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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS May 2018 Tough Ford Trucks ME unveils new 6x4 Tractor Head series for the regional market Enough
construction business news me // May 2018 // www.cbnme.com 3 Ed Note News Comment RICS’ Rob Jackson talks about solutions to resolve construction disputes in the region Comment Partners at Hepher Associates Ltd discuss construction claims Cover Story Ford Trucks’ new 6x4 Tractor Head series boasts advanced specifications to meet regional customer needs 8 12 26 28 30 // contents May 2018 // Issue #39 Keep up to date with all the latest news, features and much more on our website. www.cbnme.com On the web
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// construction business news me // May 2018 6 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@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 Paromita Dey paromita@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Hayder Al-Zuhairi 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 UPP Site visit CBNME takes a tour of the under-construction VOX Cinemas in the upcoming Nakheel Mall on Palm Jumeirah Feature Industry experts discusses the latest trends and the growing demand for the fit-out projects in the region Face to face KONE chief sheds light on the Finnish giant’s successful global operations and its journey in the Middle East Editor’s Pick Diary 34 38 42 68 70
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// construction business news me // May 2018 8 // Editor's note Bag of surprises In a first, after a hiatus of 35 years, Saudi Arabia opened its doors for the first movie theatre experience for its people, and voila! Black Panther saw another full house open- ing. Reopening of the cinemas marks the kingdom’s cautious diversification steps to- wards reducing the economic dependence on oil and in line with Vision 2030. Cashing on such a major boost to the Saudi entertainment industry, Majid Al Fut- taim announced its plans to open 600 new VOX Cinemas screens across the kingdom over the next five years at an investment of SAR2bn. The announcement comes after VOX Cinemas, a unit of Majid Al Futtaim and one of the region’s largest theatre opera- tors, was granted one of the first licenses to operate cinemas in Saudi Arabia. Its brand- new cinema, which will be the first multi- plex in Saudi Arabia, will open at Riyadh Park Mall in the coming days, said the VOX Cinemas’ parent company in a statement. In addition to it, US cinema operator AMC Theatres partnered with Saudi Arabia’s Public Investment Fund (PIF) to open 30 to 40 cin- emas in 15 cities in the next five years and 50 to 100 cinemas in total in about 25 cities by 2030. Following the progress, the retail sector is also abuzz with the development. Accord- ing to the recent real estate market report by JLL, cinemas, F&B, and entertainment op- tions are increasingly becoming important for shopping centres and will play a greater role in the performance going forward. Several hotels are expected to open up this year, with many new entrants as well. Such developments are expected to give the kingdom’s tourism sector a cautious push and capitalise on them to build a sustainable outlook for the country in the long-term. editor’s note Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
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// construction business news me // May 2018 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 An update from around the region Construction Update // Dubai-based developer, Union Properties, launched Zawaya, a new mixed-use development in Motor City, and the commence- ment of its excavation work. With the launch of Zawa- ya, Union Properties will be initiating the first phase of its new masterplan for Mo- tor City that was revealed recently, which is currently estimated to have a comple- tion cost of over AED8bn. China State Construction Engineering Corporation (CSCEC) is responsible for the excavation work under the agreement, which was signed recently by both companies to complete the new masterplan. Properties in Zawaya will be built around a main town square, which will serve as the heart of the community, where residents can host pop-up markets, celebrate festive occasions, and gath- er for recreational activities. With a total floor area of nearly 37,161sqm, and a retail space of 5,109sqm, Zawaya will consist of 400 residences including stu- dios, deluxe studios, as well as one- and two-bedroom apartments. The 13,749sqm development will also in- clude retail and leisure facil- ities, a wide range of restau- rants and cafés, open green spaces, swimming pools, a fitness center, and courts for squash and basketball. Commenting on the proj- ect, Ahmed Yousef Khoury, group CEO of Union Proper- ties, said: “Union Properties is one the first real estate de- velopers to design and create integrated residential com- munities in Dubai like Mo- tor City. We are proud to of- ficially announce the launch of ‘Zawaya’ that will redefine the concept of modern and integrated residential com- munity with its iconic design. Residents will be able to en- joy a close-knit community experience, as we provide them with a suitable and har- monious space for communi- cation and co-existence. “We are looking forward to launching more residen- tial, commercial, hotel, and leisure projects within the new masterplan for Motor City, which will redefine many concepts and mark a major milestone in Dubai’s real estate market.” CSCEC begins excavation work for Union Properties’ Motor City project
construction business news me // May 2018 // www.cbnme.com 13 Retail The Sharjah Investment and Development Authority (Shu- rooq) and Nakheel have collab- orated in a joint venture, that will bring a new community retail centre to Sharjah. The project – Nakheel’s first outside Dubai – has an estimated development value of AED75mn. Under the agreement, signed by HE Marwan bin Jassim Al Sarkal, CEO of Shurooq, and Nakheel CEO, Sanjay Man- chanda, the two organisa- tions will create a shopping, dining, and leisure hub in Sharjah’s rapidly-expanding Al Rahmaniya district. The project, to be devel- oped by Nakheel and man- aged by its retail subsidiary, Nakheel Malls, joins an ever-growing collection in Nakheel’s retail portfolio, which currently includes 11 large-scale concepts and seven neighbourhood retail hubs, known as Nakheel Pavilions, like the one to be built in Sharjah. Design work is underway, with de- Shurooq, Nakheel partner to bring AED75mn retail centre to Sharjah Sooma Real Estate Developer announced the completion of Al Fouad, one of the first residential buildings located in Al Furjan, a 560ha master development from Nakheel. Raysut Cement Company, the largest producer of cement in Oman, commenced operations of its new fully automatic packing machine, with a capacity of 3mtpa. Binghatti Developers exhibited its latest and prestigious project, Millennium Binghatti Residences Business Bay, at the 2018 Cityscape Abu Dhabi exhibition. The Public Investment Fund (PIF) of Saudi Arabia has entered into an arrangement with Six Flags to develop and design a Six Flags- branded theme park. // Bitesize news tails about the new project to be unveiled this year. Sarkal said: “Shurooq is hard at work promot- ing Sharjah’s status as one of the Middle East’s most progressive and dynamic destinations, not only for tourism and trade, but also catering to the ever-grow- ing demand for residences and leisure. Sharjah’s real estate and retail market continues to experience sustainable boost and in- vestment diversification, thanks to its dedicated care and development across community facilities such as schools, universities, family destinations, enter- tainment, and much more.” He continued: “We work with a variety of partners to help realise Sharjah’s full potential, investing and de- veloping its social, cultural, environmental, and eco- nomic growth, which falls in line with the wise directives and vision of HH Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the Su- preme Council Ruler of Shar- jah. This new partnership with Nakheel is another step in the right direction. With its reputation as a world leading real estate developer, we are excited to welcome Nakheel on board.” Manchanda added: “We are proud to share our success by bringing our expertise, in partnership with Shurooq, to Sharjah. Retail centres are an integral element of residen- tial communities and essen- tial for community develop- ment. They bring a wealth of benefits to residents and their neighbourhood by in- cluding and enhancing well- being among residents and providing a sense of belong- ing, connectivity, and inter- action. In the long run, these amenities also help increase property values.” Shurooq’s key mission is to provide facilities and incentives, evaluate tour- ism-related infrastructure projects, and lay down the necessary plans to complete such projects. (From L-R) HE Marwan bin Jassim Al Sarkal from Shurooq and Sanjay Manchanda from Nakheel
// NEWS // construction business news me // May 2018 18 2018 looks set to be a better year for the UAE economy as a whole, with GDP expected to expand by 2.6% ” Faisal Durrani, head of research at Cluttons Construction UAE-based conglomer- ate, Al Shirawi Group, has signed an enterprise agree- ment with Oracle’s Aconex for its construction manage- ment software. The agreement is set to benefit the group’s business- es in engineering services such as Al Shirawi Electrical & Mechanical Engineering Co., Al Shirawi Contracting, and Al Shirawi Interiors. The initial projects set to be deployed on it are the Silicon Park of Dubai Silicon Oasis Authority and Cityland Mall, Al Shirawi picks Oracle’s Aconex for construction management 3 for which Al Shirawi Inte- riors is executing the fit-out scope, and Tiara Towers and American School of Dubai – Middle School, for which the mechanical, electrical, and plumbing (MEP) contractor will provide its services. The solution for Al Shi- rawi will enable its teams to handle complex projects with aggressive schedules, allow for automation and standardisation of pro- cesses across the group, and make communication and collaboration between teams more seamless. Pramodh Idicheria, COO, Al Shirawi – Engineering Services Group, said: “As a progressive company that upholds the values of trans- parency and excellence, we felt Aconex with its brilliant collaborative features and audit trail will be highly beneficial for our people, operations, and importantly, our partners and clients.” Rob Matheson, regional director of sales for Oracle’s Aconex, said: “In a tough and competitive market, the leading players must con- tinually evolve to not only distinguish themselves, but mitigate risk whilst optimis- ing operational profitability. With this in mind, they have chosen to partner with us to drive a consistent approach to Collaborative Project Controls. We look forward to supporting them along their journey.” // In numbers Residential communities approved by HH Sheikh Mohammed Bin Rashid Al Maktoum in Q1 2018 Office rents across key buildings in Abu Dhabi during Q1 2018 Source: Cluttons
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// NEWS // construction business news me // May 2018 20 Consultancy Parsons appoints MEA mobility director Top 5 Web Stories Parsons announced the appointment of Andrew Bevan as Smart Mobility director for the Middle East Africa business unit. In this role, he will be responsible for leading Parsons’ smart infrastructure solutions development in the region. Bevan has a bachelor’s degree in electronic and electrical engineering (with honours) from the University of Bath, UK. He is a chartered engi- neer, holds fellowships with two in- Turner & Townsend opens office Saudi Crown Prince Mohammed bin Salman bin Abdulaziz unveiled the Vision 2030 Hyperloop Pod at the Virgin Galactic test site in the Mojave desert in the US. Omniyat secures project finance Al-Bahar unveils CAT equipment MACE-Jacobs JV wins Expo 2020 deal RTA awards public bus contract 1 2 3 4 5 www.cbnme.com ternational engineering organisations and has nearly 20 years of experience, specialising in intelligent solutions and systems integration. He has worked on some of the most prestigious rail projects throughout the Middle East and has spent many years working for the federal government in Abu Dhabi developing the systems portfolio and the introduction for the national rail infrastructure. // The big Picture
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// NEWS // construction business news me // May 2018 22 “We are delivering on our strategy to provide an end- to-end intelligent customer experience suite. ” Rob Enslin, SAP “Dubai has proved its ability to organise leading events that provide residents and visitors with valuable investment opportunities.” HE Majida Ali Rashid, Dubai Land Department “We are constantly dealing with transition and changes in expertise.” Hamish Tyrwhitt, Arabtec Holding // They said... Construction Contractors in Dubai will now be able to construct metal structures and carry out the design and implementa- tion work of industrial proj- ects with G+1 floors without the need for appointing a consultancy office, accord- ing to a circular issued by the Buildings Department of Dubai Municipality. The move will positively affect industrial land owners and investors by reducing the total cost of projects and reducing the total time re- quired to implement them. It Contractors can build low-rises without appointing consultancy is also part of the municipal- ity’s endeavour to support and encourage investment within the emirate and pro- vide a safe and stable invest- ment environment. The Buildings Department has set up an integrated work team to study the follow up actions and expected results of Circular No. 224 and be- gan to interact with the local market to know the obstacles that stand in front of the work of design and implementa- tion. The department has also started qualifying the cadres of 230 contracting compa- nies to ensure the presence of technical cadres capable of designing and executing proj- ects in line with the standards of Dubai. As part of the initiative, the department held an introduc- tory seminar in the presence of a group of officials from the construction sector, during which the studies conducted by the working team of the initiative and the options available to the contractors were presented to start the activity based on international best practices. Eng Fida Al Hammadi, head of Researches and Building Systems Section, said: “Dubai Municipality is always seek- ing to encourage investment within the emirate. The mu- nicipality insists on excellence and providing services that make customers happy and reflect the vision of leadership to provide the best levels of performance to maintain the global status of Dubai.” Global professional services company, Turner & Townsend, has announced the opening of two new offices in Saudi Arabia to further extend its coverage across the GCC. The offices in Riyadh and Al Khobar are strategically located to provide spe- cialist services to clients in the King- dom, benefiting from investment driven by the government’s Saudi Vision 2030. Turner & Townsend’s regional man- aging director, Alan Talabani, com- mented: “We are extremely excited to extend our services offering to KSA at this time of unprecedented changes. These new offices will help us continue to provide high-quality consultancy and drive better performance for clients and their investors in the GCC region.” The company is progressing with staff transfers supplemented by exter- nal recruitment. It is anticipated that by the end of 2018, Turner & Townsend’s Saudi Arabian business will add sig- nificant value to the company’s regional operations and targets. Simon Trafford, Turner & Townsend’s KSA resident director, said: “The Saudi construction market priorities are aligned with the country’s Vision 2030. We are delighted that we have opened our KSA offices in good time allowing us to be a part of a construction market with an enormous potential.” Turner & Townsend opens two offices in KSA
