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OCTOBER 2016 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS The extension of Dubai's historic waterway marks the realisation of a long-held dream THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS DECEMBER 2016 We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net Classified Class 1 ISO 9001
construction business news me December 2016 3 Editor’s note News Appointments Contracts IN PERSON Rizwan Sajan, founder and chairman of Danube Properties Cover Feature Building Dubai Water Canal Construction Machinery The Case roadshow rolls into Dubai 10 12 20 22 24 28 32 28 36 20 contents
GETTING CLOSER TO THE TOP... Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo operators show off their machines. And it’s impressive to see what they can do. If you want to get closer to the action, scan the code and watch the video. Building Tomorrow. VIDEO http://goo.gl/FPsU43
construction business news me December 2016 8 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Jason O'Connell jason@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Commercial Vehicles Big 5 2016 Review Legal Viewpoint Defective works: who is liable for what? Supplier News Event Preview Save the Date Editor’s Pick 36 40 44 48 54 56 58 24 40 44
construction business news me December 2016 10 Full Circle Not a year goes by without Dubai complet- ing construction work on yet another ambi- tious project and 2016 has been no excep- tion. Dubai Parks and Resorts opened in October, marking the start of a new phase of the city’s evolution into a global tourist hub. But without doubt the standout project of the year has to be the Dubai Water Canal – a project that comes with extra significance given the role the Creek has played in the history of Dubai’s development. It was here that the Bani Yas tribe set- tled in the 19th century, establishing the Al Maktoum dynasty in the city. The Creek became its beating heart and a centre of regional trade, becoming famous for the abundant pearls found in local waters. For years, it formed a natural harbour for dhows arriving laden with goods from around the Arabian Gulf and beyond. And as Dubai grew as a regional trade hub, the late Sheikh Rashid, one of the architects of the UAE, ordered the dredging of the Creek to accommodate larger vessels. Eventually the city’s expansion neces- sitated construction of much larger facili- ties. First, Port Rashid – just south of the mouth of the Creek – opened in 1972 fol- lowed by Jebel Ali – at the other end of the emirate – in 1985. Despite the loss of its status and the gravitation of Dubai’s de- velopment further southwards, the Creek still teems with life and the hum of dhows constantly coming and going. With the opening of the second stage of the canal, visitors will be able to travel by boat in a full circle around central Dubai which is now a huge man-made island. Such a project would be unthinkable al- most anywhere else. And in all likelihood it will breathe new life into the areas alongside it, providing plentiful oppor- tunities for the construction industry for many years to come. editor’s note Jason o'Connell Editor
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construction business news me December 2016 12 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news Read the latest edition on www.CBNme.com NEWS P roperty developer Meraas has an- nounced plans to build a new state-of-the-art multi-purpose are- na with a capacity of 20,000. Spanning an area of half a million square feet, the Dubai Arena is set to enhance the city’s leisure and enter- tainment offering and become the ‘go to’ venue for large scale international music concerts, sporting events such as hockey and NBA as well as other enter- tainment events. Dubai Arena will be the only all-pur- pose indoor air conditioned arena of its size in the entire region and will boast an advanced infrastructure allowing it to accommodate mega-events. Strategically located at City Walk with close proximity to Dubai Inter- national Airport and accessible via the Dubai Metro, the new venue will be at the heart of Dubai’s latest urban lifestyle destination surrounded by a Meraas unveils Dubai Arena Dubai Arena pany, AEG Ogden, part of Anschutz Entertainment Group that owns, con- trols or is affiliated with world class venues such as The O2 in London and the Staples Centre in Los Angeles. The project management contract for the destination was awarded to DXB En- tertainment PJSC who are responsible for delivering Dubai Parks and Resorts. Raed Kajoor Al Nuaimi, CEO of DXB Entertainments PJSC said: “What makes Dubai Arena stand apart from its counterparts is its remarkable size, capacity, and ability to be transformed from a theatre to a stadium depending on the scale of the event. “Our appointment to project manage a project of this scale is proof of the success we have achieved in delivering Dubai Parks and Resorts which commenced its opening on 31st October. We are excited to work closely with Meraas to deliver yet another first to the industry.” The 20,000 seat venue to be region’s top destination for global events and live shows plethora of hospitality, F&B, enter- tainment and shopping options. Ground has been broken for the proj- ect and is expected to be completed in the last quarter of 2018. His Excellency Abdulla Al Habbai, Group Chairman, Meraas, said: “The new destination will enrich Dubai’s ex- isting infrastructure and will add a new state-of-the-art venue that will accom- modate international events and will raise Dubai’s credentials as a premium leisure and entertainment hub. “Dubai Arena will host famous and world renowned athletes, artists and performers and attract tourists to Dubai all year round. It will also host large global events and performances that have not visited the region as yet, due to the lack of a suitable platform for holding similar events.” Managing Dubai Arena will be in- ternational venue management com-
construction business news me December 2016 13 DAMAC Properties has awarded China State Con- struction Engineering Corporation (Middle East) with a AED 554mn ($150mn) contract to build the Para- mount Residences at the Paramount Tower Hotel and Residences on Sheikh Zayed Road, Dubai. China State Construction Engineering Corporation (Middle East) will build the 27 floors that comprise the residential portion of the 64-storey building. The project is scheduled for completion in Q1 2020, DAMAC said in a statement. Speaking at the signing ceremony, Mohammed Tahaineh, SVP – Commercial at DAMAC Properties commented: “It is one of the four landmark hospitality projects we are developing in collaboration with Para- mount Hotels & Resorts, featuring Hollywood-themed hotel rooms, hotel apartments and residential units in Dubai and Riyadh. It gives us great pleasure to appoint China Contracting for the provision of contracting ser- vices and the delivery of this much-awaited property.” Yu Tao, President & CEO of China State Construc- tion Engineering Corporation (Middle East) LLC added: “This represents a significant contract for us in one of the most prestigious hospitality and residential projects in the Middle East. We were appointed this year for the infrastructure works at AKOYA Oxygen and this new contract only cements further our strong relationship with the real estate developer.” The residences at Paramount Tower Hotel & Resi- dences feature hospitality units with separate living and dining areas, as well as two and three-bedroom arrangements in addition to exclusive penthouses. LACASA Architects and Engineering Consultants is the main architect. CSCEC wins $150mn contract with DAMAC Properties The government of Dubai has hired HSBC to arrange initial funding of $3bn towards the expansion of Al Maktoum Inter- national Airport. Three state entities – the Department of Finance (DoF), state-owned fund Investment Corporation of Dubai (ICD), and the Dubai Aviation City Corpo- ration (DACC) – will work jointly to raise financing from various liquidity sources, both conven- tional and Islamic with HSBC acting as Financial Advisor, ac- cording to a statement on UAE state news agency WAM. Dubai’s two international airports are set for expansion that will enable them to serve up to 146 million passengers by 2025, due in large part to a proposed initial $3bn financ- ing transaction announced on Tuesday by the government of Dubai. Already the world’s largest in- ternational airport, Dubai Inter- national Airport (DXB) handled 78 million passengers in 2015. The new Al Maktoum Interna- tional Airport (DWC) is planned to become the primary airport for Dubai, as well as the home to Emirates Airline from 2025. “Dubai remains firmly com- mitted to the development of the Al Maktoum International Airport and to the growth of the global aviation sector, and this initial $3bn transaction to sup- port Dubai’s ambitious 2025 passenger capacity targets is testament to our belief,” said chairman of Dubai’s Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum. Dubai Airports recently an- nounced plans to boost the capacity of DXB from 90 to 118 million passengers by 2023 without building any major new infrastructure. Under a pro- gramme called DXB Plus, the airport will add ten new A380 contact stands at Concourse C to support Emirates’ grow- ing fleet of superjumbos and will also enhance services with smart technology. HSBC to advise on $3bn Al Maktoum Airport financing
construction business news me December 2016 14 NEWS Emirati sustainability consultancy AESG has opened a new London office with a view to expanding its reach beyond its home base in the Middle East. This move follows years of double digit growth for the company in the Middle East during which it has successfully delivered numerous projects for interna- tional clients, including many from the United Kingdom. Commenting on the decision to grow AESG’s footprint outside the GCC region, company Director, Saeed Al Abbar said: “Based on our leading position in the Middle East market, clients have increas- ingly requested for our services outside of the region. Opening an office in Lon- don was a natural step as many of our in- ternational clients operate in that market which is a hub for international activity in real estate development and design excellence. This aligns with our expan- sion strategy of focusing on markets that value high quality consultancy services.” AESG will initially focus on delivering its specialist consultancy services to cli- ents through the new office which will serve as a hub for European and Interna- tional markets. The company has estab- lished a strong track record of working effectively with international architecture and development firms on iconic proj- ects within the Middle East. These in- clude The Opus in Business Bay, Dubai and the Bee’ah Headquarters in Sharjah, both of which were designed by award- winning architect, the late Zaha Hadid. AESG also worked on the ICD Brook- field Place and the Dubai Design District designed by Foster + Partners as well as the UAE Pavilion at Expo 2020 which was designed by Santiago Calatrava. “We have extensive experience work- ing with leading architectural practices in Europe and opening our offices in Lon- don will enable us to build on this,” said Al Abbar. “By going global, we will be able to replicate best practices that we develop from our operations in the internation- al markets, in our Middle East practice and vice versa which will only serve to further enhance the quality and value of our offerings.” AESG goes global with new London office Dubai Wharf more than 70 percent complete Construction at the AED 800mn ($218mn) Dubai Wharf develop- ment in Culture Village is 70 percent complete. Overlooking a canal promenade adjacent to Dubai Creek, the first tower will be completed this month, developer Dubai Properties said. Two other towers in the residen- tial development are scheduled for completion in Q1 2017, while the fourth tower and the development’s retail space will be completed by the end of next year. Following the success of the re- lease of the second phase develop- ment, additional studios and apart- ments within the development are now available for sale at the DP sales and customer services centre in Ras Al Khor. Located close to Al Jaddaf Metro station, Dubai Wharf has a total of 594 studio-, one-, two-, and three bedroom apartments. The develop- ment will have 110 retail, F&B and entertainment outlets on the ground floor that overlook the canal at Cul- ture Village.
