,
according to Badri.This requires end-users
to relay the meters readingto the company by eithercompleting a meter-readingform, by e-mail, sending SMSto the companys web portal orthrough the call centre or viasmartphone applications.
MEDC also reveals plans for new stationsin bid to meet governates rising demand
Muscat to invest
$431.2m in gridSMART GRIDS
Qatars Kahramaa has formed a high-level,six-member committee to promote theconcept of smart electricity grids in Qatar.
The commit tee has been establ ishedby Eng. Essa bin Hilal Al Kuwari, thepresident of Qatar General Electricity &
Water Corporation (K ahramaa).The aim of the new committee is to look
after the ongoing smart network project
for the electricity and water sectors, saidEng. Al Kuwari.The six-member commit tee headed by
Eng. Ali Al Ali, conservation and energyefficiency department manager, willstudy the current situation and suggestan action plan to implement transfer tosmart networks.
The commit tee wil l submit a thoroughreport perta ining to the general strategy ofKahramaa for implementing this project.
Kahramaa is developing intelligentsolutions ranging from networkmanagement to distribution, in order to
guarantee a high level of reliability infuture power and water supply.
In January Kahramma launched a smartgrid pilot project in Duhail, which will beimplemented in two phases in cooperation
with Iberdrola, a Spanish private electr icutility company. The first phase will havean installed capacity to produce 3 to 5MWof electricity and about 500m of water.Both 33 and 11kv networks will be built.
Kahramaa takesaction to promote
smart electricity
The concept ofFM is way, way
behind in Saudi,but the concept iscrucial and a goldmine of opportu-nities inthe mar-ket.
YASSER AL
SHARIF,CEO,ManafeaHolding
Co.
The reason forfires in warehous-
es is often sub-standard cable,but the savingin cheaper cableagainst thewholeproject isminimal.
ANDREW SHAW,
managingdirector,
Ducab
eaper cableinst t ee
ect isima .
SHAW,
g
s nar-
L
2013 CALENDAR
EVENTS
AWARDS
APRIL
Cityscape Abu Dhabi16-18 AprilPlace: Abu Dhabi National Exhibition Centre
MAY
Project QatarDate: 6 9 MayPlace: Doha Exhibition Centre
NOVEMBER
Big 5 DubaiDate: 25-28 NovemberPlace: Dubai World Trade Centre
MAY
Construction Week AwardsDate: Tuesday 7 MayPlace: TBA
JUNE
Facilities Management AwardsDate: Tuesday 4 JunePlace: TBA
SEPTEMBER
Construction Week Awards KuwaitDate: Tuesday 17 September
NOVEMBER
MEP AwardsDate: Wednesday 13 November
DECEMBER
Construction Week Awards KSADate: Tuesday 3 December
Construction Week AwardsDate: Wednesday 11 December
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NEWS UPDATE
10 MEP Middle East |April13 www.constructionweekonline.com
DISTRICT COOLING
Empower has recordeda net profit of $51.7m forfiscal year ended Decem-ber 2012, representing a17% increase over 2011.
The district coolingcompanys total rev-enues reached $190.9m,an increase of 5% overprevious year.
Announcing the re-sults at a press confer-ence in Dubais GrandHyatt, Ahmed Bin Shafar,CEO of Empower, said:Empower achieved anannual increase of 8% inits cooling capacity, withover 400,000 refrigera-
tion tonnes (RT) in 2012.The company boosted
its production and com-missioned new plants as
well as launching newcustomer service and callcentres in 2012. It also re-inforced its commitmenttowards the environmentby maximising the usageof treated water for dis-trict cooling, instead ofnormal water.
Bin Shafar said that
the company increasedits workforce by 9% in2012, adding: The dis-trict cooling industryachieved significantgrowth in the UAE andGCC in 2012, and GCCgovernments are nowmore determined toadopt it, thus reducingtheir dependence onconventional cooling sys-tems.
In 2012, Empower
settled loans amount-
HSSG will carry out the shoring and enabling works for Empowers new DC plant in Business Bay.
TES (Thermal EnergyStorage) requirementsof the Dubai Execu-tive Council Directiveaimed at environmentalresources, including wa-
ter, in providing districtcooling services.Upon completion, the
new plant will provide34,000 RT (Refrigera-tion Tonnes) to meet theneeds of the BusinessBay residents, business-es and offices.
Commenting on theaward, Bin Shafar said:We awarded this projectto Al Habtoor STFA SoilGroup LLC (HSSG) as
the company is handlingprojects of a similar na-ture in Business Bay. Wealways select our con-structors after due dili-gence and we have cho-sen this company for itsrecord and experience inthe UAE in this domain.
The implementationof the contract will takethree months. We aregetting ready to open thetender to appoint the pri-
mary constructor to buildthe plant, with preferencebeing given to local com-panies and those that we
worked with in the past.The new plant will
serve the needs of resi-dents and offices basedin Business Bay aroundthe area of Al KhailRoad. It will increase theproduction capacity ofEmpower by 10% once itis up and running, Bin
Shafar added.
Empower posts 2012 profit of
$51.7m as Bay deal is awardedDistrict cooling provider announces 17% increase in net profit and 5% increase in revenues from
2011 following award to HSSG for shoring and enabling works on new Business Bay DC plant
ing to $64m as per theagreed schedules whichdemonstrate the robust-ness and sustainabilityof Empowers businessmodel and effectivenessof its financial strategy,the company said ina statement.
Empower said it hasadopted a business model
that works on the strate-gy of investing in plantsand network infrastruc-ture driven by actualdemand in specific proj-ects. This has resulted insustainable growth of thecompany and avoided un-productive investments.
The company boosted its production andcommissioned new plants as well as launching new
customer service and call centres in 2012.
During the last year,Empower invested inenhancing its infrastruc-ture in a number of realestate projects, includingBusiness Bay, TECOMSite C, DHCC Phase 2and Mirdiff.
Bin Shafar revealedat the press conferencethat Empowers strategy
was to focus on the UA Emarket before expand-ing its footprint to otherregional markets. Headded: We are open totransferring our know-how and technology toother peers in the region.
