Construction Business News
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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS Cities are the economic powerhouses of society and home to more than half the world’s population. As they continue to grow, how will they adapt and change to new technologies, climate conditions and the population demands of the future? NOVEMBER 2015
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 2 NEWS OHSAS 18001 certified ISO 9001, 14001 and 130+years of project experience LEED Platinum, LEED Gold and LEED Silver Capability End to End Integrated Solutions Pioneering Engineering Construction since 1881 www.drakescull.com 700+ Projects Delivered For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world. Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 3 26 URBAN SHIFT CITIES ARE THE ECONOMIC POWERHOUSES OF SOCIETY AND HOME TO MORE THAN HALF THE WORLD’S POPULATION. AS THEY CONTINUE TO GROW, HOW WILL THEY ADAPT AND CHANGE TO NEW TECHNOLOGIES, CLIMATE CONDITIONS AND THE POPULATION DEMANDS OF THE FUTURE? EDITOR’S NOTE NEWS CIA AWARDS AFTER MONTHS OF PREPARATIONS AND HUNDREDS OF NOMINATIONS, 20 COMPANIES WERE AWARDED FOR THEIR ACHIEVEMENTS AND CONTRIBUTIONS TOWARDS THE ADVANCEMENT OF QATAR AT CONSTRUCTION INNOVATION AWARDS ANALYSIS ZANE HEDGE EXAMINES CONSTRUCTION PROJECTS IN THE MIDDLE EAST AND HOW DELAYS SHOULD BE RIGHTFULLY TACKLED WITH TIME IMPACT ANALYSIS PROJECT REVIEW AS TURKEY CARVES ITS REPUTATION AS A GCC INVESTMENT HOTSPOT, CEYDA CARMIKLI, EXECUTIVE BOARD MEMBER OF NUROL REIT, SPEAKS WITH CONSTRUCTION BUSINESS NEWS ME ABOUT SUSTAINING THE PACE TAKE 10 WHILE THE SMART CITY ITSELF CANNOT BE DEFINED BY A SINGLE MEASURE, INVENTION OR INITIATIVE, THE COMBINATION OF CUTTING EDGE TECHNOLOGIES AND INTEGRATED SERVICES IS TRANSFORMING URBAN HABITATS. TAKE 10 LOOKS AT THE TOP TECHNOLOGIES FROM AROUND THE WORLD 6 8 16 24 44 32 cover story 26 32 CONTENTS
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 4 S U B S C R I B E C O N T R I B U T O R S subscriptions@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333 Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Stuart Matthews Marlow McGuinness Ltd ------- Joanne Bladd COUNTRY FOCUS WITH A BOOMING TOURISM SECTOR AND RISING ECONOMY, TURKEY HAS SOON BECOME A HOTSPOT FOR MODERN REAL ESTATE. CONSTRUCTION BUSINESS NEWS ME EXAMINES THE MARKET AND HOW THIS COULD AFFECT COUNTRIES WITHIN THE GCC SUSTAINABILITY MYTH VS FACTS: COMMON MYTHS IN GREEN CONSTRUCTION, BY HOLLEY CHANT, EXECUTIVE DIRECTOR, KEO INTERNATIONAL CONSULTANTS DR MOETAZ EL HAWARY COMPARES GLOBAL STANDARDS OF GREEN CONSTRUCTION WITH KUWAIT’S GROWING SECTOR TECHNOLOGY DR ASIF SHARIF LOOKS THE AT THE MATTER OF DATA HOSTING, OWNERSHIP ISSUES AND THE QUESTION OF WHAT HAPPENS TO DATA AS PROJECTS COME TO AN END Q&A STEVE COCKERELL, INDUSTRY MARKETING DIRECTOR OF RAIL AT BENTLEY SYSTEMS, SPEAKS WITH CONSTRUCTION BUSINESS NEWS ME ABOUT THE IMPORTANCE OF TRUSTED INFORMATION COMMENT MARCOS BISH ANALYSES FUTURE DESIGN TRENDS AND HOW SUSTAINABLE DESIGN AND CONSTRUCTION COULD MAKE WORKSPACES MORE PRODUCTIVE MACHINERY SUPPLIER NEWS EVENT PREVIEW EDITOR’S PICK 38 47 48 50 54 41 58 60 62 66 50 44
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 6 LET’S GET WIRED Over 70% of the world’s population will be concentrated in urban areas by 2050, according to UN reports. In 2014, the World Health Organisation (WHO) claimed the percentage of the world’s to- tal population in urban areas had already reached 54% compared to 34% in 1960. We are moving at a faster rate at this point, with the introduction of smart technolo- gies and gadgets, which have literally and virtually transformed the entire world. The word ‘smart’ has been redefined and the allure for smartness has been grasped by one and all. The East and Southeast Asia has relatively picked up pace, em- bracing new technologies and investing in their talent pool. The GCC on the other hand seems to be leading the way. According to EMC Mid- dle East and International Data Corpora- tion (IDC), countries within the GCC are widely expected to have one of the highest urbanisation rates in the world ranging from 80 to 100%. With speedy preparations for World Expo 2020 in Dubai, UAE government in particular has been taking several measures to adopt technology. Earlier this year, Khaleej times reported that Dubai Municipality is set to spend AED3bn on sustainability and smart city projects this year. While the Dubai Roads and Transport Authority (RTA) told The National that 408 signals in the city were connected using 3G technology. IDC pre- dicts that by 2020, the world will see more than 30 billion connected devices. Sheikh Mohammed bin Rashid Al Mak- toum, Vice President and Prime Minis- ter of the UAE and Ruler of Dubai also launched the Mohammed Bin Rashid Smart Majlis in October this year. The majlis is set to be the largest smart and in- tegrated platform in Dubai connecting 30 entities to receive suggestions, comments, and ideas. Krishna Iyer, CEO of I3ISAM, at the 5th Municipalities and Smart City Sum- mit urges there is a great need for em- bracing new development strategies to improve the structural layout of cities and make them susceptible to suit the chang- ing demographics. Not only is “smartness” affecting con- struction, it is transforming it. At this year’s Gitex Technology Week, digital construction sites and connected homes were a highlight. With the total number of projects in GCC's pipeline (planned and underway) in 2015 is set to reach values of $2.8 tril- lion, according to a recent report from Deloitte, there is a huge scope for smart technology moving forward. As these developments continue to re- define urban planning and regulations, as well as driving fit out demand across the end-user spectrum, the need for the construction industry to innovate, will only grow. EDITOR’S NOTE LORRAINE BANGERA Editor
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CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 8 NEWS Nakheel has announced a net profit of AED3.61bn for the first nine months of this year, which is reportedly a 39%, or AED1bn increase of profits one year ago (AED2.6bn). The increase, according to the developer, is mainly due to continued strong performance and ongoing handovers of properties to customers. The com- pany’s growing retail, leasing and leisure businesses also contributed to the overall financial results for the first nine months of 2015. Nakheel chairperson Ali Rashid Lootah said: “The significant increase in our net profit for the first nine months of 2015 compared to the same period in 2014 is a sign of stability in the local real estate market. “We have announced more than AED3.1bn worth of construction contracts in the last three weeks alone, highlighting our commitment to contributing positively and effectively to Dubai’s real estate sector.” He added that the company’s strategy of continuing to create more cash- generating assets will further boost the business and financial results in the coming years. Harbin Electricity International and ACWA Power, preferred bidder of Dubai Electricity and Water Authority’s (DEWA) Hassyan clean coal power plant in Dubai, has chosen Alstom as the lead EPC contractor. The plant will be the first ultra-supercrit- ical (USC) coal power plant in the Middle East. It will be operational by March 2021 with a net output of 1.200MW, represent- ing a 12.5% boost of the Dubai current grid capacity. Alstom will provide its popular ultra- supercritical technology which is boiler and steam turbine generator, and will have dual fuel capacity that is able to fire both sub-bituminous coal and natural gas as back up fuel. The technology enables the power plant to run at a higher steam tempera- ture and pressure than regular coal-fired plants in order to improve the plant ef- ficiency and to decrease stack-emissions, particularly CO2 per unit of fuel burned. The power plant will produce suffi- cient electricity to power nearly 250,000 households in Dubai. ALSTOM TO WORK ON DEWA’S CLEAN COAL POWER PLANT With some of the largest construc- tion projects in the pipeline, the Saudi construction market is set to expand by 7.8% in the next four years. Most upcoming projects be- long to the social and transport in- frastructure sector. Sustained growth, rising population and economic prosperity along with government support have boosted the demand for construction material, equipment and services within the country. Experts observe that the lucrative market will soon pickup project activity with increasing private and public investment. As the need for innovative, sustainable and cost-effective building and construction solutions increases, Saudi Build held from 26 to 29 October this year aims to focus on the best ways to deliver these solutions. Saudi’s need for innovative construction solutions increases NAKHEEL’S NET PROFIT INCREASES BY AED1BN
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 9 Jumeirah Golf Estates appoints contractor for Alandalus development Jumeirah Golf Estates awarded Al Habtoor STFA Soil Group LLC the contract for the construction of Alandalus. Alandalus is Jumeirah Golf Estates latest develop- ment – a collection of 674 mid-market affordable luxury apartments and 54 townhouses. Construction is scheduled to begin before the end of October and be completed before the World Expo 2020 in Dubai. This appointment marks the beginning of the next phase of development for Jumeirah Golf Estates. The development will combine luxury lifestyle of a golf de- velopment with mid-market housing. Alandalus will consist of 674 apartments and 54 town- houses at prices starting from AED597,000; along with retail, hospitality and food and beverage outlets. This news comes following the recent announcement of Jumeirah Golf Estates first retail centre, which is scheduled for completion in Q4 2016 and will feature a grocery store and hospitality outlets. The fourth annual Emirates Green Building Council (EGBC) Congress discusses diverse aspects of sustain- able built environments. Held under the theme, ‘How do green buildings scale up? Bridging the gap between green buildings and sustainable cit- ies,’ the congress highlighted the role of green buildings as ‘silent heroes’ in contributing to the UAE’s green economy. Saeed Al Abbar, chair of EGBC, said: “This year, we have scaled up the scope of discussion to identify comprehensive solutions that drive the development of sustainable cit- ies. Green buildings, no doubt, are the silent climate change mitigation heroes in this, and lending momen- tum to building sustainable environ- ments is important to achieve the ‘green vision’ of the nation.” The second day of the EGBC Con- gress includes a visit to The Sustain- able City, a 5 million sq.ft project that was conceived to be a world-class example of what can be achieved through a commitment to sustain- ability. The delegates will also at- tend a workshop on net zero energy buildings and sustainable cities co- facilitated by EmiratesGBC and The Sustainable City. EGBC CONGRESS DISCUSSES THE ‘SILENT HEROES’ OF UAE’S GREEN ECONOMY
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 10 NEWS Caterpillar Inc. has been named to the 2015 Dow Jones Sustainability Indices (DJSI), recognising Caterpillar as a sus- tainability leader in the Industrial Engi- neering sector. This marks the 16th time Caterpillar has been included in the DJSI list. “Sustainable products, services and solutions are very important to our employees and customers,” said Doug Oberhelman, Caterpillar chair and CEO. “And we’ve been improving and integrating sustainable practices and solutions for a very long time because – in addition to being important – we know that creates value.” MAN has also been included again in the ranking, with noticeable im- provements in talent attraction, human resources development, customer re- lationship management, and supply chain management. The annual DJSI process involves a thorough analysis of corporate eco- nomic, environmental and social per- formance factors, assessing issues such as innovation management, supply chain management, climate strategy, product stewardship, labor practices and health and safety. CATERPILLAR AND MAN IN LATEST DJSI Drake and Scull Engineering (DSE) was awarded an AED224m project to deliver MEP works for a hotel complex and the expan- sion of a prominent retail mall in Dubai. The development of the mall extension will include a new high rise hotel tower and a low-rise podium that includes a hypermarket, cinemas, and additional retail space, all within a total built up area of 192,000 square metres. The company has already started working onsite and will over- see supply, installation, testing and commissioning of complete MEP works which is scheduled to handover by 2018. Ahmad Al Naser, managing director of DSE, said that the hotel complex and mall expansion is a welcome addition to iconic projects being delivered by DSE in the UAE including Habtoor City, the Jewel of the Creek and the Louvre Museum. “The project win also reflects our position in the engineer- ing sector as the preferred partner for large scale retail malls which is enhanced by our previous work on prestigious retail developments like Abu Dhabi’s Central Market and the Sahara Mall Expansion.” DSE SECURES AED224M PROJECT AWARD IN DUBAI Ahmad Al Naser, managing director of DSE Man Truck & Bus Manufacturing in Ankara
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 11 Factory and Headquarters: Saih Shuaib - 4 | Dubai Industrial City | P.O. Box - 62182 | Dubai | United Arab Emirates | Tel: +971 4 3687600 www.caparol.ae facebook.com/caparoluae twitter.com/caparoluae linkedin.com/company/caparol Indoor Air Quality is a growing concern in today’s world, with Formaldehyde being one of the largest. Introducing CapaCare AirPurify with CapaCare AirPurify is a revolutionary paint fortified with Formaldehyde Conversion Technology. The unique technology helps convert toxic Formaldehyde emissions into harmless water vapour ensuring that indoor air is fresh and safe to breathe. Protect your friends and family today, visit: www.caparol.ae/airpurify Let fresh remain fresh with CapaCare AirPurify
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 12 NEWS Damac Properties’ Damac Esclusiva and Damac Tower by Paramount Hotels and Resorts projects on King Fahd Road has completed 75% of the cladding works. More than 16,000 square metres of glass has been installed on the outside of the two towers with the cladding consisting of reflective glass, aluminium, tri anti-steel panels. The total amount of glass across the two towers to be installed will exceed 22,000 square metre, enough to cover three football pitches. Work on the front panels and back panels glass elevation has reached level 29 for Damac Esclusiva, and level 34 for Damac Tower by Paramount Hotels & Resorts. Both projects will be completed and handed over next year. “We are delighted with the progress of the construction work at our two projects in Riyadh, which will be one of the most luxurious projects in KSA, when we hand it over next year,” said Niall McLoughlin, SVP, Damac Prop- erties. “We are offering this opportunity to Saudis because we believe in the benefits of investing in the luxury real estate sector in Saudi Arabia. Buying a fully managed property in the Saudi capital, offering all services needed for individuals or families is an excellent competitive advantage by all means.” Gemini Energy Group will be branch- ing into UAE’s real estate sector with a series a luxury projects in the coming months. The group’s real estate divi- sion, Gemini Property Developers, will soon announce the ground-breaking of its maiden project, a high-profile luxury residential building. Sudhakar R. Rao, managing director of Gemini Property Developers, pointed out that diversification into real estate was a natural progression and a strategic business move aimed at leaving a mark on the UAE’s property business. “Dubai’s real estate market has come full circle since 2005, having experienced both the boom and bust cycles. Growth has stabilised in 2015, and with further tightening of the rules for off-plan sales by RERA, the market is showing signs of maturity. Gemini will seek to satisfy investor and end-user demand for qual- ity residential properties in strategic loca- tions across the GCC.” GEMINI ENERGY MAKES MAJOR FORAY INTO UAE REAL ESTATE Qatar Navigatin (Milaha) announced its financial results for the nine months ended September 30, 2015. The company has made a net profit of $264m for the first nine months of 2015, a 17% increase compared to the same period in 2014. “We are very pleased with our operating results for this reporting pe- riod. We have remained focused and disciplined in executing our stra- tegic priorities, and as a result, we continue to deliver strong financial performance and create value for our shareholders,” said H.E. Sheikh Ali bin Jassim Al Thani, chair of Milaha. Milaha reports net profit of $264m CLADDING OF DAMAC TOWERS IN SAUDI CLOSES COMPLETION From left: Sailesh Jatania, Sudhakar Rao, and Prabhakar Rao