construction business news me December 2016 15 Dubai Electricity and Water Authority (DEWA) has started con- struction of a new headquarters that will be the tallest, largest, and smartest net Zero Energy Building (ZEB) in the world. Located in Culture Village in Al Jadaf, the Al-Sheraa (Arabic for sail) building will have a total built-up area of over 1.5 million square feet on a plot of 200,000 sq ft. The building is designed to accommodate 5,000 employees, in addition to customers and visitors. Over 16.5 km2 of photovoltaic solar panels will produce over 3,500 kilowatt hours (kW/h) and there will be about 10 km2 of Building Integrated Photovoltaic (BIPV), producing over 1,100 kWh. Total renewable energy generated by the building will be over 7,000 megawatt hours (MW/h) annually. Al-Sheraa’s design was inspired by the UAE’s traditional houses, where enclosed spaces overlook an open courtyard. The court- yard will be the focal point and most prominent feature of the building. To reduce heat in the open courtyard, a sail design is used to provide shaded areas. The building will use the latest technologies including In- ternet of Things (IoT), Big Data and Open Data, and Artifi- cial Intelligence (AI). Robots will be used for cleaning and to provide security services. Al-Sheraa is planned to be a Zero Energy Building (ZEB), where the total energy used in the building during a year is equal to or less than the energy pro- duced on site during that year. DEWA is targeting a platinum rating by LEED (Leadership in Energy and Environmental Design), the highest possible certification.The building will use 50 percent less water than regular buildings and green spaces will be almost 50 percent of the buildings area. The building, which will be directly linked to Dubai Metro by a 150-metre covered bridge, will be completed and inau- gurated in 2019. Klampfer Middle East and Brayan Group have joined forces to service the UAE mechanical, elec- trical and plumbing (MEP) sector. Klampfer-Brayan Electromechanical Contracting LLC (KBEC) will combine the strength of Klampfer’s international experience with Dubai-based Brayan Group’s leading position in the local market. “As a European company with an international engineering portfolio, Klampfer is moving toward increasing and diversifying our Middle East market share beginning with the United Arab Emirates,” said Klampfer Middle East Managing Director, Gün- ther Hinterberger. “Our partnership with Brayan Group serves to both solidify our local footprint, and leverages the company’s on-the-ground years of MEP experi- ence.” Praveen B Sarapure, chief executive officer, Brayan Group, added: “The merging of our two interests to create KBEC also brings considerable financial support to MEP execution in the UAE. This allows for a focus on strengths – not just of our respective solid reputations and different lev- els of geographic penetration – but on recruiting top level human capital to service KBEC clients for work needs.” Eng. Joe Szabo, an industry veteran with 15 years senior-level appointments across MEP and various other construction sector disciplines, has been re- cruited to head the new operation. Klampfer Middle East is a KBW Investments (KBW) portfolio company founded jointly with Bas- ma Group and Klampfer GmbH of Austria. DEWA begins construction of new smart building Klampfer and Brayan Group launch new MEP outfit
construction business news me December 2016 16 NEWS Advanced Construction Technology Ser- vices (ACTS) has opened a new branch in Lebanon, taking its presence in the country to three main laboratories and five engineering offices. The firm, which specialises in the field of construction materials and geotechni- cal engineering, said the new facility in Al-Qalamoun, Tripoli features a state-of- the-art laboratory fully equipped to per- form various field sampling and materi- als testing procedures, covering asphalt, concrete, soil and various other construc- tion materials. Engr. Khaled Awad, Chairman of ACTS, said: “The opening of the Tripoli branch coincides with the 20th year anniversary of ACTS. This speaks volumes about our ACTS opens a new branch in Lebanon Dubai Land Department launches Gulf Real Estate Awards Dubai Land Department (DLD) has launched the first Gulf Real Estate Awards to recognise excellence in the real estate sector. HE Sultan Butti Bin Mejren, Director General of the Land Department, said the awards came from the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, towards more innovation. The event aims to promote and en- courage best practices among devel- opers and brokers, facilities manage- ment, engineering and legal services, contractors and consultants. “These awards have been launched following a considerable amount of effort and planning in line with our vision to be the first real estate destination globally in innovation, trust and happiness.” Bin Mejren said at a press conference to launch the awards. “These awards are an expression of our commitment to stimulating innovation in the real estate sector, by inspiring creativity and excep- tional practices that lead to sustain- able growth in the Gulf region. These awards are an incentive for compa- nies operating in the real estate sec- tor to compete with each other and improve their services and projects.” The Dubai Real Estate Institute, the educational arm of Dubai Land De- partment, signed an agreement with Awards International on the sidelines of the recent Cityscape Global 2016 ex- hibition, which paved the way for these awards open to all businesses that op- erate in the Gulf real estate sector. Dubai Land Department will be in charge of all matters relating to the organisation of the awards. The deadline for early applications is 15th December 2016, while 19th January, 2017 will be the final day for the sub- mission of applications. The awards committee will announce the candi- date shortlist for the finale on 26th January, 2017, with the awards cer- emony to be held on 19th April 2017. All businesses and companies op- erating in the real estate sector, be they private or public, are eligible to participate. The awards encompass a total of 21 categories, including those for major private and government or- ganizations, entrepreneurs and small businesses. The awards will provide the opportunity for all types of busi- nesses to share their success stories. Businesses or parties wishing to participate in the awards ceremony are requested to select the category in which they wish to compete. To do so entries can be made by completing all of the prerequisite information on the website, whether on behalf of the company or the person applying and make a payment. Engr. Khaled Awad commitment to the Lebanese Construc- tion market. “It also reflects our belief that North Lebanon will witness soon a substantial rise in construction activities. ACTS will ensure it brings its twenty years and re- gional experience in quality control and unique know-how in testing to Lebanon second capital and the whole north.” Since its establishment in 1996, ACTS has been going from strength to strength, becoming the preferred third-party pro- vider in the region for geotechnical engi- neering, materials testing and consulting. The company has been awarded con- tracts to work on some of the most ambi- tious projects in the region, including the Riyadh Metro, King Abdulaziz Interna- tional Airport, Doha Metro and Kingdom Tower, the world’s first kilometer-high skyscraper being constructed in Jeddah, Saudi Arabia.
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construction business news me December 2016 18 NEWS Al Habtoor Motors led a delegation of Saudi Arabia’s largest fleet operators on a site visit to the FUSO truck factory in Chennai in October. The event was an opportunity to meet and share ideas with other industry col- leagues while customers got to see the outstanding build quality of FUSO trucks in this brand new manufacturing facility and test drive the full range of vehicles. Erich Nesselhauf, Managing Direc- tor and CEO, Daimler India Commer- cial Vehicles, said: “We are delighted to welcome these high profile FUSO cus- tomers at our facilities. Our world-class Saudi fleet operators visit FUSO factory New event highlights RAK investment opportunities Next month will see the launch of a new event aimed at attracting invest- ment in the fast growing emirate of Ras Al Khaimah. Taking place from 13-14 December 2016, the Ras Al Khaimah Finance & In- vestment Forum (RAKFIF) is a platform designed to showcase opportunities across key industries in- cluding hospitality and tourism, infrastructure and real estate. The event has strong government backing and has the patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Rul- er of Ras Al Khaimah. RAKFIF will bring to- gether experts from gov- ernment and industry with international and regional investors and financiers. The agenda includes panel discussions, sector specific breakout sessions and ple- nary sessions and already has a confirmed line up of speakers representing key economic sectors. Over 300 C level and in- dustry leaders will be in attendance at the event which is backed by BNC Publishing as its exclusive Trade Media partner. Government entities lending their support in- clude Ras Al Khaimah De- partment of Civil Aviation, RAK International Airport, RAK Ports, Al Marjan Is- land Company, RAK Tour- ism Development Authori- ty, RAK Free Trade zone & RAK Investment Authority. Goldman Sachs Inter- national, HSBC, Samena Capital Investments, Col- liers International, UTI- CO, Nabarro LLP, Hilton Worldwide, ADPI and Hutchison Ports are just some of the heavyweight private partners that will be involved. manufacturing plant and the high qual- ity level of our operations are the foun- dation of our success. “Since 2013, more than 5,000 FUSO trucks have rolled off our lines for ex- port to almost 30 markets in Asia, the Middle East, Africa, and Latin America.” Al Habtoor Motors Saudi Arabia Coun- try Head, Simon Monahan said: “We ap- preciate our customers’ taking time out from their busy schedules to visit this state of the art FUSO factory. At Al Hab- toor Motors Saudi Arabia, we are com- mitted to meeting the needs of truck operators and reducing their fleet costs. We are pleased to support our custom- ers by offering the best customer care in the market. He added: “We are proud of our brand new facilities and Head Office in Ri- yadh. The state of the art National Parts Distribution and Heavy duty truck facil- ity at Eastern Ring Road, Exit 17 is fully operational and Dammam and Jeddah facilities will open very soon. These, to- gether with our mobile servicing vehicles to service trucks at customer premises, demonstrates our commitment to keep- ing vehicle downtime to a minimum and saving truck operators money.”
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construction business news me December 2016 20 Appointments Global developer Emaar Properties has appointed Veresh Sita, an international technology professional with deep ex- pertise in developing customer-oriented solutions and experiences, as its Chief Digital Officer (CDO). Veresh joins Emaar from Alaska Airlines, where he was responsible for overseeing an organisation of 300 IT professionals and Dubai-based developer Shaikhani Group has named Alan James Gam- mon as its new Chief Operating Offi- cer (COO) as it aims to complete AED 3.5bn ($950mn) worth of projects in the UAE. Gammon will oversee activities in- cluding asset management, new busi- ness, joint-venture partnerships and day-to-day operations of the real es- tate business. Mahmood Abu Baker Shaikhani, Managing Director of Shaikhani Group, said: “The appointment of Mr. Gammon will help Shaikhani Group to pursue its expansion initiatives and realise its vision for 2025. His undis- puted expertise in the real estate sec- tor will help us firmly maintain our position as one of Dubai’s leading real estate institutions.” Gammon previously served as the Di- rector of Business Development for the Funsho Management Consulting group Emaar Properties goes digital Shaikhani Group appoints new COO investing in the airline’s infrastructure, en- terprise systems and technical innovation. He also has strong expertise in the real estate sector having worked as the CIO and CDO for Seattle-based Colliers Inter- national, helping transform its informa- tion and technology services department. Bringing nearly 25 years of experi- ence in information technology, Veresh is tasked with developing a new digital strategy that will drive Emaar’s growth. He will also prioritise Emaar’s technology roadmap to assure seamless customer service delivery and strengthen the com- pany’s agility and responsiveness in a fast-changing landscape. Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar is moving into the next era of growth centred on the new digital ecosystem that is shaping customer outlook and preferences. In today’s fast-evolving world, organisations that lead are the ones that can automate at scale, are agile and highly responsive to the needs of customers. “With our strong international foot- print and diversified business compe- tencies, Emaar’s strategy to create long- term value will be led by innovative, tech-driven business and enterprise systems. Veresh has proven global ex- pertise in reengineering technology platforms that will contribute tremen- dously to the organisation’s growth.” and advised on investment opportuni- ties in the real estate and hospitality business. Prior to that he held the post of COO with Royal Groups Yosh Hos- pitality managing all aspects of the hos- pitality and property portfolio. He has also worked in the capacity of Vice President at DAMAC proper- ties where he was responsible for the customer journey from point of sale to handover. And at the Majid Al Futtaim group he oversaw mixed use develop- ment service operations including The Wave in Muscat.
– Almoayyed Motors – Manama / venugopal.nair@almoayyed.com.bh – Al Kasid Commercial Agencies Ltd - Erbil, Baghdad / ahmed.ali@al-kasid.ae – The Commercial & Industrial Company - Amman / w.albajjali@cic.com.jo – Mohsin Haider Darwish LLC - Muscat / bhaskar@mhd.co.om – Almana Motors Company W.L.L – Doha / oghobrial.aa@almanagroup.com – Al Jazirah Vehicles Agencies Co Ltd – Riyadh, Dammam, Jeddah / smomea@aljazirahford.com – Al Tayer Motors – Dubai / razmy@altayer-motors.com – Premier Motors – Abu Dhabi / homohamed@altayer-motors.com Bahrain Iraq Jordan Oman Qatar Saudi Arabia United Arab Emirates United Arab Emirates Made for the job Ford Trucks Construction Series has been designed for the toughest jobs out there, from mixing cement or moving great mounds of earth, working in the vastest of quarries to the smallest sites. Drop into one of our authorised dealerships today to find out more about how our tenacious and efficient 350 PS Motor-powered Series can help you. www.fordtrucks.com.tr Ford Trucks Sharing the load
construction business news me December 2016 22 Contracts AlMoayyed contracted for $150mn Bahrain project Drake & Scull unit seals deals worth $67mn Macro wins FM contract with DMCC MSF and Serka Taahhüt bag $270mn Port of Duqm contract Aldar awards AED 30mn early works contract GFH Real Estate (GFHRE) has appointed AlMoayyed Contracting as the Main Con- tractor of its $50mn Harbour Row proj- ect in Bahrain Financial Harbour. Under the deal, all contracting works, including foundations, construction, mechanical, internal and external finishing works will be assigned to AlMoayyed Contracting. Located at the heart of the capital Mana- ma, the project consists of 450 residential units, in addition to retail outlets with a waterfront view. Drake & Scull International (DSI) sub- sidiary Passavant Energy & Environ- ment (PE&E) has secured three contracts to build Wastewater Treatment Plants (WWTP) in New Delhi and Bangalore in India as well as Gaza in Palestine for a combined value of AED 246mn ($67mn). PE&E will undertake the engineering, pro- curement and construction (EPC) work and assume responsibility for the opera- tions and maintenance of the plants. Macro has won a three-year contract with DMCC (Dubai Multi Commodi- ties Centre) to maintain commercial tower, One JLT. The Mace subsidiary will provide full FM services in the 14 floor-tower, which is located at the centre of Jumeirah Lake Towers (JLT) in Dubai. Services include Mechani- cal, Electrical and Plumbing (MEP), as well as cleaning, pest control, waste management and valet parking. Mac- ro will also oversee specialist con- tracts for CCTV, BMS, access control and fire alarms. Portugal’s MSF Engenharia and Turk- ish contractor Serka Taahhüt have clinched a major contract to work on the Port of Duqm in Oman. Special Economic Zone Authority (SEZAD) awarded the 50/50 joint venture with a EUR 252.8mn ($274mn) package for construction of roads, infrastruc- ture and buildings at the Commercial Terminal and operational Zone Areas, Port of Duqm. Work is expected to be finished within 30 months. Aldar Properties has awarded the early works contract for a luxury residential develop- ment located on Yas Island to Dutch Foundation & Concrete Rehabilitation Company. The AED 30mn ($8.16mn) contract provides for shoring, piling and earthworks for Mayan, which comprises 512 luxury apart- ments spread across five build- ings. The Abu Dhabi-based full-service engineering founda- tion company will carry out the work over a five month period starting immediately.