We have got inquiries for
potential joint venturesin many markets and we
would like to do this atthe right time.
The results announce-ment followed the com-panys award of a contractto Al Habtoor STFA SoilGroup LLC (HSSG) forcarrying out shoring andenabling works for its
Empowers new districtcooling plant in DubaisBusiness Bay.
The new facility isthe first district coolingplant to be constructedin Dubai compliant withthe new TSE (TreatedSewage Effluent) and
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NEWS UPDATE
April13|MEP Middle East11
GREEN BUILDING
DEWAs Sustainable Build-ing, which is the largestgovernment building in theworld to secure a LEEDPlatinum rating for green
buildings, has openedfor business.The buildings green
features help it reduceenergy consumption by66% and water by 48%. Inaddition, 36% of construc-tion material used wasrecycled content.
HH Sheikh Hamdanbin Rashid Al Maktoum,Deputy Ruler of Dubai,Minister of Finance, andPresident of Dubai Elec-
tricity and Water Authority(DEWA), officially openedthe building in Al Quoz at aspecial ceremony,
The new building,which occupies 340,000square feet is part of ourGreen Buildings initia-tive to achieve the highestlevels of efficiency in theconsumption of electricityand water, said AbullahObaidullah, EVP of Waterand Civil at DEWA.
The building has beencompleted as per DEWAsGreen Building regula-tions, with recycled mate-rials accounting for 36%of the total constructionmaterials used.
It has a laboratory toensure that the quality ofwater conforms to all theenvironmental standardsapplicable to green build-ings around the world. Inaddition, the building has
a fully automated control
tomer call centre, an engi-neering and control centerand the Supervisory Con-trol And Data Acquisition(SCADA) centre for watersystems.
Shortly after the openingDEWA announced that ithas signed a contract for anew 132 kV electricity cablenetwork for the Gardensand Dubai Investment Parkarea in Dubai.
The contract, worth$5.3m, is expected to com-plete in February next year.DEWA said the deal waspart of its plan to strength-en its infrastructure byboosting the capacity and
efficiency of its electricitytransmission networks.
Led by our vision to be-come a sustainable world-class utility, DEWA con-tributes effectively to thesocial, economic and envi-ronmental development ofthe emirate, by providinguninterrupted and stableelectricity and water ser-vices to achieve the visionof Dubai, said Al Tayer.
The new cable network
further strengthens ourinfrastructure and enablesus to provide swift and ef-ficient power supply to ourcustomers.
The length of the newcables network is up to 26kilometres, and covers awide area in Jebel Ali, withthe scope of work coveringthe supply and drilling ofextensions, testing, com-missioning, and managinglinks with existing net-
works, he added.
DEWA celebrates new LEED
Platinum sustainable buildingContract award for $5.3m electricity cable network follows opening ceremony for authoritys
new sustainable Water and Civil Engineering Division building said to be largest of its kind
panel to control the cool-
ing, and air conditioningsystems, and a number ofventilation units, to reduceenergy consumption,said Abullah Obaidullah,EVP of Water and Civilat DEWA.
The building will achievean energy performance ef-ficiency level of over 66%by providing additionalinsulation in its walls androof. Special glass hasbeen installed to reduce
heat transfer into the build-ing, while highly-efficientwater-cooled chillers cutdown energy consumption.The building also useslow-powered LED lightsand automatic lighting
control systems with
occupancy sensors.In addition, renewable en-ergy is available through anon-site 660 kW solar powerplant, thereby reducing thebuildings carbon footprinteven further.
Home to the headquar-ters of DEWAs Water andCivil Engineering Division,it features a storm-watermanagement plan thatensures recycling of wa-ter for irrigation. Special
regulators, sensor taps, lowflow fixtures and waterlessurinals help reduce waterconsumption by as muchas 48%.
It is now the largestgovernment building in
the world with a Platinum
rating for green buildingsfrom Leadership in Energyand Environmental Design(LEED), the US GreenBuilding Council institute,which has a set of ratingcriteria for the design,construction and opera-tion of high-performancegreen buildings, homesand neighborhoods in theworld. The DEWA Sus-tainable Building achieved98 out of 110 points, said
HE Saeed MohammedAl Tayer, MD and CEO ofDEWA .
The building includesDEWAs 14th customerservice centre; providing avariety of services, a cus-
HE Saeed Mohammed Al Tayer, MD and CEO of DEWA hailed the new building at an opening ceremony.
The building has been completed as perDEWAs Green Building regulations, with recycledmaterials accounting for 36% of the total
construction materials used.
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HVAC
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DISTRICT COOLING
Tabreed, the Abu Dhabi -based district
cooling company, has signed a partnership
agreement with the Masdar Institute of Sci-
ence and Technology to perform research
into energy consumption in district cooling
plants.The company said that it is already cur -
rently working on one research project that
aims to create a smart control system capable
of independently managing cooling plants to
improve operational performance and reduce
energy consumption with minimal interfer-
ence from operatives.
The two organisat ions are also developing
a software module that can be integrated
with cooling plant control systems to mea-
sure all of the external variables that can
affect a plants performance, such as the out-
side temperature and humidity levels, chilled
water supply levels and the return flow to
decide at what capacity major equipment likechillers, water pumps and cooling towers
need to run.
Tabreeds CEO, Jasim Thabet, said: We
are delighted to be partnering with the
Masdar Institute in this important area and
hope to utilise this project to gain some
critical insights.
Although we are in the data gathering
stage at this point, this system offers interest-
ing possibilities for the future as it can poten-
tially lead to significant energy reductions.
Masdar Institute president Dr Fred
Moavenzadeh said: Our research initiatives
aim to bring operational benefits to organ-isations while contributing to mitigat ing
carbon emissions.
Dr. Peter Armstrong and Dr. Afshin A f-
shari will be the principle Masdar research-
ers on the project. Dr Armstrong said:
For the Tabreed project we will model and
monitor a typical chiller plant in order to find
cost effective ways to reduce peak-demand,
energy and carbon impacts.
Actions may include variable-speed drives
and multi-stage compressors as well as
optimal control to coordinate operation of
compressors, pumps and cooling towers.