// NEWS // construction business news me // May 2018 24 Contract Developer Dubai Proper- ties announced the on-time completion of Mudon’s Ara- bella townhouses, located in Dubailand. The developer welcomed new residents with a unique customer-centric initiative – the Handover Gallery – that offers a comprehensive range of services under one roof to facilitate a seamless move-in process. Launched in May 2015, Mudon’s Arabella, situated amidst lush greenery and bright open spaces, within proximity of a host of attrac- tive amenities, including a fit- ness centre, recreation areas, retail and F&B outlets, and community services such as a nursery, as well as an up- coming school and clinic. Speaking on the occa- sion, Raed Al Nuaimi, group chief executive officer of Dubai Properties, said: “The Dubai Properties hands over Arabella townhouses on time timely handover of Mudon’s Arabella reinforces Dubai Properties’ reputation as a developer that places the customers’ needs at the heart of all we do. Whether we deal with seasoned investors or first-time homeowners, we understand the dreams and efforts that go into making a real estate pur- chase decision. We respect these sentiments and ensure prompt and quality delivery of our projects.” Commenting on the Hando- ver Gallery, Al Nuaimi added: “At Dubai Properties, we be- lieve in providing our custom- ers with the best experience possible from the first inter- action on the sales journey through to the final handover of the property. As part of this priority, we have opened our Handover Gallery – a one- stop shop for all essential ser- vices that aims to bring con- venience and efficiency to the move-in process.” Dubai-based developer, Deyaar Develop- ment, handed over the two residential towers in its Mont Rose project, marking Deyaar’s first handover of 2018. Located in Dubai Science Park, the Mont Rose is a contemporary resi- dential and hotel apartment project. It comprises three towers - Mont Rose residential towers A and B, and one hotel apartment tower, the Millennium Deyaar Mont Rose Apart- ments, which will be managed by Millennium and Copthorne. The hotel tower will begin operation in September 2018. Saeed Al Qatami, CEO of Deyaar said: “Delivering a project to our own- ers at the beginning of the year sets the tone for what we aim to accom- plish in 2018. Mont Rose is one of our iconic projects, which is situated to take advantage of Dubai’s up-and- coming areas – including the Expo 2020 site. Deyaar is committed to de- livering quality projects that meet our exacting standards, in terms of build, location, and return on investment.” Owners were invited to an orienta- tion event to go through the handover process and the necessary procedures and to inspect their units before receiv- ing their keys. Deyaar also expects to deliver The Atria in Q2 2018. Currently near completion, The Atria is located in Business Bay and comprises a four-star hotel apartment tower and a residential tower. The project has 347 serviced apartments managed by the Millennium and Copthorne Group, and 219 residential units. Deyaar Delivers Mont Rose project in Dubai
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// construction business news me // May 2018 26 // Op-Ed W hile all parties on a project should have the common goal of successful project delivery, particularly being on time, on budget, and to the speci- fied quality, conflicting priorities lead to complex relationships between contractors and employers, which often result in disputes. With the construction sector in the Middle East poised for accelerated growth, and with many projects on defined and fixed completion dates, it is almost inevitable that we will continue to see a rise in construction disputes with the current adversarial contracting climate. When cash stops flowing, and key personnel are oc- cupied for significant periods of time dealing with conflict, disputes become a major distraction. According to the 2017 Middle East Construction Disputes Report by Arcadis, $56mn were tied up in disputes last year in the region, primarily in the social infrastructure and public sectors, presenting a significant risk to the capability of the projects while putting a strain in government and corporate budgets. One of the contributing factors to escalating numbers of disputes in the region is the impact continued low oil prices are having on project fund- ing, particularly in the public sector, which in turn, has led to project scope changes, project deferrals or even project cancellations. on the success of the project and is the cause of adversarial relationships amongst parties. To avoid conflicts, contracts should be administered appropriately, contain accurate documentation, encompass fair and appropriate risk balances, and must also include realistic construction timeframes that have more chances of being adhered to. Alternatives to avoiding disputes The need to improve the way rela- tionships are managed and differ- ences of opinion are handled, has brought to light different ways con- flicts can be resolved. One method growing in popularity is conflict avoidance, an alternative dispute resolution mechanism, that addresses issues through early intervention before they escalate. It offers stake- holders many benefits, such as it saves time and money, allows parties to focus on the successful delivery of projects while fostering innovation, maintains confidentiality, provides One of the contributing factors to escalating numbers of disputes in the region is the impact continued low oil prices are having on project funding.” Major causes of disputes A standard practice that results in formal disputes materialising, ac- cording to John Fletcher, the RICS product group director ADR, is when “employers encourage contractors to submit compliant bids for the best price, while contractors, on the other hand, apply a commercial strategy to win the bid. Both sides then seek to manage contracts to their terms. The result is a recipe for disputes, which is built into contracts before they even start. It is only when the industry unites to tackle these all too common issues that we can deliver real change”. On an average, construction proj- ects end up costing 30-40% higher than the original contract target price, which results in both parties being distracted from successful delivery of the project but instead arguing over the overall cost escalation. The way contracts are drafted, administered, and understood by the contractors or employers, also has a crucial effect Rob Jackson, RICS regional director, sheds light on the construction disputes in the region and the solutions to resolve it Dealing with disputes
construction business news me // May 2018 // www.cbnme.com 27 joining the campaign by signing up to the pledge, we can make the run- ning of construction and engineering projects, hopefully, across the world, more streamlined”. Over 50 industry bodies have now signed the pledge in the UK, includ- ing leading industry stakeholders, such as CIOB, Atkins, Mott McDonald, Turner & Townsend, Siemens, and Faithful+Gould. RICS and the DIFC Courts are planning to launch conflict avoidance services for regional busi- nesses, particularly in the construc- tion and infrastructure sectors. As an entity operating within the DRA, the DIFC Courts are well established in the world of litigation and in 2018 are pursuing the development of other modes of Alternative Dispute Resolution (ADR). Through such global solutions and collaboration of professional bodies to support new methods of dealing with conflicts, we can see change on the horizon for the industry worldwide. an opportunity to balance and hedge against litigation or commercial risks, and preserves brand reputation. A formal conflict avoidance pro- cess created by RICS for Transport for London (TfL) that encourages cooperation between parties and resolves disagreements early has proven to be highly successful in the UK. Mike Brown, the Commissioner of Transport for London, believes that communication and early inter- vention are essential for successful project deliveries. He affirmed: “The construction in- dustry has historically been a very con- tentious environment, and it is practi- cally inevitable that conflict will arise in one form or another. A strong com- mitment to open and honest commu- nication, and early intervention when issues do arise, are the foundation for avoiding escalating disputes. Where conflict does arise, we are developing process such as the conflict avoidance process with RICS, which can be used to identify, capture, and resolve the conflict promptly and amicably before it becomes a full-blown dispute.” Finding global solutions To encourage collaborative work- ing and the use of early intervention techniques, six leading professional and institutional bodies along with two transport and infrastructure firms joined together to form a Conflict Avoidance Pledge. Professional bod- ies representing surveyors (RICS), engineers (ICE and ICES), architects, and others such as Chartered Institute of Arbitrators and International Cham- bers of Commerce, hope to make harmful and expensive disputes a rare occurrence through this pledge. Created by the Conflict Avoid- ance Coalition Steering Group, the pledge is a voluntary commitment to self-assessment open to any organ- isation or firm, regardless of size or location. Fletcher believes that “with more organisations and companies
// construction business news me // May 2018 28 // Op-Ed C laims for an extension of time with associated costs are unfortunately a regular occur- rence within the Middle East construction industry. It is inevitable that a claiming party i.e. a supplier, a subcontractor, a main contractor etc. will at some point during its lifetime need to produce and submit a suc- cessful claim in order to protect itself from the imposition of damages/penal- ties. Furthermore, the claiming party may also wish to recover additional expenditure incurred i.e. prolongation costs, hence, the production of a claim allows recovery of the same. We are seeing a significant increase in complex and time-sensitive con- struction projects which are subject to more frequent budget and time over- runs, mainly due to delays by others. As a result, the affected parties need to demonstrate an entitlement to recover time and costs through the production of a fully substantiated claim. How- ever, the production of these claims can prove to be a minefield, espe- cially when the contract provides no prescriptive guidance and with various articles, journals, and books offering differing opinions, and methodolo- gies for compiling claims which often provide inconsistent results. In order for a claim to succeed, it must comply with the contract, adopt an industry standard delay analysis methodology, be accurate and consis- tent, and be fully substantiated through suring the initial claim has been sub- mitted correctly) and may also allow the responding party to initially reject the claim, which becomes difficult to overturn at a later date. We discuss below some of the docu- mentation and record keeping best practices that should be considered by a claiming party when producing a claim document. Contemporary record keeping Many of the standard form and ad- hoc contracts used in the Middle East provide a detailed description of the records that must be kept during the currency of the project. These include records such as time specific delay notifications, notifications of a claim for costs, weekly/monthly progress documentary evidence/contemporary records. The inadequate drafting and presentation of claims, lack of sup- porting contemporary records, and the inconsistent and inaccurate progress records are in our opinion the main reasons why claims are failing within the industry and have to be revised and redrafted at a later date. We are regularly appointed by construction parties to either draft a new claim document or redraft a historic claim as the submitted claim is not presented and evidenced in accordance with industry standard practice. This submission of inadequately drafted, incomplete, and unsubstanti- ated claims unnecessarily inflates a claiming party’s preparation costs (which can be easily avoided by en- Christopher Rigney and Kieran Chauhan, partners at Hepher Associates Ltd (HAL), discuss the importance of documentation when substantiating construction claims for an extension of time with associated costs Careful thought
construction business news me // May 2018 // www.cbnme.com 29 A contracting party should put in place its record keeping procedures at the commencement of the project ensuring full compliance with the contract.” reports, weekly/monthly updated programmes of work, document trans- mittals, and work inspection requests. Despite these requirements being embedded within signed construc- tion contracts, we find time and again that the parties to the contract fail to adhere to such obligations resulting in the required documents not being produced and/or not being submit- ted. This is particularly common for updated programmes of work which are required to undertake the delay analysis, this being one of the most important and critical parts of a claim. It is therefore recommended that the contracting party puts in place its record-keeping procedures at the commencement of the project ensuring full compliance with the contract. It is common that all contracts are differ- ent, hence, it is advisable for parties to create a project specific ‘best practice manual’ for the site team with details of the contemporary records that must be submitted within any contractual timeframes, so the site team have a ref- erence guide to protect its entitlements. Many contract management consultants offer their services before the com- mencement of the project to set up a fully compliant manual, which in our experience, can save the contracting parties time and cost in the long run. Programmes of Work The updated programmes of work are vital documentary evidence on a construction project, not just for the compilation of a claim but to provide the site team with an accurate plan of work and resources to the comple- tion of the project. Frequently, we see construction parties failing to submit an updated programme of works, as ‘quicker’ ways of recording the prog- ress such as in an excel spreadsheet have become the incorrectly adopted norm. Although this may ‘speed up’ the reporting process, it will un- doubtedly cause significant delays in submitting a substantiated claim at a later date due to the excel spread- sheets being insufficient to prove entitlement. To avoid these issues, it is advisable that regular audits of the site documents are undertaken to en- sure the progress is recorded correctly in order to produce a claim at a later date if required. Another common pitfall that occurs when preparing a claim is the exten- sive number of inconsistencies/inac- curacies of dates, durations, and logic recorded in any updated programmes of work. Such inaccuracies provide the party responding to the claim with an easy justification for rejection which can delay the claims process and cause disruption to the cash flow of the proj- ect. By engaging an experienced con- sultant such as HAL, these inconsisten- cies/inaccuracies can be managed and resolved either throughout the dura- tion of the project (i.e. monthly) or in full prior to the submission of a claim, therefore preventing possible rejection of the claim. Recreation of site documentation Companies should not give up on their due entitlements to time and cost if some contractual documentation is missing as methods can be deployed to remedy such issues. One example being the un- availability of contemporary programmes of work as explained earlier. Every site keeps some form of records, usually in the form of drawing logs, transmittal logs, progress reports, work inspection requests, requests for information, and other project or company specific records which can be used to retrospectively produce the programmes of work. To give the claim the best chance of success, it is advisable to review all available documentation and agree on a strategy and methodology for the claim prior to commencing the docu- ment as every project and therefore every claim is different. To Claim or Not to Claim? It is always beneficial on a number of levels for a party to claim its due entitlement to time and cost. The cost of preparing a claim can be compared with the losses of not making a claim, which are almost always greater. Not submitting a claim can be a risky strategy and one that will quickly be outweighed due to the likely inclusion and imposition of substantial penalty/ damage provisions within contracts. Sometimes expending a sum of money with no guarantee of obtaining a time/cost award can be unsettling for the claiming party, hence prior to any detailed claim preparation work commencing, it is best practice to undertake a ‘Claim Viability Assess- ment’ which would comprise an initial audit of the available documentation and analysis of updated programmes of work. This would determine the likely success of the claim before sig- nificant time and cost is expended and allows the claiming party to make an informed decision whether or not to proceed with the compilation of a fully detailed claim.
