Construction Global Magazine - July 2016

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www.constructionglobal.com

July 2016

Green intentions Construction sustainability in the spotlight

FUTURE-PROOF BUILDINGS in the here and now

Data vs Goliath How CyrusOne is dominating the data centre industry

10 of the most influential female architects



IN THIS ISSUE

EDITOR’S COMMENT

Future proof H E L L O A N D W E L C O M E to the July 2016

issue of Construction Global magazine. As we tick into the second half of the year the future very much concerns our feature line up. Jeremy Gould, VP Sales Europe for TomTom Telematics, considers the impact that improved fleet operations and driving performance standards can have on tackling the industry’s environmental challenges. Meanwhile, Bruce McAra, CEO of Turner & Townsend US, talks us through the use of building information models to future-proof buildings, while our Top 10 features the most influential female architects. Read on into our profile section and you’ll see our cover feature on data centre construction experts CyrusOne, which has been breaking records left, right and centre in terms of quality and speed of project delivery. This is one of many exciting construction stories being told this month, including how MartinHarris Construction, after 40 years in the business, is undergoing a profound change of leadership. We sincerely hope you enjoy the issue, and as always, please tweet your feedback to @ConstructionGL

Lucy Dixon Group Editorial Director lucy.dixon@bizclikmedia.com

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CONTENTS

Features

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PROFILE

Green intentions? Construction sustainability in the spotlight

TOP 10

12

TECHNOLOGY

Future-proof buildings in the here and now 4

July 2016

TOP 10

20

Ten of the most influential female architects


Company Profiles USA 32 CyrusOne 58 Martin-harris Construction 76 Ghilotti Construction Company Inc

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CYRUSONE USA

MIDDLE EAST

DYNAMIC ATTRACTIONS Middle East

90 Dynamic Attractions 106 Abdul Latif Jameel Heavy Equipment

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AUSTRALIA 120 Delta Group

LATIN AMERICA 134 CODELPA 150 SOBOCE

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GHILOTTI CONSTRUCTION COMPANY INC USA & Canada DELTA GROUP Australia & Asia

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ABDUL LATIF JAMEEL HEAVY EQUIPMENT Middle East

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MAJOR PROJECTS

Green intentions? Construction sustainability in the spotlight

Jeremy Gould, VP Sales Europe for TomTom Telematics, considers the impact that improved fleet operations and driving performance standards can have on tackling the industry’s environmental challenges Writ ten by: JEREM Y GOULD

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THE GREEN CONSTRUCTION Board recently highlighted the changes the construction industry must make if the government’s carbon reduction targets are to be met. Ambitions of a 50 percent cut in built environment emissions by 2025 and at least an 80 percent reduction in national greenhouse gas emissions by 2050 are extremely challenging. According to the Board’s recent ‘2015 Routemap Progress’ report, ‘capital carbon’ – a measure that includes the carbon footprint of the industry’s own processes and transport emissions – “has shown a trend for gradual increase across most construction sectors as economic growth has taken hold since 2009”. With the reduction of carbon emissions from construction processes and associated transport a key element of the government and industry’s joint ‘Strategy for Sustainable Construction’, more efforts must clearly be made to ‘decarbonise’ the supply chain. Research findings a cause for optimism TomTom Telematics recently conducted its own research to provide a snapshot of the 7


MAJOR PROJECTS industry’s commitment to long-term environmental responsibility and the findings did offer cause for optimism. 75 percent of the 149 construction companies surveyed said they now operate a low carbon or carbon reduction strategy, with 58 percent regularly monitoring and measuring their carbon footprint. This commitment to the green agenda is boosted by client demands – 51 percent of construction operators claimed their clients require them to record and act on carbon emissions as project performance indicators. The fleet operation has been identified as a key focus for CO2 reduction; 68 percent of companies we spoke to have systems and processes in place to reduce fuel consumption across their vehicle fleet and, of these, only 23 percent use a telematics system to do so. Fleet operations are a major source of CO2 emissions but the data provided by technology such as telematics can allow companies to pinpoint trends and tackle the root causes of fuel wastage. 52 percent of respondents cited road traffic congestion as the biggest cause of unnecessary fuel consumption, followed by vehicle idling and inefficient 8