Phase 2 will consider cool storage and ad-vanced controls to shif t chiller load (and thus
also electric utility load) to morning hours
when cooler temperatures result in more
efficient operation.
Air-conditioning accounts for 40-50%
of Abu Dhabis total energy consumption.
although this can r ise to around 70% on its
hottest days.
Tabreed joinswith Masdar toresearch energyefficient cooling
Abu Dhabi-based National
Cooling company announces
signing of partnership
agreement with the Masdar
Institute of Science &Technology to carry out
research into reducing the
amount of energy consumed
within district cooling plants Jasim Thabet, CEO of Tabreed, welcomed the partnership.
We are delighted to be
partnering with the Masdar
Institute in this important areaand hope to utilise this project
to gain some critical
insights.
DISTRICT COOLING
Belhasa Projects has been award-
ed a contract for a 10,000RT
(refrigeration tonne) expansion
project by Sorouh and Tabreed
for the Shams Abu Dhabi district
cooling project.
The deal is part of the total
20,000RT development and will
include relocation of the existing
cooling tower, pumps and piping
to the new location.
According to Aziz Ayoub, busi-
ness unit manager, Belhasa Proj-
ects: The regions district cooling
industry is rapidly expanding and
we have the technical expertise to
deliver projects on schedule and
up to standards.
Apart from setting up of a dis-
trict cooling plant, it is the mainte-
nance that is a main challenge to
utility companies. We are focused
on minimising the operating cost
for the plant in Shams Abu Dhabi
and keeping the project on sched-
ule by delivering as promised,
he added.
Belhasa Projects has also won a
contract for the construction of a
sewage pumping station for Wes-
tin Abu Dhabi Golf Resort, located
within the existing Abu Dhabi
Golf Club, which is fully owned
by Tourism and Development
Investment Company (TDIC),
Abu Dhabi.
Belhasa Projects wins Shams district cooling deal
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BIMBIMBIM: Is it going to happen in the Middle East or arewe going to keep asking the same old questions?
What is BIM? :Building Information Modeling (BIM)
is a new dimension for managing construction pro-
jects throughout the lifecycle within a virtual col-
laborative working environment.
Which piece of software do you suggest? : BIM is not like an
illness that requires prescription of medicine/treatment in order
to get better. The idea is to understand the business needs and
requirements; know the strength of all products in the market;
choose the right solution in the right place; and know how to utilise
them in the process with the right skill set.
How much is it going to cost?: Regardless of being a client,
quantity surveyor, contractor, consultant, architect or facility man-ager; it will save you a huge amount of money and strengthen
future prospects if you
concentrate on how to
best apply with the right
methodology, process
and protocols.
Is BIM good for me
while fixing the form-
work and pouring the
concrete?: Yes, BIM should lead your program, cost plan, quanti-
ties and construction methodology while improving safety and re-
ducing the waste (with construction being one of the largest waste
producing industry).
These are normal and typical questions due to lack of knowl-edge about BIM or misunderstanding due to the BIM experts
who have been overselling the capabilities of pure technology
without understanding the process, implementation and nature
of collaborative working throughout the lifecycle of construction
projects. But finally and very recently, the industry has come to a
point where we started discussing this topic around BIM Round
Tables, and conducting BIM Forums in order to find the right way
of delivering it on the ground throughout the lifecycle of construc-
tion projects in UAE and MENA.
There are various issues behind the question of How to Make
it Happen? Some of them are: setting clear standards and guid-
ance for BIM Management including modelling, implementation,
monitoring the performance through the lifecycle and ownership;
upskilling of workforce, not only training for BIM, but also for de-
sign management, project management and
safety management; and addressing the limita-
tions in collaborative working due to traditional
procurement methods.
These questions and issues can be resolved
and BIM has the potential to be a norm in
the Middle East adopting an industry wide
approach once governments, universities,
industrial bodies, technology providers and
other relevant parties from the construction
sector get together with a unified initiative
to be achieved within a specific time frame.A good example that sets the benchmark for
BIM is UK with a clear strat-
egy and a government initiated
BIM Task Group for deliver-
ing public projects with BIM
until 2016.
Another good example to
take lead from is Singapore and
their BCA-Building Construc-
tion Authority where they have an approach
similar to the UKs government-supported
BIM. They allocate specific funds for setting
the guidelines, standards and furthermore sup-
porting projects with a certain level of fundingfor achieving widespread BIM implementation
by 2015 and upgrading construction industry
to the next level.
The industry is keenly looking forward to see
the next level of BIM development in Middle
East countries and the key question is who is
going to set a new benchmark with a clear BIM
strategy and time frame?
Dr. Ozan Koseoglu is an Asst. Professor for Con-
struction Management and Surveying at the
School of the Built Environment, Heriot-Watt
University in Dubai. and an expert in Building
Information Modelling.
The BIM question
BIM is not like an illness that
requires prescription of medicine/
treatment in order to get better.
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COMMENT
April2013|MEP Middle East 15
International and local contractors need to join forces to meet ifthey are to meet the goals of Qatars 2022 FIFA World Cup
There is no greater reminder of the pulse of a city than
being stuck in its traffic. Recently I was reminded of
this maxim when commuting from the West Bay area to
Salwa Road.
Well, commuting in fits and starts, with a leisurely view of the
construction work underway along Salwa Road, which is an abso-
lute nightmare to negotiate at present. While I was fidgeting and
glancing at my watch constantly, the driver was rather more stoic,
and told me that the traffic situation in Doha was only likely to
worsen as work on the metro got underway in earnest.
In many respects Doha reminds one of Dubai before the big
boom and its subsequent upheaval in terms of construction work.The city is only at the beginning of an amazing transformation
that will see it become
a proud world-class host
of the 2022 World Cup.
A local contractor
at the vanguard of this
transformation is Ur-
baCon Trading & Con-
tracting. MD Ramez
Al Khayyat tells CWQ
that the secret to Qatar
achieving all its World
Cup goals both in
terms of timeframe andthe range and quan-
tity of infrastructure re-
quired lies in the design-and-build approach.