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 14 NEWS RAK-based Al Hamra Real Estate Development has teamed up with in- ternational real estate service provider Savills’ network of more than 600 offices worldwide. Al Hamra’s flagship portfolio projects include the multi-million dollar lux- ury Falcon Island development, Bayti townhouse community, and shoreline apartments Bab Al Bahr and Royal Breeze. Al Hamra Real Estate Management Services (REMS) will work with the Lon- don-based international residential team at Savills. “We are confident that this will open up new markets for us and, in turn, drive increased awareness and interest in Ras Al Khaimah as a quality des- tination, with value-driven investment opportunities, with solid and sustain- able returns,” said Barry Ebrahimy, head of commercial at Al Hamra Real Estate Development. Ras Al Khaimah’s residential sector reported strong sales in Q2 2015, with consistent demand for its high profile projects and robust occupancy and rental rates for its quality competitively priced villas and townhouses. Dating back to 1964, Torre Arcobaleno (Rainbow Tower) at Porto Garibaldi was once an anonymous water reservoir on the site of the important FS Milano Por- ta Garibaldi railway station. The tower was first renovated ahead of the football World Cup held in Italy in 1990, a project that turned a downtrodden public works into a highly recognisable urban beacon. Since then, the Torre Arcobaleno has been a distinctive symbol of Milan’s co- lour and creativity, and has gradually be- come known as a major landmark. Now as then, in 1990, the project was prepared and the works organised by the Architecture Division of the Milan firm Original Designers 6R5 Network, represented by Francesco Roggero, Al- bino Pozzi, Rita Alfano Roggero and Kiyoto Ishimoto. The renovation - all the costs of which were met by the project’s partner com- panies and architects - is a gift to Milan and the millions of visitors it will be wel- coming during Expo 2015. The works were completed in just 71 days, employ- ing 37 workers. The Garibaldi zone of the nearby Piazza Gae Aulenti is the acknowledged nerve centre of the city’s Business, Fashion and Modern Architecture scenes. The zone, now restyled by futuristic skyscrapers, has adopted the Torre Arcobaleno as its “Colourful Ceramic Totem”, there to re- mind people of Italy’s Master Potters and the craft origins of an industry famous all over the world for its Italian Excellence. TORRE ARCOBALENO RESTORED TO MARK EXPO 2015 UAE-based Manazel Real Estate announced the appointment of Balaji Prasad as chief financial officer. Manazel’s CEO Hassan Fahmi said: “Being a seasoned finance profes- sional, Balaji’s significant financial and industry-wide experience will be invaluable to our business as we capitalise on the growth opportunities that exist here in the UAE and across the wider Middle East.” Prior to joining Manazel, Prasad was chief financial officer for Sobha LLC, where he led the company’s financial strategy, fund raising and treasury functions in addition to supporting the company’s overall busi- ness strategy. Manazel Real Estate appoints chief financial officer AL HAMRA INCREASES INTERNATIONAL REACH Barry Ebrahimy, Head of Commercial, AHRED and Charles Weston Baker, Head of International Residential Agency, Savills
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 15 ALMOOSA EXAMINES DUBAI’S REAL ESTATE MARKET Salem Almoosa, chair and general manager of Falconcity of Wonders, attributes Dubai’s resilient real estate market to several key factors, including the city’s status as a top commercial and tourism hub, a continuously rising local population, a strong appeal among international investors, and substantial government funding of major infrastruc- ture projects. With real estate transactions worth over AED64bn were recorded for Q1 2015 alone, Almoosa says that it is a sig- nificant number initiated by foreign investors. He added that the removal of the rental cap and limited supply across prime locations, among others, have been driving growth in residential demand. He anticipates additional major investments into the tourism, leisure and hospitality segments – a prediction backed by Dubai’s recent ranking as the top growth mar- ket for the MENA hotel industry in a global construction pipeline report. These and other catalysts, Almoosa said, will continue to sustain Dubai’s dominance of the Middle East’s real estate landscape and will be further magnified as Dubai Expo 2020 draws near and casts the global spotlight on the emirate as an unrivalled leisure, lifestyle and business haven. “The durability of the market will only be strengthened as Dubai Expo 2020 approaches and we attract a global audience to the diversity, flexibility and magnitude of the emirate’s property offerings.” MADE IN UAE www.intermetal.com www.verdadoors.com Dubai, UAE Tel: +971 4 884 1650 Email: sales@verdadoors.com MANUFACTURING QUALITY DOORS, KITCHENS & INTERIOR FIT-OUT Hall #4 Stand D191 23-26 November 2015 Dubai World Trade Centre
After months of preparations and hundreds of nominations, 20 companies were awarded for their achievements and contributions towards the advancement of Qatar at Construction Business News ME’s inaugural awards ceremony, Construction Innovation Awards at the Ritz-Carlton Doha on October 18 C O N S T R U C T I O N I N N O VAT I O N A W A R D S QATAR AWARDS Wissam Younane, Managing Partner, BNC Publishing CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 16
A ctivity in Qatar’s construction sector has increased at such a rate over recent years that it is now one of the world’s most active construction markets, with a project pipeline valued in excess of $280bn. Projects include Doha Metro, New Doha Port, Valley City, and of course the most anticipated projects in the region, the 2022 FIFA World Cup stadia. These projects cover transport, infrastructure and energy needs, and address ambitions to keep Qatar on the map well beyond 2022, as a place to do business, a place to experience world class entertainment and leisure, and a place to live. Under the Qatar National Vision 2030, economic, social, environmental and human development will be prioritised by the government and placed at the heart of everything the Gulf state accomplishes. Construction Innovation Awards Qatar aims to recognise and celebrate the firms and individuals who have, and con- tinue to, play a part in the transformation of Qatar. The night commenced with a speech by the guest of hon- our, Mr. Mohammed Bin Ahmed Bin Towar al Kuwari, the vice chairperson of Qatar Chamber. After which, managing partner of BNC Publishing Wissam Younane welcomed distinguished guests and allies including platinum ally, Raimondi and gold allies Famco and Arcadia Engineering. P L AT I N U M A L LY G O L D A L L I E S CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 17
W I N N E R ' S Krishnasamy is a mechanical engineer with significant expe- rience in both design consultancy and construction, involved in the delivery of many successful, major projects. He holds an MBA in project management, and has worked on a range of projects over the course of his time with Atkins. Elshazly joined the firm to a steady growth in Qatar. Most recently, under his responsibility, the company diversified its portfolio and was awarded two big projects. Elleray ensures the project team operates as one seamless group, where communication lines and objectives are well de- fined and understood by all. He has developed strategic meth- ods to keep the project staff motivated, has created new meth- ods to improve the financial strength of projects, and therefore has improved the operational performance of his firm. SAK Holding received the award for industry ecosystem innovation for its “Partner with Us” initiative to support investors and generate returns in Qatar’s real estate sector. The scheme was welcomed by the industry as a measure which can benefit a piece of land, an existing or ailing project, or any property ready for development. Award collected by SAK Holding group deputy CEO, Abdul Rahman Al-Najjar W I N N E R ’ S C I R C L E YOUNG ENGINEER OF THE YEAR ENGINEER OF THE YEAR 2015 PROJECT MANAGER OF THE YEAR INDUSTRY ECOSYSTEM INNOVATION AWARD RAMESH KRISHNASAMY, FROM ATKINS ENG. KHALED ELSHAZLY FROM QATAR AUSTRALIAN CONSTRUCTION SIMON ELLERAY OF BROOKFIELD MULTIPLEX SAK HOLDING QATAR AWARDS CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 18
S C I R C L E BASF has been supporting the construction industry in Qatar for over 30 years. Over the last eight years, the com- pany has made a firm commitment to the market and cre- ated brand new facilities to cater to increasing demands for local production. EMCO is one of the most highly regarded FM companies in Qatar, with a quality assurance team working to meet the highest degree of quality and accuracy for each drafted project as per the defined quality standards. The company possess the expertise in providing facilities maintenance and management to industrial, commercial and residential complexes and services include, air-condi- tioning, electrical, mechanical, civil and low current. Al Malki Holding’s flagship company, Arabian MEP, has been active in the Qatar market for nearly two decades. The firm has rapidly expanded and grown from strength to strength, delivering exceptional performance and earned a reputation as a highly dependable specialist MEP contractor in Qatar. The firm is registered with an approved by: Ashghal, Q-Rail, Qatar Airways and Qatar Petroleum, among others. Maintaining an impeccable safety record across all its proj- ects, both companies have become an industry leader in the promotion of well-being in the work place, recognising the important role workforce health plays in productivity. Award collected by head of business development Mairead Hughes and CEO of Al Malki Holding Vasanth Kumar. Award collected by Emad Shawky, general manager Qatar for BASF Award collected by Nicolas Dumas, construction risk manager, ALEC Award collected by Subha Reddy, director of operations and Dinesh, assistant general manager at EMCO. SUPPLIER OF THE YEAR FM COMPANY OF THE YEAR SUBCONTRACTOR OF THE YEAR HEALTH AND SAFETY INITIATIVE OF THE YEAR BASF EMCO ARABIAN MEP ALEC AND GULF CONTRACTING COMPANY P L AT I N U M A L LY G O L D A L L I E S CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 19
W I N N E R ' S QATAR AWARDS Since its establishment, Hill International has become a trusted leader in the fields of project management services and construction claims services around the world. In Qa- tar it has won contracts for Doha Metro Green Line, Lusail District, Mall of Qatar and Salwa Resort, to name a few. The award recognises the scope and status of projects awarded to a firm which has participated in the urban de- velopment of the GCC since 1996. Drake and Scull is an industry expert in the fields of MEP and water and power, with experience that dates back to 1881 in the UK. Today Drake and Scull International and its subsidiaries oversee a wide variation of projects across the GCC, Middle East, North Africa, South Asia and Europe and in the Middle East has grown to be part of the region’s most monumental and iconic landmarks. The Tadmur HQ project utilises a hybrid system of 250 south-facing photovoltaic modules, to achieve substantial energy savings. It provides an exemplary benchmark for other such projects, which support environmental systems and look to achieve the highest standards while innovat- ing the practice of sustainable construction. Founded only eight years ago by Emad Jaber and Nabil Al Kha- ja, the firm has become one of the most accomplished multidis- ciplinary architectural design firms in the region with a diverse portfolio spanning all types of developments. The talented team of Architects and Engineers with various pro- fessional backgrounds, it has designed over 250 projects con- sisting of residential, commercial, hospitality, and mixed-use developments as well as master plans and interior designs. In Qatar, these include Sharaka Holdings Building, Waldorf Astoria and Abu Hamour Shopping Village, among others. Award collected by general manager of Tadmur contracting, Bashar A. Nimry Award collected by Badih Touma, architect and executive director at LACASA Award collected by vice president and directors of projects, Michael Jameson. Award collected by Taher Abu Eid, area general manager at DSI Qatar. CONSULTING FIRM OF THE YEAR REGIONAL MARKET PENETRATION AWARD SUSTAINABLE PROJECT OF THE YEAR ARCHITECTURAL FIRM OF THE YEAR HILL INTERNATIONAL DRAKE AND SCULL INTERNATIONAL TADMUR HQ IN ENERGY CITY, LUSAIL LACASA CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 20
S C I R C L E This Bureau was formed in 1966, as the first architectur- al and engineering consulting firm in Qatar. The award- winner consists of architects, urban and master planners, interior, landscape and structural designers, engineers, quantity surveyors and project and design managers with a truly inimitable portfolio. The firm had six employees, when it was acquired by its current CEO Ibrahim Jaidah, after which it grew to the current figure of over 500 highly qualified professionals. Brookfield Multiplex was one of the first international construction businesses to establish offices in the Middle East during the late 1990s. Now, based from head offices located in Qatar, as well as Abu Dhabi and Dubai, the company has built a reputation for fast delivery and high quality through the design and construction of some of the most challenging projects in the region. This year marks an important milestone for BM – its 10th anniversary since commencing operations in Qatar. The firm is a multi-disciplinary operation with a portfolio of projects which spans Qatar, the UAE, Saudi Arabia and Egypt. Most recently the firm was awarded a multi-million Riyal contract for Festival City, with its joint venture part- ner Voltas Qatar. A subsidiary of the Atkins group, it provides integrated proj- ect management, program management and cost manage- ment consulting services throughout the Middle East across the property, transport and industry sectors. Active in the Middle East for over 18 years, projects in Qatar have includ- ed Shaza Kempinski, Doha Oasis and The Pearl. Wissam Younane presents the award to Dawood Bin Ozair, senior managing director, Engineering and Technology, Al Futtaim Award collected by Samer Hudhud, chief projects officer of Arab Engineering Bureau Award collected by managing director Campbell Gray ENGINEERING FIRM OF THE YEAR CONTRACTOR OF THE YEAR MEP CONTRACTOR OF THE YEAR COMMERCIAL MANAGEMENT FIRM OF THE YEAR ARAB ENGINEERING BUREAU BROOKFIELD MULTIPLEX AL-FUTTAIM ENGINEERING FAITHFUL + GOULD Award was collected by Renier Breitenbach, general manager at Brookfield Multiplex P L AT I N U M A L LY G O L D A L L I E S CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 21
W I N N E R ' S C I R C L E QATAR AWARDS Established in 1975, Al Sraiya Holding Group has built its core business on the idea of “Innovation”, earning its rank as one of the top in Qatar, offering a range of integrated servic- es that cater to the infrastructural development of Qatar, the Group diversified itself through individual groups of com- panies each operating independently and specialising in its field of expertise. This year the group has been awarded projects worth 4 Billion Qatari Riyals, covering: Energy City Qatar and three new educational establishments. Founded locally in 2001, the winning company of the next award has 50 years’ international experience in the steel in- dustry, including manufacturing, development and research. The winner’s projects support the ambitions of project de- signers and engineers by creating high quality products for major projects. With a company aim to provide a wide range of prod- ucts and services, the winner also offer quality solutions for major works. Qatar-based UrbaCon Trading & Contracting (UCC) offers turn-key design, build, finance and operative services. The company has been involved in several projects over recent years and the portfolio includes Anantara Doha Island Resort; Lekhwiya Sports Club Doha; Souq Wakif Theme Park Doha; Lusail Office Tower and, of course, Mall of Qatar. As a result of its unfaltering performance and high standards, the firm has taken on the responsibility for executing many multi-bil- lion dollar construction projects.including multi-storey buildings, mixed-use compounds, deluxe villas, pump stations, factories, workshops, sea ports and beach resorts. For over five decades, it has remained true to its pledge to pro- actively and strategically contribute to building a thriving Qatar. Award collected by Shem Krey, Deputy MD, Urbacon Award collected by Vice Chairman Mr. Rashi Al Kaabi Award collected by T.T.M. Middle East commercial manager, Johnny Bnaity Award collected by Kamal Efranji, general manager of National Industry Contracting Company INDUSTRY INFLUENCE AWARD STRUCTURAL INTEGRITY INNOVATION OVERALL PROJECT OF THE YEAR DIVERSIFIED PORTFOLIO INNOVATION AWARD AL SRAIYA HOLDING GROUP T.T.M. MALL OF QATAR BY URBACON NBK CONSTRUCTION HOLDING P L AT I N U M A L LY G O L D A L L I E S