July 2016

routing, both at 11 percent. Five percent named vehicle speeding as their biggest drain on fuel wastage, while unauthorised vehicle usage was cited by a further five percent. But while performance efficiency is clearly crucial, old habits can die hard. Nevertheless, initiating meaningful change can prove a straightforward process if approached in a structured fashion. Technology for effective fleet and route planning to minimise wasted mileage can be introduced swiftly with minimal business disruption. Smart navigation, incorporating live traffic information, can help drivers avoid congestion, slashing their journey times and their carbon footprint. Involving and empowering drivers Change does not need to scare employees, even when it involves monitoring driving standards. When implementing a performance programme, it is important to involve drivers in discussions from the outset, involving union representation if appropriate. This gives them the chance to ask questions, raise any concerns, and to start a two-way dialogue that


C O N S T R U C T I O N S U S TA I N A B I L I T Y I N T H E S P O T L I G H T

helps to demystify the process and give staff a sense their opinion really counts. Taking construction giant Skanska as an example, all employees are provided with mandatory leadership and values training as a part of their induction, quickly setting the tone for what is expected. A right to challenge has been established where anyone can challenge a colleague on negative behaviour regardless of position or status. Suggestions for improvements are welcomed, with any changes clearly communicated to staff. Creating advocates and champions can also help. Instilling a sense of

pride and responsibility among selected workers can help to put them in a position where they can spread the word and highlight the benefits of driving more efficiently. These benefits might range from improved safety to cost savings that can help to safeguard jobs. Business policy could also outline what consequences might be faced as a result of breaches of expected standards, such as excessive incidents of idling or speeding. Any disciplinary process should be clearly outlined and communicated, while giving staff the right to reply. 9


MAJOR PROJECTS

Data insights to achieve change The amount of data available to construction companies to monitor and improve standards is now greater than ever but collecting, analysing, and reporting on it needn’t be an arduous task. Telematics systems, for example, are ever more sophisticated, creating individual profiles for drivers based on their performance in a number of key efficiency areas. Management can drill down into specific areas of performance to gain greater insight into specific problems. Data is available on a range of behaviours, including speeding, fuel consumption, harsh 10

July 2016

steering and braking, idling, gear changes, and constant speed. The latest telematics tools can also maintain the theme of two-way feedback and collaboration by empowering drivers to adjust their driving style in real time. The driver will receive an alert through their sat nav device to inform them where they are able to improve. Devices can even provide predictive advice that unlocks even greater fuel and carbon emissions savings. Drivers are told when to take their foot off the accelerator on the approach to roundabouts or junctions, allowing them to drive in a smoother, more fuel-efficient manner.


C O N S T R U C T I O N S U S TA I N A B I L I T Y I N T H E S P O T L I G H T

Sustained engagement When it comes to achieving sustained levels of engagement from a workforce, incentives such as extra holidays or cash can prove beneficial. Drivers for plant hire company Garic, for example, receive a weekly bonus if they hit agreed fuel consumption performance targets. Simple recognition and acknowledgement can be equally effective however, with positive feedback and constructive criticism fostering a culture of collaboration.

TomTom Telematic’s research found that 95 percent of construction companies still believe the industry as a whole could do more to reduce carbon emissions. However, by following a set of established guidelines – creating a culture of excellence, providing strong leadership, choosing data to suit objectives, and working with employees to achieve improvements – best practice and impactful change can be achieved.

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Future-proof buildings in the here and now Bruce McAra, CEO of Turner & Townsend US, talks us through the use of building information models to future-proof buildings and the work forces within Written by: B ru ce M c A ra 12

June 2016


T E C H N O L O G Y & E Q U I SPA M F E TE YN FIT RST

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TECHNOLOGY & EQUIPMENT THE COST, TIMEFRAME, and effort involved in creating and adapting buildings means that most organisations do not do so every year – or even every decade. But business needs are changing at an ever faster pace. Which raises the question – how can you ensure that a building constructed today is still up-to-date in 20, 30 or even 50 years’ time? Constant technological progress is changing the way we live, how we work, and even where we work at an astonishing rate. The past is littered with examples of once cutting-edge structures that quickly became outmoded and redundant, leading to costly remodelling. But can technology enable us to futureproof a building, and if so how? By definition, it is too early to say. Certainly many structures are now designed with a host of contingencies in mind, from technological advances and flexible working patterns to extreme weather events, security threats, and climate change. But designing an adaptable structure is only one way of hedging against the vast unknown. 14