Al Khayyat argues that this will promote upfront involvement on
the part of contractors, and encourage them to use their expertise
and experience from as early on as the design stage in order to
meet their clients goals for cost-effective and fast delivery of qual-
ity projects.
One only has to look at the Lekhwiya Sports Complex, a design-
and-build project that UrbaCons sister company Khayyat Contract-
ing & Trading delivered in 18 months from start to finish, which is
a remarkable achievement.
No stranger to challenging projects, UrbaCon is also deliver-
ing the Banana Island Village Resort & Spa project at present, lo-
cated on an island about 10km offshore from
Doha itself.
All building materials and equipment have
had to be barged in, while a labour camp and
full facilities have had to be established on the
island itself.
Al Khayyat says that UrbaCons success
with this project, which is on track for comple-
tion towards the end of the year, despite some
changes being brought about at this late stage
by the client itself, is to have a tightly-knit pro-
fessional team encompassing all facets, fromdesign through to MEP.
Such integration is critical
from a planning and logistics
point of view, especially with a
project as complex and as con-
strained as the one to found at
Banana Island.
One gets the feeling from
speaking to local contractors
like UrbaCon that Qatars
World Cup legacy is in very
good hands.
There has been a lot of
speculation about the coun-try being slow off the mark in
awarding critical infrastructure
contracts, but it is clear that the government
is focusing on project integration and planning
before it lets any work go.
It is equally clear that Qatar should not be un-
der-estimated when it comes to the expertise
and commitment of its own contracting sector,
especially as the local construction industry
becomes increasingly competitive as interna-
tional companies continue to enter the market
hoping for a slice of the World Cup pie.
Gerhard Hope is editor of CW Qatar.
The big win-win
Such integration is critical
from a planning and logistics
point of view, especially with a
project as complex and as
constrained as the one to be
found at Banana Island.
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NEWS ANALYSIS
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Dubai Municipalitys new green building rules and
regulations, which are set to come into force in 2014,
will transform the MEP industry in the emirate from
top to bottom
materials, improving public health, safety
and general welfare and by enhancing the
planning, design, construction and operation
of buildings to create an excellent city that
provides the essence of success and comfortof living.
The regulations are intended to support
Dubais Strategic Plan, create a more sus-
tainable urban environment and extend the
ability of the Emirates infrastructure to meet
the needs of future development.
Green building is clarified by the docu-
ment as the practice of creating structures
and using processes that increase the effi-
ciency of resource use energy, water, and
materials while reducing building impacts
on human health and the environment dur-
ing the buildings lifecycle, through better
siting, design, construction, operation, main-tenance, and removal.
The rules and regulations cover all as-
pects of the construction process, with many
having universal application to all parties
involved. For example, Section 401.02 deals
with air quality during construction, renova-
tion or decoration, stating that building oc-
cupants and systems must be protected from
airborne contaminants which are generated
or spread during construction or renovation
inside the buildings. Other uniform meas-
ures tackle environmental tobacco smoke,
the use of environmentally-friendly materials
and resources, and the responsible manage-
M
andatory green building rules
and regulations on all build-
ings in Dubai are scheduled to
be enforced in 2014. Currently,
it is optional for private buildings.According to Dubai Municipality, the pur-
pose of the regulations is to improve the
performance of buildings in Dubai by reduc-
ing the consumption of energy, water and
ment of waste generated by the various con-struction processes.
However, at its heart, this document is
a new testament for the MEP industry in
the emirate of Dubai. The bulk of its con-
tent deals with freshly defined standards
for HVAC systems, electrical efficiency
and lighting, and water efficiency through
plumbing and drainage. Consequently, it is
set to transform work practices and behav-
iours in the industry from the design and
planning stage right through to testing, com-
missioning and maintenance.
Section Four of the document, which deals
with Building Vitality, has several points of
Greener on
the Other Side
EXTERIOR LIGHTING LEVELS
IN DUBAI ARE SET TO BE
SUBJECTED TO STRICT
NEW RULES
75%Domestic hot water requirements tobe provided by solar water heaters innew villas and labour accommodation
3 secondsMaximum time allowed for escalator tooperate at full speed when no activity is
detected
25mmMinimum air break allowed betweenpotable water sources and greywater
collection systems
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NEWS ANALYSIS
April 2013|MEP Middle East 17
interest for MEP practitioners. Its first chapterdeals with ventilation and air quality, opening
with the decree that All new and existing air-
conditioned buildings must be mechanically or
mixed mode ventilated and must comply with
the minimum requirements of ASHRAE Stand-
ard 62-2007.
The finer detail of the chapter goes on to
establish strict thresholds for compliance
with indoor air quality in new buildings in
section 401.06. Maximum acceptable limits
are outlined for contaminants such as formal-
dehyde (
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NEWS ANALYSIS
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greater interest in section five which covers
resource effectiveness specifically energy-ef-
ficiency. Chapter One sets out the parameters
for air-conditioning design, with the heat load
of buildings to be calculated by factoring in the
outdoor condition of a building with a dry bulb
temperature of 46C, wetbulb temperature
of 29C, Dubai City location latitude of 25N,
and an extent of variation on the day of designof 13.8C. Further parameters are outlined
for the indoor condition of a building and the
sensible and latent heat safety factors applied.
Regulations on air loss from entrance and exit
and air leakage are also covered.
Perhaps the most singularly prescriptive
aspect of the entire document can be found in
section fives second chapter which provides
exhaustive detail on the minimum energy effi-
ciency requirements of HVAC equipment and
systems. The reference table it provides speci-
fies equipment type, size category, heating
section type, subcategory or rating condition,
minimum efficiency (T1) levels, maximum ef-ficiency (T3) levels, and test procedure. While
it will surely limit the selection of HVAC sys-
tems across various applications, its clarity is
sure to simplify decision-making and focus
efforts on necessary action. Of further inter-
est to HVAC professionals will be the chapters
stipulations on demand controlled ventilation.
Lighting also comes in for rigourous regula-
tion, with maximum average levels set for the
watts per square metre (W/m) across the to-
tal interior area of a variety of building types.