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 24 ANALYSIS Zane Hedge examines construction projects in the Middle East and how delays should be rightfully tackled with time impact analysis TIME TO START LOOKING FORWARD I n her July 2015 article my col- league from Deloitte, Cynthia Cor- by, identified a number of critical issues which commonly affect the construction industry. In addition to the issues identified by Cynthia, it is no secret that many construction proj- ects are delivered late as a result of criti- cal delay. In my role as a delay analy- sis expert one area which often causes a significant amount of disagreement is the methodology to be utilised when analysing the causes of said delay. In particular when one faces the challenge of whether to look forwards (a prospec- tive form of analysis or entitlement-based approach) or whether to look back- wards (a retrospective form of analysis or fact-based approach). The delay analysts have available to them a selection of methodologies which can be utilised, either prospectively or retrospectively, all of which may be ar- gued to be appropriate given the correct set of circumstances. A mistake which is often made is the selection of an incorrect delay analy- sis methodology. Notwithstanding legal arguments, the experience of the delay analysts, the time and/or budget which is available, as well as strategic or tactical or other external dynamics, can all influ- ence this decision. Historically this deci- sion has also not been helped by the fact that until June 2015 The Society of Con- struction Law Delay and Disruption Pro- tocol (D&DP) ostensibly recommended the use of time impact analysis (TIA) for the analysis of delays in all circumstanc- es. However, in July 2015 the Society of Construction Law (SCL) issued Rider 1 of the D&DP which provided much needed clarity in relation to the other delay anal- ysis methodologies which are available, and guidance as to the most appropriate use for each. Something which should be consid- ered positive is that despite previous criticism, and there was a significant amount of this in certain circles, TIA still has its place which has been argu- ably reinforced by Rider 1 of the D&DP. That place being on a live project when one can take account of the contractor’s actual progress in order to identify the critical impact of employer delay events. This approach is common in other juris- dictions and under certain standard form building contracts (SFBC), such as NEC 3, the use of TIA is mandated for the con- temporaneous time and cost assessment of “compensation events”. However, if the parties are not familiar with this type of SFBC, or if they are of the “wait and see” school of thought, then this TIA method of analysis, along with its admi- Based in Dubai, Zane Hedge is head of construction and real estate disputes at Deloitte Corporate Finance Limited (Regulated by the DFSA). Hedge is a chartered construc- tion manager who holds Masters’ degrees in construction law and dispute resolution, as well as project management. He has been involved in a wide variety of projects, including; building, civil engineering, bridges, utilities, residential, retail, commercial, health care, airports, power stations, desalination, process plants and oil and gas projects. ZANE HEDGE
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 25 rable intentions, may be somewhat alien or indeed unpalatable. Construction projects in the Middle East region could benefit significantly if the impact of employer delay events are assessed taking into account the contrac- tor’s actual progress at the time. Indeed, one might argue that disputes could be avoided altogether if, as is the case un- der NEC 3, the time and cost impact of employer delay events is agreed con- temporaneously under the “one bite of the cherry” principle, thus permitting the parties to concentrate on completing the project in a timely manner as opposed to getting embroiled and entrenched in, often unsustainable, commercial and/ or contractual positions. Such negative action invariably diverts commercial re- sources and management time away from their primary purpose which af- ter all is to deliver the procured project within the contracted framework of time, cost and quality. Why then do we not see TIA being widely used on live projects in the re- gion? Probably for the same reason that we do not see building information modelling (BIM) being adopted on ev- ery project. Both require collaboration which for many employers, and/or their representatives and advisors, will require a sea change in attitude or a wholescale re-thinking of their existing procurement strategies which, based on my own ex- perience, unfortunately continue to be dominated by illusionary “lump sum” type contracts which seek to pass all of the risk onto the contractor without prop- erly considering, or perhaps appreciat- ing, the impact that this may have on the success of the project and/or the relation- ship between the parties. It would be wrong to suggest that oth- er jurisdictions are more advanced in this area as one is not comparing “apples for apples” in terms of market maturity. In- deed, there are still a considerable num- ber of construction disputes in countries such as the UK where SFBCs such as NEC 3 are common place. However, it is dis- appointing that given the regions desire, and proven ability, to deliver world first projects, in timescales which would like- ly be unachievable elsewhere, that we do not see more collaboration or early contractor involvement. Both of which are proven steps to reduce disputes and better ensure timely project delivery. It would also be wrong to suggest that TIA is some form of “silver bullet” for the prevention of construction disputes. There are numerous other consider- ations, both practical and legal, which can dramatically affect the reliability of the resultant delay analysis. However, if carried out properly by experienced professionals, and within the correct commercial and legal framework, TIA certainly has the potential to significantly reduce the number of construction dis- putes which result in arbitration or liti- gation, and which in turn should result in a “win-win” scenario for employ- ers and contractors alike. Something which is essential if the construction in- dustry is going to focus its energy and resources, as it arguably should, on the critical issues which were identified by Cynthia previously.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 26 COVER STORY Cities are the economic powerhouses of society and home to more than half the world’s population. As they continue to grow, how will they adapt and change to new technologies, climate conditions and the population demands of the future? Stuart Matthews URBAN SHIFT
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 27 I t’s 2045 and, like an estimated six bil- lion other urban dwellers, you live in a city. As a lucky citizen of the de- veloped world you may look forward to a commute involving a combination of mass transit and smaller scale node trans- port to get you from office - or remote hot-desking work station - to home. A driverless metro system or electric bus may cover the big distances, dropping you at a solar-powered taxi rank, where self-driving electric cabs let you share a ride home with a few other locals. You’re dropped off mere minutes from your 3D- printed home, made of recycled and re- cyclable materials, roofed with solar pan- els storing their excess power in the grid. You might work from home some days or maybe, just maybe, you walk to work. It’s a future that is in view and yet just out of sight, but decisions the planning, design and construction industries make now will impact people’s lives for de- cades to come. As the pace of innova- tion quickens, so too must the industry’s responsiveness to change if it is to pro- duce urban environments that match and better people’s widely differing views of what the future will look like. As the economic powerhouses of nations, cities are crucial to driving economic growth and sustaining large populations, but they also have to work like machines and change like a living organism if they are to be successful. Best-case scenarios, where development is done “right”, paint a picture of thriving and sustainable me- tropolises. “The city of the near future will be a great place to be,” says Joseph Danko, CH2M’s SVP for urban environments and sports. “More than the sum of its parts, the city will be a vibrant, accessible community that attracts business and provides an environment where people want to live, work and play. “The city is focused on current and evolving needs to create a place that en- ables long-term prosperity, social wellbe- ing and wise use of natural resources. This future city features a transit-oriented and walkable town, water and energy conservation, renewable power sources, and a healthy quality of life while main- taining the area’s unique cultural heri- tage. There is tremendous potential for all citizens.” It’s a text book description that relies on a city being more than just buildings and streets. What CH2M refers to as ‘plac- “We are quite often seeing developments in the GCC emerge a bit quicker. And we’re seeing it around physical infrastructure because the investment in that infrastructure has the biggest positive impact on GDP.” - Christopher Seymour, head of markets and development - Middle East, at Arcadis.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 28 es in between’ have come to be symbols of the successes and failures of some cit- ies, as they try to bring their populations together in useable public spaces. They are spaces that can have a huge impact on how a city is perceived by its residents and show that attracting investment and generating growth is as much about the public experience as the transportation, buildings, and other infrastructure. “Integrating the historic and cul- tural fabric with creativity and inno- vation will create a sense of place in the public realm. This is what creates community – that sense of belonging to something special about ‘my place’,” says Danko. “This is what attracts and retains the people and ultimately en- ables a city to thrive.” Dank believes that the future indus- try will have to deliver urban design grounded in local culture and diversity, involving public, private, and other part- nerships to foster creative, practical inno- vation, with inclusive housing strategies encompassing all income levels. “We must accentuate what is unique about each city and intentionally build from their special assets and ‘strengthen their strengths’,” he says. “This will en- able them to attract investment and cre- ate long-term core jobs consistent with their special qualities.” Smart technologies will have a grow- ing role in creating the cities of the future, making mobility easier and also enabling city control centres to better manage traf- fic flow, natural resources and operating costs. The Internet of Things (IoT), big data and smart cities are the new buzz- words, while sensor technology provides real-time data that can influence every- thing from personal comfort to clean water and energy. The trick though is bringing all of this information together and deploying the insight it can bring alongside a host of other considerations spanning social, environmental and eco- nomic benefits. “It’s really the harmonisation of tech- nology with a sustainable environment in the broadest sense of the word - in- cluding the social, economic and envi- ronmental aspects - by knitting together technology to deliver ease of living and economic success,” explains Christopher Seymour, head of markets and develop- ment - Middle East, at Arcadis. As technology stands today, Seymour believes the greatest impact the idea of the smart city might have will be found in the management systems that drive Dubai is the first smart city in the Middle East COVER STORY “This future city features a transit-oriented and walkable town, water and energy conservation, renewable power sources, and a healthy quality of life while maintaining the area’s unique cultural heritage. There is tremendous potential for all citizens.” –Joseph Danko’s CH2M’s senior vice president for Urban Environments and Sports
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 29 everything from governance to physical infrastructure, urban mobility, waste, en- ergy and even parking. It’s an area where the developing cities of the GCC have a distinct advantage. “The GCC is quite young in develop- ment terms, so they are probably going to take on the systems faster than the West because they don’t have legacy [systems],” says Seymour. “It means that we are quite often seeing develop- ments in the GCC emerge a bit quicker. And we’re seeing it around physical in- frastructure because the investment in that infrastructure has the biggest posi- tive impact on GDP.” A boost to GDP, alongside other economic benefits, are the key areas where advances in planning, infrastruc- ture and the associated technologies can have a significant impact. “It’s been proven on a number of occasions that investment in mobil- ity particularly has one of the biggest positive impacts in GDP there is,” says Seymour. “Transport oriented design is really something that knits together mobility and the best of very modern urban living and when you connect those, then you start to see the real ad- vances that smart cities can make. The easier you make something the more people use it, the more it improves economic success.” Delivering this kind of success in the development of the smart city is like- ly to take more than just technology. While technology can look impressive in isolation when you come down to the practical use, its limitations can be exposed. Companies which can achieve the balance may be best placed to create the greatest impact with their ideas, as Seymour explains. “Not only do companies need to have a vision, they need to have their feet on the ground. I've seen suggestions that have been well worked around tech- nological improvement for a city and would have an impact in a number of ways, but when you actually think about the practicality the need is low: sometimes you find a technological im- provement that is an answer looking for a question. “We've got to make sure that is not COVER STORY WHAT WILL THE CITY OF THE NEAR FUTURE LOOK LIKE? The city of the future brings to mind an image of a highly technologically advanced environment with driverless cars zooming past and intelligent ma- chines managing daily chores in silent synchronisa- tion. Urban areas, including Dubai are consistently moving towards the concept of ‘smart’. Cities are exploring all avenues to utilise technology, either through the vast amounts of information that can be used for better decision-making, or through the interconnectivity possible between different systems. This move towards ‘smart’ makes a lot of sense, considering the challenges that the future holds for cities. The United Nations estimates that nearly all population growth over the next 15 years will occur in the cities. This unprecedented level of urbanisa- tion will place a burden on the limited natural resources of a city, such as food or energy. Not to forget the onslaught of waste and pollution that comes along population and development growth. Technology can help achieve greater efficiency of resources, maximise the capacity of existing infrastructure and at the same time make living easier for residents. In essence, technology is one of the pillars that supports ‘sustainability’. It also opens opportunities for people to collaborate and engage to solve problems. HOW WILL THE INDUSTRY ADAPT? As transportation planners, we are key stakehold- ers in the future of our cities and its transportation infrastructure. Our role goes beyond developing conventional solutions such as building new roads - we are here to bring the innovation and take the current transport management systems to another level. We will see more mobility management – from developing mobile apps that enable better transport choices to implementing remote working policies that reduce commuter trips from the road – as well as Intelligent Transportation Systems (ITS) such as smart traffic signal systems that optimise green times and improve street mobility. But technology, progressive policy or advanced implementation methods are essentially remedial in nature. We can do our bit to prevent the need for additional infrastructure – by redefining the pattern of our developments so that we create mixed-use neighbourhoods and walkable communities, which reduce the need to travel in the first place. WHAT SKILLS AND KNOWLEDGE WILL THE INDUSTRY NEED TO BUILD THEM? Technology brings with it a tremendous amount of data, which our industry can effectively analyse to understand our complex and dynamic infrastruc- ture systems and forecast problems. Data analytics and modelling will therefore continue to be a prime skill set to have. We can fast-track our progress by collaborating with researchers and universities to implement the advances that are fresh out of the laboratory. More importantly, we will increasingly have to take up the role of educating and building awareness within the wider industry, clients and the community regarding the challenges that the future holds, as well as the vast spectrum of solutions that can be developed to address these. It is only with partnership that a vision for a better living environment can be achieved. FAST TRACK Baz Gharibi, head of Transport Planning, WSP | Parsons Brinckerhoff shares his views on how the cities of the future may take shape