construction business news me December 2016 23 Habtoor Leighton Group awarded $136mn Gate Avenue contract FLSmidth signs $200mn cement plant contract in Iraq Mott MacDonald to oversee new oil terminal in Iraq POSCO bags $900mn deal to build hotel in KSA Sarooj Construction appointed for Mall of Oman Habtoor Leighton Group (HLG) has won the AED 500mn ($136mn) con- tract to build Gate Avenue at DIFC. The retail project is already worth AED 450mn approximately with the existing truck tunnel and master plan infrastructure in place. Set for the first phase of completion by the end of 2017, the 660,000 square feet devel- opment will have over 200 dining, boutique, retail and entertainment op- tions, as well as a new mosque. Majid Al Futtaim Properties has appointed Sarooj Construction to carry out early works for its flagship Mall of Oman retail project in the Sultanate. The contractor is expected to start soon on work that will include bulk excavations, retaining walls, utility diversions followed by major road and bridge construction around interchange number 6 of the Muscat Expressway. When it opens in 2020, Mall of Oman will be the largest integrated retail, leisure and entertainment destination in the Sultanate. FLSmidth has signed a contract worth more than $200mn with Iraq Cement Co., to supply a cement plant for the Al Muthana region. The contract is a full EPC order, comprising en- gineering, all FLSmidth equipment supplies, erection and construction, as well as commissioning and train- ing once completed. The plant will produce 6,000 tonnes of cement per day and will feature state-of-the-art equipment. Mott MacDonald has been appoint- ed by Qaiwan Group to provide engineering, procurement and con- struction (EPC) management servic- es for the new Xarajyan oil terminal in Iraqi Kurdistan which is sched- uled to be complete in Q2 2018. The company will design the first phase of the 140,800m3 storage terminal, auxiliary utilities and infrastructure facilities. The consultancy will also provide interface and procurement engineering services and will assist with pre-fabrication, construction and assembly engineering. POSCO Engineering & Construction Co. has won a $900mn project to build a 3,000 key hotel project near the city of Medinah, KSA. The development in Madinah Hajj City will serve pilgrims on their way to Ma- dinah from Mecca. Under the agreement, the JV will build a giant hotel complex that will comprise five towers by February 2017. Located 3 km from the center of Madinah, Madinah Hajj City is being developed on 1.6 km2 of land and will have a construc- tion cost of $16bn.
construction business news me December 2016 24 Danube Properties has launched its seventh development just as it puts the finishing touches to its first. Jason O’Connell spoke to chairman and founder Rizwan Sajan about the company’s journey. Making Miraclz In person
construction business news me December 2016 25 R izwan Sajan will probably reflect on 2016 as being the year things began to take off for Danube Properties. The company’s founder and chairman unveiled his seventh prop- erty development in Dubai last month just as contractors were putting the finishing touches to the first project he launched in June 2014. Danube’s short journey as a devel- oper has taken it from villas in the burgeoning neighbourhood of Al Fur- jan via low rise apartment buildings in Studio City to its first high rise tower in Arjaan next to Miracle Garden. But it is this year that business has really accelerated. The company started 2016 with a bang, launching Starz by Danube followed by the Glamz resi- dence, both of which sold out in record time. So far this year it has sold over 1,000 units, awarded construction con- tracts worth AED 501mn ($136mn) to two contractors while signing three en- abling contracts worth over AED 21mn. Its latest project - the AED 400mn Mira- clz by Danube - takes the aggregate value of its portfolio to AED 2.2bn at the turn of the year. Sajan’s philosophy is to proceed cautiously with his developments, selling each one completely before launching a new project to avoid over- stretching himself. But such has been the demand for his “affordable luxury” offering that Danube usually sells out within four to eight weeks, allowing him to launch a new property every two to three months. His latest project, however, took a little longer than expected. “It took us almost five months to come out with this new project – whereas normally we try to launch a new project every two or three months and people are wondering why it took longer,” Sajan says. “When we sold the last project and started scouting for a new plot we realised that prices has gone up. Peo- ple say the market is down but we saw prices had gone up and we were not able to find the right priced plot, so it took a little longer.” When Danube announced its first project in Al Furjan last year it paid in the range of AED 120 per sq ft. Today, Sajan says, a similar plot in the same area is around AED 140/150 per sq ft indicating that demand is on the up. Perhaps that explains why he decided to turn his attention to another emerg- ing neighbourhood: Arjaan. Sajan says Arjaan fits a similar profile to the other areas it has targeted, be- ing an up and coming neighbourhood with essential infrastructure already in place. The company has bounced back with its tallest project to date. Miraclz is a 36-storey tower with 591 apartments ranging from studios to two bedrooms. Though it is bigger in scope than its previous developments, Sajan says the formula remains very much the same. “Charge the customer the price of Dis- covery Gardens and give them the quality of a Marina or Downtown apart- ment,” he says. Units in Miraclz will be of similar size to its previous projects while custom- ers will pay more or less the same at approximately AED 1,000 per sq ft. Studios start at AED 450,000 while two bedroom apartments cost in the region of AED 1.25mn. Being a bigger devel- opment, Miraclz is equipped with a broader offering of facilities and ame- nities and residents can access a 1,250 sq ft health club at the podium level while there will be eight retail units on the ground floor. As with previous developments, apartments will be fully furnished with furniture supplied and designed by Danube Home. One of Danube’s big advantages as a developer is that the company is also one of the largest sup- pliers of building materials in the UAE as well as having its’ owns furnishings division, allowing it to deliver projects at lower cost than its competitors. Construction advances Aside from being taller, Miraclz also dif- fers from previous Danube projects in that the company began construction before they started selling off plan. Atlas Contracting will carry out earthworks as it has done for all previous projects. Dreamz Glitz
construction business news me December 2016 26 “Why change a winning formula?” says Sajan. “Atlas has done well com- pleting jobs on time and with dewater- ing which is very important.” The com- pany has also used the same interior designer for all its projects. Danube expects to award the main construction contract for Miraclz in another two to three months. United Engineering Construction (UNEC) was selected to build the 171 villas that make up Danube’s first de- velopment – Dreamz in Al Furjan - and broke ground on the project in Febru- ary 2015. The AED 500mn project is in the final stages of construction and the first units should be handed over around the turn of the year. Danube then turned to Naresco Gen- eral Contracting in August 2015 for its second project - Glitz 1 and 2 – in Studio City. The AED 300mn develop- ment consists of two, 8 storey towers with a combined total of 300 apartment units ranging from studios to three bed- rooms. Construction is complete and the first units due to be delivered ahead of schedule early next year. Naresco followed up in April this year with the AED 185mn ($50.36mn) main contract for the adjacent Glitz 3 development which has 350 units. Dan- ube says preparation for casting the third floor is underway and construc- tion is also three to four months ahead of schedule. Danube returned to Al Furjan to launch its fourth project, Starz, in De- cember 2015. The AED 300mn proj- ect comprises 452 units from studios to two bedroom apartments in two, 17 floor towers sharing a podium. En- abling works are coming to completion and another 20,000 m3 of earth needs to be excavated while there is a sig- nificant amount of dewatering taking place. Bin Shafar Contracting was an- nounced as the main contractor in No- vember and will also reportedly build the sixth project on an adjacent plot in Al Furjan. Danube announced the AED 300mn, 418-unit Glamz project in May. So what’s next for the emerging de- veloper? “After this we’ll come out with another project every three to four months,” says Sajan. “We’re looking for another plot in Arjaan to launch in Q1 2017, as soon as we sell Miraclz.” Property prices in Dubai have gen- erally stagnated over the past two years, though the higher end of the market has been hardest hit. The fact that more and more people are look- ing to stay in the city for the long term and want to get on the property lad- der rather than rent, appears to bode well for the more affordable end of the market and Danube is just one of a number of developers that have moved to exploit rising demand. But can investors expect property prices to rise again anytime soon? “They have to,” says Sajan. “I’m just surprised they haven’t already. Because plot prices have gone up so eventually this will reflect in property prices. We’re ap- proaching Expo 2020 and I’m sure there will be a surge in prices.” Glamz In person Plot prices have gone up so eventually this will reflect in property prices
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construction business news me December 2016 28 The extension of Dubai's historic waterway marks the realisation of a long-held dream. Jason O'Connell caught up with the contractor that built it Cover story
construction business news me December 2016 29 I t’s been several decades in the making but finally the long-held ambition of extending the his- toric Dubai Creek back to the Arabian Sea has become a reality. The achievement marked the realisation of a dream of Sheikh Rashid bin Saeed Al Maktoum – one of the principal ar- chitects of the United Arab Emirates (UAE) 45 years ago and the late fa- ther of Sheikh Mohammed bin Rashid Al Maktoum, current Prime Minister of the UAE and Ruler of Dubai. The first phase of the canal was completed more than a decade ago at a cost of AED 1bn and extended 9 km from Ras Al Khor through Business Bay to Sheikh Zayed Road (SZR). Like oth- er big projects at the time, completing the final 6km stretch of the canal was put on the back burner while Dubai staged a recovery from the global fi- nancial crisis of 2008/9. But two years ago the project finally got the green light and in November the waterway was inaugurated in a spectacular cere- mony overseen by Sheikh Mohammed. Belgian contractor BESIX – through its local venture Belhasa Six Construct – was entrusted with the bulk of the works related to the new portion of the canal, which has turned a large part of central Dubai into an island. Jean-Pol Bouharmont, deputy general manager of Six Construct for the UAE, Oman, Qatar and Bahrain, was heav- ily involved in the process, especially during the final month to ensure it was delivered on time and to the specifi- cations of the client – The Roads and Transport Authority (RTA). The contractor was awarded two main packages of work. The first in- volved diverting all the underground utilities and carrying out canal excava- tion wherever possible while it wait- ed for another contractor to build the bridges over the main canal crossings - SZR, Al Wasl Road and Jumeirah Beach Road. The second package involved treating the water in Business Bay - which had become hyper saline over a 10-year period - before releasing it safely back into the sea. “The original creek extension was stopped with a series of utilities not diverted,” Bouharmont says. “In fact there was not just one lagoon in Busi- ness Bay but a series of them separated by bunts where the existing services were still in place. Due to a combina- tion of evaporation, the tide and the dewatering of all the new buildings in the area (the dewatering was dis- charged into the lagoons) the water became highly saline over time. The biggest lagoon was more or less white as it was really hyper saline.” Carrying out the water treatment package was quite challenging in terms of how to dilute the water to an acceptable mix before opening the ca- nal, especially on the creek side. Six Construct pumped the hyper saline water all the way from the lagoon up to a mixing basin near a newly created
construction business news me December 2016 30 and trying to minimise disturbance to the environment because it’s an area where you have a lot of villas. You have an extremely tight schedule but at the same time you have to try not to disturb too much during the night. But the challenge was more to do with traf- fic sequencing because of the bridges and diverting existing utilities.” The latter involved recreating new networks for all the underground services – sewer lines, electricity, water pipes, telecoms, etc – that had previously passed through the site of the canal. The relocation of these services was a laborious process that took two years before excavation Cover story peninsula at Jumeirah where it was blended with seawater to reduce the salinity before being discharged into the sea. The whole process took two months with another month to pump normal seawater back into the lagoon using a pair of 800mm pipes laid on the canal bed. “This second package of work was awarded quite late in January 2016, where we had nine months to divert the services in Business Bay area, re- moving the bunts, pumping and mix- ing the seawater and then pumping seawater back into the lagoon,” says Bouharmont. “Then step by step the bridges were completed between April, for the first one, and July for the last one over SZR and we were able to excavate below the bridges and finally connect the canal to the sea.” The final stage of excavation could only take place once the bridges were installed on top of the huge pillars holding them in place. The distance from the bridge to the bass of the canal is around 12 metres and each pillar goes a further four metres be- low ground level. Around 50,000 m3 of earth was excavated from beneath each bridge but at this point removing the earth had become quite straight- forward. Because the rest of the canal was already excavated, construction traffic could travel along the canal bed to the artificial peninsula built using the excavated earth. “There was quite a lot of traffic management during the two and a half years but that last part was not so difficult,” Bouharmont explains. “More difficult was installing the block work for the quay walls below those bridges. We got those areas quite late in the contract period and we had to be ready to expedite the work. We even coordinated with the client and the other contractor, especially on SZR bridge, to work on part of the quay walls while they were doing the foun- dation of the bridge. We didn’t wait for the bridge to be completed before building the wall.” The quay walls were made using precast concrete blocks weighing 40 to 50 tonnes each. Every night during the construction period 30 to 50 blocks at a time were made in a special facility in Warsan, depending on the progress of installation. There is a ten metre wide promenade either side of the ca- nal after which it’s safe to excavate to build alongside the canal. “You would have some shoring to do but you can excavate without any problem although there will be some dewatering during construction,” he says. “Basically you are building a huge brick wall and then back filling behind the quay walls with some rock. Tech- nically it was not so challenging build- ing quay walls. The challenges were more involving traffic management