// construction business news me // May 2018 30 // Cover Story It is always Ford Trucks’ aim to provide a unique experience to each customer by finding the right solution based upon their business needs.” Mustafa Caner Sinanoglu, regional MD, Ford Trucks ME
construction business news me // May 2018 // www.cbnme.com 31 Bold moves Ford Trucks’ new 6x4 Tractor Head series boasts advanced specifications to cement the company’s Middle East business, says its regional MD W hen Ford Trucks started its operations in Saudi Arabia and the UAE in 2014, the only vision that they had was to reach out to as many customers as possible. With a history that goes back more than 60 years in the Middle East, soon after Ford Trucks climbed the ladder of success with having 10 distributors in the region by 2015. The managing director of Ford Trucks Middle East, Mustafa Caner Sinanoglu, remarks: “The Middle East is one of the most important regions in our export strategies. We are constant- ly expanding our network in Saudi Arabia and in the UAE, we are adding Fujairah as well in 2018. In Oman, we started in Muscat and later on, we add- ed Sohar and Salalah. The last dealer that we added was Alghanim Auto in Kuwait; they have already started very strong and I can say that they have grabbed 5% of the market share in the last quarter.” In the UAE, the company recently entered the 6x4 truck market with its new launch. Its official importer-dealer in the UAE, Al Tayer Motors, launched the new 6x4 Tractor Head, with ad- vanced specifications such as 10mm 500 MPa strong steel chassis, twin clutch, 16-speed ZF manual transmis- sion, and day and sleeper cab options. The 24-inch tyres provide superior ground clearance and high traction in extreme and challenging conditions, while the high front axle capacity increases its durability and the high towing capacity allows transportation of heavy loads. Sinanoglu points out: “With this 6x4 tractor series, we will gain more market share because when we look at the UAE market, 40% of it is dominated by 6x4 trucks. Until now, we didn’t have this product. Our customers were asking for 24-inch tyres. So, when it became avail- able with us, we decided to launch our vehicles in the UAE. “We are receiving some really posi- tive feedback from the customers that we have tried on with. We believe that we will be successful very soon in this segment as well. We just had the launch event for the first time in the UAE in April 2018. Other launch events will fol- low in Oman, Saudi, Qatar, and Kuwait.” In a statement during the launch event in Dubai, Ashok Khanna, CEO of Al Tayer Motors, said: “A truly competitive, viable, and economical al- ternative, the Ford Trucks 6x4 Tractor Head series are powerful and capable vehicles tailored to meet the specific needs of the UAE market. The 3543T is now equipped with 24-inch tyres in response to the market requirement and is currently being offered with a comprehensive warranty that can be extended up to five years.” Powered by a 12.7l engine, the 6x4 Tractor Head is a popular and preferred axle configuration mainly because of its capacity to move heavy loads and having better grip on off- road conditions such as construction and quarry sites; for delivering power to more tyres - thereby producing better control and overall vehicle operation; and being ideal for long distance haulage. Offering comfort and exceptional uphill traction, the 2018 6x4 Trac-
// construction business news me // May 2018 32 // Cover Story tor Head series delivers an impres- sive 430PS at 1800rpm and 2150Nm of torque between 1000 – 1300rpm. The optional 600KW Intarder option offered for even tougher conditions brings the total braking capacity to 1,000KW, ensuring that the heaviest loads can be carried safely on even the steepest slopes. The company promises the vehicles to offer quality and durability with low cost of ownership. Additionally, mod- els such as 1843T tractor, 1833 (4x2), 3543P/M/D (6x4), and 4143M/D (8x4) can be customised with transmission and cabin modules for on-road and off-road conditions. Designed for the most demanding environments, with best-in- class sequence and efficiency, an important feature in the new Ford Series is the Automated Transmis- sion option. With off-road, rocking, and economy modes, the automated transmission option assists drivers in keeping their vehicle sure-footed on virtually any terrain. Sinanoglu says that Ford Trucks is continually focussed on building long- term relationship with its customers by understanding the true need of each customer and the regional requirements. “It is always Ford Trucks’ aim to provide a unique experience to each customer by finding the right solution based upon their business needs. As a reflection of Ford Trucks’ global aspect, our new series has been designed and developed with consideration of our GCC clients’ needs and market requirements. “Furthermore, Ford Trucks aims to continue being a true business partner even after the customers’ purchasing. Besides providing a wide range of products, we also offer entire service and support benefits at after sales pe- riod. According to customers’ business needs, we offer both preventive service contract and comprehensive service contracts, which customers can always tailor to their operating requirements. “Also, fuel consumption is the main DNA of this new series. Amidst the high competition, if you don’t have good fuel consumption figures, you will not be able to sell any trucks. The main aim of our product development engineers was the designing of the en- gines with high torque levels, helping Officials at Ford Trucks ME launch event in April 2018 Mustafa Caner Sinanoglu, Regional MD, Ford Trucks ME
construction business news me // May 2018 // www.cbnme.com 33 in lowering the fuel consumption.” The new Ford Trucks series contin- ues to save after purchase, offering a competitive advantage with 25% re- duced maintenance costs. The service periods extended up to 40,000km/800 hours offer will allow the customers to have the most competitive mainte- nance advantage in the logistics and construction sectors. In addition to the above, Sinanoglu mentions certain considerations that make the Ford 3543T competitive in the market, including less down time, low fuel consumption, extended warranty, on-site maintenance and repair services – (mobile workshop) sites increase vehicle uptime, and the Ford Driver Academy focussing on the principles of safe driving under tough working conditions such as hazardous material transportation and construction sites. He says: “The vehicles will be avail- able in Euro III and Euro V at very Hot Climate Package Hot Climate Package provides comfort in hot and dusty environments with improved A/C and radiator performance, and cabin isolation and filtration. The package was developed over a two-year period of vehicle durability tests in simulated laboratory conditions and also tailored to specific customer expectations through a series of road tests in the region. The Hot Climate Package is offered across the entire product line-up for the UAE. Development process of the new Ford Trucks Series • €150mn invested in the development of Ecotorq engines and new Ford Trucks. • 750 engineers worked for four years. • The trucks covered more than two million km of test drive in eight different regions. • The new Ford Trucks Series was tested in eight countries across three continents, under the world’s toughest conditions, and prepared for the users. competitive prices. We will also offer a comprehensive after-sales and a maintenance service package. We will continue to offer special discounted prices for the new trucks. “In 2019, we expect optimistic num- bers. 2017 was tough; the UAE business was stable but Saudi Arabia was affected in terms of volume, but 2018 is different; we are receiving more requests than last year, and our fleets will start getting deliv- ered soon. We are in good shape.” Ashok Khanna, CEO, Al Tayer Motors
// construction business news me // May 2018 34 CBNME takes a tour with Havelock AHI of the upcoming VOX Cinemas, a two-storey entertain- ment destination located in the heart of the Nakheel Mall on Palm Jumeirah P i c t u r e Perfect // Site Visit T he media and entertainment sector in the GCC received a huge boost when Saudi Arabia opened its doors to its movie theatres after a hiatus of 35 years. Cashing on the development, Majid Al Futtaim announced the opening of 600 new VOX Cinemas screens across the kingdom. Founded 18 years ago, VOX Cinemas, op- erated by the UAE-based Majid Al Futtaim Group, currently runs 129 screens across the UAE, Oman, Lebanon, and Egypt. In one of its much-awaited upcom- ing developments in Dubai, Nakheel signed up with the cinema giant to open the cinema experience on Palm Jumeirah, one of the firsts on the man-made island. The cinema will be housed inside Nakheel Mall, the AED1.2bn, 42ha retail, dining, and entertainment destination by Nakheel, taking shape at the heart of Palm Jumeirah. With construction currently un- derway, Nakheel Mall will have 350 shops, restaurants, and leisure at- tractions across five floors, and three underground parking levels with 4,000 spaces. Features include two fountains, two waterfalls plunging 65ft into the mall, and a fine dining roof plaza. The mall will also be the access point for the 240m ascent to the public viewing deck at The Palm Tower, Nakheel’s 52-storey hotel and residential building – currently under construction. The Palm Tower comprises a 289-room St Regis hotel and 432 luxury apartments, with an infinity pool on the 50th floor. Above that is a 51st storey res- taurant complex, with the rooftop viewing deck on the 52nd level. Occupying a two-storey and 5,578sqm area at Nakheel Mall, VOX
construction business news me // May 2018 // www.cbnme.com 35 Cinemas will feature 15 theatres with a total seating of 923 plus space for 26 disabled people and provide the ultimate movie-going experience with the latest in cinema technology, the popular VOX MAX big-screen concept, and the luxury VOX GOLD experi- ence. The Nakheel/VOX Cinemas part- nership comes as more than half of the 100,000sqm of retail space at Nakheel Mall is booked by a growing number of top brand names. Commencing operations in August 2017, regional interior contractor and manufacturer, Havelock AHI, is cur- rently working to take the cinematic experience to the next level. William Gorman, head of projects, Havelock AHI Interiors, comments: “The project comprises 15 theatres, out of which there are 11 standard auditoria and four Theatre by Rhodes screens - the VIP section of the theatre. It will be spread over two levels; the upper level consists of the kids’ auditorium and the kids lounge area. “On the lower floor, we have the Theatre by Rhodes section, which also has the VIP lounges and the VIP toilets. In addition to it, the lower level also has the general toilets, back-of-house areas, electrical rooms, and staff rooms. “We commenced construction in August last year and probably took three weeks of mobilisation to conduct various site condition surveys. As part of the early stages, there were require- ments to be signed off by local author- ities like Trakhees for the steel works. Running parallel to that, we began our process of getting all the construction works in place while the design of the steel was being validated.” The logistical challenges for the
// construction business news me // May 2018 36 project required a strong team ef- fort from Havelock AHI as well as dedicated management, planning, and close co-operation with the subcon- tractors turned the challenges into an ongoing success. Gorman says: “The entire project along with its location posed its own set of challenges, with this one being located in the heart of the construction site. Logistics was big issue during the construction sched- ule; we had very limited access to the site in terms of the delivery of the materials from the construction area. We had to get in mobile cranes and schedule all the deliveries at particu- lar times in the evening. “Due to the nature of the construc- tion of the mall structure, it posed challenges like certain loading and unloading had to be done on specific ramps. So, we needed to be careful about the capacity of the cranes that we were bringing in and in terms of Package of works Contract: Warm shell and fit-out Area: 5,993sqm at (fashion level and entertainment level) Scope: • Steel structure for the cinema stadia and plant rooms. • Complete MEP works. • Acoustic ceiling and wall for cinemas. • Standard decorative gypsum partition and ceiling. • Paint and wallpaper application. • Flooring and wall cladding of marble, ceramic, carpet, vinyl, and terrazzo. • Decorative glass and metal works for common areas, lounge, and staircase. • Joinery works, furniture, acoustics, and fire rated doors. • Coordination with client direct contractors for cinema wall fabrics, carpets, seat, speakers, screens, projectors, elevator, and escalator. We had to make sure that the field coordination with all the stakeholders were clear across the development.” // Site Visit