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 30 the case. Those systems which have the greatest impact are those that are simple and tackle real needs.” Advancing tech But with these technologies comes the need for more information about every step in the development and operation of the built environment. While BIM has gradually caught on in the GCC it represents the tip of the information iceberg. BIM can model a building but those models are being extended to cover an entire environment, adding details to build a picture that takes in each and every asset. As technology develops and, crucially, integrates, ev- eryone from landowners, tenants, resi- dents and visitors could gain a greater understanding of what a city has. It’s an area of development that could have a significant impact on contractors. “The contracting companies that need to create these assets have to start first with the base technology,” says Seymour. “We’re seeing a very rapid up-skill in the construction sector al- ready, with people who understand how to develop and build information models, not just as a design tool, but as a tool which will enable that asset to be built and helps actually run the build- ing. If you can run the building you can extend that and run the city. “I have seen a significant advance in that type of staffing, with that ex- pertise, over the last year in a lot of construction companies and it’s driven by need.” As well as finding the right people a key challenge will be finding the right time and place to deploy the technolo- gies, with the biggest opportunities oc- curring around new city areas. There new ideas can be woven into designs and if included at an early stage can be in a stronger position to provide good economic outcomes at the end. “It’s really a matter of knowing about it early,” says Seymour. “It’s very similar to the environmental challenge where it is possible to show very easily there’s a very low increase in cost in terms of achieving an environmental standard if you think about it early enough.” Retrofitting may present more of a challenge. Although in the case of en- ergy conservation there is a clear need and a usually definable payback peri- od, it is a tougher economic equation than in most new builds. The benefit of the investment has to be considered in the much longer term. “Generally speaking retrofitting usu- ally looks a very long term play,” says Seymour. “Whereas if you are incor- porating ideas in new designs you are getting an impact pretty quickly, with a much faster payback. One of the rea- sons we sometimes see the developed world being a bit behind in smart solu- tions - sometimes further behind than developing regions - is it’s really about bang for the buck and how fast you're getting that bang that really matters.” As cities like Doha innovate, smart tech will be vital COVER STORY
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 31 “The construction industry needs to evolve into one that understands that everything they do is an addition to an existing city, which is a conceptually challenging idea for companies that typically just want to have and work on defined tasks.” –Steven Velegrinis, director of urban design, Perkins+Will Clarifying the concept Bundling these ideas into a future envi- ronment labelled a ‘smart city’ is a tough ask, not least because there is so little clarity about what a smart city might actually be. There is no one definition and interpretations change to align with agendas, with much of the discussion driven by tech companies. Without clar- ity anything substantive may be tough to deliver. “There’s a lot of exploration trying to figure out what ‘smart cities’ actually mean,” explains Steven Velegrinis, direc- tor of urban design, Perkins+Will. “A lot of people don’t have a clear idea of what it means, including most professionals in the industry.” Velegrinis cites a project experience where a development had been identi- fied as a pilot for smart cities. With few people clear on what that meant, much investigation and research was needed to identify the factors that would help to deliver a meaningful result. “Smart is not necessarily about infor- mation technology, but really looking at every disciplinary area, every aspect of a city and trying to build smarter cit- ies,” he says. “It’s an approach that’s saying everything has a relationship through smartness.” The impact of climate change and how it is handled will be crucial to the future development of cities. As people think about the future of their cities and the environment around them Velegrinis suggests the idea of resilience in terms of climate change and how a city might responded will be crucial. “That translates to smartness about the way cities are designed,” says Velegrinis. “I think there’s some parts of the world, such as the US and Europe, where there’s very advanced thinking about resilience. In other parts of the world, like a lot of the emerging markets in the Middle East and Asia, there’s not a clear understanding of how important it is and how much it means.” Addressing issues of resilience could mean anything from looking at seasonal flooding problems, or examining the po- tential impacts of sea level change, while facilitating urban development at the same time. Future solutions may involve floating buildings, or adjustments to ground level for plots close to the coast. “Those examples are looked at in a multitude of ways and we need to look at a multitude of issues, usually revolving around energy cycles, water cycles, or material cycles,” explains Velegrinis. “Locally we've worked on projects where the project is coastal and in particular there’s a clear under- standing of how we should plan for future sea level rises. “One project we've worked on in the Western Region required that the levels of the site be increased from the current one metre above sea level to two me- tres, as a platform. So there’s already a lot of things happening regionally and locally, but there is a very poor under- standing in the industry about how we respond to those things.” It’s an approach that could influence how the various disciplines that make up the wider design and construction industry work together. Velegrinis de- scribes the challenges of resiliency as being multidisciplinary, requiring a com- bination of the skills of master planning, engineering, landscape architecture and hydrology among others. Catering to such a broad array of skill sets means companies have to think differently about how they hire, in order to be able to grasp with the complexities of the challenges future cities will face. “It’s a shift in the way that urban plan- ning in particular is happening,” he says. “We recognise that you don’t know what you don’t know. You don’t know what the city of the future will be, you don’t even know what will happen in the development industry in ten years’ time. The kind of approach we’re tak- ing accepts that the masterplan can and must evolve over time. So what you de- sign is really a robust framework and a vision for what it will be - you accept there will be significant change - and a system that’s open enough to accommo- date as much change as possible.” If you have to accept that a city will change in unexpected ways how will organisations be able to deal with the challenges this will create? Velegrinis says that one of the chal- lenges is that the construction of infra- structure and other developments is of- ten separate: there are companies that deal with one or the other. “The construction industry needs to evolve into one that understands that everything they do is an addition to an existing city, which is a conceptu- ally challenging idea for companies that typically just want to have and work on defined tasks,” says Velegrinis. “They need to understand that everything they do has an impact outside of the place they are working.” Companies which grasp this and oth- er evolving ideas that will influence the development of urban habitats stand a greater chance of being the ones build- ing the cities of the future. Regardless of what form they take or what technolo- gies they contain, the only certainty is that these cities will be full of people. Making a successful, comfortable and sustainable environment for them re- mains the challenge.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 32 While the smart city itself cannot be defined by a single measure, invention or initiative, the combination of cutting edge technologies and integrated services is transforming urban habitats. It is predicted there will be 88 smart cities worldwide by 2025, up from 21 currently. Construction Business News ME looks at the top 10 technologies from around the world INITIATIVES The UAE’s first smart street lights and smart building technologies were installed in Dubai Silicon Oasis last month. The installa- tion was a joint initiative between Dubai Sili- con Oasis Authority (DSOA), and telecoms provider du. Using motion sensors provided and pro- grammed by du, the smart street lights will provide 25% visibility, until triggered to full power by approaching vehicles and pedes- trians, allowing for less energy consumption that will prolong the life of electric bulbs and reduce operational costs and carbon im- pact. Additional sensors can be added to the street lights to collect and share information and data on the surrounding environment, such as pollution and weather conditions – or even relay CCTV, advertising messages and/or safety warnings. SMART In contrast with the expectation, smart cities are not all about running the world with robots and can bring a touch of sustain- ability to the urban environment. The UN says the world’s cities product 75% of the planet’s natural resources, but the cities of the future will be engineered to minimise this – and drastically so. Earlier this year plans were unveiled to transform Paris from urban jungle to replica rainforest with the installation of a number of green walls that would trans- form the environmental quality of the city, while preserving its history. The idea has already begun to take hold in cities like New York. Lighting the way 2 Green wall in Paris1 Marwan Bin Dalmouk from du demonstrates to Muammar Khaled Al Katheeri, Executive Vice President - Engineering Management at Dubai Silicon Oasis Authority TAKE 10
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 33 If a single technology can be credited with catapulting cities into the future, it would be WiFi. In Barcelona, WiFi underpins the Internet of Things (IoT) initiatives which have automated every- thing from irrigation points in public parks (which are triggered based on the collection of live data on humidity, temperature, wind velocity, sunlight, and atmospheric pressure), to traffic lights. The award winning city is widely referred to as one of the smartest in the world and even has an app to help resi- dents find an empty parking space. It isn’t just services and facilities that are integrated in a smart city, but the energy mix, too. While Barcelona uses solar power to heat water and sea water to cool build- ings, other cities favour a mix of renewables and fossil fuel derived energy to enhance air quality and reduce emissions, and this includes hybrid transportation and even, in the Netherlands, a cycle path which doubles up as a solar power generator. The use of hybrid over electric cars allows for faster implementation as things like vehicle charging stations are not necessary. WiFi connections are also a vital part of the smart city, not just for connecting individual technological elements but also the inhabitants; both residents and visitors. In many Asian cities the sight of commut- ers streaming HD video on their mobiles, via public transport public WiFi is a common sight and its spur- ring similar infrastructure to be installed in Middle Eastern and Western cities too. However, despite the advances in the East, the largest WiFI-in-motion network in the world is in Porto, Portugal with 600 connected city busses. 3 Barcelona Always Connected 4 Integrated Power5
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 34 Earlier this year, Dubai rolled out a network of “smart palms”, giant flower like structures which emit a WiFi signal and can be used to charge phones. The solar powered stations were cre- ated by Dubai-based busi- ness DIdeas and 103 will be erected in the city over the coming months. While their pledge to eliminate road rage may not be realised for a while, the introduction of driverless transport has triggered many debates about the safety and application of such technol- ogy. However a study by Intel has concluded that 44% of Americans would like to live in a city with driverless cars and one third of those people think it will happen in the next decade. In the Middle East the driverless Dubai Metro and automate LRT system at Masdar City already lead the way. The roll out of contactless payment systems has defined recent months and is supported by technologies like the Beam Wallet and smart watches. Bringing the convenience of payment systems like Dubai’s Nol and London’s Oyster to every day purchases the integration of non-specific cards with transport payment systems for example, will be integral to future proofing pub- lic transport networks and erasing the need for ticketing. Contactless payment6 Driverless Transport7 Smart Palms 8 Dubai Metro Smart Palms in Dubai TAKE 10
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 35 The Medellinnovation District in Medel- lin, Columbia, aims to be the innovation capital of Latin America by 2021. The project will transform the northern part of the city to an innovation hub for busi- nesses and institutions. The city has undergone a ‘smart’ movement where it has (under the Medellinnovation Strategy) made a Great Pat for Innovation in collaboration with the universities, private organisations, and government bodies. The district is set to increase levels of in- vestment in innovation and sustainability. The main goal is to increase the invest- ment to 2% of the city’s GDP by 2018, creating a real innovation DNA in the eco- system and adding more value to the dif- ferent products, services, business models, and general well being to its citizens. Innovation space 10 Co generation plant9 Cogeneration, a.ka. Combined Heat and Power, is when a single fuel source is used to generate electricity and thermal energy (heating). If cooling is also generated from this source, then the process is called trigeneration. Both technologies have a number of benefits such as cutting back greenhouse emissions, less electricity lost during distribution and more efficiency. Using a variety of fuels including biogas, bio- mass, natural gas, coal, and petroleum products, cogeneration and trigeneration can be up to 80% more efficient than conventional energy sources. In addition, the plant produces around 60% less carbon emissions. Facilities in Australia tend to use natural gas or biomass such as sugar cane waste. There are many examples of cogeneration and trigeneration plants used in properties such as hospitals, hotels, cinemas, industrial, manufacturing, commercial and retail facilities According to Clean Energy Council Australia, Austra- lia has approximately 3305 megawatts (MW) of cogen- eration installed, with another 18 MW of trigeneration. It reports that as demand for heat and electricity stays consistent, these technologies is expected to help reduce pressure on the country’s national grid. Upcoming Medellinnovation District
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 38 NEWS With a booming tourism sector and rising economy, Turkey has soon become a hotspot for modern real estate. Construction Business News ME examines the market and how it could affect countries within the GCC TURKISH DELIGHT COUNTRY FOCUS A s Turkey’s thriving real es- tate sector receives interna- tional attention, GCC inves- tors are vying for a piece of the action. “In 2014, Gulf investors spent $4.3bn in Turkish real estate, reaching a total investment influx of $16.29 over the past six years,” says Wouter Molman, direc- tor of Cityscape Group. According to him, Turkish participation in Cityscape Global has grown by 50% this year and there are no signs of it slowing down. This year’s Cityscape Global welcomed more than 50 Turkish exhibitors. Turkish Statistical Institute reported that the number of house sales to inter- national investors increased 22% in the first half of 2015 compared to the same period last year. Diana Dogan, head of research, CBRE Turkey calls the country a “sec- ond home holiday market” with a sig- nificant increase in GCC investments in the country's northwest, particularly the Marmara Sea and Black Sea regions, as well as Istanbul, Bursa and Yalova. “Mediterranean coastal cities and Istanbul invite GCC investors due to their close links with the region both geographically and culturally,” adds Molmab. Fatih Ergüven, managing partner at Reality Port Istanbul says that Turkey's strategic location and favourable climate have made it an attractive hotspot for investors. “In the last three years real estate investment has become the cen- tre of attention for both domestic and overseas investors and it has now estab- lished itself as one of the leading real estate markets in the world.” Ugur Dumankaya, board of direc- tors and chairperson at Dumankaya, describes Istanbul as an attractive real estate market for foreign investors. “With its economic stability, social welfare, geographical position and re- Istanbul, Turkey. Image courtesy Viacheslav Lopatin
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 39 turn on investment all pointing in the right direction, buyers from around the world are flocking to take ownership of prime developments in the city and surrounding areas.” He says that from 30% of Dumanka- ya’s total sales are to foreign investors, the majority from the Middle East and Gulf countries. Ceyda Carmikli, executive board member of Nurol REIT, says that with the reciprocity law in affect, there has been a major influx of GGC investment in Turkey. “Just by the example of Nu- rol Holding and its sister companies, it is evident that Turkish companies have raised the bar high for other construc- tion and real estate companies on an international scale.” Ibrahim Kahraman, chief financial of- ficer at KOY urges that Turkish compa- nies have a lot to offer to GCC countries, because due to their growing popula- tions and their need to diversify their economies. “They are looking at invest- ments in new affordable and middle- segment housing supply and major in- frastructure projects.” Kahraman observes that the Turkish residential real estate market has shown “This law permits foreigners to acquire property in Turkey unconditionally, and be given the same rights and policies on their investments as the locals.” Ceyda Carmikli, executive board member of Nurol REIT Loft Garden in Istanbul, designed by Tabanlioglu Architects Esas Aeropark in Istanbul, designed by Tabanlioglu Architects “Political and business relations, cultural affinity and past experience provide an important competitive advantage for Turkish construction companies in regional markets. This advantage is visible from the large volume of construction and development projects undertaken by Turkish contractors and developers in GCC countries as well as the Turkish and Russian markets.” Ibrahim Kahraman, chief financial officer at KOY