construction business news me December 2016 31 could begin. Tunneling was used where possible to minimise the im- pact on traffic and excavations. Six Construct has plenty of experi- ence doing some of what it was tasked with on this project while other ele- ments were new. “It’s a unique project for sure. But it’s a mix of things we have done in different environments. I’ve been here for 20 years and I’ve always had at least two ongoing proj- ects building quay walls with the same technique. So that’s nothing special. It’s more that it involved building in a heavily congested environment. But dealing with the hyper saline water is unique and it was necessary to investi- gate what would be the best solution. We had part of the expertise in house but for the pumping and mixing we used a specialist contractor.” Another major challenge only came about very late in the process. Due to design issues, Six Construct was given the green light to proceed with a very significant portion of the work – con- struction of three pedestrian bridges and the canal promenades – in the last six months, leading to a logistical headache to complete the job on time. It was here that Bouharmont be- came deeply involved. “Part of those bridges were executed while the ca- nal was already flooded so we had to build temporary platforms over the canal to be able to build the bridges. There was a lot of sequencing into those bridges which are also techni- cally quite challenging. When you see them now they are quite iconic. We used specialist sub-contractors to fabricate them but we had to help erect them.” With this job under its belt Belhasa Six Construct says it is ready to take on the next challenge for the RTA, which has been a regular client for the past 20 years. Among other proj- ects, the contractor has delivered Business Bay Bridge, Garhoud Bridge and is building the bridge to Deira Is- lands. It also completed work on the Dubai Tram two years ago. Olivier Crasson, executive vice presi- dent, confirms Belhasa Six Construct is tendering for infrastructure work in the run up to Expo 2020. “The first pack- ages for infra work are on the market and some have been awarded so we assume that the quantity of work re- lated to Expo 2020 will increase, prob- ably in 2017. But at the moment there is still not too much on the market.” Belhasa Six Construct is also experi- enced in another fast growing sector of the Dubai construction sector, having recently completed work on Legoland, part of Dubai Parks and Resorts. In fact it also worked on Ferrari World in Abu Dhabi and is carrying out an expansion of the theme park. The company says it is in discussion for more work in the theme park arena. Dubai Canal In Numbers • 3.2 km long • 80m to 120m wide • 4m deep • 3 road bridges and 3 pedestrian bridges • 250,000m2 of area reclaimed on the sea • 800m of new beach along reclaimed area • 2.8 million m3 of excavation • 9,400 concrete blocks • 27,000 m3 of concrete for diaphragm wall
construction business news me December 2016 32 MACHINERY A Dubai debut for Case’s Eagle Days event was a chance to see how its machines and support are changing in the region By Matthew Treanor Spreading its Wings
construction business news me December 2016 33 T here’s only so much you can learn about your next big machine purchase from poring through brochures, technical data sheets and websites. With so much choice on the market, it can be a daunting task to decide which backhoe, excavator or wheel loader will help you win a tender or keep your workshop from turning into pile of spare parts and metal. Even in our digital world, there is ulti- mately nothing better than getting up close, climbing on-board and hearing what a machine can do directly from the people who built it. With that in mind, manufacturers and their dealers continue to host op- erators, plant managers and contrac- tors at open days. These are often opportunities to see the machines in action and get a clearer understand- ing of how buying new machines can, hopefully, give you an extra edge over your competitors. Unfortunately not all open days are the same, however equipment maker Case has continued to develop its own experience for its existing and future customers, as well as the sales teams tasked with selling its ever-evolving machine and equipment line-up. Its impressive roadshow – CASE Construction Equipment Eagle Days – dropped into Dubai last month. The event has been on a tour that has included South Africa earlier in the summer, where it invited representa- tion from across Sub-Saharan Africa, including 120 professionals from the host country, Mozambique, Uganda, Zambia, Namibia and Zimbabwe. A previous event held last year in Tuni- sia tackled the North Africa market. Held between 20-22 November at the welcoming Jebel Ali Golf Resort and Shooting Club on the edge of the city, it was the turn of over 160 cus- tomers from across the Middle East and East Africa, including a large num- ber from the UAE, plus Oman, Qatar, Palestine, Saudi Arabia, Iraq, Ethiopia and Djibouti, to find out more about its latest line-up. Reviewing an event that completes a tour of his working brief, Franco In- vernizzi, senior business director, CNH Industrial Construction Equipment for Africa and Middle East, is ready to look back on a successful programme of showing what Case’s equipment of- fers to the regions. He says that once again the com- pany has had a great response to an EAGLE DAYS event, the first to be held in the region. “The Eagle Days have a proven for- mat that is hugely successful and mo- tivational for the CASE salesmen,” says the charming Invernizzi. He adds that the debut for the Dubai event has successfully emulated the showings in other territories. “Our Commercial Training Team, made up of ‘experts for the real World’, Case says the design of the new 885B makes grading operations “simple and highly productive”
construction business news me December 2016 34 has delivered this format in Africa in Tunisia, in 2015, then in South Africa earlier this year, and now in Dubai, which has been equally successful.” The Case Eagle Days are designed to provide product and commercial train- ing for sales professionals throughout the region, together with offering cus- tomers the opportunity to see first- hand the outstanding performance of Case machines in action. The event kicked off an unseason- ably warm Sunday in the UAE and was attended by 50 salesmen from eleven countries, across the Middle East and Kenya. The first two days included some intensive training, before ending with a Gala dinner on the Sunday evening. The third day was dedicated to customers. There was a live machin- ery show plus product demonstra- tions from expert CASE operators on a wide range of equipment, which clearly impressed the numerous cus- tomers who attended. According to Invernizzi, the format has been deliberately designed to make the most of a packed three-day schedule. The first two days of the event were organised and overseen by the CASE Commercial Training Team, which also included product specialists, who provided both in-depth product walk- arounds in the demonstration area, plus classroom sessions in the two marquees, erected beside the demon- stration area. The third day was the all-important chance to impress ma- chinery and equipment buyers. “The two days of training on CASE machines are preliminary to the main show on the third day, which enhanc- es the relationship between salesmen and customers,” explains Invernizzi. The CASE Commercial Training Team, including product specialists, were on hand throughout to provide advice on the best machine for each application. He adds that the company focuses on setting the right tone to en- sure that the customers are welcomed and the sales and technical teams have the right environment to show the ma- chines in the best light. “Our CASE dealers throughout the Middle East have really appreciated the work that has been put in by our EMEA Commercial Training team to make everyone feel so welcome,” says Invernizzi. Case has worked hard over the last few years to enhance its abil- ity to make it easier for customers to gain access to its machines in the re- gion. Its network has been bolstered and expanded and so has the team on ground with it adding expertise in spare parts, finance and market- ing. This has resulted in a burgeoning presence in the market; and the Eagle Days event was also an opportunity to talk about its most recent addition to its offering: the opening of a new parts facility in Dubai. The new hub joins a list of seven others that it operates throughout the Europe, Middle East and Africa (EMEA) region. According to Marco Baffoni, director, Dealer Parts Support Services EMEA, the facility will stock more than 11,000 part numbers and will be able to cover demand for the entire region. Being able to support customers rap- idly to minimise their downtime will be a crucial element in Case’s expan- sion in the region. “Thanks to this new site, delivery times will be slashed of several days”, says Baffoni. “Now we are able to sup- ply our customer with parts within a couple of hours.” Unsurprisingly, the improvements “Thanks to this new site, delivery times will be slashed of several days. Now we are able to supply our customer with parts within a couple of hours.” Thani Al Shirawi, Executive Director of Al Shirawi Enterprises, Case's partner and one of the UAE's leading equipment distributors MACHINERY
construction business news me December 2016 35 to parts delivery featured high on the agenda on the third day. After a warm welcome from Franco Invernizzi and the members of the CASE management team, it was time for a short presenta- tion on the new parts depot facility be- fore the show began. Customers could see all the machines in action, including CASE’s renowned 821F and 1021F Series wheel loader, and what it claims are best in class skid steer loaders (the compa- ny’s compact equipment range has been warmly received in the region). This was followed by a full line walk around, where product specialists talk- ed about each of the machines capa- bilities and innovative technology that is setting very high standards in plant machinery. There was also time for a Q&A, to enable customers to put their questions to the team. There was plenty of other machines to view at the event. In addition to the wheel loaders and skid steer load- ers, there was also its 570T backhoe. According to Case, this machine is considered its base entry backhoe loader machine but is designed with simple technology “making it ideal” for the tough and challenging market in the Middle East. It also claims that the machine is easy to use and easy to maintain in the market. The 570T is fitted with its own FPT (Fiat Pow- ertrain Technologies) engine, the ma- chine is designed to have the power to perform a full range of operations demanded of a backhoe loader, be it loading or excavating. With infrastructure projects con- tinuing to roll-out in the region, Case also presented its 885B Motor Grader. This machine is new to the UAE but is a grader that comes with a strong reputation in other markets around the world. According to Case, the design of the 885B makes grading operations “simple and highly productive”. The machine once again features a FPT- built engine which is coupled to a fully automatic transmission. The en- CASE IN Qatar The Eagle Days event in Dubai followed a few weeks after Case and its official distributor in Qatar, Nasser Bin Khaled & Sons Heavy Equipment (NBK) hosted an Open Day in the rapidly changing country. At an event held at Regency Hall, Case and its distributor – its longest running dealer partner in the region - demonstrated their range of equipment to purchasing managers and decision makers from around the peninsula. On display were models from the Case’s heavy and compact ranges, including the Case 821F wheel loaders for the aggregate sector, the SR150 and SR130 skid steer loaders, 570T and 580T backhoe loaders and TX170-45 telehandler. Also on show were two 20-tonne and 37-tonne excavators that compete in the country’s biggest segment, crawler excavators. “The Case Open Day helped us create awareness about our premium line of Case construction equipment and educate our potential clientele about our after sales services, training, parts support and financing solutions,” said Raffi Keuylian, general manager of Nasser Bin Khaled & Sons – Heavy Equipment Division. “We were able to meet key decision makers and influencers and show them what we can do for their businesses. This was the first time our heavy equipment division has hosted an event of this size, and it will be a trendsetter for our division.” gine features variable horsepower, en- abling operators to switch to the rel- evant power requirement for the task in hand. Case claims that this makes the grader more productive and more efficient. The 4.2m Case-designed moldboard ensures efficient flow of material enhancing productivity in all ground applications. Following a hard three days around the machines, Case and its invitees were able to relax under the palm trees of the stunning Palmito Gardens within the Jebel Ali Resort, before sit- ting down to the Gala dinner in its truly glamourous surroundings. Franco Invernizzi (centre) says the Case Eagle Days events are crucial ways to show what its machines can do
construction business news me December 2016 36 Commercial Vehicles Ford Trucks stood out at PMV Live, and Ercan Emrah Duman says it is determined to continue to take on its more established rivals By Matthew Treanor Moving Forward I t has been two years since Ford Trucks first burst onto the Middle East scene to challenge the status quo of the region’s truck market. Even for a famous and global name like Ford, this has been no easy task for interna- tional markets director Ercan Emrah Du- man and his team. Pitching up at their basecamp in Dubai in 2014, they faced the seemingly daunt- ing task of scaling up to a summit that competitors like Mercedes and Scania had started to climb decades earlier. “We have to be more aggressive than them,” says the ambitious Duman as he looks back on Ford Trucks’ progress to date. “We are a latecomer and we have to work harder and do things better than the others.” The recent progress of other rivals such as Volvo and MAN Truck and Bus and their chewing into market share proves that buyers will be receptive to new options – if the product is the right one. Ford Trucks has also beaten its own path since 2014, winning over customers in areas that complement the transmixer and tractor-head models it has developed for the region. Its presence at last month’s PMV Live - while most of its competitors sat it out – was an opportunity to show the strength of its ever-evolving construction range but also an indication that it cannot af- ford to rest still. Duman admits its suc- cesses, so far, have been hard won: “It is very difficult in the start-up phase. Every- body says their truck is the best quality but you have to prove your confidence in the product.” Duman reveals its debut was the cul- mination of two further years of devel- opment and preparation. Much of the early effort, he says, was expended on developing what was to become its hot climate package: a series of adaptations developed especially for heavy truck buyers in the Gulf. “The temperature makes things diffi- cult and we wanted to make sure that we had the proper products,” he comments. “For instance, we are using a high capac- ity air conditioning unit, a high capacity radiator to cool the engine down; even inside the engine there are components developed to be suitable for the weather conditions in the region. We call it our GCC package.” He smiles broadly when he tells CB- NME that the company has yet to experi- ence a failure since launch (“I’m happy to say that we haven’t yet faced any tem- perature or dust trouble”) and is visibly animated when he adds that it is able to offer a two-year unlimited warranty and in some markets three years. “And that’s bumper to bumper,” he enthuses. Passenger links Beyond readying the trucks, there were further the questions regarding where to sell and who to partner with. Fortunately, the company was able to fall back on its passenger car links in the region. “That was a good preparation pe- riod,” he recalls. “We selected two key markets to start with, Saudi Arabia and the UAE, as our dealer partners there were more ready. We always start with our passenger car dealers and then we analyse the business potential of being with them. Our preference is always existing Ford dealers, if we feel that they are ready.”