construction business news me // May 2018 // www.cbnme.com 37 unloading materials and getting it lifted at proper places.” He continues: “Since the entire site was not only confined to our works, we had to do a lot of co-ordination in terms of the methodologies and the people as well. We conducted weekly logistics and health and safety (HSE) meetings, and the project itself was adjusted from time to time according to what was happening throughout the course. There have been a lot of time restrictions because we had to factor in the heavy vehicles coming in with materials during the entire course of the day. “At the end of the day, it only came down to liaising with the main contractor and plan everything be- forehand and accordingly. We had to make sure that the field coordination with all the stakeholders were clear across the development.” Currently there approximately 320 workers working onsite for the project. Gorman points out that there is a smaller squad at night who takes care of the deliveries, logistical stuff, and any activities that needs preparations in order to advance with next day. He adds: “We source our raw materi- als from all over the world. There are local suppliers as well as we have materials coming from the UK and Eu- rope. We are well underway with the installations for the kitchen areas. All the tiling works, ceilings, and other as- sociated services are being done by us. We will have everything inspected and handed over before the main contrac- tor comes in.” Gorman remarks that being a re- sponsible contractor, they were quite cautious about the HSE quotient of the project. “We always keep a check for all the activities we do and pre- pare the risk assessment reports. They are reviewed, and outputs are given so that it helps everyone to be aware of the activities undertaken in that particular environment. “We have a fulltime HSE officer on- site and is responsible for implement- ing all the regulations for the activities onsite. In addition, the construction team itself has its own set of HSE of- ficers. Everybody is involved; we hold regular meetings and also engage with the main contractor on a weekly basis just to incorporate health and safety on a broader scale within the project. “Also, we have initiatives where people are nominated in terms of HSE practices where they are recom- mended for a small certificate or a gift of sorts.” Based on similar line, the contractor recently completed the VOX Cinemas at The Avenues Bahrain, a new water- front shopping destination, located at Bahrain Bay. Gorman concludes: “We do have the capability, capacity, and a highly skilled multi-trade work force to provide interior solutions catering to and exceeding expectations for such intricate projects.” (From R-L) William Gorman, head of projects, and Adrian Sellar, division director fit-out UAE, at Havelock AHI Interiors
// construction business news me // May 2018 38 Regional industry experts highlight the growing demand for fit-out projects in the tourism and commercial sectors owing to the upcoming mega events Transforming spaces // Fit-out A ccording to a recent report by Faithful+Gould, the UAE fit- out sector is forecast to reach $973.4mn by 2022. Despite recent challenges in the market due to fiscal pressure from falling oil prices, there doesn’t seem to be any slowdown in the project awards, with investment rising by $2bn from 2016. The entire GCC, especially the UAE and Saudi Arabia, have witnessed a growth in real estate and infrastructure projects, owing to the Expo 2020 and Vision 2030 respectively. One of the leading fit-out contractor in the region, ALEC Fitout, is currently working on a variety of projects on site, primarily in the hotel, retail, and residential sectors. Tom Gilmartin, business development manager at ALEC Fitout, says: “Earlier this year, we completed Marina Gate Residencies Tower 1, where our scope included the complete fit-out for 399 units (apartments, penthouses, and villas). Our team is on site for Tower 2 and Tower 3. Upon completion, the Marina Gate luxury residential development will have approximately 1,400 units. “Providing complete fit-out and refurbishment solutions for hotel guestrooms and public areas is our core business. We are currently delivering five-star hotels’ fit-out and refurbishment projects for key clients and operators such as Meraas, Emaar, Waldorf Astoria, Address Hotels, and One&Only Resorts.” Owing to the impressive line-up of projects, Gilmartin points out that the company targets continued turnover and profit growth in its business year- on-year. “We have a strong order book for this year and are targeting works now for 2018-19 completion.” Within the GCC, hospitality and leisure still remain a key growth area,
CONSTRUCTION BUSINESS NEWS ME // APRIL 2018 // WWW.CBNME.COM 1 25-26 16-17 23-24 13-14 6-7 17-18 24-25 15-16 22-23 25 AED 2,130 AED 2,130 AED 1,065 AED 2,130 AED 2,130 2 2 1 2 2 Contact us on +971 4 346 6456 or training@ccsgulf.com or register online at www.ccsgulf.com 8 C301 Integration of Estimating & Planning C205 MEP Estimating Course Name Days Costs June July Aug Sept Oct 25-26 16-17 23-24 13-14 6-7 17-18 24-25 15-16 22-23 25 AED 2,130 AED 2,130 AED 1,065 AED 2,130 AED 2,130 2 2 1 2 2 Contact us on +971 4 346 6456 or training@ccsgulf.com or register online at www.ccsgulf.com 8 C301 Integration of Estimating & Planning C205 MEP Estimating Course Name Days Costs June July Aug Sept Oct 25-26 16-17 23-24 13-14 6-7 17-18 24-25 15-16 22-23 25 AED 2,130 AED 2,130 AED 1,065 AED 2,130 AED 2,130 2 2 1 2 2 Contact us on +971 4 346 6456 or training@ccsgulf.com or register online at www.ccsgulf.com 8 C301 Integration of Estimating & Planning C205 MEP Estimating Course Name Days Costs June July Aug Sept Oct
// construction business news me // May 2018 40 particularly in the run up to the Expo 2020. Currently, there is an increased focus on refurbishments as clients look at reinventing space rather than building new structures. Last year, the region saw several awards for hotel refurbishment projects to cater for the growing demand from both international and regional tourism. One of the reputed names in the fit-out market, ASI, has recently expanded to accommodate more design and turnkey projects. Yasser Al Sakka, general manager, ASI, says: “Our list of current projects includes high-rise developments in Dubai’s Jumeirah Lakes Towers (JLT), including five-star signature hotel and residences; residential buildings at the Bluewaters project; a couple of luxury high-end villas in Palm Jumeirah; the prestigious Dubai Arena project; Mediclinic Hospital; Green Community villas; a high-end fashion retail in new Dubai Mall extension; and an ongoing fit-out interior works negotiation for classified five-star hotel. “Our list of projects keeps on growing and year-on-year, our fit- the residential sector is valued at $3.6bn, followed by hotels at $2.1bn, commercial real estate at $1.1bn, retail at $872mn, hospitals at $410mn, and education at $339mn. Dimitri Papakonstantinou, managing director at Plafond ME, mentions: “As there is currently a fair amount of activity around the Downtown and Dubai Creek Harbour areas, the majority of these projects are focused on the residential and hospitality sectors. As main contractors and clients try to keep costs down and reduce duplication of margins, many of the trades are split into single trades with only more specialised areas such as lobbies, restaurants, spas, etc. being tendered as complete interior design fit-outs. “As we deliver both single trades and turnkey fit-outs, we have received a fair amount of enquiries on both. Some of the other projects which we are seeing a reasonable amount of RFP's are Expo 2020 related works as well as retail, food and beverages (F&B), and lounges for the Midfield Terminal in Abu Dhabi.” The company is currently working on the full fit-out of the Opus Hotel, serviced apartments, and front of house (FOH) areas. Papakonstantinou points out that this is one of the company’s key projects for the year out business growth is steady with periods of upsurge. Nevertheless, we are expecting a 15-20% rise for our industry by end of 2018 as our country gears up for Expo 2020.” According to market analysts Ventures, the interiors industry for Our list of projects keeps on growing and year-on- year, our fit-out business growth is steady with periods of upsurge.” Yasser Al Sakka, ASI We have a strong order book for 2018 and are targeting works now for 2018-19 completion.” Tom Gilmartin, ALEC Fit-out // Fit-out
construction business news me // May 2018 // www.cbnme.com 41 and is due for completion early 2019. Other projects that the contractor is working on is the Museum of the Future, Al Maryah Mall, Mohammed bin Rashid (MBR) Library, Wafi extension cinemas, and One the Palm. He continues: “Over the last three to four years, we have experienced a significant growth in both our fit- out and mechanical, electrical, and plumbing (MEP) divisions. We have had a growth of around 50-85% between 2015 till 2018.” In the run up to the important events being held in the region, industry experts opine that value engineering is a leading trend in the regional fit-out market. Gilmartin says: “ALEC Fitout has extensive experience in successful delivery of high-quality solutions at a cost-effective budget through the effective use of value engineering and design optimisation – our estimation, technical and design teams work closely with the client and consultant teams in order to achieve their budget without impacting the quality or aesthetic of the finish. It is important to note, however, that the formal approval of value engineering items can impact on the program and as such, wherever possible, value engineered savings should be agreed in advance as part of the bidding process.” Agrees Papakonstantinou from Plafond ME. He also mentions: “As the market still remains very competitive and with both developers and contractors being cost conscious, value engineering is a key element to winning works. This often varies from change of material specification to a more fundamental re-design. I believe the main focus will still be on residential and hospitality projects this year with some of the Expo 2020 related fit-out works only starting later in the year or early next year.” In the upcoming years, with price decrease in real estate and with the region preparing for Expo 2020, it is expected to see high demand for residential and commercial properties. Sakka concludes: “Subsequently, there will be more market for fit-out and in- terior firms along with new real estate projects and refurbishment of existing and facilities.” We have had a growth of around 50-85% between 2015 till 2018.” Dimitri Papakonstantinou, Plafond ME
// construction business news me // May 2018 42 Henrik Ehrnrooth, president and CEO at KONE Corporation, highlights the importance of digital technologies to help service customers better Elevator to success A ccording to recent reports, the global elevators and escalators market size is estimated to grow $125.2bn by 2021 at a com- pound annual growth rate (CAGR) of 6.01%. Factors such as increasing demand in the Asia Pacific and the Middle East regions coupled with the growing need from the end-use industries such as residential, com- mercial, infrastructure, and industrial are the main drivers for the market. In an exclusive interview with CB- NME, the president and CEO of KONE Corporation, Henrik Ehrnrooth talks about the innovations that the Finnish elevator giant has adopted to serve millions of customers globally. Give us an overview of KONE’s global operations? At KONE, we have a turnover of around EUR9bn and a workforce of approximately 55,000 people. In 2017, we sold around 158,000 elevators and escalators all around the world; that means during our working hours, we deliver one unit every minute. We are considered the innovation leaders in our industry because of the growth that we have witnessed over the past couple of decades. From the past few years, on the global installation side, it has been quite difficult because of the challenging Asian market, which is a big part of the business. If we look at our history, we are clearly the biggest player in China, which is by far the largest mar- ket in the world. But lately, growth and // Face to face