Retail outlets, shopping malls and workshops
must not exceed 14W/m, while manufactur-
ing facilities (13), educational facilities (12),
smaller than 10 microns (
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THE BIG INTERVIEW
20 MEP Middle EastApril 2013 www.constructionweekonline.com
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THE BIG INTERVIEW
Thrasos Thrasyvoulou, managing director of Habtoor
Leighton Specon, on how a patient and prudent approach
in recent years means his company is well positioned for a
move into new markets
BREAKINGNew Ground
I
f a book were to be written on
the history of the MEP industry
in the Gulf over the last 35 years,
there may be no better author than
Thrasos Thrasyvoulou, managing
director of Habtoor Leighton Specon(HLS). Having worked in the region
since 1977, he has seen it all, and
with a boundless enthusiasm can
relay much of it in such incisive detail that it
would be sure to make interesting reading.
The master-raconteurs wealth of experi-
ence has undoubtedly been central to the
steady rise of his companys fortunes in the
years since it was established in 2005 as an
MEP partner to the Habtoor Leighton Group
(HLG). It was certainly put to good use dur-
ing the trauma suffered by the industry in
recent years. Although exposed like the rest
of the industry to the rougher elements of
the economic climate during that time, HLS
has seemingly weathered the storm betterthan some of its competitors, and is now pre-
paring to make the most of that advantage
with committed moves into the rapid growth
markets of the region.
For Thrasyvoulou, this is a big moment
for HLS. We are at a very important time
for the company, he says. This year will
see our efforts in 2012 to move into other
countries materialising, particularly in Iraq
and Saudi Arabia. It is the beginning of a
April 2013| MEP Middle East 21www.constructionweekonline.com
THE BIG INTERVIEW
HLS carried out the MEP projects on both the Sheikh Zayed (left) and Paris-Sorbonne (right) universities in Abu Dhabi.
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This year will see
our efforts in 2012 to
move into other countries
materialising, particularly
in Iraq and Saudi Arabia.
THE BIG INTERVIEW
22 MEP Middle EastApril 2 013 www.constructionweekonline.com
2005The year HLS was established as an
independent partner of HLG
very interesting period. Our vision to expand
geographically is underway and it will see
us continue to be one of the major players in
the region.
Of all the Gulf states, Thrasyvoulou
believes that Iraq holds the most promise.
He says that the relentless tragedy which
the country has suf fered since its war with
Iran in the 1980s has left the country in need
of major reconstruction, development and
investment. With proven oil reserves in thecountry on a par with Saudi Arabia, currently
the worlds largest oil producer, Thrasy-
voulou says it is only a short matter of time
before Iraq is transformed into a hotbed of
fevered construction activity.
I personally believe in two or three years
that Iraq will surpass Saudi Arabia in terms
of the amount of [construction] business
there, adding that it is always in my
thoughts to enter in there ver y decisively.
HLS is already assisting HLG in securing two
or three oil and gas and infrastructure jobs
in Basra and North Iraq, and Thrasyvoulou
says that this is a precursor to HLS develop-ing something very serious in Iraq by the
end of the year.
More predictably, Saudi is also of huge
interest and HLS is expecting to make
significant inroads into the market in 2013.
Currently the biggest construction market
in the Gulf, Thrasyvoulou says the work
needed in Riyadh and Jeddah should mean
Saudi is busy for years to come. While other
companies have rushed into Saudi over
the last five years, HLS has been patient,
which has given his team and he ample time
to analyse the market before proceeding.
They have concluded that the best approach
The New Mafraq Hospital in Abu Dhabi, seen here in November 2011, is currently HLSs biggest project and is being carried out as part of a Habtoor Leighton/Murray Roberts JV.
HLS executed the MEP work on Daman Towers in Dubai.
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THE BIG INTERVIEW
will be to establish strategic partnerships in
pursuit of individual projects. With this ap-
proach Thrasyvoulou expects the company
to pick up maybe two to three projectsthere by the end of this year.
Like several other Dubai-based MEP con-
tractors, HLS has already made a significant
dent in Qatar. It has had a presence there for
the last two and a half years and is currently
finishing work on three hotels, Merweb,
Rotana and Shangri-La, with a total value of
around QAR 600m. Further projects are be-
ing sought in the power sector with Kahram-
ma, the Qatari power and water corporation,
and other discussions with several main
contractors for upcoming work are ongoing.
According to Thrasyvoulou, Qatar needs
1bnHLSs approximate turnover at its
highest peak in UAE dirhams
The MEP works on Mafraq Hospital constitute around 40% of the entire project value and are set to be complete in early 2014.
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to build around 55 more hotels before the
2022 World Cup in order to meet the ac-
commodation needs of the expected visitor
numbers attracted by the tournament. Along
with the imminent rail and metro project,
for which HLS are pre-qualified along with
their Spanish partner Cobra, and work on
the stadiums, he says that there should be
sufficient contracts to be won there by most
of the major contractors in the region.
However, he is doubtful of predictions that
Qatar will replicate the construction boom
experienced by Dubai between 2003 and
2008. I believe that, because of the smaller
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size of Qatar and the fewer number of tourist
attractions in the country, it will never reach
the peak that sometime ago Dubai had, but
it will reach an enviable level of business for
all big contractors to get their fair share, he
says. Thrasyvoulou also predicts that Dubai
itself will recover significantly but will never
return to the crazy heights of the last dec-
ade: It has already built most of what was
required, he says. Maybe the healthcare
sector and education may offer something,
but I dont think other sectors require muchmore work, for now at least.
Beyond the big growth markets of Iraq,
Saudi and Qatar, HLSs ambitions for geo-
graphical expansion also extend to Oman
and Kuwait, where they currently have
invitations to tender for hospital projects.
However, HLSs plans for growth do not
stop there with Thrasyvoulou revealing that
the company is targeting growth through
diversification of specialities as well. We are
one of the few companies who have in-house
oil and gas, energy and power, and solar
capability, he says. Together with Cobra
[HLSs Spanish partner] we have submitteda tender to Kahramma in Qatar for seven
substations in the past few months. We are
also in a good position to secure an award for
a 12MW power station in Corsica.