construction business news me December 2016 37 Despite a perceived lack of market- ing gloss, selling trucks is arguably more complicated than setting up to push cars in any given market. Owners need to push the limits of their trucks so they earn their keep and the emphasis is on the manufacturers and their dealers to provide comprehensive support. The vehicles often work in demanding and extreme conditions in the Gulf; entering into an already competitive market, Ford Trucks knew its aftersales support had to be razor-sharp. “This is a completely different business with its own layer of requirements: you need different facilities, you need invest- ment,” Duman explains. “Part of the anal- ysis phase was identifying the resources required to bolster the dealers operation to the level required to support truck sales. Aftersales is so important.” With its dealer partners in place, the Ford Trucks team was then free to join them in targeting customers in a demand- ing tour of the region’s workshops, of- fices and sites: “We recognised that we had a very good and unique product for the region, especially in the transmixer market because of the high level of infra- structure projects,” says Duman. “So we made the sales calls and vis- ited them. At the end of the day, we are in B2B not B2C. Therefore you need to be in touch with these guys and also the dealer - we are working as if we are one with our dealers.” Riyadh and beyond The racking up of road and air miles is beginning to bear fruit. Ford Trucks is now a recognised player in both the mixer and logistics sectors in the UAE. A newly formed and devolved Riyadh of- fice has also been tasked with spreading its network and support presence in Sau- di Arabia and Bahrain. Qatar and Oman were recently entered and could soon be joined by Kuwait, depending on-going discussions with a dealer there. He explains: “Of course there are areas that we might have done better, but as a start-up I think we did phase one prop- erly. Now in phase two, it is about com- plete country coverage. Expansion with- in a country is so important. For instance, we are only in Riyadh right now and you can’t control the market just from there.” Maintaining the pace of its growth through expansion will be crucial as its rival OEMs and dealers react to both changing market conditions. “It has been deliberate and a stra- tegic plan where we wanted to make sure that the business and vehicles were ready. It is very easy to gain mo- mentum but then lose it one day, one month or six months. It is not in our nature to rush in as a company – we wanted to take it step-by-step. “Sale-wise we have seen momentum. Unfortunately, during the second year the fuel prices fell and the truck industry is always the first to be affected by the economy - it is the first to be hurt but the first to recover from a crisis,” he laments. “In the UAE, we are achieving something in the region of 5 percent of the total market. But as we (currently) don’t have a 6x4 tractor, we are only playing in 60 percent of the market. If we don’t include it, then we have more than 10 percent of the market.” Two years down and into double fig- ures, Ford Trucks is just getting started. A new range for 2017 Last month saw Ford Trucks once again take centre stage at PMV Live in Dubai and CBNME was impressed by its beefed-up 2017 Ford Trucks Construction Series of vehicles - including its 4143M and 3543M mixers alongside the rugged Cargo 1843T tractor head. Headlining the improvements being introduced in the 2017 is the new Ecotorq engine - developed like the rest of the range in Turkey - which ramps the previous ratings of 350PS and 1,400Nm of torque up to 430PS and 2,150Nm. The extra power is bolstered by greater control via a new 400kW engine break that enhances the driver’s ability to negotiate difficult and sloping sites. An optional 600kW Intarder can boost breaking capacity to a hefty 1,00kW. Duman says that he expects a 6x4 tractor-head to be added in the second half of 2017 as the company continues to push forward in a frequently trying market.
construction business news me December 2016 38 COMMERCIAL VEHICLES MAN Truck & Bus Middle East’s Franz Freiherr von Redwitz says education for everyone is key to saving lives on the road By Matthew Treanor Putting Safety First T he battle to make the roads of the UAE safer is slowly be- ing won but there is still much more to do if it is to achieve its goal of three deaths per 100,000 popula- tion per annum by 2021. According to Brigadier Ghaith Al Zaabi, director general of Traffic Coor- dination at the Ministry of Interior, the percentage of deaths decreased from 2008 to 2015 by 37 percent. Between 2014 and 2015 alone there was a drop of 5.1 percent, bringing the number of deaths per 100,000 below six (at 5.99) for the first time. The latest figures mark a fall from 6.71 per 100,000 in 2012 but there were still almost 675 fatalities across the UAE in 2015. Unfortunately commercial vehi- cle drivers and owners continue to be a contributor to the list of accidents in the country. For instance, according to the latest Dubai Traffic Police figures, there were 74 accidents last year in the emirate; resulting in 13 deaths involving heavy trucks and 97 accidents resulting in 17 deaths involving light trucks. German giant MAN Truck & Bus Mid- dle East has placed itself at the forefront of road safety initiatives in the Emirates, providing training and advice to hun- dreds of drivers, fleet owners and stake- holders in recent years. Recognising its own role to play in reducing fatalities, managing director Franz Freiherr von Redwitz says the automaker will con- tinue to be engaged in a number of ac- tivities it hopes will prove effective; and ultimately save lives. “With its global expertise in the field of vehicle safety and road safety, MAN can contribute in a number of ways in enhancing road safety in the UAE – such as supporting the introduction of road transport regulations, providing train- ing and education for transport opera- tors and enforcement officers, and sup- porting the introduction of mandatory vehicle specification standards for new product deliveries,” he comments. November saw MAN host the inau- gural Road Safety Event for Commercial Vehicles event in collaboration with the local government and safety campaign organisation RoadSafetyUAE. The event brought together representatives from both the public and private sector to ex- amine how heavy trucks and commer- cial vehicles drivers and owners can be- come safer and more responsible road Monitoring of drivers is essential to lowering the risks of accidents in fleets MAN Managing Director Franz Freiherr von Redwitz says all stakeholders must take road safety seriously
construction business news me December 2016 39 users. It also highlighted the various road safety initiatives and programmes being carried out in the UAE, as well as MAN’s own advice and insight into making (its own and others’) heavy ve- hicles safer. MAN has worked tirelessly for years in Europe and more recently the Middle East to develop a huge variety of edu- cational and technological initiatives. Its trucks are equipped with a variety of technology designed to improve active and passive vehicle safety such as Elec- tronic Stability Program (ESP) to pre- vent accidents caused by overturning or straying from the lane, Anti-Spin Regula- tor (ASR) to aid controlled braking, and Electronic Damping Control (EDC) to optimise safety and handling. Participants at the event were able to learn how it continues to pursue im- proved safety on UAE roads. They could also take an interactive iPad-guided ‘Road Safety Walk Around’ tour of the latest road safety technologies on two visiting MAN trucks. One of MAN’s most significant con- tributions to road safety – ProfiDrive – featured high on the agenda too. Held across 25 countries, almost 4,000 driv- ers, fleet managers, vehicle transfer per- sonnel, driving instructors and special- ists annually take part on MAN’s range of training courses that combine theo- retical and practical exercises that can make every-day driving safer and more economic. “Improving road safety is one of our highest priorities at MAN and we have many products available today in terms of technology solutions and driver train- ing support which have been developed after many years of research based on various accident reports,” explains von Reditz. “Designed to improve driver knowledge and skills and promote ra- tional driving behaviour based on safety regulations, the courses are carefully tai- lored to ensure drivers are fully trained on how to avoid risks on the road based on a cautious and safe driving style, and seek to guide them on the correct way to respond to critical driving situations.” Von Reditz says he is an advocate of warning against the dangers of driver fatigue and of educating all road users. He argues that all car drivers need to understand factors surrounding stop- ping distances, and how they can vary depending on vehicle type and speed. “However, when it comes to accidents involving trucks, the results are usually deadly,” he remarks. “For instance, a semi-trailer truck takes roughly three times more to stop than a car and hence one must never pull in front of a semi- trailer truck and brake abruptly.” Turning his attention to fleet owners and managers, he warns that it is es- sential that they understand the value of surrounding training with support and monitoring. “The impact of driver education and training on vehicle performance and safety is hugely underestimated in the region. As a result, many fleet owners are reluctant to invest in driver educa- tion,” he says. “Also, there is a common misconception that the current situation can be changed solely by focusing on driver education and training. While driver education is of course hugely important, the driver basically executes what a supervisor or transport manager requires, so it is paramount that fleet owners and managers adopt a more proactive approach to safety.” Von Reditz and MAN understands that it will need to continue to bring to- gether the commercial sector and other stakeholders if its campaign is to prove a long-term success. “Through our safety campaign, we aim to highlight the top reasons that impact road safety from a commercial vehicle perspective such as load of the vehicle, driver alertness, worn tyres and incorrect/incomplete maintenance,” he explains. “It is an important step to- wards greater cross-stakeholder collabo- ration that will help make the country’s roads safer. “MAN has an ongoing commitment to improving road safety and we will continue to offer our support and ex- pertise to help the UAE achieve its road safety targets. Targeted initiatives and campaigns aimed at raising road safety awareness and improving driver edu- cation are essential to achieving these goals, and this will continue to be a fo- cus area for us moving forward.” How truck users can save lives • It is not only the gross vehicle weight that can affect safety. Load positioning and distribution too can have consequences for road safety, hence it important to know how to load your vehicle for safety. Severe overloading of the drive axle or under-loading of the trailer axle can adversely affect steering, braking and speed control. • Tyre suitability is a vital link in the load-to-road chain. Care must be taken to ensure that the maximum load rating for a tire is never exceeded. • Driver alertness is critical. If a driver has not slept in 17 hours, their driving ability is similar to a driver who is driving under the influence of alcohol. Today we have technology alternatives available - such as Tachographs - to monitor driver working hours which have a huge impact on accident rates. The Tachograph helps in enabling enforcement of rules related to drivers’ hours, and functions as an aid to road safety. Using a combined speedometer and clock, the Tachograph records automatically on a paper disc the vehicle’s speed, distance travelled, and time spent on the road, helping keep tired drivers off the roads. • When it comes to braking, having an understanding of the complete interrelationship of systems is important. Mismatch of tractor- trailer combinations can result in an unsafe vehicle in operation. • Maintenance has a large part to play in safety. Regular maintenance is essential to ensuring the safety of your vehicle and keeping it running at peak efficiency.