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 40 COUNTRY FOCUS high and resilient growth in recent years due to consistent demand generated by the growing population and the necessi- ty to renew the old housing stock up to the standards of the rising middle class and the earthquake code in effect. Carmikli states that Turkey’s residen- tial property market is now one of Eu- rope’s best performers due to the coun- try’s beneficial geographical location. “Being in the middle of Europe and the Middle East, widespread urban re- newal and development; large capacity and strength in construction, population growth and demographic advantage, and ease of doing business, all contrib- ute to making it a lucrative market.” Demirhan says that one of the most anticipated projects in Turkey, released at this year’s Cityscape Global, has been the Istanbul Financial Center. “It is going to be the biggest regional international financial centre and placed strategically in between Singapore, Hong Kong and Japan, and New York and London.” Carmikli analyses that the strategic plans and future projects in the pipeline offer huge potential for investors. “Tur- key is also the 6th most popular tourist destination in the world, making it an ideal investment location.” In contrast with the UAE, she says that Turkey’s real estate market secures in- vestments through the reciprocity law. “This law permits foreigners to acquire property in Turkey unconditionally, and be given the same rights and policies on their investments as the locals. The passing of the law has brought in huge revenue to the Turkish government in the form tourists, and foreign investors will also receive a residency permit for one year.” GROWING CONSTRUCTION “After China, Turkey is the second larg- est construction industry,” says regional director at Agaoglu, Idris Demirhan. “Turkey has a population of eight mil- lion, but we still need five million more residential units.” The big demand for properties, he attributes to people’s need for newer homes, lifestyle, and compound proj- ects. “The population is growing, de- mand is growing, but the supply has been less which is why we have one of the biggest construction markets today.” According to Kahraman the Turk- ish construction industry has a proven track record with developing and ex- ecuting complex projects undertaken in difficult political, geographic and market conditions in regional and in- ternational markets. He observes: “Political and business relations, cultural affinity and past expe- rience provide an important competitive advantage for Turkish construction com- panies in regional markets. This advan- tage is visible from the large volume of construction and development projects undertaken by Turkish contractors and developers in GCC countries as well as the Turkish and Russian markets.” Carmikli says that the Turkish mar- ket for construction and real estate are highly competitive, and successfully so. “Many of them have internationalised, and set offices in other countries to cater to their clienteles from those regions.” “Turkey has a population of eight million, but we still need five million more residential units.” Regional director at Agaoglu, Idris Demirhan Agaoglu’s upcoming project in Istanbul
T oday, design is about more than aesthetics and functional- ity. It is, more than ever, about helping businesses create value. Dark, dull, monotone offices are fast becoming a thing of the past. With today’s employees spending more than 30% of their lives at work, building a flex- ible and creative environment that nurtures individual wellbeing, has a clear positive impact on a business’ bottom line. Not only are companies using office design to attract and engage the best talent in the market, they recognise the workspace is an expression of a company’s visual iden- tity and should reflect their brand image and reputation. There are several move- ments driving change in the workspace and these will have an impact on the way offices will be designed and fitted-out over the next few years. The overarching principle impacting all levels of the construction industry globally is sustainable development. We expect that in the next 15 years, with the recent adoption of the new United Nations Sustainable Development Goals for 2030, to see a total shift in the construction and fit-out industries towards sustainability models. New regulations will be adopted, higher standards and consumer demand will increase pressure on the industry to implement environmentally-responsible practices, and awareness and understand- ing of green practices at all levels of the construction chain will increase. In the near future, sustainable projects will be the norm, not the exception. The green build- ing movement has picked up in the UAE too, with sustainability being at the core COMMENT of UAE’s strategic plan Vision 2021. Local contractors will have to step up their game when it comes to integrating sustainability into their processes, there will be more eco-products available in the market and legislation will also tighten up. Another important change we see happening in workplace design is the rethinking of the use of space. The focus is shifting towards building facilities that will support cross-team collaboration and which allow teams to reshape the work- space to meet their evolving needs. For example, until recently open plan offices were considered the best environment for employees – encouraging collaboration, innovation and team work. Now many studies have proven that a lack of privacy negatively affects concentration levels, productivity and creativity so designers will start to create spaces that provide a perfect balance between collaboration and privacy. Many companies have yet to implement these changes, but design- ers, architects and workspace experts are introducing these principles into their proj- ects. We will see more recreational areas, more spaces for individual retreat, more attention given to design elements that can have an impact on employees’ creativity, engagement and loyalty. Technology has had a huge impact on workplace design and fit-out over the past decade, and we expect the smart building movement will pick up considerably in the next few years. Technology is shaping the way we communicate and interact with each other. Employees are increasingly more connected and mobile, switching between laptops, smartphones and tablets. Smart buildings mean that a higher degree of automation is now included in all projects. That’s why space and furniture can no longer be built the same way it was years ago. Modern, sustainable office buildings will be cost-efficient, integrat- ing the latest technologies and mobility strategies. The space will be designed to consolidate a higher workplace den- sity and will offer, at the same time, greater transparency and interaction. The workspace of the future will have to be efficient, sustainable and healthy, the right environment for a creative, productive and engaged workforce. In terms of aesthetics, we see a growing demand for contemporary, minimalistic design solutions. Furniture design will see more use of materials such as glass and steel, with ready-made furniture being designed to offer a much greater degree of flexibility. This means less demand for bespoke offerings, which is not bad a bad thing in our opinion. Prefabricated furniture, that allows for flexibility of configuration, ensures more consistent product quality and minimises produc- tion time since there is no need for shop drawings, approvals, sourcing of materials or managing different lead times. This not only reduces the risk of project delays, but responds to businesses’ needs to build more with less, and at a reduced cost. Looking ahead, we expect to see the most substantial area of “green build- ing” growth to occur in new commercial construction, followed by institutional construction; that is education, healthcare and government. The role of design and fit-out industries will be to incorporate wellbeing into the workplace. We will create space, furniture and tools that will nurture employee wellbeing and will help organisations to align social, economic and environmental impact of their business with the company’s culture, creating value for all stakeholders. Marcos Bish is a co-founder of Sum- mertown Interiors, a UAE-based fit out contractor. Bish completed his university studies in Leiden and Paris, obtaining his Bachelor of Business Administration in International Business. He is passionate advocate of sustainability, working long hours to educate and inspire other organ- isations to adopt green principles. Design matters Marcos Bish predicts the latest UN Development Goals will all but end unsustainable construction and fit-out. Writing for Construction Business News ME, he analyses the design trends that will shape the future and the role of sustainability in the make-over of the workplace CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 41
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 44 T urkey-based Nurol Gayrimenkul Yatırım Ortaklıgı A.S. (Nurol Real Estate Investment Trust) has a significant active portfolio, including Istanbul’s finance and business centre Nurol Plaza; most luxurious housing project in Ankara; and Karum Business and Shopping Centre, among other notable proj- ects across the country. The company is now bidding for more GCC investment for its upcoming projects, Nurol Life, Nurol Tower and Nurol Park. With the Turkish economy demonstrating strength, the developer expects an influx of potential real estate inves- tors who have long-term investment perspectives. Carmikli says that Nurol REIT’s entry into the region invites GCC investors to form a business or build a home base in Turkey. It isn’t the only developer promoting the opportunity; with an estimated 25,000 real estate sales for foreign buyers annually, currently only 3.5% of Turkey’s an- nual real estate output is sold to non-nationals. “The Turkish market has many advantages for GCC firms and individuals, such as the country’s growing economy in parallel to the young age demographic, as well as the new rules and regulations that enables foreign companies to merge into the market. The reciprocity law has attracted a lot of foreign, especially GCC, investors to invest in the Turkish real estate market.” In addition, she says that Turkey is centrally located, close to both the Middle East and Europe, and shares simi- lar customs and cultural similarities that can be advanta- geous to GCC investors. The company believes that GCC investors can greatly Turkish venture Carving its reputation as a GCC investment hotspot, international real estate sales in Turkey increased 22% in H1, according to the Turkish Statistical Institute. Ceyda Carmikli, executive board member of Nurol REIT, speaks with Construction Business News ME about sustaining the pace Ceyda Carmikli, executive board member at Nurol REIT Nurol Tower PROJECT REVIEW
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 45 Nurol Park Nurol Life contribute to the Turkish business world as well as benefit from the political will of their respective countries to en- hance their economic cooperation. On another hand, while global investments have also been most welcome, Nurol is focussed on the GCC as of now. She says: “We are always looking for foreign invest- ment in Turkey to boost and improve the Turkish business worldwide, therefore we are always on the lookout for any potential investors but currently we are mainly targeting GCC investors.” In terms of benefits, Carmikli assures that from a general return on dollar basis and investment point-of-view, an investor has the possibility to reap over a 5% return over a five (or more) year period. The reciprocity law enables foreign investors to acquire in Turkey unconditionally, giving outside investors the same rights as local Turkish citizens, and protecting their investment purchases. She explains: “All foreign investors have the same struc- tural advantage and legal framework as Turkish citizens in Turkey. There are some alternatives of corporate entity structural possibility which may create different taxations. But generally, all the investors are under the same protec- tion from the same legal framework.” Nurol Real Estate Investment Trust (Nurol REIT) was founded in September 1997 and by December 1999, 49% of its shares were offered in an initial public offering. With these developments in handNurol REIT’s asset size reached $491m and $830m as total investment by the end of 2014. Nurol Holding has been present in the GCC for over a decade with Nurol Construction offices and construction projects in Abu Dhabi and Dubai.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 46 NUROL LIFE Nurol Life rises over a 9,500m2 land plot in Seyrantepe, Istanbul. The structure is an aspiring concept of style and serenity by award-winning architect, Hakan Kiran, who is known for his contemporary work. The mixed use project will be 50 storeys high, and will comprise of 440 tower flats and 26 terrace homes, along with 50 offices. It will house recreational amenities such as a pyra- mid shaped roof bar, pool and café, for its residents. The project will be completed by Q1 in 2017. NUROL PARK Nurol Park, situated in Gunesli, Istanbul, covers an area of 55,000m2 and offers easy access to the two main highways in Istanbul that connects Asia and Europe. The mixed use building includes 43,200m2 landscape area, eight residential units, one office block, 84 Loft, 884 Tower, 544 Residence spaces. Facilities such as indoor and outdoor pools as well as fitness centres create a community and neighbourhood life, the concept is to cater to all the basic needs of a family and have everything within close proximity and at ease. The project is planned for completion in 2016. NUROL TOWER Nurol Tower is located in one of the commercial center of Istanbul, Mecidiyekoy, and built on 7,000m2 of land. The multi-purpose building offers first of its kind “HomeOffice- Home®” concept, providing the ideal homeoffice location to be productive whenever needed. It also includes Nurol Tower Bazaar, which has cafes, restaurants and shops, such as phar- macy, hair dresser, dry cleaner, as well as banks’ ATM. Nurol Tower is also a candidate of LEED Gold, striving to create an environment-friendly environment with 20% efficiency in energy consumption. It will be com- pleted in the third quarter of 2015. Nurol REIT has currently opened investments for three mixed use projects in Istanbul, Turkey. PROJECT REVIEW