The aim of this growth, both geographi-
cally and by diversification, is to make HLS
number one in terms of turnover and
profit, Thrasyvoulou says. He describes
HLS as a 1bn dirham company in terms
of turnover, although a difficult 2012 for
the entire industry saw that figure drop.
The companies backlog currently stands at
approximately AED 1.5bn, with a workforce
made up of 150 qualified engineers, 500
to 600 support staff, and 4000 technicians
spread between the UAE and Qatar. With the
moves into new territories and new sectors,
Thrasyvoulou expects the company to reach
AED 2bn in revenue in the next few years.
However, he is quick to highlight that
turnover is not his or the companys barom-
eter of success. A healthy bottom line is
fundamental to his thinking and central to
the daily operation of any sound business,
he says. I want the company to do well and
make a profit so I can look after my people.If I dont have a profit we cannot take care of
our employees. We could win ten contracts
tomorrow morning and have a huge turno-
ver, but if we dont make a profit from those
contracts then it is of no use.
Such behaviour, unfortunately, has been
quite common in the industry of late. The
HLS managing director can offer a glut of
tales about other contractors, who he is too
polite to mention by name, undercutting his
company only for those parties to r un into
trouble on the job and HLS to be brought in
to clean up the mess. He believes that the
current price-cutting war besieging the MEPindustry can only end badly, but he thinks
main contractors are beginning to realise the
danger of encouraging this behaviour.
The mechnical corridor in Mafraq Hospital through which the chilled water pipes travel illustrate the size of the project.Thrasyvoulou says turnover is not HLSs biggest priority.
I want the company to
make a profit so I can look
after my people. If I dont
have a profit we cannot take
care of our employees.
HLS was established in October
2005 following an agreement between
Thrasyvoulou (Specon Ltd) and Al Habtoor
Engineering (now HLG) to establish a
standalone MEP partner to the group,
with ownership split 49/51 between
Thrasyvoulou and HLG respectively.
When we signed the MoU (Memorandum
of Understanding) we set out the basicprinciples such as the legal status,
working capital, finance and management
Thrasyvoulou explains. I undertook the
overall responsibility for the companys
operations and was appointed the first
managing director and deputy chairman
of the company. Obviously we regularly
consult the groups board of directors
on major issues and strategy, but the
agreement is that I have the responsibility
for running the company.
These first few years saw HLS focus
primarily on projects on which HLG was the
main contractor as the company had anextensive backlog of work. This dynamic
continued up to 2011 when Thrasyvoulou
decided that HLS would like to expand
business with other contractors.
We are now in search of work and the
objective is to have at least 50% of our
turnover coming from other contractors, he
says. It was 15% at times, and sometimes
even lower, because there was no need to
over-expand. Recently we are looking for
more work beyond HLG as part of our longer
term strategy in becoming the leading
diversified MEP player in the region.
THE GROUP DYNAMIC
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THE BIG INTERVIEW
2bnTurnover target in coming years in UAE
dirhams
You are not getting the best service on
a difficult MEP project if you get the lowest
price, he says. We want to maintain quality
and, speaking to main contractors in the
last few months, they are realising that itis not in their interest to keep squeezing
sub-contractors. Its not as dif ficult to secure
work these days with our reputation for qual-
ity and history, but if it is a matter of price
we have our red line on price and we dont
accept projects that we know will not provide
a return to the group.
This restraint in a time of difficulty for
the industry, particularly in the UAE, has
apparently allowed HLS to avoid the pitfalls
into which others have walked. While 2012
saw its balance sheet take a marginal hit, its
backlog of projects following the construc-
tion market collapse has enabled it to
carry on without too much of an upset to its
structure and finances. Work on the Paris-Sorbonne and Zayed universities in Abu
Dhabi, as well as the ongoing New Mafraq
Hospital project, have meant the company
has been kept occupied during the darkest
days of the downturn. Thrasyvoulou believes
that the worst is certainly over and expects a
return to growth for the entire industry this
year and in the years to come.
We have been hearing in the last six
months that liquidity has increased in the
banks, investors are more confident now
and there will be a lot of projects, he says.
We are having discussions about three to
four major projects in the region, in whichour partners HLG are also involved, that are
more than AED 2bn in total in terms of MEP
works. We expect those to come through and
the backlog to grow once again, which will
set us up well for the coming years.
Going forward, Thrasyvoulou says that his
vision to firmly establish HLS as the number
one diversified MEP contractor in the region
will depend on maintaining its reputation as
a company that delivers quality on time and
within budget. But he also stresses that this
vision must be shared by everyone in the
company and that, without their investmentin it, the vision is unattainable.
As a leader, you must share your vision
with your people, he says. You must have
a strategic plan on how to get there and they
must know how it is to be implemented. If
your people dont know where you are going,
they cannot follow, and no one can make it
happen alone.
Mafraq Hospitals HVAC system is of the highest standard.
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SITE VISIT
Stuart Matthewsvisits the FuturePipe Industries facility in AbuDhabi, to see how this manufacturerhas built a business one layer of
glass fibre at a timeWORKPipe
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SITE VISIT
For some manufacturers accreditation is a must. Its not enough
to say a product is a quality performer, it has to be proven be-
yond any doubt. Thats why Future Pipe Industries Abu Dhabi
facility has 29 accreditations to its name.
Coming from internationally recognised and respected
bodies, such as DNV and TUV and a host of others, these accredita-
tions are essential to the success of the companys pipe manufactur-
ing business. Without them the company would find it difficult, if not
impossible, to secure contracts on the large-scale projects that drive
this production facility and the four others operated around the Gulf.
Each individual facility must have its own accreditations and getting
them represents a major investment in time, money and manpower.
All the facilities are run the same way, to the same standards. Its the
effor t and diligence involved that makes Sameer Abu Hannun, the
companys vice president of GCC manufacturing, so proud of what the
company has achieved.
They are very important to us, says Hannun. They really cost us,
but if you want to run a professional operation, you must have them
and you must keep them.
We are happy and proud to have made this kind of investment
because it impacts on the services we provide. The accredita-
tion secures the product performance and the customer can feel
much safer.