construction business news me // May 2018 // www.cbnme.com 43 demand has started pouring in from the Middle East, where we are considered as one of the market leaders. What we try to focus on in the past few years is to bring a strong differen- tiation in our services. Our customers always say that if we look at KONE so- lutions, they are very good. But what we have started focussing on more now is the full maintenance cycle – how can we differentiate there and be totally different from others? We launched our 24/7 connected services a year ago to provide a new level of innovation in the industry. It connected more and more equipment to the cloud and being able to utilise the Internet of Things (IoT) platforms to constantly monitor the systems and ensure the safety of building owners and managers and provide full trans- parency at all times. With this, we can bring predictability and a totally new level of transpar- ency. We have started to sell outcomes to our customers in the form of expert services and products. That’s what our customers expect from us. How is the Middle East market different from the global scene? Our biggest market in the Middle East is the UAE; it has been a very strong market for us in the past years. As we know, there is a lot of residential and commercial construction going on be- cause of the Expo 2020. Saudi Arabia has also been a big market for us, but it has been a bit difficult one for the past few years. It’s very interesting to operate in the Middle East because the customers here expect all the latest solutions and outcomes from you. In addition, the region is also witnessing a lot of high- rises being built along with the rising population density. So, the region is serving as a base for very forward- looking customers. What are the major regional projects that KONE is working on? We are working on the Riyadh Metro and the Doha Metro, both of which are progressing smoothly. In Dubai, we will be supplying 23 elevators for the WOW Hotel and Hotel Apartments, lo- cated in Business Bay. One of our most important projects is the ICD Brookfield Place in Dubai, where we are supply- ing 46 elevators and five escalators. We have also worked on the Four Seasons hotel in Abu Dhabi. In addition, we have witnessed tremendous success in the Egypt market as well. We are in a lot of discussions with our customers in the region and let’s see what’s the future has in store for us. What are your focus strategies to grow big on innovation? If you look at KONE, we have always invested a lot in innovation. That’s why, we have been leading a lot of innovations in our industry. If you see the technology disruption that is going on in the world, we are bringing it to a whole new level. The most exciting of it all is the ability to bring services and solutions that fits the individual needs of the customers. We can serve our customers the way they want to be served. We put a lot of efforts and are the first ones to offer services to our customers to suit the individual needs. Customers don’t come to us to buy technology; they come to buy outcome and individual service. We can help our customers to design and figure out how fast and ef- ficiently they can move around in the building without having to wait; that’s what they come to us for. How has digitisation helped KONE reach out to customers? Connectivity is a big part of our busi- ness. When we are connecting more and more elevators and escalators to the cloud, we monitor them all the time and are able to understand how many people have moved, how long have they waited, what’s been the traf- fic like, and many more. Further, we can help our customers to understand whether they have set up the building efficiently based on the data. We have always been one step fur- ther and try to evaluate the outcome our customer needs. We want to de- velop solutions that helps our custom- ers succeed in their business. We have been investing more than ever in new technologies and innova- tions. The Middle East is a great area to work because customers here do expect the latest solutions from you. In a [positive way], it’s a very demand- ing market and that’s why we have performed here so well. How important is sustainability for KONE products? KONE’s elevators are the most energy- efficient ones in the market. We revolu- tionised the industry almost 20 years ago when we introduced our MonoSpace solutions. Since then, we have been constantly reduced our energy consump- tion. If you look at our new services that we come up with, it helps us provide Henrik Ehrnrooth, KONE Corporation
// construction business news me // May 2018 44 much better results to our customers. In case of a failure, our technicians are always behind the wheels, and can fix it at one go, which in turn, also means that we reduce the driving time. This entails that we conduct our services in a much more sustainable manner. What will be the prime focus for KONE in 2018? One of the good things is that there are opportunities everywhere. A lot of infrastructure projects are coming up in the Middle East. And with the scale and size of the business that we have, we can help our customers succeed with the complete cycle. The expectations of the customers moved very fast. When you are con- nected to a cloud or a digital platform, we can remotely keep on adding new services to keep the solutions relevant even after a decade. We launched our KONE Digital Platform a few weeks ago and this is precisely what it is all about. We also have third-party servic- es where they can help our customers based on individual requirements. In a way, we have expanded our horizon since we do not have to deliver all the services ourselves. // Face to face
// construction business news me // May 2018 46 // Interview Cimolai explains the latest advances for The Oculus project in New York for which it manufactured and delivered the steel structure O ne of Italy’s longest-established steel production, supply, and construction conglomerates, Cimolai, and Rimond, the innovative, technology-driven design, and built asset consultancy company, have joined forces in the Middle East, in order to provide their clients with the most complete expertise in architecture, engi- neering, and construction sectors. Together the joint venture partners, operating from its regional base in Abu Dhabi, offer a complete range of services based on the latest advances in the sector. One of the projects that demonstrates the joint venture’s ca- pabilities is The Oculus in New York, for which Cimolai has manufactured, delivered, and assembled its signa- ture steel structure. In the heart of Lower Manhattan, next to the Ground Zero memorial, Santiago Calatrava built a truly awe- inspiring piece of architecture. The Oculus or World Trade Center (WTC) Transportation Hub, was meant to be the centerpiece of WTC Recon- struction project, resembling a dove taking flight. The original design was truly unique, consisting of the steel ribs that could open and close, opening the main hall of the station to sunlight and air. It was meant to be the third largest transportation center in the New York City, standing above the largest net- work of the underground pedestrian connections in the city. The curving white steel ribs would rise from below the ground to form a cathedral-like dome over a vast concourse. The audacity and the bold- ness of the design has persuaded the Port Authority of New York and New Jersey to choose Calatrava’s designs, however, the security concerns as well as the extreme complexity of the structure, the necessity to build it in a very constrained space while keeping the underlying subway lines operating, lead to several modifications to the original design. While keeping the vast interior of the hub virtually column-free, the
construction business news me // May 2018 // www.cbnme.com 47 architects had to dismiss the idea of completely transformable roof, enhancing the strength of the columns and reducing the amount of glass used for the roof. Still, an extended glass skylight was running throughout the dome, intended to maximise the autumnal equinox sun, and keeping a possibility of being manually open for air ventilation. The above-ground steel ribs became thicker and went deeper underground, supporting several underground layers used for train plat- forms, metro, and retail spaces. The unique curvilinear steel ele- ments forming the rare vierendeel truss layout and each weighing between 10-25 tons could only be manufac- tured abroad, for which Port Authority had selected Cimolai to manufacture, deliver, and assemble more than ten thousand tons of steel elements com- ing from a factory in Northern Italy. The total amount of steel consisted of 588 pieces, that had to be put together on site like a jigsaw puzzle, held by more than two thousand welds. Given the extremely restricted construction site dimensions, safety concerns, and time constraints, the primary goal was to find a way to reduce the number of steel elements stored onsite, as well as minimise the disruption of the sur- rounding infrastructure. In order to do this, a precise erection schedule was developed, along with the unique con- struction crane supports, making sure up to four freestanding columns could be installed at once. Welding the gigantic pieces on site posed significant construction and scheduling risks, so instead spe- cifically designed bolted connections were used. And this served as a great example of Cimolai’s steel work and bridge engineering experience applied to building construction. The obstacles considered relatively rare for conven- tional building construction (raised safety concerns, limited site area and tight schedule, material specifics as well as structural demands) were instead quite commonplace for steel bridge construction. We talked to Denny Regini, project director of Cimolai, who worked on the WTC project, to tell us more about working on such an iconic project. The client had for the steel elements to be produced in Italy, which was quite a specific choice. What made the client choose Cimolai for the project? Cimolai has consistently demonstrated that its knowledge, expertise, and experience in projects can be a signifi- cant factor in identifying cost-effective solutions, in terms of both production and erection. The problem-solving approach of the Cimolai team allows us to realise any kind of project, op- timising time and costs in the design. There are very few companies in the world that can demonstrate such an extensive experience of working on highly complex, iconic and culturally significant structures, and by selecting Cimolai, the client has ensured an ef- ficient, timely, and reliable manufactur-
// construction business news me // May 2018 48 ing, delivery and assembly of the steel structure, the most characteristic and complex part of the Oculus project. How did Cimolai’s experience in steel manufacturing contribute to the project overall? Cimolai has a dedicated team of engineers for each of the individual processes such as design, procure- ment, fabrication, and delivery. The specialisation allowed these teams to gain a deep knowledge of their respective fields which, in turn leads to compliance with times, costs, and safety (HSE), above all. How did you manage to deliver and assemble the giant steel elements with all the space and time constraints? In coordination with Skanska USA, the main contractor, the metal structure elements were divided into six types, with constructability and transportabil- ity in mind, with the focus on minimis- ing work on the construction site. This had to be done while ensuring the elements themselves are created to be transportable by sea freight from the Italian workshops of Cimolai S.p.A. to the terminal at Red Hook in New York and eventually to the World Trade Center site. What were some of the unique and project-specific techniques or equipments used for this project? To guarantee the correct and fast assembly of the components and to reduce the site fit-up operations, the most critical elements of the structure were fabricated and put together in groups. In order to insure the geo- metric congruence and fit-up with the remaining elements of the building, the whole structure has been virtu- ally pre-assembled, which provided the engineers with a detailed under- standing of all the available solutions and allowed them to define the most space- and time-efficient assembly strategy, eliminating potential errors and once again proving Cimolai’s exceptional steel manufacturing and assembly capabilities. As the structure was completed and opened to public, it received overwhelmingly positive reviews, reversing the scepticism of the critics caused by delays in construction, design controversy and cost increases. The Guardian named the building an example of an optimistic vision of the future, arguing that when looking into the 21st century, the architects and engineers have to overlook the practical challenges, and with their structures and designs, put together a brighter, more exciting future, one building at a time. What was the most significant challenge of the project, and how did you overcome it? The structures envisioned by Santiago Calatrava are known for their com- plexity, and the Oculus was no excep- tion. The steel ribs of the structure had a truly unconventional shape, having a curvature in all three dimensions. In order to make the steel elements hard enough while keeping the structure light and dynamic, carbon steel as well as two different types of stainless steels were used. // Interview