construction business news me December 2016 40 Event review The 37th edition of the Middle East’s largest construction exhibition surpassed expectations. The Big 5 2016 breaks records T his year’s Big 5 construction exhibition welcomed a record breaking 75,000 visitors to the Dubai World Trade Cen- tre from November 21-24. H.H. Sheikh Hamdan bin Rashid Al Maktoum, Depu- ty Ruler of Dubai, opened the 37th edi- tion of the four-day event which once again took place alongside Middle East Concrete and PMV Live. In all, over 3,100 exhibitors showcased thousands of solutions for the built environment, eager to tap into the billions of dollars- worth investment going into the region- al construction sector. Making its debut at this year’s event was one of the biggest companies in the world. Microsoft participated as the lead technology partner and dem- onstrated a range of products that en- able construction companies to im- prove performance, communication and use data in real time. ”With over 3,700 projects currently on- going across the Emirate, valued around an estimated $400bn, Dubai’s construc- tion market is on a constant upward tra- jectory,” said Samer Abu Ltaif, Regional General Manager, Microsoft Gulf. “The significant shift towards smart and sustainable solutions, and the in- troduction of new building regulations, are encouraging companies to look for innovative ways of working - that’s where technology plays a pivotal role. Microsoft devices and solutions, built from the ground up are an accelerator for businesses in the construction sector, enabling them to thrive in a mobile-first 75,000 Visitors at The Big 5, 2016
construction business news me December 2016 41 cloud-first world; bridging technological gaps and allow them to achieve more.” This year’s Big 5 edition had several key features including dedicated prod- uct sectors, live product demonstrations, a one-day Excellence in Construction Summit, a tools demonstration besides a new floorplan layout clustered in five product sectors. The five product sectors were: Building Interiors & Fin- ishes, MEP Services, Building Envelop & Special Construction, Construction Tools & Building Materials, and Smart Building & Design technologies. Another key highlight of the show was the “Excellence in Construction Summit” on the sidelines of the exhibi- tion which drew 500 industry leaders to discuss trends in the construction sector in Dubai, the GCC region and beyond. Middle East Concrete (MEC) and PMV Live 2016 As the GCC gears up for mega events such as Expo 2020 and the FIFA World Cup 2022 in Qatar, the region’s infra- structure and heavy machinery indus- try has turned its focus towards inno- vative products to keep up with the infrastructure boom. Liebherr Concrete Technology, one of the world’s largest manufacturers of construction machinery with more than 41,500 employees, was at Middle East Concrete (MEC) and PMV Live 2016 in place of their distributor for the first time, in order to talk directly to their customers in the Middle East. Samir Hussain, sales manager, Liebherr 3,100 Exhibitors at The Big 5, 2016 HH Sheikh Hamdan Bin Rashid Al Maktoum opens The Big 5, 2016 How to do Business in the UAE Seminar - The Big 5 2016
construction business news me December 2016 42 Event review Middle East, said: “When the concrete industry has exhausted the same means for years, it is time to focus more on in- novation. The Liebherr product develop- ment team is doing an exceptional job in growing the product range, catering to changing customer and market changing demands, optimising energy efficiency, redefining value for money and get- ting the best return on investment while heightening performance levels. “MEC & PMV Live 2016 has provided us with the optimum platform to meet with our target audience from across the GCC, as well as a wider Middle East. We have met many customers from the UAE, Kuwait, Oman, and KSA, with some visiting the show from as far as Europe.” Lachezar Kamburov, sales director of Podem Cranes from Bulgaria, the local market offers great opportunities for construction manufacturers: “Concrete market in the Middle East is much big- ger than in Europe. Concrete and pre- cast concrete factories in the region are extremely well developed.” Podem Cranes, distributed by MET Cranes in the Gulf, was at PMV Live and MEC for the first time ever. “We are very satisfied with all the visitors we met. Here, we are launching new electrical components and electrical systems, and we are also promoting our latest developments, like the tan- dem control, which is very important for concrete and precast factories.” Over the four days of the event, thou- sands of visitors benefitted from 50 free- to-attend CPD (continuing professional development) certified seminars, forums and workshops highlighting the mar- ket’s current trends, challenges, oppor- tunities and best practices. During one session, delegates were introduced to the role of telematics in the Middle East's construction industry where the focus is on creating solutions that can interoperate with one another. Also on the agenda were the topics of arbitration and dispute resolution in construction claims, precast innova- tions for sustainability and competi- tiveness and integrated reliability and durability based structural health moni- toring in concrete structures. Looking forward to 2017 Following this year’s success, the next edition of The Big 5 will further focus on the theme of ‘Technology in Con- struction’. Event Director, Josine Heij- mans, also said HVAC-R exhibitors will be clustered in a dedicated product sec- tor in light of the heating, ventilation, air conditioning and refrigeration industry’s strong development in the Region. Moreover, The Big 5 2017 will go smart. Thanks to the introduction of the new Konduko smart technology, exhibi- tors will be able to send digital content to visitors, while capturing and qualify- ing leads from their smart phones. All visitors will be equipped with a Smart Badge that will interact with the exhibi- tors’ Smart Readers. “With its record-breaking number of exhibitors and visitors attending the event, The Big 5 2016 was a great suc- cess, and the show will be even bigger and smarter next year,” Heijmans said. Live Product Demonstrations were a feature of the event
construction business news me December 2016 43 Mark Westermeyer, marketing director, KIMMCO explains why exhibiting at The Big 5 is so important to the company. Minutes with… Briefly tell us about your business offering KIMMCO is a Kuwait-based company, established in 1977, with a proud history of supplying energy efficient insulation solutions for buildings such as roofs, walls, floors and metal structures as well as HVAC (Heating Ventilating and Air conditioning). Some of our refer- ence projects across the region include Burj Khalifa, Burj Al Arab, Etihad Tow- ers in the UAE, Princess Nora University in Saudi Arabia, Aspire Tower and Burj Qatar in Qatar and the Kuwait Towers and Al Hamra Tower in Kuwait, to name a few. Why is BIG 5 important to you? KIMMCO has always participated at the BIG 5 Dubai as we consider the ex- hibition to be the leading building and construction event in the GCC, and we will continue to participate in such big and important events. As a leading in- sulation solution provider across the MENA and SE Asian region, we look for specific events that help us to showcase our unique portfolio of solutions and su- perior technical services to our clientele. The Big 5 attracts the required audience and creates a platform for us to do just that – allowing us to meet and interact with a broad group of stakeholders, in- cluding existing and potential custom- ers, key decision makers and govern- ment officials. This is in line with our vision to be the best multi-insulation solution provider in the region, and to solidify our market leadership. What are you showcasing at the show? During BIG 5, KIMMCO presented CLI- MAVER, an innovation for the HVAC market in GCC. This lightweight pre- insulated ductwork system enables de- signers to meet the stringent thermal, acoustic and fire performance require- ments of the HVAC market. CLIMAVER, as an all-in-one alternative to sheet- metal, saves valuable space, saves on logistics and reduces installation time. An extra benefit is that no additional insulation work is required once it is in- stalled. Hence it is more cost-effective in comparison to traditional metal duct- work. KIMMCO is promoting CLIMAVER in the GCC under the license of Saint- Gobain ISOVER, a worldwide leader in insulation solutions. We also displayed the Self-Seal in roll form and ECOBUILD range of insulation. Self-Seal is a glass wool insulation product with factory laminated adherence that is also used in the HVAC market. What challenges are you facing at the moment? Besides the uncertain economic situa- tion in the GCC, it is the low awareness of what insulation solutions are able to provide when it comes to energy sav- ings and reduced CO2 emissions. This is where we need to be more active espe- cially when looking at the future of our children. Reducing energy consumption will also benefit private owners as well as public authorities by saving on en- ergy bills and reducing capex. New regulations with increased en- ergy saving requirements in some Eu- ropean countries lead to a decrease of energy consumption of up to 30 percent in recent years. The EU has set itself a 20 percent energy savings target by 2020 – roughly equivalent to turning off 400 power stations. It would be a chance for our region too. The economic situation, especially when looking at the low oil price level, forces GCC Governments to re-consider expenses, e.g. subsidies on energy consumption. Together with the constant rise in en- ergy demand in the region, which will requires further investment in power plants, better thermal insulation of e.g. residential and commercial buildings will have a big impact. Additionally, Green Building certification programs as LEED, QSAS and Estidama are em- phasizing cost effective and sustainable buildings and help to support this. “Reducing energy consumption will benefit private owners as well as public authorities by saving on energy bills and reducing capex” - Mark Westermeyer
dealing with defects. These provisions can be divided to three phases (a) during construction, (b) at the time of issuing the Taking-Over Certificate and (c) prior to the issuance of the Final Completion Certificate. During Construction Phase During the construction phase, Clause 7.6 FIDIC titled “Remedial Work” sets an obligation on the Contractor to comply with the Engineer’s instruc- tions requiring the Contractor to (a) remove and replace any Plant or Materials which are not in accordance with the Contract, (b) remove and re- execute any other work which is not in accordance with the Contract; or (c) execute any work which is urgently required for the safety of the Works, whether because of an accident, un- foreseeable event or otherwise. The wording of this provision is quite wide and captures various types of defects. The Contractor’s failure to abide by the Engineer’s instructions within the time-limit set therein entitles the Employer to hire and employ another contractor to carry out such remedial works at the Contractor’s cost. Taking-Over Certificate Phase Once the works are nearing comple- tion; the Engineer will start prepar- ing the Taking-Over Certificates for the Works. On most projects; typically minor work items remain Defective works: who is liable for what? Determining whether a defect is indeed a defect and the liability for such a defect is rarely a straight forward matter, says Heba Osman, Partner, Fenwick Elliott. O ne of the major rea- sons for construction disputes is defective works. This probably does not come as a sur- prise as determining whether a defect is indeed a defect and the liability for such a defect is rarely a straight for- ward matter. It is usually a matter that requires answering various technical and legal questions. Defective works can arise as a result of (a) design deficiencies, (b) material deficiencies, (c) workman- ship deficiencies or (d) incorrect or inaccurate specifications. The type of defects appearing in a construction project may vary from mi- nor defects that can be rectified prior to the completion of the construction works to a major defect that threaten the safety or stability of the construct- ed works and appears several years after the handover of the project. This article will consider the Con- tractor’s liability as a matter of contract and UAE law in respect of the differ- ent types of defects arising out of a construction contract. Contractual Liability for Defects Most standard form construction con- tracts contain different provisions that deal with defects arising at the differ- ent phases of construction or there- after. The FIDIC 1999 Red Book (the FIDIC) provides several provisions Heba Osman, Fenwick Elliot LLP construction business news me December 2016 44 Legal viewpoint