The Abu Dhabi factory features its own testing facilities, where
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SITE VISIT
both finished products and raw materials
are put through their paces. Long-term
pressure testing under extreme tempera-tures is just one of the hurdles the fin-
ished products have to clear, to keep their
accreditations valid.
As general manager Fady Assad explains,
the products are tested well beyond their
normal operational boundaries.
If a product is rated at 10 bar, we may test
it to 30, he says.
The manufacturing process is one the
company is always striving to refine, whether
its for its smallest 25mm pipes, or those with
a 4m diameter. In fact, just recently, one pro-
FPIs helical winding machine takes polyester fibres from various spools and wraps these around a mould while reesin is applied in order to make fibreglass piping.
Pipes are produced for infrastructure and for plumbing.
The companys yard acts as a spacious storage facility.
SITE VISIT
TOP 5 GCC PROJECTSProject name Country End User Value
Ras Laffan common cooling seawater project(largest fiberglass pipe system project in the world)
Qatar Qatar Petroleum $500m
Ghantoot water transmission UAE DEWA $65.9m
Sohar 3 / barka 2 power and desalination plant Oman Oman power and waterprocurement company(OPWP)
$6m
Petrochemical complex pipe system Kuwait Equate $25m
Jubail Export Refinery KSA Saudi AramcoTotal Refining and
Petrochemical company
$30.7m
Pipe
ROJECTS
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SITE VISIT
duction process underwent some additional
automation, reducing the manpower needed
on the job from three people to one.
You can always improve, says Hannun.
We are concentrating on being more ad-
vanced in everything we do. Were concen-
trating on automation and looking at improv-
ing processes to boost our efficiencies.
PRODUCTION LINEWith an annual capacity of around 150,000
tonnes, regularly updated automation equip-
ment and software across its 12 produc-
tion lines is key to the Abu Dhabi facilitys
efficiency. Overall FPI has 45 production
lines of fibreglass pipe across all its global
manufacturing facilities.
The plant operates two distinct types of
production. One is helical winding, where
pipes are formed over a mandrel by winding
fibres around the mould while resin is ap-
plied. Built up layer by layer, the pipe moves
from the winder to an oven to be set, before
being separated from the mandrel.
Sameer Abu Hannun, VP of GCC manufacturing.
Future Pipe Industries also produce custom made pipes.
The continuous winding unit in action at the facility.
a
The other method is continuous winding,
where, as the name suggests, a machine
continually adds layers of fibre to the pipe
until the desired thickness is met. These
pipes can be made to any length, with the
only restrictions being the size of the factory
and the practical issue of transporting the
finished product.
The technology behind the manufac-
turing process is owned by Future Pipe
We are happy and
proud to have made
this kind of investment
because it impacts on the
services we provide. The
accreditation secures the
product performance and
the customer can feel
much safer.Sameer Abu Hannun, VP-GCC manufacturing
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SITE VISIT
.
industries. Part of it was acquired when
FPI bought the fibreglass arm of a Dutch
manufacturer in the 90s.
The team at the site are quick to empha-
sise the benefits of the fibreglass product.
Much lighter than the steel equivalents it
can replace, fibreglass pipe products can
be easier to handle on site thanks to that
weight reduction and the subsequent reduc-
tion in lifting capacity required. They also
claim a 50-year lifespan for the product, so it
requires less frequent replacement. In some
applications the pipes also result in lower
pumping costs, since the internal friction ofthe product is lower than steel alternatives.
AGILITY AND PROXIMITYAs with any product, client education is key
and Future Pipe Industries acknowledges that
making things easy for clients and customers
is an essential part of a successful business.
To help contractors get to grips with the prod-
uct, it offers engineering services that help to
turn a pipe from a simple product into that
favourite output of all companies: a solution.
These services include guiding contrac-
tors through the installation process. The
company also conducts third-party-certified
training, to teach the skills needed to
complete pipe joins, resulting in contractorsgaining the skills they require to work with
the product.
These qualities and services, reinforced
by the fist-full of accreditations the company
has worked hard to earn and maintain, have
resulted in major project success.
Hannun doesnt want to talk project
value in simple contract terms, he wants
to position the companys work in the
context of each projects importance. From
Ras Laffan to Ruwais, or Al Ain to Abu
Dhabi, the companys products are going
into projects that make a difference to
national economies.
From left: Sameer Abu Hannun, VP of GCC manufacturing; Fady Assad, general manager.
We are so flexible,
for any project we can
easily install machines
and increase capacity in a
couple of weeks.
Fady Assaad, general manager, Abu Dhabi
Future Pipe Industries gets closer to its
customers by adding value to its product
through additional services
Future Pipe Industries site services
department offers an after-sales service to
its customers to provide site supervision and
technical assistance for laying the pipes it
has supplied.
The department takes on the preparation
and execution of the services provided as
part of the companys contracts. This canrange from supplying an entire site crew to
join pipes, to simply providing a site engineer
to oversee a pipe-laying.
Future Pipe Industries also uses its
strategic alliance partner, Dynaflow
International, to provide engineering
consulting services for all aspects of piping
structure. Dynaflow develops software for
clients to address issues ranging from small-
scale ad-hoc stress problems, to large-scale
fluid flow problems and has built up a broad
experience in all design aspects of glass
reinforced polyester (GRP) piping systems.
KEY STRATEGY
Flanges are added to connect to steel piping.
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SITE VISIT
Number of football pitches equivalent
to Abu Dhabi plant
12
Its a big-picture view and the project cred-
its make for a long list, but it takes an agile
company to manage the spikes in production
these big projects demand. The fluctuating
costs of the resin raw material, linked to theprice of oil, also contributes to a complex
balancing act that needs careful stewardship.
FPIs spacious Abu Dhabi plant - its the
size of 12 football pitches - has more capacity
built in, but the company has a more mobile
back-up plan, in case a big order lands in one
particular plant.
We are so flexible, for any project we can
easily install machines and increase capacity
in a couple of weeks, says Assaad. We have
two machines ready to be transported to any
plant in the group.