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// construction business news me // May 2018 50 // Machinery & Vehicles Our monthly review of the workhorses of the construction industry Muscle & Might Muscle & Might A roundup of the important updates from the global construction equipment market CCS Gulf explains the benefits of project management software MAN Middle East MD comments on the new approach to the market for the industry leader CBNME takes a preview of the new SLT range variants of the Actros and Arocs from Mercedes Benz-Trucks 52 54 58 62
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// NEWS // construction business news me // May 2018 52 Safety Expansion Al-Futtaim Auto & Machinery Company (FAMCO) introduced a special edition of Volvo Trucks’ famous FH hauler for the UAE market last month with the two companies stating that it is in- tended as a showcase for the very latest technology. At a launch event at FAM- CO’s premises at Dubai In- vestment Park, executives said that the safety features showcased on the Safety Edition Volvo FH truck can lower insurance costs, re- duce cargo loss, and down- time due to accidents. “We are extremely pleased to launch Volvo Trucks’ safe- ty features in the UAE,” said Vladimir Knezevic, managing director, FAMCO UAE. “The Safety Edition Volvo FH truck with safety features was built with one thing in mind: the driver. The truck contains numerous world’s first in- novations which will assist in safe driving, fast loading, and fatigue reduction, thus increases productivity.” UAE fleet owners will be able to utilise features such as headway support which warns drivers of potential collisions as well as the lane change and lane keeping systems which send alerts if they detect drifting or ob- stacles when a truck begins to move to another lane on a highway. Other features in- clude the Electronic Stability Program (ESP) which reduc- es the risk of skidding and rolling over, a dashboard display for the Tyre Pressure Monitoring system, and ac- tive steering controlled by the company’s Volvo Dy- namic Steering system. The companies described the suite of advanced safe- ty features as being in line with the UAE Government’s vision 2021 which is work- ing “towards providing a sustainable future and Vol- vo Trucks commitment to matching customer needs”. Jan-Erik Thoren, manag- ing director of Volvo Trucks Middle East, added: “Our engineers are responsible for some of the world’s most important safety in- novations and we’ve con- tinued on this tradition with the launch of this safety edi- tion in the UAE.” Mobile crane specialist, Mammoet, says it has added 35 telescopic and crawler cranes to its existing fleet in the Middle East. The additional cranes range from 30t to 1250t in capacity and will be avail- able through the Dutch company’s GCC branches in the UAE, Saudi Arabia, and Oman. Mammoet has been ac- tive in the Middle East for over 40 years and is well- established in heavy lifting and transportation for the petrochemical, offshore, power and civil industries. Its regional head office was established in Dubai in 1974, and the company has gone on to work on some of the most prestigious projects in the region. Martijn Kuipers, managing director of the Middle East and Africa region, said the expansion of its range is in- tended to meet strong mar- ket demand and support its aim to grow the company’s crane rental services. The expansion will in- crease Mammoet’s capacity in the region and comple- ment the diverse fleet of equipment for projects and day market jobs, he added. “This expansion will al- low us to provide a com- plete range of heavy lifting, installation, and transportation solutions to meet the specific needs of our clients more efficient- ly,” said Kuipers. “The enhanced availability of the equipment within the region will considerably reduce mobilisation time and associated costs with- out any compromise to the quality of our services.” Productivity is key to new Safety Edition Volvo FH in UAE Demand behind Mammoet’s Middle East expansion of fleet
construction business news me // May 2018 // www.cbnme.com 53 cranes Cummins takes visitors to a new reality at MEE 2018 Engine giant Cummins took visitors on a virtual reality experience at MEE 2018 as it launched its latest generators for the market. Explaining that users were able to step inside a genera- tor plant room and connect a complete power system, Alok Joshi, Cummins Power Generation, director, Africa and Middle East, described last month’s event as “a per- fect platform for Cummins to debut its latest innova- tions for the power-genera- tion sector.” At the show, Cummins in- troduced the new C450 D5, an expansion to its QSG12 series of diesel gensets for commercial and industrial markets at the Dubai World Trade Centre and said that the product “offers more power for less space by de- livering a much higher pow- er density and a more reli- able power solution”. The series is available from 400 kVA to 450 kVA, powered by a Cummins four-cycle, in- line, six-cylinder dual-speed diesel engine “offering more robust performance using less fuel,” said Cummins. Additional features include extended service intervals of 500 hours, a lower fuel con- sumption, and unaided cold- start capability at 12°C. The company also demon- strated the newest addition to the QSK60 gas-engine portfo- lio. The C1540 N5CC is suitable for both independent power producers and combined heat and power applications. “Supplying electrical effi- ciency of up to 43.8%, the upgraded model reduces total cost of ownership for its customers, and delivers world-class power efficien- cy,” added Cummins. A new 9.5l G-Drive Coolpac series was on display sport- ing the newly-released Cum- mins black colour. Cummins said the 6LTAA9.5-G1 G- Drive Coolpac model, avail- able at 350 kVA, offers higher efficiency and dependability. With a 24-valve and a larger- flow injector design, it claims the new model delivers one of the highest power-to- weight ratio in its class. Finally, Cummins also displayed its Digital Mas- ter Control 8000, a fully- automatic, distributed logic controller for remote appli- cations, making it easier for users to integrate and adapt their varying power needs. The new system can control diverse power sources such as solar, genset, and wind. With available remote access and monitoring, users can access the control system securely, and view up to 90 days of data logging. Linden Comansa’s new 16CM260 12t flat-top crane received its regional debut at the Big 5 Heavy trade-show last month. Visitors to its exclusive UAE dealer AREMATES’ stand were given the op- portunity to closely see the design of the crane model as well as the Spanish crane- maker’s exclusive double trolley system. The crane has a maximum load capac- ity of 12t and a maximum reach of 70m. While it was only erected to 7m at the show, on a jobsite, the 16CM260 has a freestanding height of 64.5m with a stan- dard mast configuration but is also able to exceed 100m with special configurations. Linden Comansa added that it believes the model is well-suited to the demands of many countries in the MENA region: “Thanks to its 12t maximum load and maximum reach of 70m, this flat-top crane meets the requirements that are currently most demanded by the con- struction market in the UAE, Saudi Arabia, Egypt, and Oman.” The crane was featured at the Big 5 spin-off show in Dubai alongside other products and services - including the rental, sale, assembly and maintenance of tower cranes - available through Linden Comansa’s UAE distributor. Emirates Motor Company Daimler Com- mercial Vehicles (EMC - CV) says it is sup- plying a fleet of new Mercedes-Benz trucks to Abu Dhabi-based transport specialist Khalfan Abdullah General Contracting and Transport Est (Khalfest). EMC – CV, Mercedes-Benz’s authorised distributor in Abu Dhabi, said a delivery of 15 6x6 trucks last month was the first part of “a long-term plan to supply” Mercedes- Benz and Titan trucks. Announcing the deal, EMC – CV de- scribed Khalfest, as an important and stra- tegic customer in the off-road and oil field sector, with powerful multi-wheeled haulage vehicles designed to carry extremely heavy loads across long distances. “EMC - CV has a long and productive relationship with Khalfan Abdullah General Contracting and Transport Est that spans almost two decades,” commented Bilal Al- ribi, general manager, EMC – CV. “We are delighted to be able to play a key role in the ongoing success of Khalfest, which helps to meet the transport needs of some of the biggest companies in the UAE.” Owner of Khalfest Khalfan Abduallah Al Mazrouie suggested the deal was a reigni- tion of his company’s “successful partner- ship” with EMC – CV. “Our long-standing relationship with EMC CV is built on the strong foundations of mu- tual respect and trust, with both companies providing each other with a solid platform for continued success that helps to drive the country forward,” he added. AREMATES reveals new flat-top at Big 5 Heavy Khalfest and EMC agree new supply deal
// construction business news me // May 2018 54 // talking point Ian Hauptfleisch, general manager (MENA), CCS Gulf, explains who really benefits from project management software Intelligent integration T he capabilities and effective- ness of construction project management software has evolved massively in a short period of time and the most reputable and trusted providers continue to upgrade and enhance their product of- ferings to stay abreast of and in many cases lead the market requirements. “At the cutting edge of technology, integrated construction project man- agement software provides contrac- tors with an incredibly diverse and effective tool box that they could only think of as pipe dreams in the past,” notes Ian Hauptfleisch, general man- ager (MENA) of construction software powerhouse, CCS Gulf. “In this fast- paced, demanding industry, choosing the right software can be vital in win- ning and managing projects. “At its core, finding the right solution is about understanding the requirements of all the project stake- holders. Sometimes, you really can have too much choice but one of the best ways to distinguish between the software offerings in the market is to consider their capability in providing truly integrated end-to-end construc- tion project management.” At the top of the construction pyramid is the project owner - or his representative if a third party has been employed to oversee the project. “This is usually the entity who has financed or sponsored the project. The big picture information, crucial to this stakeholder, will be related to the progress and budget of the party who sponsors/finances the project. This person wants to know the real-time and overall costs, versus the sched- uled budget” explains Hauptfleisch. “Construction software is renowned for its accuracy, complete and up to date reporting, which will give great confidence and comfort to the owner as opposed to bespoke spreadsheets or autonomous reports.” The general or main contractor, appointed as the primary contractor with the responsibility for the overall project management, will be account- able to the owner for delivering the project on time and on budget. The general contractor usually employs specialist sub-contractors to complete certain specialised trades or elements of the contract. “While integrated reports benefit the owners, the same information is critical for the general contractor himself. Spotting potential issues early and making the right and timely adjustments will assist them to stay on track. The ability to track and man- age the sub-contract bids; progress; valuations and payments; record daily transactions between the principle contractor and sub-contractor; assist in highlighting possible constraints between the parties; and timeous completion of the works is one of the many elements that early adopters of this system rave about.” He remarks: “Payments, whether a traditional measure or milestones, are required to monitor and prog- ress subcontract works. Integrated systems allow for easy monitoring of completed works, the smooth receipt of invoices and timeous pay- ments thereof.” In much the same way as an owner, if a bank or financial institution is fi- nancing a project, they want to be sure their investment is safe and sound. Many financial arrangements of this type will also have a phased release of funds that will be triggered by measured works or milestones. Haupt- fleisch contends that, as with reporting to an owner, the integrated true and accurate data and reports generated by construction project management software is infinitely more reliable than ad hoc project updates. “Various levels of access or informa- tion reporting can be agreed and set up from the outset or adapted on the go,” he points out. “This can be a key selling point during the negotiation phases in securing financial support from premium institutions, as this greatly assists with their initial and ongoing due diligence.” Choosing the right software can be vital in winning and managing projects.”