to be completed; and these minor items (also typically referred to as snag list items) do not affect the Employer’s ability to use the Works. The Contractor is required to com- plete these snag list items, however, they should not hold up the issu- ance of the Taking-Over Certificate as indicated in Clause 10.1 (a) FIDIC which requires the Engineer to issue the Taking-Over Certificate stating the date on which the Works or Sec- tions were completed in accordance with the Contract, except for any minor outstanding work and defects which will not substantially affect the use of the Works or Section for their intended purpose (either until or whilst the work is completed and these defects are remedied). Defects Liability Period Once the Taking-Over Certificate is issued, the Defects Liability Period (DLP) starts and is typically for a period of 12 months (although it can be longer or shorter depending on the parties’ agreement). During this DLP the Contractor is required in accordance with Clause 11 FIDIC to (a) remedy all snag list items and (b) remedy any defects that appear in the works at the Contractor’s cost. The Contractor’s failure to carry out the remedial works would also entitle the employer to hire another contractor to carry out the remedial works at the Contractor’s cost. Liability for Defects as a matter of UAE law In addition to the provisions contained in a typical construction contract, the UAE Civil Code adds another layer of protection to employers in respect of defective works. The UAE Civil Code also appears to divide defects into two categories; (a) defects during the carrying out of the works and (b) after handover of the works. During Construction Phase As a matter of law, the Contractor is required to complete the works in accordance with the conditions of the contract. However, if the Employer finds that the works are not carried construction business news me December 2016 45
construction business news me December 2016 46 Legal Viewpoint out in the manner stipulated in the contract or are being carried out in a defective manner; then the Employer may be entitled to terminate the con- tract if the defective works cannot be rectified. In this respect Article 877 of the Civil Code states: The contractor must complete the work in accordance with the condi- tions of the contract. If it appears that he is carrying out what he contracted to do in a manner that is defective or contrary to the condi- tions [of the contract], the employer may demand that the contract be cancelled immediately in the event that it is impossible to make good the work, but if it is possible to make good then the employer may require the contractor to abide by the conditions of the contract and to rectify the work within a reasonable period, and if the period expires without the rectification having been done the employer may apply to the judge to cancel the contract or to give him leave to engage another contractor to complete the work at the expense of the first contractor. As it can be seen, if the works can be rectified then the Employer is first re- quired to give the Contractor a notice to rectify the works. If the Contractor fails to comply with the notice; then the Employer is required to apply to the court for a decision to hire another contractor to complete these works. At the outset, this Article would ap- pear to contradict with the contractual provisions allowing the Employer to hire another contractor to complete the works; specifically in so far as the question as to whether a court deci- sion is required before hiring another contractor. The general position of the UAE Courts is that the contrac- tual provision overrides this Article 877, and no need to revert to court first before hiring another contractor. However, it is advisable when draft- ing similar contractual provisions to stipulate clearly that the Employer has the right to hire another contractor without need for a court decision or any other further action. Post Hand-Over The UAE Civil Code, and most other civil law jurisdictions, provides for an additional liability to both the Con- tractor and the Engineer in respect of defects affecting the safety or stability of the constructed works. This liability is the infamous decennial liability. This decennial liability is provided for in Article 880 of the UAE Civil Code, and the parties may not contract out of it. It is a mandatory provision that applies whether the parties agree to it or not. This Article reads: (1) If the subject matter of the [construction contract] is the erection of buildings or other fixed structures the plans for which have been made by an architect with the intention that the contractor shall carry them out under his supervision, they shall be jointly liable to pay compensation to the employer for any total or partial destruction occurring within ten years to the buildings they have constructed or the installations they have erected, as well as for any defect that threatens the stability and safety of the building, unless the contract has provided for a longer period of time, or unless it was the intention of the contracting parties that such installations should remain for a period shorter than ten years. (2) The liability to pay compensa- tion as aforesaid shall endure notwith- standing that the defect or collapse arises out of a fault in the land itself or that the employer consented to the erection of defective buildings or installations. (3) The period of ten years shall commence as from the time that deliv- ery of the work is taken. It is important to note that even if the defective works were autho- rized or accepted by the Employer, this would not diminish in any way the liability of the Contractor or the Engineer. In conclusion, liability for defective works is a serious matter that should be thoroughly considered at the time of entering the construc- tion contract to determine which type of defects that Contractor is liable for. The wider the wording of a provision, the wider the liability to be incurred.
construction business news me December 2016 48 SUPPLIER News Z ahid Tractor & Heavy Machinery Co. and Renault Trucks have launched two new distinct truck ranges that will be produced in Saudi Arabia. The new ranges, ‘C’ and ‘K’ were introduced by Renault Trucks’ Global and Regional leader- ship on October 25, 2016 at an event at the Ara- bian Vehicles & Trucks Industry Ltd (AVI) facility in King Abdullah Economic City. The factory was designed by a Volvo/Renault Trucks and is one of the first in the world to assemble both Volvo and Renault trucks on the same line. Gregoire Blaise, Vice President Renault Trucks Middle East, said: “These trucks have been tested for over a year in Oman in some of the toughest regional settings. The new Renault Trucks ranges performed extremely well with no issues reported. This is vital for businesses who need to be able to rely fully on their vehicles for maximum productivity.” Each model can easily be adapted to a wide range of applications and customer demands found within the distribution and construction segments. The ‘C’ range will enter the market with two options of cabin width designed for specific jobs. The 2.3 metre cab is built for distribution and deliveries while the 2.5 metre cab is for long haul, light construction and heavy distribution. The ‘K’ range offers new standards in dura- bility and robustness and has models that suit the harsh demands of the construction industry. E mirates Motor Company (EMC), the Mercedes-Benz authorised dealer in Abu Dha- bi and the flagship company of Al Fahim Group, and Daimler Com- mercial Vehicles Middle East show- cased the Mercedes-Benz Zetros, an off-road utility truck for extreme oper- ations, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) last month. The heavy-duty truck is available in two- and three-axle variants (4x4 and 6x6), offering GVW from 18 to 40 tonnes. The top-of-the-range 3643 AS 6x6 Tractor-head model exhibited at Adipec boasts an impressive GCW of up to 116 tonnes. In-line 6-cylin- der engines available for the Zetros range from a 7.2l version with 326 hp up to the powerful 12l variant sport- ing 428 hp. Bilal Al Ribi, EMC Daimler CV gen- EMC, Mercedes-Benz showcase Zetros at Adipec VEHICLES Vehicles Zahid Tractor and Renault Trucks launch new trucks in KSA eral manager, said: “Offering excep- tional ride comfort and stability on the most extreme off-road terrains, the Zetros is ideally suited for tough appli- cations and operations such as mining, oilfields and quarries. “Given its outstanding high load- bearing capacity and ability to meet today's extreme operating conditions, we are confident that the Zetros will soon become the preferred choice in the high-performance construction vehicles segment." The truck sports robust planetary hub reduction axles with high ground clearance and single or twin tyres, up to four differential locks, and a two-stage transfer case, providing the foundation for outstanding capabilities in off-road terrain. A tyre pressure control system offers choices for on- and off-road use, driving across sand, and a particularly low air pressure for extreme situations.
construction business news me December 2016 49 H itachi Construction Machinery Middle East (HMEC) has appointed Middle East Crane Equipment Trading (MECET) as its new UAE dealer for Hitachi Construction Ma- chinery as well as Hitachi Sumitomo Crawler cranes. The agreement was signed by HMEC President Hidefumi Sameshima and MECET Director Jos Luyckx, in the presence of HMEC General Manager Piet van Bakergem and MECET GM Wim Aernouts at the Abu Dhabi International Petroleum Exhibi- tion and Conference (ADIPEC) 2016 held in Abu Dhabi from 7 to 10 November. MECET being a 100% subsidiary of the Luyckx Group was established in 1952 in Brecht in the province of Antwerp in Belgium. The knowledge, experience and skills the company has acquired over 60 years has made it the market leader in its home market of Belgium and excellent in sup- plying machines for projects all around the world. T erex Equipment Middle East has strengthened its sales and service local coverage for Ge- nie products in Qatar by add- ing Manlift Qatar to its existing distrib- utors’ network. The agreement enables Manlift Qa- tar to supply the full range of Genie equipment within the region, includ- ing Genie aerial work platforms and telehandlers as well as Terex light tow- ers, through all channels within the Qatar market place. Manlift Qatar will act as a full ser- vice provider offering technical sup- port and maintaining a stock of spare parts to help maximizing equipment uptime. “Having Manlift on board is an excit- ing and logical step for our business here in the Middle East in order to be increasingly responsive and flexible on a local base” said Gary Cooke, Re- Machinery Machinery Terex adds Manlift Qatar to the Genie distributor network Hitachi Construction Machinery appoints new UAE dealer MECET is well known for its outstanding after sales support and has an impressive stock of spare parts that will be available across the UAE to serve their customers around the clock. “The Company is scheduled to open its new one- stop 10,000 m2 facility in the Dubai investment cen- ter near Al Maktoum International Airport for sales, service and spare parts by the end of 2017,” said Piet van Bakergem. “We are confident this union with MECET will reinforce our joint position in the construction machinery and crawler crane market for the UAE territory.” gional Sales Manager, Terex AWP. “By providing comprehensive sup- port both before and after purchase, our qualified and experienced stra- tegic partner aims to make the buy- ing process easy for our customers, whether they need a single machine or a whole fleet. They will offer a full after-sales service for warranty and routine maintenance, spare parts and repair for new and existing Genie products and Terex light towers. “As Genie continues to expand its product offering introducing innova- tive new products, our customers can rest assured that we’ve got the right partners to continue providing the highest level of service” he added.
construction business news me December 2016 50 A VK Saudi Valves Manufacturing Com- pany (AVK) has signed a long-term contract with King Abdullah Economic City (KAEC) to supply high quality valves and fire hydrants for the fast expanding city. With an annual turnover of approximately SAR 2.2bn ($586mn), AVK is one of the world’s largest manufacturers of valves, pipes and hydrants, focusing their expertise primarily on these core product areas. The company has been manufacturing locally in the Kingdom for over 30 years, and supplies projects across Saudi Arabia, Qatar and the UAE. “AVK places the support of Saudi Arabia’s economy at the center of its business prac- tices. Offering world-class skills and expertise to Saudi employees, we are currently on track to soon reach Saudization levels of over 40%,” said Ole Hedegaard, Managing Director of AVK. “Partnering with KAEC, a city designed to support the growth of Saudi into the future, is a natural direction for us, and we are very excited about the level of sustainable, high quality proj- ects being developed there.” Situated on the west coast of the Kingdom of Saudi Arabia, King Abdullah Economic City (KAEC) is the largest privately-funded new city in the world covering an area of 181 square ki- lometers of land. The city is under development by Emaar, The Economic City, a publicly listed Saudi joint-stock company established in 2006. F innish lift and escalator spe- cialist KONE has won a pair of big orders in the Middle East in quick succession. The company will supply 49 eleva- tors, 82 escalators and 8 horizontal autowalks for the Lusail Light Rail Transit system currently under con- struction north of Doha, Qatar. De- veloped by Qatar Rail, the new sus- tainable transport system will serve 250,000 inhabitants of the new city of Lusail and be used by around 40,000 daily visitors. KONE followed up the contract with an order for 32 elevators and 4 escalators to be installed in the three buildings of a mixed-use building complex under construction at the Double delight for KONE AVK to supply valves and hydrants to KAEC SUPPLIER News Dubai World Trade Center (DWTC). Twenty two KONE MiniSpace eleva- tors and ten KONE MonoSpace eleva- tors will enable smooth people flow in twelve elevator shafts. The KONE E-Link remote monitoring system will provide real-time information on equipment status and performance. Built on just over 1 km2 land, One Central includes nearly 300,000 m2 of Grade A1 offices and retail space to- gether with five, four and three star hotels, serviced apartments and a club and lofts tower. In April KONE also won an order to supply elevators and escalators for Doha Metro’s Red Line South and Gold Line and a 20-year maintenance agreement.