This transportable machinery, ready to
move to any of the companys five plants
Future Pipe Industries produce a vast array of pipes at the Abu Dhabi facility, from 25mm to 4 metres in diameter.
around the Gulf, can be assembled and
producing in a matter of weeks, allowing the
company to boost capacity as, where and
when its needed.The team at Future Pipe Industries
builds a picture of a good business to be in.
The pipes it makes are a necessar y par t of
infrastructure and plumbing development
on all scales and across many sectors.
Demand is broad and the range of prod-
ucts the company can produce is intended
to match the market needs. It makes for a
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market ripe with opportunity for a manu-
facturer that has spent decades building
the experience and agility needed to take
advantage of it.We have the advantage of being a pioneer
in this kind if manufacturing, says Hannun.
We have our own technology, a wide range
of products, the ability to engineer them,
plus the experience, the capacity and the
know how.
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To much of the MEP and wider construction in-dustry in the GCC, Kuwait must seem like aquiet stranger seated in the corner of a livelyparty. As its Gulf counterparts loudly engage ina game of build the biggest, best or brightest,their neighbour to the north appears contentto observe the spectacle with a curious indif-ference, all the while keeping its own counsel.
News from Kuwait is scarce and the impres-sion given is of an insular country moving at its own pace. Ithas the coffers to match the peacock displays of the UAE,Qatar and Saudi, with a 2011 GDP close to $180bn accordingto the World Bank and the fifth largest oil reserves in the
world, but it has taken somewhat of a tortoise approach to
development. With the 2012 construction market in Kuwaitestimated at $2.5bn, it is comparatively the lowest spenderin the GCC when GDP and GDP per capita are considered.Based on the common estimation of the MEP market repre-senting 25 to 30% of total outlay on construction, the Kuwaiti
MEP market sits at somewhere between $625m and $750m modest by GCC standards.
However, the experience of some of those in the industryoperating in Kuwait suggests that those frugal figures maybe about to change. Darrel Strobel, managing director ofMEP engineering at KEO International Consultants says thatthere are signs that investment may be finally making its wayinto the construction market after a particularly lean periodbrought on by recent events.
While the government continued to spend on healthcare,education and some major road and infrastructure projectssuch as the new bridge crossing Kuwait Bay, the private sec-tor slowed down quite a substantial amount in recent years
with the global recession. There are signs, however, that this
is starting to come back to life, he says.The next few years are key for a lot of services in Kuwait
as construction and government spending are likely to in-crease, and the MEP industry is going to get pulled along forthe ride. Kuwait never experienced the boom and bust of the
KUWAIT FOCUS
MEP Middle Eastsets its gaze on a market that is a potential goldminefor the industry but, having shunned the attention so craved by its GCCcounterparts, has remained something of a mystery until nowUNKNOWN
Into the
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KUWAIT FOCUS
LIGHT ON THE HORIZON
Kuwait's construction industry neverreached the Icarus heights of its GCCcounterparts during the last decade, but
its construction sector has still suffered anoticeable decline in the last few years.However, there has been somemovement in the market recently whichhas given those operating in the countrya ray of hope that their perserverance inKuwait might be rewarded.The quiet man of the Gulf has announcedsome major projects and, while theMEP industry might not be the firstin line to benefit from them, there isthe potential that the projects maygive the entire sector the boost it hasbadly needed.
"Recent articles in the press haveindicated that the government hasannounced several infrastructuredevelopments and re-introduced othersthat had been delayed due to either fiscalconstraints or parliamentary hurdles,"says KEO's Darrel Strobel. "Some examples include the $486.5million contract to construct a portnext to the Al Ahmadi refinery, the $6billion expansion of Kuwait Internationalairport, up to $14.2 billion of roads workto be completed over the next 5 years,and a new sea port on Boubyan Island.
These mega-projects in conjunctionwith an expected increase in the privatesector may point to better times ahead,"he adds.
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rapid expansion evident in other GCC coun-
tries and, while Kuwait has never been con-
sidered an overactive market, it has a more
steady stream of projects in the pipeline.
Some of those projects have been in the
pipeline so long, that many believed they
would not happen, but some recent events
such as the start of the Sulaiybiya Causeway,has given an indication that the government
is serious about spending and is keen to im-
prove a broad range of sectors, he adds.
This optimism that the construction mar-
ket can move beyond public infrastructure
projects, which generally present scant op-
portunity for the MEP industry, and towards
the bigger bounties of privately funded pro-
jects, is shared by Tawfiq Abu Soud, Drake &
Sculls managing director for both MEP and
Water and Power divisions.
There are clear signs that Kuwaits con-
struction industry could receive a boost from
the private sector as demand in the residen-tial, investment and commercial segments ap-
pears to be rising steadily, he says.
If such advocacy for Kuwaits construc-
tion sector means a move there seems like
a tempting proposition, further attraction
may be derived from testimonies revealing
how the MEP industry there is not really
that different from those of the more popular
Gulf markets.
There are only minor differences in the
requirements from the various authorities in
Kuwait compared to other GCC countries and
there are no significant variations in design
issues, says Strobel. The only item that pre-sents sizable differences is the requirements
in the field of sustainable engineering. The
UAE, in particular Abu Dhabi with Estidama,
has rigorous demands in this field, whereas
Kuwait lags behind a bit, he adds.
For Abu Soud, there are also some distin-
guishing features to the approach of contrac-
tors in the country.
MEP contractors in Kuwait are keen to
gain a competitive edge by offering a scal-
able and comprehensive contracting service
solution, complemented by effective qualified
manpower for project design, installation, and
service support, he says.
KUWAIT FOCUS
He also believes that the Kuwaiti market
shares the characteristics of other GCC states
in the demand to meet short deadlines and
the challenge of rising costs, but offers a
general profile of the challenges facing con-
tractors in Kuwait itself.Broadly speaking, some of the major chal-
lenges being faced by MEP contractors in Ku-
wait include: finding a balance between the
tight deadlines imposed by clients and high
Tawfiq Abu Soud, managing director of Drake & Scull's MEP division and Water and Power division.
quality work; ensuring that MEP installations
comply with the new green building stand-
ards; the availability of suitable manpower;
the growing cost of commodities and equip-
ment in the MEP sector; and inflation.
On the consultancy side, similar difficultiesare encountered