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 47 SUSTAINABILITY Myth vs Facts: Common myths in green construction, by Holley Chant, executive director, KEO International Consultants MYTH BUSTER T he biggest myth in green construction is that sustain- ability adds significant capital cost due to “bolting on” environmentally sustainable, yet financially expensive, technological solutions to buildings. The notion that cost in sustainability projects comes from requiring “technol- ogy” is misguided. The most sustainable buildings in the world have no mechani- cal systems whatsoever, and as such, use no electricity for cooling or heating. Most people wouldn’t think of that as “high tech”. Historic buildings, such as the Bait Ghaith bin Abdullah bin Yousef house in Kuwait, use passive design strategies to keep the buildings habitable for occupants year round. The myth that sustainability has to be expensive exists for several rea- sons. Firstly, before teams and owners became educated about the integrated design process that starts at concept de- sign, the idea to “go green” would many times be an afterthought. For example, an owner might decide they want a LEED rating just as they are about to go to tender. This is the worst possible time to do cost-effective sustainable design; it’s akin to buying a plane ticket the day before a flight. The reason is that architects drive cost-effective sustainable design. It is not possible for them to use passive design (i.e., building orientation and massing techniques) and cost-neutral sustainabili- ty strategies on a design that has already been completed and is ready to tender. In order to do so, a project team would have to “buy LEED points” by adding technological components to the building without redesigning the form. This is a very expensive approach, and it is rarely satisfying to an owner. Secondly, in the early days of LEED, GSAS and Estidama sustainability ratings in the GCC, contractors didn’t have experience with green construction. Therefore, they increased their prices to cover their perception of risk regarding new requirements. This is no longer the case. Contractors now have sustainable design professionals in house and many of them proudly advertise that they can achieve a LEED Gold rating for the same price as a LEED silver rating, an Estidama three Pearl for the same price as a two Pearl rating, or a GSAS three Star for the same price as a GSAS two star rating. Lastly, there was a time when us- ing renewable technology, such as PV, was expensive. This isn’t the case anymore. PV prices continue to fall on an almost-monthly basis. In coun- tries where energy isn’t subsidised and consumers pay the true cost of electric- ity, renewable costs look very cheap indeed. Previously in the GCC, feeding renewable energy back into the grid was a challenging topic. However, this is changing. In Dubai, for example, DEWA is now working diligently via Smart City initiatives to get as many households and businesses connected to the grid as possible. Other GCC countries such as Kuwait and Qatar will no doubt follow suit soon. Another significant myth is that due to energy being cheap in most GCC coun- tries, that sustainability in construction isn’t yet important to its citizens. But the fact is that sustainability is critical to the success of all of humanity’s future right now. To quote the Climate Mobilization Organization, a sustainability advocacy group which I support, “Climate change is an unprecedented challenge…It is causing immense human suffering and damage to the natural world.” We live in a rapidly warming world, and with it comes sea rise, environmen- tal degradation, and water shortages. Like last year and the year before, this year has broken records as the hottest year to date since climate records began. Meanwhile, our global population keeps expanding, which compounds the need for sustainability in all areas of develop- ment — not only in the built environ- ment projects, products and services that we experience at Big 5 Kuwait. People consistently desire a “better future”. However, if we do not have the courage to see the dangerous trajectory of this climate crisis, and if we don’t make a conscious choice to do our part to slow warming, the world as we know it will change dramatically. Most clima- tologists today will tell you the change will not be for the better.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 48 Dr Moetaz El Hawary compares global standards of green construction with Kuwait’s growing sector GREENING KUWAIT SUSTAINABILITY ‘ Going Green’ is the hottest trend in the global construction sector. In fact, a recent Green Building Trends survey states that 51% of respondent firms have commit- ted to incorporating sustainability into more than 60% of their projects by the end of 2015. A ‘green’ building not only results in better health and increased productivity but also mini- mises its impact on the environment by limiting emission of greenhouse gases (GHG) over its entire lifecycle. It incorporates designs, technologies and raw material that make efficient use of non-renewable resources such as oil, gas and water. US Green Building Council statistics indicate that conventional buildings consume almost 36% of total en- ergy, 65% of electricity, 30% of raw material, and 12% of potable water. Moreover, they are responsible for 30% of GHG emissions and 30% of waste outputs amounting to 136 mil- lion tonnes a year. Current global trends in green building include green architecture, zero-energy buildings, use of sustain- able construction materials, water and wastewater management, low-emit- tance windows, and cool roofs. Green architecture efficiently uses materi- als, energy, and space to minimise the negative environmental impact. Zero-energy buildings, on the other hand, use a mix of biodegradable, recycled and sustainable construction materials as well as avail of renew- able energy such as biofuel through specialised equipment such as solar cells and panels and wind turbines to save power and reduce GHG emis- sions. Since buildings utilise 13.6% of the world’s potable water (15 trillion gallons per year), it is essential to incorporate water-efficient technology such as rainwater harvesting, reuse of greywater, and on-site sewage treatment. Likewise, low-emittance windows and cool roofs bring down heating, ventilation and air condi- tion (HVAC) costs and reduce the heat island effect in urban areas, thus decreasing the amount of GHG emis- sions by deflecting sunlight and heat. Aside from enhancing the safety, comfort and health of its occupants, a sustainable building also results in affordability, quality and competence over the long-term. Unlike in the past, technological innovations have made it possible to make cost-effective eco- friendly homes. Green buildings are being adopted to control operating costs and reduce GHG emissions in the Middle East and especially in the GCC. GCC governments have come up with their own green building codes, standards and practices, with the UAE taking the lead. There is growing concern and awareness about environmental issues and sustainability within Kuwait’s government, professional bodies, researchers and construction compa- nies. The Kuwait Council of Ministers’ Decree No. 1145, dated August 16,
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 49 Dr Moetaz El Hawary, associate professor at Kuwait University Kuwait City > 2010, established the National Com- mittee of Building Codes of Kuwait (NCOBC). The committee plans to draft its own codes following a rigorous review of leading interna- tional and regional ‘green building’ codes such as Leadership in Energy and Environmental Design (LEED), Building Research Establishment Environmental Assessment Methodol- ogy (BREEAM), Estidama, and Global Sustainability Assessment Team (GSAS). Currently, a local government project – EPWD Building – is under construction using the GSAS Rat- ing System. Being built on a 4,670 square metre plot of land with a built-up area of 33,000 square metre at a value of $43m, the office build- ing will feature three basements, a ground floor, nine storeys, and a parking bay for 220 cars. The build- ing will accommodate 275 employ- ees and visitors. In addition, Kuwait’s new international airport will set a new environmental benchmark for airport buildings since its design is inspired by local architectural designs and materials and responsive to the country’s hot climate. The ter- minal building aims for LEED Gold certification and become the world’s first passenger terminal to attain a high environmental accreditation, establishing Kuwait as the region’s leading air hub. Moreover, electricity stations that utilise solar energy are being installed, with research proj- ects being conducted to improve the efficiency of such facilities. The concept of green buildings is still in the early stages within Kuwait’s construction sector com- pared to neighbouring UAE, Saudi Arabia and Oman. Intensive support from both government and private sectors is required to implement the concept, strengthened by effective governmental policies and legisla- tions to ensure 100% implementation in future projects. The main respon- sibility lies with the government to encourage the implementation and adoption of sustainable construction to ensure the least impact on the en- vironment. Improving the knowledge and level of awareness of sustain- able applications should be under- taken, with a focus on issuing proper guidelines, organising trainings and workshops, and providing incentives to promote green construction. Dr. Moetaz El-Hawary is an as- sociate professor in the depart- ment of civil engineering at Kuwait University. He earned his B.Sc. with honours from King Saud University, Saudi Arabia in 1980 and his M.Sc. and Ph.D. from the University of California at Davis, USA in 1982 and 1987, respectively. He is a member in many international associations in- cluding ACI and ASCE. He is a board member and president of ACI, Ku- wait Chapter, in 2006 and 2010. He is a voting member in ACI committee 130, Sustainability of Concrete.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 50 TECHNOLOGY In previous installments we high- lighted the relatively low adoption rates for systems in the GCC – based around recent research carried out by CONJECT. Part two titled ‘Not All Collaboration Systems are Built the Same’, looked closely at the different capabilities of the many different sys- tems available on the market. Leading By labouring this argument we’re almost admitting that we believe “pa- per-based” systems work best and we have no need for improved efficiency in our processes. Traditionally we didn’t have collaboration software, so management teams were unaware the complex and rapid flows of informa- tion which delivery teams have to TALKING COLLABORATION on to this third installment which discusses the important issue of data. Many industry practitioners argue that the structure of a collaboration system should follow the tradition- ally “paper-based” model of informa- tion sharing on a project where in essence you only see what you have been sent. In the final installment of a three-part series on construction collaboration technologies, Dr Asif Sharif looks the at the matter of data hosting, ownership issues and the question of what happens to data as projects come to an end
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 51 could own different piece of data. As such, one of the key issues that we want to talk about and explore further is who does own the data. The data produced during the design and construction of a project doesn’t always go along with the asset once the project completes. Collabora- tion platforms over time end up hold- ing huge amounts of valuable asset data with detailed audit trails. It’s our view that this rich library of informa- tion gathered should always be passed to the client or ultimate future owner. A point also worth noting is that the owner of a project may change. A project could begin with the devel- oper who later sells on the asset to an owner occupier, who could poten- tially sell it on to a further owner or operator who may be is responsible for running that asset. All of these owners and stakeholders need access to the historical project data library for the running of the asset, as it’s this valuable information that plays a part in significantly reducing their future refurbishment and maintenance costs. Again it’s really about addressing whether people understand the impor- tance of this information at the start of a project and realising the benefits of reusing this information at the end of the delivery phase so that it becomes part of the built asset and has real value. It is true to say that not all collabo- ration tools are the same in terms of who owns the data and who has ac- cess to that data. Where does the data reside? A critical feature of hosted systems relates to data; where is it hosted and how it is managed. When using Software as a Service (SaaS) solutions for the first time it’s important to un- derstand if your data is being hosted locally or in a foreign country which could be a major deciding factor on which solution to adopt. A couple of very key additional points to consider are: - • Is the data and the solution hosted in a relatively simple, generic data storage environment? who do recognise the value of such systems, and will lead the initiative, but far too often the final decision is based on the lowest price tendered. Rarely are decisions based on critical issues such as who has ownership and custody of the data, or to ensure that the proposed systems conform to the contractual terms that need adhering to when engaging with clients. In the UAE market, most consul- tancy and construction appointment contracts are non-standard and are usually client specific. These contracts are also driven around the concept that the client is “king”. Take an example of a design con- sultant; they may design the building and own the Intellectual Property (IP) rights to that design. However, the agreement entered into often gives the client the ‘license’ to reproduce that building in the future, without the need to necessarily secure his services again. Much of this is to do with the way that the contracts have been writ- ten, where the client keeps hold of all the rights to the data as their projects come to end. Although when selecting a collaboration solution, the owner- ship requirements of the client is often not considered up front. Those of us who work on construc- tion projects are usually delivering to a single party whether it be the main contractor, or the client; ultimately this is the one who’s paying our bills and who we’re contracted to. As men- tioned earlier, it’s this party who in the main owns everything. As construction teams work on a many different collaboration platforms, there’s a bit of schism as different systems (and their inherent licencing arrangements and architecture), might mean that the many parties involved contest with on a daily basis. Having the ability to understand these infor- mation flows, plus interdependencies of the various design and construction disciplines give us much better ability to make informed decisions in a timely and proactive manner. Collaboration systems are now available to us, designed to improve efficiency and improve communica- tion, and thus enhance collaboration between project team members. We should be embracing the fact we now have an abundance of (software) tools that allow us to manage, share and develop very rich libraries of asset in- formation, and not be sacred about it; instead embrace systems, because ulti- mately they will enable us to develop and deliver a much better quality of end product to the client. The collaborative effect of BIM This collaborative aspect becomes very relevant particularly with the emer- gence of Building Information Model- ling (BIM) in our industry, which is all about integrating teams, engaging operators and facilities managers into the design and construction process to produce a more fit for purpose end product and a more productive opera- tional building. With BIM, we’re actually talking about creating better design and built solutions, assets that operate effec- tively the way we expected them to operate and at the right cost and ef- ficiency levels. Procurement, access rights and own- ership of data When it comes to the selection of a collaboration system for a project, the decision is one of paramount impor- tance, but also one that’s frequently based on the past experience of the project team members and/or cheap- est price. Responsibility for procuring the sys- tem is usually left to the main contrac- tor or the lead consultant, as software is often viewed as an overhead (rather than an investment), and therefore gets built into their fees for other cores services. There are of course clients “What’s really important is that the client has all of the auditability and all of the reasoning behind why decisions were made in the design and construction process”
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 52 • Or is data hosted in a business criti- cal environment, managed and sup- ported 24/7 with the appropriate data security standards, available from wherever and backed up by a Service Level Agreement which doesn’t compromise your business. With the maturing of the market for hosted solutions, many clients are quite happy that their data is man- aged in a very effective and efficient way, by a third party in a fully con- trolled and audited environment and delivered to them as a service. There is alternative scenario, where some clients believe it’s important for software to be procured and man- aged locally (self-hosted on their premises) and if that’s a requirement then that’s something that needs to be addressed. This type of approach will no doubt reduce options for collabo- ration offerings, as a main characteris- tic for this software is that it’s hosted and delivered as a service to projects by an independent third party vendor. At the end of the project where does that data go? Clients should set about with a minimum expectation that they will to be delivered a full set of structured project data at the end of the project so that it can be reused readily by themselves, their maintenance teams and/or future owners. This is far more challenging to achieve in practice as not all col- laboration solutions share information in the same way. There are certain collaboration platforms whereby all the information that resides in that platform is only owned or accessible by the organisations that produced it or that received it, that’s it! On the other hand these are other solutions which are more open and (as the name suggests) collaborative allowing the organisation that has procured the solution to retain control of all of the project information. In our view, what’s really important about the latter type of platforms is that the client has all of the auditabil- ity and reasoning behind why certain decisions were made in the design and construction process to create the building in the way it has been deliv- ered. Ultimately it’s about giving our Clients an efficient operational build- ing that runs at a cost effective rate…. and access to the historical data is a big part of this. What should be discouraged is selectively hiding information in the system from the client due to the fact it was not directly issued to them. The simple rule should be that if it’s been submitted on the client provided platform, then it should be available for them to review and proactively report upon. By having a solution that is quite constrained in the client’s visibility of their own data, somewhat defeats the object of having a collaboration platform in the first place. On that note, I do think sensibil- ity should prevail and that we are reasonable about what it is the client should expect from us, as service pro- viders to them. TECHNOLOGY “When selecting a collaboration solution, the ownership requirements of the client, is often not considered up front.”