// construction business news me // May 2018 56 // Machinery A small rounder M B Crusher has earned a reputation for supplying its range of machines as attachments for larger equipment in the Middle East, from construction projects to the dust bowls of quarries. However, at last month’s Intermat 2018, the Italian company launched a new cutter head for the mini-excavators and loaders that are growing in popularity here, particular- ly on landscaping and urban develop- ment projects. The MB-R500 turns smaller and nimbler equipment into milling machines capable of managing a role typically perceived to be preserve of much larger equipment. Revealed during its press conference at this year’s biggest global event for the machinery market, the MB-R500 is a relatively light operator that is designed to be easy to use while making work on a variety of sites more straightforward, especially on those that require precision. The attachment makes the most of mini equipment versatility and can be used to grind, especially resistant and tough materials, such as fragmented rocks. But it can also work on soft materials such as asphalt and perform the excavation with extreme precision. MB Crusher launches a new mini excavator cutter head at Intermat 2018
construction business news me // May 2018 // www.cbnme.com 57 to be told it is no longer necessary to dispose of the asphalt crusts resulting from excavations — and this may be a boon to some. Given how it is designed to be deployed, it is not surprising to learn that it is also the smallest cutter head in the MB Crusher range. It weighs only 300kg and can be installed on mini and midi excavators from 3t to 12t, on skid steer loaders and backhoe loaders from 3t to 8t. According to MB Crusher, its powerful cutter head has a diameter of 500mm and has been designed to grind with precision — despite its relatively diminutive size. To aid site efficiency, its drum can be replaced on site in less than an hour, without the need to take the unit to a special- ised workshop. MB Crusher told the media and buyers at Intermat 2018 that it is its most-equipped cutter head yet and like the other MB-R cutter models, it comes with a full or low set drum head kit, which allows to change the number of peaks depending on the material to grind. The cutter body rotation kit further allows the operator to rotate the cutter directly from the cab, without stopping the trench excavation work. The cutting depth adjustment kit meanwhile makes grinding edges and levelling possible, thus squares and roads will be ready for laying new asphalt surface. For enclosed spaces, such as tunnels or in galler- ies, the nebuliser kit and the drum cover kit reduce dust emission and enables straightforward works in enclosed spaces. Finally, to preserve the machinery used, the MB-R500 can be equipped with the temperature reduction kit, which reduces the oil temperature dur- ing operation without altering the unit performance. During the Intermat 2018 launch, MB Crusher described the MB-R500 as a “jack of all trades, but also master of all”. It could have equally chosen another phrase - small but perfectly formed. Potential roles include digging the trenches necessary for pipe-laying, and also the clearing or restoring of waterways and wadis, all with speed and precision. It is also a useful tool to have on urban sites such as city centres or residential areas where vibrations and noises must be contained. It mercifully also simplifies excavation operations for the positioning of building support plinths in areas where subsoil is stubbornly resistant. While it can be used underwater, MB Crusher will be hoping it can prove to be indispensable on roadworks. For that role, the MB- R500’s cutter head makes it possible to perform excavations within a minimum size and recover material to reuse it. In an age where contractor margins are getting tighter, it is helpful
// construction business news me // May 2018 58 // Trucks CBNME talks to Franz Freiherr von Redwitz, managing director, MAN Truck & Bus Middle East, about its new approach to the market T h e p e r s o n a l a p p r o a c h “Customers are becoming more and more empowered. They demand more for less and our main challenge is to create proactive and personalised solutions in order to meet their expectations,” Franz Freiherr von Redwitz, managing director, MAN Truck & Bus Middle East, has just summed up the challenge facing com- mercial vehicles makers in the region. He continues: “In addition, staying on top of the latest developments is a full-time job in itself, encompassing everything from team management to technology, safety, and legislation. Es- pecially innovation and costs associated to creating digital solutions, I personally see as one of the major challenges for most of providers in the commercial vehicle industry.” MAN is fortunately tackling this chal- lenge head-on by instigating a hugely ambitious programme of improving the development and production of its vehicles under the appropriately named PACE2017 programme while also reshaping itself into a leader in the digitalisation of the industry. It is not all white coats and clipboards either, with the company embarking on the CustomerFirst strategy which ties together customer feedback, importer support and MAN’s own globally spread expertise to understand and tailor-make products and services on an individual fleet-owner basis. Barely a few years into this overhauling of its approach, the benefits are already being felt. “MAN significantly improved operat- ing profit in 2017. MAN’s operating prof- it rose to EUR566mn in 2017,” explains Redwitz. “Sales revenue growth and the PACE2017 programme for the future at MAN Truck & Bus were strong earn- ings drivers. Demand for trucks, vans, and buses in the commercial vehicles business area recorded largely positive growth in key regions. Following the strong recovery in the previous year, the European commercial vehicles market was unchanged at a high level.” He continues: “The Middle East has undergone through a challeng- ing period; more specifically different industries have been affected including commercial vehicles due to the insta- bility of the region and falling oil pric- es. However, I can confidently say that we still keep our high-market share in most of the markets in the Middle East due to high level of innovation, the quality of our products and services, as well as our strong customer focus that proved a distinct advantage. We are also making one step forward in the customer-centricity area by rolling out the CustomerFirst programme for the first time in the Middle East.” Expanding on the point, Redwitz tells CBNME that MAN Truck & Bus Middle East is preparing to launch the pro- gramme this year following its unveil- ing at the MAN After-Sales Conference in Muscat in March 2018; He explains that the programme uses customer feedback to continuously monitor the performance of MAN and its importers in the region. “When introduced, it will be the first time that a commercial vehicles manu- facturer will systematically record data on customer satisfaction to improve ser- vice quality in the region. CustomerFirst has already proven to be successful in other markets for MAN and its partners. It has also been awarded at the German Excellence Awards 2018 in February
construction business news me // May 2018 // www.cbnme.com 59 “Customers are becoming more and more empowered. They demand more for less and our main challenge is to create proactive and personalised solutions in order to meet their expectations.”
// construction business news me // May 2018 60 year demonstrates MAN Truck & Bus’ commitment to providing world-class transportation solutions. This is a vehicle that provides excellent total cost of ownership and will also place fleets at the centre of a transformation towards modern, cleaner, and safer transportation in the Middle East,” he says. “We’ve also displayed the new Lion’s Coach for the first time in the Middle East at the UITP MENA Exhibition from April 23-25, 2018, at World Trade Centre, Dubai. ‘Inspired by the lion’, the MAN Lion’s Coach, with its modern yet time- less design, marks the beginning of the new MAN bus design language at the front, rear and sides.” As MAN Truck & Bus Middle East’s approach to the market and its vehicles have evolved, so have the markets it serves. The beginning of 2018 saw the introduction of VAT in the GCC, a move intended to help fund the region’s continuing development. Redwitz says the company has not yet seen a major difference in fleet demand despite the introduction of the 5% levy in the market. “The introduction of a VAT regime marks the beginning of a new era in the history of the GCC economy where businesses across different industries are affected including commercial vehicles as well. The implementation of VAT is a natural part of any sustain- able economy’s development. We haven’t seen any significant change since VAT has been embedded into the pricing mechanism of the vehicles,” he comments. “However, I’ve seen some challenges when it comes to complex logistics processes related to vehicle sales, imports, etc.” in the “Products & Services - Customer Support” category”.” Turning to new technology, he says MAN Truck & Bus is moving forward and grouping its digitalisation activities from all areas of the company into one business unit. “Focussing on its digital future plays an important role in the commercial vehicle manufacturer’s ability to compete tomor- row,” he says. “Many firms that were once successful have been overruled by competitors, and such an evolution may potentially affect the majority of large established companies. The major players are aware of the challenges and importance of digital transformation, but they struggle with developing appropriate strategies and technologies to compete. Therefore, MAN is investing into innova- tion and new technologies where some of them have already seen the light of the day. For example, e-trucks are already running on the roads in Europe!” New milestones The beginning of 2018 has seen the company continue to consolidate its position as a leader in the bus segment in the region, including helping the RTA in Dubai with its need for viable public transport within the city’s increasingly densely populated urban environment. “This is a significant milestone for us with 79 double-deckers that will be supplied by MAN Truck & Bus to RTA in order to serve urban areas with high-density ridership,” he enthuses. “The double-deckers can accommodate 100 riders and are also equipped with free internet service and USB portals for charging mobile phones. These buses include modern design offering improved accessibility between decks, streamlined internal passenger move- ment, and customised design to serve people with special needs.” MAN has also reached another land- mark with the addition of the new MAN Lion’s Coach. It sets a new benchmark in luxury, attractiveness, and efficiency, remarks Redwitz. “We are a technology innovator and the new MAN Lion’s Coach that was of- ficially launched at BusWorld in Kortrijk Belgium towards the end of the last In addition to VAT, the UAE is also moving emission standards beyond Euro III this year. With MAN, a recognised champion of helping the automotive and fleet sectors become greener and more efficient, Redwitz is unsurprisingly in favour of the move. “The new emission standards that have been recently introduced are certainly good for the environment and ‘going green’ initiatives,” he tells CBNME. “The standard is set to play a key role in helping the UAE achieve its emission reduction targets and support the country’s sustainability agenda in line with UAE Vision 2021.” Looking ahead, Redwitz is confident that fleet demand will improve and that MAN Truck & Bus Middle East’s growth will accelerate - as long as it continues to present the right value proposition to its customers. “The instability of the region and falling oil prices have certainly affected the overall regional demand but I see the situation improving, especially in the long run. Managing costs and the pressure to save more year-over-year is persistent in all companies in the region. However, I can see some rise in demand in the UAE especially because of Expo 2020 coming up soon and therefore cre- ating new opportunities for commercial vehicle sector amongst others,” he says. “The competition is fierce and demand to reduce the costs of the vehicles has been one of the main challenges that most of the commercial vehicle provid- ers are facing in the region. Our strategic primary driver is providing quality and value as this can then deliver higher profits and customer satisfaction.” // Trucks
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// construction business news me // May 2018 62 // Vehicles CBNME previews a new giant for the construction sector T he concept behind the SLT is simple: toughness and strength. Almost a side-show to its main- line model siblings, the new SLT range variants of the Actros and Arocs also launched last month. Ca- pable of pulling a gross combination weight of 250T, the SLT heavy haul- age range is available with three or four axles. So confident is Mercedes- vehicles transport loads of several hundred tonnes, with up to 250t GCW when working solo and up to 750t GCW when working in a train of up to three tractor units. This can result in tractor/trailer combinations of 50 or even 100m in length, which thanks to sophisticated technology in the new SLT models, nevertheless remain ma- noeuvrable to the nearest centimetre.” Trucks in the SLTs it is almost pushing fleets to test them to their limits in its launch notes. “Heavy-duty haulage covers some of the most challenging tasks in the transport industry, moving items such as giant turbines and transformers, marine diesel engines, machinery, boilers, and wind power plants,” says the company. “Heavy-haulage W h e n t h e g o i n g g e t s t o u g h