construction business news me December 2016 51 G lobal water technology outfit Xylem has opened a new pump rental and service busi- ness in Dubai to serve growing demand from the construction and infrastructure sectors across the Middle East and North Africa (MENA). Xylem’s pumps and dewatering solutions play a key role in various stages of construction projects by keeping project sites free of unwanted water throughout the project build. The dewatering hub in Jebel Ali provides solutions from the company’s Flygt and Godwin brands. The new hub will serve customer needs for tem- porary and long-term rental solutions, and provide access to thousands of Xylem rental assets capable of addressing complex dewatering challenges. It follows the company’s announcement in Janu- ary this year of a $35mn investment in expanding its operations in the region. “This new hub is part of a larger, significant invest- A l-Futtaim Engineering (AFE) has teamed up with EuroVentus to collaborate on future projects across the UAE covering fans, filtration and air handling units especially tailored to operate in extreme weather condi- tions. EuroVentus is a widely recognised supplier of home ventilation, heat re- covery ventilation, condensation con- trol, heat exchange ventilation and ventilation extraction systems. Dawood Ozair, Senior Managing Director of Al-Futtaim Engineering and Technologies said: “Through this association, we are in a position to provide innovative and cost- effec- tive cooling solutions for various con- struction sectors including shopping malls, hotel buildings, and residen- tial complexes as well as commercial towers.” Rajesh Devidas Bhatia, General Manager, Air Conditioning Division, Al-Futtaim Engineering added: “Eu- roVentus Ventilation products will complement our air conditioning so- lutions in the construction industry. Appropriate ventilation with high energy efficiency standards is a key aspect of Green building solutions which is the future trend. “The EuroVentus products are of very high quality and comply with the construction industry specifications. I am confident that our customers i.e. developers, building owners, consul- tants and contractors will benefit with EuroVentus products in the ventila- tion solutions for their upcoming and retrofit projects.” Al-Futtaim Engineering partners with EuroVentus Xylem opens water pump business in Dubai ment we are making in the MENA region as we work to solve our customers critical water challenges,” said David Flinton, Senior Vice President and President of Xylem's Dewatering business.
construction business news me December 2016 52 SUPPLIER News R ubber World Industries (RWI) is to invest $2mn to triple production at its factory in Ajman, UAE to meet surging demand for closed-cell rubber insula- tion in the Gulf and South East Asia. The investment covers new production lines, equipment and a laboratory to boost capacity at the facility by the first quarter of 2017, the Shaikhani Group company said in a statement. RWI will also introduce Glass Wool Thermal Insulation to its line of products. Glass Wool Thermal Insulation comes in the form of boards and sheet rolls manufactured from stable glass fibres bonded with thermo setting resins, and free from coarse fibres and shot, making it easy to handle and cut to fit rectangular ducts and air handling equipment. The manufacturer currently holds a 60 per- cent share of the Middle East rubber insulation market and recorded over AED 42mn in sales revenues in 2015. The company also meets 55 percent of the region's demand for rubber insulation pipes and sheets, and other rubber- derived products. Established in 1993, Rubber World Industries is the only manufacturing facility in the GCC that produces a versatile range of rubber insulation products to meet requirements in oil and gas fields, construction, shipping and automobile industries. Its modern plants are located in the Ajman Industrial Area, where Gulf-O-Flex - its flagship product is being manufactured. I ndustrial concrete flooring spe- cialist Twintec reported its most successful year of trade in Oman after posting a 40 percent sales surge in 2016. The Belgium-based firm, which first started trading in Oman 2011, has se- cured orders to design and construct 195,900 square metres of large panel ‘jointless’ steel-fibre reinforced con- crete (SFRC) floor slabs in the Sul- tanate this year compared to 138,874 square metres in 2015. Between 2011 and 2014 it supplied just 59,900 square metres of concrete flooring to Oman. Twintec technical and commer- cial director Tom Menary, who leads the firm’s operations in Oman, said the Sultanate is a key target market Twintec reports record year in Oman Rubber World to invest $2mn to expand Ajman factory within the MENA region after success- fully delivering 16 projects in the last five years. In total Twintec has now designed and constructed 800,000 square metres of large panel ‘joint- less’ SFRC industrial flooring to the Middle East region, excluding Saudi Arabia. Belgium-headquartered Twintec developed a strong presence in the Middle East after securing its first ma- jor contract in Saudi Arabia in 2007. It now has representation across the UAE, Bahrain, Qatar and Oman with a subsidiary in Saudi Arabia. With a global turnover of around EUR 200mn ($217mn), Twintec pro- duces more than six-million square metres of industrial flooring slabs worldwide each year.
construction business news me December 2016 54 Event Preview Infrastructure investment provides backdrop to the construction machinery event in December BAUMA CONEXPO INDIA 2016 T he UAE-India Joint Working Group on Infrastructure Invest- ments recently met to discuss investments from UAE institutional in- vestors in infrastructure developments in India. In a significant move, the Abu Dhabi Global Market (ADGM) and the Confederation of Indian Industry (CII) also signed an agreement to jointly col- laborate on initiatives that further bolster the business developments and oppor- tunities between the two nations. Currently India is among the fastest growing economies in the world with a GDP growth rate at 7.9 percent. But to sustain this growth, India needs to focus on developing its infrastructure sector. According to the latest budget, the Modi government has committed to boost to- tal infrastructure spending by 22 percent over the next two years. Germany Trade & Invest (GTAI) in a recent report stated that expressway construction in India in 2016/17 is to be expanded to 15,000 km compared with 6,000 km the year before. British market research company Off-Highway Research envisages that approximately 55,000 con- struction machines are expected to be sold in India in 2016, thus climbing steadi- ly to more than 71,000 units by 2020. With this huge predicted growth in mind, the bC Expo India construction equipment trade show to be held in Delhi from Decem- ber 12 to 15, 2016 has been rebranded BAUMA CONEXPO INDIA. The format of the show’s fourth edition is more in line with what the or- ganisers do international- ly under the same banner. Expressing his delight at the response garnered to date, Igor Palka, CEO of organiser bC Expo In- dia, said: “Joint booths from China, Ger- many, Italy, North and South America as well as Spain are already currently regis- tered. A total of 28 countries will be par- ticipating at the event. That clearly shows how important BAUMA CONEXPO IN- DIA is for international companies.” Covering 150,000 m2, the December expo is expected to showcase approxi- mately 700 exhibitors and host around 30,000 plus business visitors. Big names confirmed to exhibit at the 2016 event include ACE, Ajax Fiori, Ammann Apol- lo, ASTEC, BAUER, BKT, Case, Cat- erpillar, Columbia Machines, Haulotte, Herrenknecht, JCB, Kobelco, KYB Con- mat, Liebherr, Linnhoff, Liugong, Macons, MAN, Marini, Masa, Po- tain, Putzmeister, Puz- zolana, Sany, Schwing Stetter, Soilmec, Top- werk, Wacker Neuson, Volvo, Wirtgen and XCMG. Representatives from the UAE include Combifloat, Golf Scaffolding Factory/Perfect Steel, and Middle East Plant and Equipment will participate at BAUMA CONEXPO INDIA 2016. The event takes place at HUDA Grounds in Gurugram located just 20 minutes away from Delhi’s domestic and international airports, offering visitors and exhibitors convenient access to the show. 700 Exhibitors at Bauma Conexpo 2016
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construction business news me December 2016 56 Bauma Conexpo December 12-15, 2016 Huda Ground, Gurgaon, Delhi BAUMA CONEXPO INDIA—the International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles—provides the construction industry in India with a professional platform for networking, investment and the exchange of ideas and information. Ras Al Khaimah Finance & Investment Forum (RAKFIF) December 13-14, 2016 Rixos Hotel Bab Al Bar An international business investment and finance forum bring- ing together experts from government and leading industries with international and regional investors and financiers to explore business opportunities in the emirate. Intersec January 22-24, 2017 Dubai International Convention and Exhibition Centre Intersec 2017 will present over 1,300 exhibitors that will show- case a truly comprehensive range of products across SEVEN broad sections: Commercial Security, Smart Home, Informa- tion Security, Fire & Rescue, Safety & Health, Homeland Security & Policing and Perimeter & Physical Security. Mark your calendar SAVE THE DATE Housing and Residential Development Middle East Conference January 30-31, 2017 Dubai, UAE Join key developers, government authorities, architects and consultants to gain insight into current and future projects and understand the challenges they face around reducing con- struction costs, financing, middle-income housing, mixed-use developments and sustainability. Kuwait Build 2016 March 6-8, 2017 Kuwait International Fair, Kuwait City Kuwait Build Exhibition & Conference will feature over 200 local and international companies in the building and con- struction sector showcasing the latest products and services in residential and commercial property infrastructure in a busi- ness platform of over 4,500 sqm of exhibition space. CONEXPO-CON/AGG 2017 March 7 – 11, 2017 Las Vegas, Nevada Where every major construction industry is represented amongst 2,500+ exhibitors over 2,500,000 square feet and more than 140 education sessions including asphalt, ag- gregates, concrete, earthmoving, lifting, mining, utilities and more. Construction Business News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry
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construction business news me December 2016 58 Editor's pick The UAE is positioning itself to be at the forefront of the Hyperloop revolution Pipe dreams? T he possibility of transporting goods and people around the UAE via high speed Hyperloop is closer to reality following a string of breakthrough deals involving a US de- veloper of the technology with govern- ment backed firms and agencies. The concept – which involves a low- pressure tube through which levitating pods can travel at up to 1,200 km/h – has been gaining traction and a number of projects have been proposed all over the world. However recent develop- ments suggest the UAE is determined to be at the forefront of a technology that could prove to be a game changer in the transportation sector. In October Dubai-based global port operator DP World announced a major investment in Hyperloop One that will provide backing for the continued re- search needed to propel the technology forward. The move follows a Memoran- dum of Understanding penned between by the two companies in August to carry out feasibility studies for using Hyper- loop systems in the UAE. Phase 1 has an initial focus on moving containers from ships docked at DP World’s flagship Jebel Ali Port via the Hyperloop system to a new inland container depot in Dubai. Last month the Elon Musk-backed company agreed to carry out a de- tailed feasibility study in conjunction with McKinsey & Co. and the Bjarke Ingels Group (BIG) for Dubai’s Roads and Transport Authority (RTA). Direc- tor General & Chairman of the Board of Executive Directors of the RTA, H.E. Matter Al Tayer, made it clear that the deal aims to position the UAE as a pio- neer of Hyperloop technology. “This is an opportunity to help trans- form the UAE from a technology con- sumer to a technology creator, incubat- ing expertise for a new global industry, in line with the UAE’s Vision 2021,” he said. “With Hyperloop One, we will create a new means of transportation, keeping our region at the forefront of transporta- tion technology and innovation.” Its exponents says the benefits of Hyperloop technology include higher standards of safety than a passenger jet, lower build and maintenance costs than high-speed rail, and energy usage, per person, that is similar to a bicycle. Rob Lloyd, CEO of Hyperloop One, says recent developments have advanced things to the stage where, from a techno- logical point of view, a Hyperloop sys- tem could be built in the UAE in the next five years. “Our agreement with the RTA is the biggest step yet towards achieving this goal,” he said at the announcement of the deal with the RTA. Engineers, architects and designers from Hyperloop One and Bjarke Ingels Group have also collaborated to design an inte- grated Hyperloop system for the UAE that includes routes between Abu Dhabi and Dubai, several Hyperports (the equivalent of a station or airport) throughout Dubai, and the conceptual interiors and exteriors of the individual passenger pods and au- tonomous vehicles. The work is based on a detailed study of how an urban and inter-city transport network should integrate with the ex- isting infrastructure. It’s autonomous, point-to-point and vastly simplifies the experience of getting from your front door to your destination. “By making autonomous vehicles an integral part of the development of the Hyperloop One system, we are intro- ducing the idea of seamless, uninter- rupted end-to-end mobility,” said Josh Giegel, Hyperloop One’s President of Engineering. “Imagine stepping out of your villa in Dubai, into a self-driving vehicle that resembles your living room, and arriving just 48 minutes later at your office in Riyadh. That is what Hyperloop One can deliver.”
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