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CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 54 Q&A What is driving the increased aware- ness of and reliance on building informational modelling (BIM) in the GCC? As an industry marketing director, I look at the GCC market as being one of the youngest, yet fastest growing and most aspirational rail markets in the world today. Yet the budgets for the many planned rail projects, while and consider the consequences in terms of time, cost, quality, and safety performance. What are the major challenges faced by BIM users or potential users in the market today? These major capital projects will increasingly need distributed projects teams. Whether it is between the dif- ferent phases, disciplines, or stake- holders, communication and effective management of the supply chain is crucial to the success or failure of the project. With everyone fully aligned with the project objectives, the possibility of problems such as late changes causing delays, are more eas- ily avoided. Organisations need information to make informed decisions, produce a more reliable solution, understand the risk they are exposed to, improve efficiency, drive productivity and qual- ity, and understand what it is they are building and maintaining – plus when and for how much. You can say then that increased awareness and demand for BIM is fuelled by the need for reliable infor- mation, whenever and wherever it is needed: in the office, site hut, or field. Many get hung up on what BIM is, so it is important to understand that BIM is not a software product or solution, nor is it limited to just design and construc- tion. BIM is about people and processes. INTEGRATED SOLUTIONS substantial, are likely to be tight. Meaning the pressure to control cost and time certainty will be greater than it has ever been. Rail projects have complex ecosys- tems, with delivery partners, pro- gramme managers, consultants and contractors, plus other stakeholders. In this type of scenario, it is particularly important to evaluate risk exposure Steve Cockerell, industry marketing director of rail at Bentley Systems, speaks with Construction Business News ME about the importance of trusted information
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 55 Q&A in their respective markets around the world, very seriously and cap- tures it many ways, with varying degrees or formality applied to the processes involved. As I mentioned before it is part of my role to listen and learn from our users about how they solve the complex 3D challenges faced in their work. I sometimes get asked whether it is possible to extend the software’s capability to achieve a different outcome. This type of question is passed to the appropriate product manager who considers its value and if appropriate, the priority assigned to its inclusion in a product. Bentley also uses advisory panels. In May of this year, I was fortunate enough to join Bentley’s Middle East Construction Advisory Panel meeting in Abu Dhabi. The event was hosted by Technip and senior representa- tives from the regional construction firms gathered to hear about how technology available today might increase return on investment in their respective businesses, and also to provide valuable input to product direction. Advanced Work Packaging and ConstructSim were the main top- ics of interest. How does using Bentley’s software directly affect the construction industry? Bentley offers software that sup- ports the delivery of construction projects of any size, complexity, or type. Our solutions span the project lifecycle from design to handover to help solve industry challenges in delivering successful projects. Challenges such as isolated proj- ect data, distributed project teams, gaps between engineering plans and construction realities, and field mobility limitations. Bentley offers collaboration, work process man- agement, modelling, and mobile device solutions to make projects more manageable. When everyone has the right information in the right place at the right time, productiv- ity increases, safety improves, and projects perform better. Server, which includes ConstructSim, provides a structure for execution planning directed at the workforce. It facilitates collaboration between engineering and construction so work can be planned down to the installa- tion level. ConstructSim’s interactive virtual 3D model lets you visualise the status of a project, so you can see exactly what is being worked on and what has constraints, and make sure the work you plan is logically executable. For instance, you can see when a work package is approved and issue it only when work crews are available, or when weather conditions allow. Your project’s productivity and safety will increase by assigning resources only when materials are in place and work is ready to be performed. ProjectWise Construction Work Package Server automates your work packaging process. The simple Web- based portal gives your entire project team the visibility needed to perform work, and your project stakeholders the ability to quickly assess project performance and mitigate risk. How does Bentley Systems’ flexible licensing options set it apart from its competitors? We historically sold and continue to sell some of our solutions through perpetual licenses together with an attached SELECT subscription. SELECT offers benefits that include software upgrades and technical support, but it also offers subscribers annual portfolio balancing. Annual portfolio balancing entitles organisa- tions to exchange licenses, or any portion thereof, for other software in our portfolio on an annual basis. In this way, Bentley users can vary their license mix as business needs change, providing them with the freedom to use a variety of software solutions during the license period. While upgrading software, how much significance does market feedback hold? Feedback is vital. Bentley takes the feedback from our users, the leaders Organisations should ask them- selves what it is they are hoping to achieve through the use of BIM. What are the required outcomes? Then look at the technology required to support and deliver these. BIM enables both the consistency and mobility of infor- mation from one phase of the project to the next, removing wasted time and effort. When everyone uses the same set of standards and processes – instead of the “my way” approach – with technology that is interoperable and supports information mobility, the information created and collected can be leveraged across the project and asset lifecycle, improving quality and reducing risk at every stage. Could you tell us about your role as an industry marketing director and what excites you most about your job? I’m very lucky that my role gives me the opportunity to work around the world, meeting with, listening to, and learning from our many users, about the different ways in which they have deployed our software to solve the challenges they face on a daily basis with their transportation projects. We are committed to helping infra- structure owners maintain and oper- ate their networks more effectively. Therefore, a significant amount of my time is spent working with these organisations to increase awareness of asset information and performance management software in the industry, and helping build the level of trust they demand in technology partners given the commercial pressures faced. It is not secret that workforce plan- ning is in critical need for efficient management. what are the most pressing issues which arise from this? Because of the shortage of skilled labour, it’s no surprise that work- force planning is becoming a grow- ing concern and affecting project performance. Labour constitutes roughly 40% of project costs, so tool time has to be efficient. Our Project Wise Construction Work Package
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 56 COMMENT With a reported 175, 574 rooms under construction in the Middle East accord- ing to STR Global, it is no surprise that the skeptics are out in force, raising the alarm and harping on about oversupply issues. But according Dubai’s Depart- ment of Tourism and Commerce Market- ing (DTCM), we need this many rooms to fulfil Dubai’s 2020 vision of welcom- ing 20 million visitors to the region. So who is leading the way in the Middle East and eager to pique interest in their region by diversifying their hospitality offering? You might be surprised to hear that it isn’t Dubai alone, but in fact Saudi Arabia and the UAE combined. Saudi Arabia is also set to become home to the world’s largest hotel, the Abraj Dubai in Makkah and will boast 10,000 rooms and 12 separate tow- ers. Designed by Dar Al Handasah, the project has a total built area of 1.4 million square metres and will be set in the Manafia area in Makkah's central zone. The $3.5 billion hospitality project is already on site and comprises of 12 towers with a total of 10,000 rooms, 70 restaurants, rooftop helipads, royal floors and a full size convention centre, all roofed under what will become one of the largest domes in the world. With top projects like these it is no wonder that the UAE and Saudi Arabia are leading the hospitality industry in the Middle Easte region with a combined pipeline of more than 50,000 hotel rooms under construction according to the latest data released by STR Global. Saudi Arabia reported the most rooms gion, supply could well start to outstrip demand, putting ever greater pressure on both occupancy and ADR,” PwC said in a recent report. And according to the latest figures issued by DTCM, Dubai’s hospitality industry is poised to enter a new growth trajectory with rooms predicted to surge to 140,000-160,000 keys by 2020 from 93,030 which was the figure reported as of January 2015. In 2014 alone, of the 44 new hotels and hotel apartments comprising 27 hotels and 17 hotel apart- ments, 13 hotels came from the four-star sector and nine of the new apartments fell into the standard classification. The boom in mid-market hotels has been spurred on by Dubai government’s incentives including 10% fee waiver. In 2014, Dubai’s hotel portfolio grew from 611 hotels and hotel apartments to 659 a 7.8% growth over the course of the year. So by the end of 2015, it will be interesting to see how much growth and development has arisen in the region. So with Dubai having received more than 8.2 million international overnight visitors during the first seven months of 2015, representing a 9.3% increase on the same period in 2014 accord- ing DTCM, the burgeoning pipeline of hotels under construction in the Middle East are well in line to cater for the an- ticipated 20 million visitors by 2020. January issue of Hotel News ME will carry the Project Pipeline supplement, with exclusive data and insights on the region’s next wave of new hospitality stock OVERSUPPLY WOES OR BUSTLING SUCCESS? under construction with 28,050 rooms in 64 hotels. The UAE then followed with 22,724 rooms in 90 hotels. Qatar closely following behind with 6,383 rooms in 26 hotel and was in fact the only other country in the region to report more than 5,000 rooms under construction. It just goes to show the sheer number of hotels under construction in the Middle East, and how rapidly it contin- ues to grow, considering that there were 653 hotels totalling 159,945 rooms under contract in the Middle East and Africa region in May 2015 compared to August 2015’s revelation of 175, 574 STR Global Construction Pipeline Report. This figure represents a 16.1% in- crease in rooms under contract com- pared with May 2014 and a 40.4% YOY increase in rooms under construction. PwC’s second Middle East hotel forecast also warned that with so much new supply coming on stream across the region, the question is whether this up- swing is sustainable in the future. “With over 54,000 rooms under construction and another 72,000 planned for the re- Editor of Hotel News Middle East, Sophia Soltani reviews the colossal number of hotel rooms under construction in the Middle East and what this means for the landscape of the hospitality industry
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CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 58 NEWS MACHINERY O verlooking the waters of the Marmara Sea, a mixed use project intended to drive economic growth in the area is taking shape. The enclave of branded hotels, restaurants, shops and 1,463 luxurious homes is devel- oped and constructed by Turkey’s indigenous Dap Yapi Construction – the name behind Centro Futura, Adam Kule Tower, and Taksim Petek Residence – with handover sched- uled to begin from December 2016. Constructing the five sea fac- ing towers – each over 150 metres tall – are Raimondi’s MRT 144, MRT 111 and SRT 85 models, with lifting capacity of 10, eight and six tonnes respectively. Standing tall over the marina, the flat top models can advantageously erect and operate in close proxim- ity with each other, solving most of the on-site difficulties faced by the contractors due to space limitations. According to the crane manufacturer, this was key to landing a deal with Dap Yapi Construction. A common advantage cited by THE CRANES PROJECT WITH A VIEW
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 59 Image courtesy of Raimondi Cranes Eng. Domenico Ciano, technical director at Raimondi Cranes, is the ease of assembly and shorter instal- lation time when compared to a traditional cat-head crane. Commenting on the minimum overlap jib clearance required, he ex- plains: “Traditional cranes have the cusp and tie rods extruding above the jib, whilst the flat top have the cusp within the jib parameters.” Placing cranes in close proxim- ity may raise some safety issues. However, with Ascorel as their anti- collision partner, Ciano ensures Rai- mondi takes all the necessary safety measures and precautions. Ciano says: “To ensure extra safety measures, all of the flat top cranes are equipped with anti-collision sys- tems which includes sensors, control units, and radio units. The systems are installed on all of the cranes to avoid collision due to potential op- erator error.” With extensive global experience, the Milan-based crane manufac- turer has a record of manufacturing and distributing over 15,000 cranes worldwide.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 60 UAE-based RAK Ceramics acquired 8% minority shares of its subsidiary RAK India, and now fully owns operations in India. The company setup operations in India nine years ago to capitalise on rising demand, growing construction proj- ects, high urbanisation rates and government direction towards sanitisation. It has three production lines in India, with a current capacity of 8 million square metres of tiles. The announcement follows RAK Ceramics’ re- cent 100% acquisition of its Iranian operations. In 2014, RAK India operations contribut- ed 16% of total tiles sales volume and 13% of sanitary ware. Based on these results, the company now aims to expand in India by 52% for sanitary ware to reach 1.1million pieces by 2016. Abdallah Massaad, CEO of RAK Ceramics said: “India is a strong market with great potential for us. It is among the fastest growing markets in the world and has witnessed a dramatically renewed optimism for its economic prospects with a rising demand for building materials and construction projects; a very promising sign for RAK Ceramics.” S trong demand for high quality office space will drive the GCC’s construction market to values of $125bn by 2016. In the GCC, large, small and medium-sized enterprises are expanding and upgrading of- fices, as the GCC’s construc- tion sector is set to grow by 38% from 2013 to 2016 ac- cording to Alpen Capital. “GCC companies of all sizes are upgrading their office space, placing employee pro- ductivity on top,” said said Santosh Vallil, sales manager of Hunter Douglas Middle East, the multinational ceiling manufacturer. In Dubai alone, office sup- ply is set to increase from 7.6 million square metres in 2014 to 9 million square metres by 2017, according to a recent report by JLL. Hunter Douglas’s new light- weight sound-absorbing ceil- ing solution, TechStyle Is- lands, is now available in the Middle East. Reducing reverberation to comfortable levels, Tech- Style Islands can absorb 75% of sound at frequencies be- tween 250 and 4,000 Hertz, which includes the frequen- cies for human speech and the sound of a telephone. “TechStyle Islands was de- veloped in response to a need for an affordable, sim- ple and flexible solution for acoustic problems in exist- ing buildings. It certainly is a simple solution; for small- scale application, you don’t even need an architect or installer. The next step, as far as I’m concerned, will be to integrate lighting in the islands,” said Adrian Stieger, director of Hunter Douglas Switzerland and inventor of TechStyle. Consisting of fibre glass tiles attached to U-shaped aluminium, TechStyle Islands weigh 25% less than tradi- tional ceiling islands, mak- ing them easier to install and reducing the overall load on the building structure and cost to transport. Sound-absorbing ceilings can be used in both existing buildings, and new buildings with concrete core activation. OFFICE SPACE EVOLVES AS GCC CONSTRUCTION MARKET GROWS RAK Ceramics fully acquires Indian subsidiary SUPPLIERS NEWS For more news about suppliers and the industry, visit www.cbnme.com