construction business news me // May 2018 // www.cbnme.com 63 The key characteristics from the 2014 launch remain, including the enormous torque required to pull the heavy construction and oil and gas loads it is likely to be pulling in the region.” Designed to beat the heat While the new Actros and Arocs trucks were originally built at the Mercedes-Benz Wörth truck plant in Germany – the world's largest truck plant - they are specifically developed variants for the Middle East and Africa. Built to withstand the harsh operating conditions, the new Mercedes-Benz Actros and Arocs were tested in six million km of endurance runs performed by the Mercedes- Benz Trucks Testing Center based in Abu Dhabi. The key variants of the new SLT include the Actros SLT 6x4 S tractor unit: wheelbase 3300mm or 3900mm, parabolic springs, BigSpace cab, width 2.5m, maximum permissible gross vehicle weight (GVW) of 40t. There is also the Arocs SLT 6x6 AS all-wheel-drive tractor unit: wheelbase 4200mm, parabolic springs, Stream- Space cab, width 2.3m, maximum permissible GVW of 40t. And com- pleting the line-up is the Arocs SLT 8x8 all-wheel-drive tipper chas- sis: wheelbase 4850 mm, parabolic springs, StreamSpace cab, width 2.3m, maximum permissible GVW of 48t. When Mercedes-Benz Trucks un- leased the SLT models back in 2014, it described them as the vehicles to complete its so-called A-team which in- cludes not just the Actros and the Arocs but also the Atego and Antos. The key characteristics from the 2014 launch remain, including the enormous torque required to pull the heavy construction and oil and gas loads it is likely to be pulling in the region. Packed into the front of the vehicle is the Mercedes-Benz OM 473 six- cylinder in-line engine which is a
// construction business news me // May 2018 64 surprisingly unmodified version of the same engine in the Euro III version of the new Actros and Arocs. Like- wise, you get the same feature-set of 15.6l displacement in the engine and a maximum output of 425kW (578hp) and 2800Nm of torque alone. Mercedes-Benz is also releasing data that shows that it operated at an exceptionally low rated seed at 1600 rpm. This translates into vast power in the main operating range, claims the company. “Around 2500Nm of torque are on tap directly from just above idling speed on all variants,” says Mercedes- Benz Trucks. “This gives rise to unusual flexibility and pulling power – a major benefit above all in heavy- duty haulage. The engine's outstand- ing performance also extends to its spontaneous and powerful response to accelerator movements.” All that power is transmitted by the Mercedes G 280-16 transmis- sion with the Mercedes PowerShift automatic gearshift. Mercedes-Benz says it has boosted transmission for use on the SLT heavy-haulage vehicle meaning that its 16 gears have been programmed to close ratios and thus ensuring that the appropriate gear is available at all times. Given the type of work an SLT will have to endure, it is perhaps reassur- ing to hear that the SLT benefits from extremely simple operation delivered by steering-column stalk. Unsurprisingly for a Mercedes- Benz-badged truck, the automatic gearshift delivers on its promise of fast and precise gear changes. And, again, it is a reassuring aid to difficult uphill driving, especially if you are repeating the same undulating terrain. Mercedes PowerShift 3 also detects when the vehicle is operating in over- run mode on a downhill gradient, // Vehicles
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// construction business news me // May 2018 66 Khalfest and EMC agree new supply deal Emirates Motor Company Daimler Commercial Vehicles (EMC - CV) says it is supplying a fleet of new Mercedes-Benz trucks to Abu Dhabi-based transport specialist Khalfan Abdullah General Contracting and Transport Est (Khalfest). EMC – CV, Mercedes-Benz’s authorised distributor in Abu Dhabi, said a delivery of 15 6x6 trucks last month was the first part of “a long-term plan to supply” Mercedes-Benz and Titan trucks. Announcing the deal, EMC – CV described Khalfest, as an important and strategic customer in the off-road and oil field sector, with powerful multi-wheeled haulage vehicles designed to carry extremely heavy loads across long distances. “EMC - CV has a long and productive relationship with Khalfan Abdullah General Contracting and Transport Est that spans almost two decades,” commented Bilal Alribi, general manager, EMC – CV. “We are delighted to be able to play a key role in the ongoing success of Khalfest, which helps to meet the transport needs of some of the biggest companies in the UAE.” Owner of Khalfest Khalfan Abduallah Al Mazrouie suggested the deal was a reignition of his company’s “successful partnership” with EMC – CV. “Our long-standing relationship with EMC CV is built on the strong foundations of mutual respect and trust, with both companies providing each other with a solid platform for continued success that helps to drive the country forward,” he added. maintaining the engaged gear in the interests of a maximum braking ef- fect. The crawl function of Mercedes PowerShift 3 – which operates in much the same way as on the equiva- lent Volvo models - with manoeu- vring mode facilitates moving off and “centimetre-precise” manoeuvring. Various drive programmes and driving modes have been tailored specifically to the heavy-haulage ve- hicle's areas of operations. Drivers or diligent fleet managers can preselect the Power or Heavy drive programs on the SLT heavy-haulage to find the right gear shifting set-up. There is also a ‘standard’ driving mode that is suitable for fuel saving, empty runs or when transporting light loads, for example. (A ‘manual’ driving mode enables drivers to select the gears themselves.) The SLTs feature a distinctive bumper centre section featuring an attachment bracket for a heavy-duty coupling to be deployed in pushing mode. The SLT has the same bumper corners, side components, headlamps and radiator grille as its respective base vehicle, meaning that it uses plenty of economically efficient large- series parts. In addition to the cooling system for the engine and Turbo Retarder Clutch, its cooling tower also accommodates the hydraulic system, compressed air tank and fuel tank. A reinforced frame is the robust backbone of the new heavy-haulage vehicle. The longitudinal members are unwelded, consisting of cold-worked fine-grained steel, guaranteeing maxi- mum loading capacity. On the side of the frame, there is space for the Ad- Blue tank. The "catwalk", a platform behind the cooling tower, provides a safe and convenient means for the driver to walk on the frame in front of the fifth wheel coupling. The new heavy-haulage vehicle is available with various fifth wheel couplings. An adjustment device is also optionally available to optimise the axle loads according to the given payload. For pushing and towing operations – when in use as part of a heavy-duty train, for example – the new heavy-haulage vehicle can be equipped with attachment brackets for heavy-duty couplings at the front and rear. In this case, a Rockinger 56 E coupling and/or a register coupling at the front is used. The heavy-haul- age vehicle is also optionally available with a ballast platform. // Vehicles
www.automechanikaDubai.com The largest international trade exhibition for the automotive service industry in the wider Middle East 1 – 3 May 2018 Some compelling show figures: 1,955 Exhibitors 30,322 Trade Visitors 25 Official Country Pavilions 57 Exhibiting Countries 136 Visiting Countries 38 International Trade Associations Register online to visit at www.automechanikaDubai.com/Logistics
// construction business news me // May 2018 68 // Editor's pick Major events will drive growth in markets like the UAE, favourable regulation combined with economic diversification efforts for Oman and Saudi Arabia, according to BMI Research Optimistic outlook The Middle East and North Africa (MENA) construction sector will out- perform other global regions over the next five years. The region will con- tinue to lead the world with respect to construction sector growth over the short-term, with forecast projections annualised average growth of 6.9% from 2018 to 2022, according to a new report by BMI Research. In a global context, this places MENA above second placed Sub- Saharan Africa, where growth will average 6.75% over the same time period, and substantially above last placed Latin America, where growth will average 2.6%. Within MENA, construction sector growth patterns will be sharply diver- gent, with select markets shouldering the growth burden and others weighed down by political uncertainty and security risk. UAE The UAE will be one of the best per- forming construction markets globally in the short term, driven by elevated investment inflows associated with the Expo 2020 in Dubai. The degree to which Expo 2020 informs the outlook for the UAE is demonstrated by the forecast trajectory, which projects strong growth over 2018 and 2019 – averaging 6.6% and 6.4%, respec- tively – before tailing off post-2020 to average 3.7% over 2021 to 2022. Over the longer term, construction sector growth will be kept in positive terri- tory by an anticipated rise in the price of oil, a positive economic outlook, and ambitious economic diversifica- tion plans, the last of which will see the country’s non-residential building sector outperform Oman Oman will emerge as one of the fastest growing construction markets globally over the next five years, driven by an advantageous regulatory framework that facilitates capital from international investors into infrastructure projects that advance the government's economic di- versification agenda. Illustrating Oman’s effectiveness with respect to chan- nelling private sector investment into infrastructure development, expectation is that Oman’s Special Economic Zones will function as an investment focus for foreign companies seeking to increase their exposure to the Sultanate’s infra- structure sector continues to play out. Egypt Egypt's construction industry will be one of the best performing markets over the next five years, both on a global and a regional basis, growing by an average of 7.5% in 2018, before accelerating to average 9.8% over the next five years. Though construction sector growth will be relatively broad- based, it is expected that the country's non-residential building and power segments to outperform on the back robust structural demand. Saudi Arabia The Kingdom will trail the countries listed above with construction sector growth in Saudi Arabia will remain- ing relatively subdued in 2018 and 2019 (4.1% and 5.4%, respectively), as a lower oil pipeline weighs on the government's ability to finance its ambitious infrastructure devel- opment pipeline. Having said that, as oil trends higher post- 2019, it is expected to see growth rebound and remain elevated over the course of our forecast period. Commercial infrastructure will assume an increas- ingly important role in driving head- line growth in Saudi Arabia, as the country looks to build the foundation of a post-hydrocarbon economy. The kingdom will likely to continue to lean upon the ‘megaproject model’ of developing commercial infrastructure projects, in line with government’s ambitious development goals that will buoy further investment into commercial construction in particular as part of its Vision 2030. Despite MENA possessing a number of standout infrastructure markets with respect to sector growth, the region simultaneously possesses a number of growth laggards, largely down to the myriad security risks that continue to afflict parts of the region. In particular, the report highlights Libya and Yemen in this regard, with both facing a protracted period of civil strife that will see construction sector growth in each depressed over the near term. The forecasts reflect the lack of optimism in a political reconcil- iation at any point over 2018 and 2019, with Yemen’s construction sector fore- cast to contract by an average of 3.4% and Libya’s by 7.8% in this timeframe, rates which render both countries among the worst global performers in terms of construction sector growth.
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// construction business news me // May 2018 70 // Save the date Mark your calendar Save the date Indian Property Show Dubai, UAE Indian Property Show is an internationally acclaimed event showcasing Indian Properties to NRIs across the globe. It is one of the best property shows in the world and one of the most awaited events on Indian proper- ties in several countries. This is the best opportunity to get the latest information, deals and best prices and much more. So far, Sumansa Exhibitions have organ- ised 30 such shows internationally in locations such as the UAE, UK, South Africa, Singapore, Qatar, and Hong Kong. African Construction Expo Johannesburg, South Africa African Construction and Totally Concrete Expos caters for the entire African construction, cement, and concrete industries. The audience includes architects, engineers, contrac- tors, quantity surveyors, government representatives as well as suppliers of products and services to the indus- try. Build a network of local agents and distributors to sell your products across Africa, it attracts buyers and specifiers from 40 countries, of which 15 are African, and a chance to meet face to face with senior decision mak- ers from the private a public sector. Coatings for Africa Johannesburg, South Africa The event, previously organised by Surface Coatings Industry Employers' Association (SAPMA) and Oil & Colour Paint Chem- ists' Association (OCCA), connects the entire paint and coatings value chain, from raw material suppliers to end users of the finished product. More than 1,400 partici- pants from 35 countries (including 12 from Africa) attended the last Coatings for Africa where 32 industry experts addressed over 210 conference delegates. Coatings for Africa 2018 is the ideal place to discover the latest trends affecting the region's en- vironmental, manufacturing and industrial needs and provides a fantastic networking opportunity for the coatings industry. Automechanika Dubai Dubai, UAE Automechanika is the world’s big- gest trade fair for the automotive aftermarket. Held in 14 countries worldwide, the Dubai edition is the most sought-after event in this part of the world. Industry experts proclaim it to be the perfect time to explore new products, find new sup- pliers, connect with new distributors and wholesalers, while comparing product alternatives. Automechanika Dubai 2017 presented 1,955 exhibi- tors from 57 countries and welcomed more than 30,322 trade visitors from 136 countries. May May May May 21-23 16-17 29-31 1-3
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