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 61 Exclusive Media Partner Official Business Media Partner Media Partners Sponsors For more information and registration, please call us on Tel:+ 420 601 354365 or email: registration@intlbc.com - Organized by: www.intlbc.com Leaders in Design MENA Summit Speakers Where Design Meet Business LEADERS IN DESIGN MENA Ritz-Carlton, Dubai, UAE 15th-16th November 2015 The Only True International Event that Hosts the Design Community from Across the World www.interiorsummit.com
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 62 EVENT PREVIEW The Big 5 Show is one of the biggest construction tradeshows in the region, and last year broke records with 80,000 participants from 147 countries. “It was completely sold out,” Josine says. “We had an overall 2,800 exhibi- tors and I am expecting we will reach up to 3,000 exhibitors this year, which means we will be hosting more than 200 new exhibitors. We have a lot of new features” In preparation for steadily increasing demand for certified equipment, build- ing materials, and expertise, The Big 5 will increase in size again in 2015. This year Dubai World Trade Centre has built an additional hall in its exhi- bition space which will be utilised by BIG FOCUS As The Big 2015 5 introduces a new hall space, event director of the show, Josine Heijmans, talks about how visitors and exhibitors could use and benefit from the new features
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 63 SAVE THE DATE The Big 5 Show. “We will be the first show to use this new hall as The Big 5 Focus.” She says that the new hall has given the show a chance to ex- pand even further and introduce more features. “We now have the opportunity to have more exhibition space. For example this year, we have further increased the number of free educational workshops and events. We will have over 75 workshops and also use two of the key theatres for the work- shops, one of which will be the project management theatre and the other will be the technology and construction theatre.” She says that the educational events hosted by the show makes them stand out from any other re- gional tradeshow. She adds: “Not only are all of these workshops free to attend, but visitors can also receive a CPD certification at the end of the session.” All workshops will be open for all without any pre-requisites. However, participants must make sure they enter the class in the first 30 minutes, in order to pick up the certification at the end of the class. Most topics covered in the workshops will be relevant to the industry and help participants gain thorough insight into the market. The workshops will be held under six themes including project management, sustainabil- ity, business and market intel- ligence, design and architecture, affordable housing and sustain- able communities, and technol- ogy in construction. She says: “Even though we don’t have a particular theme, innovation and sustainabil- ity has been a running theme throughout the different events and workshops.” According to visitor feed- back, the events director notes that one of the most important reason why people come to this show is to source new products and the latest technologies in certain sectors. However, she observes that there is more to it than just sourc- ing. She says that what most people take away from the show is the trends in the market and useful connections after effective networking during the show. “We have a very high percentage of international visitors, and exhibi- tors to the show. Most of them plan to enter the GCC market, and we as a show try to support them and give them relevant information that could help them become a part of the regional construction industry.” The Big 5 Dubai 2015, together with Middle East Concrete 2015 and PMV Live 2015, will run from November 23-26 at the Dubai World Trade Centre. Leaders in Design 15 – 16 November Dubai Leaders in Design MENA is key meeting place for interior design professionals from the region to discuss the latest global markets trends in the industry as well as learn and source 360° solu- tions for their diverse portfolios of projects. For years Leaders in Design MENA has encouraged business connections between international sup- pliers and interior designers providing a unique opportunity to explore the needs of the projects and get inspired by leaders, luminaries, and legends from within and outside interior design industry and explore the potential that the region can offer. The Big 5 23 – 26 November Dubai World Trade Centre For over 35 years The Big 5 in Dubai has been home to the largest gathering of construction professionals in the Middle East. With exhibitors showcasing thousands of certified and innova- tive products from across the globe, free CPD certified workshops on offer and live product demonstrations, there is enough information for professionals from any discipline of the construc- tion industry. This year the show will feature: 2,800 ex- hibitors from over 65 countries; 64 free certified educational workshops; 80,000 construction professionals and key buyers. Maintenance Middle East 23 – 26 November The Address Hotel Dubai The 21st annual Maintenance Management Con- ference provides a 360 degree overview of the latest methods in improving your maintenance management strategies and driving business KPIs. With a new, case study-driven agenda, the conference will provide practical guidance and field based techniques to key challenges execut- ing maintenance strategies and tactics includ- ing; implementing an RCM strategy, improving equipment reliability, retaining skilled manpower, implementing ISO 55000 and understanding the latest technology advances and ROI maximiza- tion strategies for CMMS. Maintenance Manage- ment continues to cover all sides of the business and continues to be the only established mainte- nance gathering in the region attracting over 100 industry leaders annually.
CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 64 MEET AN EXHIBITOR Frank Ackland, general manager for Eaton Middle East, speaks with Construction Business News ME about debuting as an exhibitor at The Big 5 this year. EVENT PREVIEW This year will be your first time presenting at The Big 5, why decide to participate now? The Big 5 show is undoubtedly one of the most respected events for the construction sector, both internation- ally and regionally. Eaton chose to participate as this is a great opportu- nity for us to showcase our complete range of offerings across the construc- tion sector, where our portfolio cov- ers low voltage and medium voltage switch gears, wiring and accessories, lighting, emergency lighting and evacuation, as well as home automa- tion and control solutions. Our attendance at this years The Big 5 show will be very much focussed on expanding our work within the com- mercial construction market. We also consider our presence there as great opportunity to get a feel for the trends in the market and support our plans for the coming year. What products or services will Eaton be promoting at this year’s Big 5 show? Eaton aims to showcase the prod- ucts present at the show through an experience centre that brings Eaton solutions to life in a “real life” work- ing environment. The purpose of this being to highlight products in their own right, as well as the way they each fit together to provide resilient, reliable, and efficient energy solu- tions across the complete commercial construction journey. Tell us about Eaton’s background. Eaton was originally established in the United States in 1900 as a truck axel manufacturing business by inventor Viggo Torbensen and entrepreneur Joseph Eaton. Since then, Eaton has developed through acquisition and intelligent market decisions into the power management expert it stands as today. Currently, Eaton has approxi- mately 102,000 employees worldwide and our 2014 sales reached $22.6 billion. Looking at 2015, how has it been for Eaton in terms of business? How does it compare to 2014? This year has been a trying but suc- cessful year for Eaton in the Middle East, particularly in the power distribu- tion segment. The core to the growth of our business relies heavily on having a strong network of channel partners, distributors, and panel build- ers across the region. We are both realistic and optimistic about 2016, like all organisations are, as the instability in oil prices continues to bring a more conservative view to 2016. Where do you see the GCC construc- tion sector in 2016? Considering this, what are Eaton’s main markets? As aforementioned, given the instability of the oil prices, we foresee this trend affecting the markets in the region. However, despite this, 2015 has still seen large billion dollar projects being announced in the construction sector. With Expo 2020, Qatar 2022, and the Middle East being one of the largest regions globally in the move towards urbanisation, we are optimistic that op- portunities in the construction industry will continue into 2016, particularly in our main markets UAE, Saudi Arabia, and Qatar. How does Eaton see the business levels in its domestic market? This has been a challenging year, but despite this, Eaton has continued to grow in the Middle East market. We are currently focussed on a number of strong initiatives in the region, and as a company that is wholly specialised in power management solutions, we are confident in the expertise and experi- ence we bring to the table. What are Eaton’s most recent developments? Over the past few years Eaton has significantly increased its footprint in the Middle East, firstly with the acquisition of Cooper Industries in 2012 and later with the opening of new regional headquar- ters and a manufacturing plant in Dubai. Eaton has a number of plans for ex- pansion and growth in the Middle East. These plans were drafted with the aim of providing a greater local offering to our customers while further solidifying Eaton’s position as a leading player in the power management industry across the region. Eaton is a multinational power management company, primarily functioning in the distribution of electrical and fluid power. Technologies, of which there are several hundred patented, help customers manage electrical, hydraulic, and mechanical power, both safely and efficiently.
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CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 66 NEWS A tkins and Faithful+Gould (F+G)‘s Women’s Busi- ness Network (WBN) conference held at the Conrad Hotel in Dubai on 5 October 2015, welcomed 100 women employees along with a number of directors from across the region. The conference aims to bring together women employees within the Atkins and F+G network in the region to share their experiences, in- teract and encourage one another in the industry. The gathering includes employees across the GCC including the UAE, Saudi Arabia, Oman, Bah- rain, and Qatar. The popular events can include up to 120 women, but with 450 females working across the GCC, attendance is first come first served and rotated around the region. The WBN works within Atkins and F+G and is chaired by a board of six women from across the business. “Its aim is to improve the culture in the work environment for women,” says Lesley Desport, associate director – Infrastructure at Atkins and chair of the WBN. “We want to increase the percentage of women in the business by improving our ability to attract new talent and retain existing talent and to ensure we have a more posi- tive gender balance in senior roles moving forward.” WBN is designed to break the ste- reotype of the construction industry being a male-dominated industry, and has put into motion a number of schemes developed to inspire and support female employees within the company to achieve their potential. “It also helps embrace equality and provides flexibility,” adds Desport. This kind of network, she says, isn’t common in this region (especially in EDITOR'S PICK CHANGING PERSPECTIVES Lesley Desport, associate director – Infrastructure at Atkins and chair of the WBN Atkins and Faithful+Gould organised its first annual conference for the Women’s Business Network in October 2015. Female professionals at the event talk to Construction Business News ME about how a women’s network could help them improve the existing culture in the work environment • a buddy scheme for welcoming new women into the business • a mentoring scheme designed to provide guidance and encouragement • women’s networking events created as a regional community for women to share their experiences • gain additional support across the business units • harness the companies’ resources towards creating a more fair and diverse workforce WBN’S SCHEMES TO SUPPORT WOMEN the construction industry). “It is a great example to follow for other compa- nies, and it’s very encouraging for fresh graduates coming in.” Desport observes that there has been a positive shift in the last three to five years, that has influenced and attracted women into construction. “It’s not as male-dominated as it was when I first arrived in the Middle East 26 years ago.” F+G's ME marketing and comms director Jenny Longstone says: “The perception that construction related industries in general are a man’s world is a perception we are trying to change. We are a people business and we are successful because we offer our clients a variety of talent, skills and experience. Our ability to do that relies heavily on creating a working environment that is exciting, rewarding and most impor- tantly fair and to do this we hope to improve gender diversity and balance across the board. “Women bring different skills into the business. We bring a different perspective.” Second annual conference for the Women’s Business Network in Conrad Hotel, Dubai
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