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Data = knowledge = true adaptability An alternative, and potentially less costly, strategy is to focus on gathering consistent, rich, and accurate data and engaging with stakeholders about its outcomes as early as possible. The guiding principle is to track every element of the built asset, and how its occupants operate within it. Detailed, consistent data leads


to greater knowledge, the bedrock on which confident decisions can be made in later decades. At its simplest, this knowledge can be embedded in a 3D digital model that mirrors exactly the real physical asset. Known as building information models (BIM), these can contain hosted and relational information on every object within the physical asset. They are an archive for everything,

from materials to appliance installation instructions and maintenance logs. They can aid efficient operation throughout the life-cycle of an asset; employees are able to locate hidden pipes and power networks, know whether enclosed air conditioning units are under warranty, and even understand how to dismantle sections at the decommissioning stage. A detailed digital model can become a powerful predictive tool for forecasting operational costs and any remodelling, remediation, or repair times. This knowledge can cut cost and save time. For example, imagine a scenario in which an adhesive commonly used in building materials is suddenly discovered to be dangerous to human health. A good model would not only identify the location of every item containing the toxic matter, it would also show the surroundings and orientation of each. Contrast that with the complex, expensive and time-consuming surveys that must be carried out when searching for asbestos in older buildings today. The people factor As the above example illustrates, BIM offers tangible benefits for managing assets in the short and 15


TECHNOLOGY & EQUIPMENT medium term. But when combined with other technologies, it can unleash even more exciting possibilities, shifting our mindsets from subjective to objective decision-making. Social data, gathered from sensors or mobile phone apps, can radically shift the perceptions of how people interact with assets. Thanks to advances in the internet of things and cloud computing, the cost of embedding sensors into building and asset management systems is much lower than it was a decade ago. Owners already have the opportunity to measure everything from temperature and the sun’s orientation to humidity, motion, and the flow of people. Sensors are set to become an increasingly powerful means of tracking in real time how an asset is being used; identifying common areas of wear and tear, supporting maintenance, and providing insight into capital investment planning, optimisation, and portfolio management. They are also helping asset managers to manage the expectations of the general public: a simple example is the digitised information that tells passengers when the next train or bus will arrive. 16

July 2016

Allowing people to interact with assets, both passively and actively, is a key driver in improving outcomes and optimising future developments. Getting it right the first time When considering how to future-proof an asset, it is critical to ensure that all parties are familiar with the design in the early stages. All too often, occupants don’t get to see a facility early enough – by the time they do, the project may be too far advanced or even completed. But the later changes are made to a project, the higher the subsequent cost in time and money. The challenge is how to help stakeholders visualise how they will interact with the asset before it exists. Hotel and retail chains often construct physical models, prototypes or ‘mock ups’ to test the design, finishes, or layout of a room. Effective use of data-rich 3D models is a more cost and time efficient alternative. As well as facilitating feedback during the early design stages, these tools are also useful for staff training and helping occupants to familiarise themselves with new facilities before they open. BIM will play an increasingly important role in facilitating smooth handovers,


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TECHNOLOGY & EQUIPMENT

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sometimes referred to as ‘soft landings’. Conceiving a building that can successfully adapt to future needs remains a significant challenge, but BIM can help to speed up decisions - both on day one and in response to future changes. Going one step further, physical structures now exist that can be remodelled almost as easily as virtual ones. The principle is to create modules that can be dismantled and moved within the outer shell of the building. Thus, room sizes can change and new spaces emerge with minimum cost or effort. The building becomes a dynamic organism, creating an adaptive environment for an evolving community. When planning for the long term, all we can be certain of is that the future is unpredictable. The problems that preoccupy us now may be irrelevant in a decade, but new obstacles will emerge instead. Consistent, rich, and accurate data is our greatest weapon for dealing with uncertainty. We may not be able to see into the future, but knowing and understanding your asset, and closely tracking how its occupants are using it, is essential preparation for the unseen challenges and opportunities ahead. 19


TOP TEN

Ten of the most influential female architects


In this month’s list we look at some of the most influential and inspiring women within the construction industry Written by Tilly Sweet >>>

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TOP TEN

MAYA LIN Best known for winning the public design competition for the Vietnam Veterans Memorial at the age of 21 and still as an undergraduate, Maya Lin’s v-shaped, granite sculpture caused mass controversy, in part because of its unconventional and non-traditional design for a war memorial, and in part because of Lin’s gender, ethnicity, and lack of professional experience. In 2007, the Memorial was ranked #10 by the American Institute of Architects on their List of America’s Favourite Architecture. Later, in 1994, Lin was the subject of the Academy Awardwinning documentary Maya Lin: A Strong Clear Vision, and in 2009 was awarded the National Medal of Arts by US President Barack Obama. Lin prefers to think of herself as a designer rather than an architect.

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TEN OF THE MOST INFLUENTIAL FEMALE ARCHITECTS

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JEANNE GANG Born in Chicago, Jeanne Gang has worked internationally, and her extensive portfolio includes Aqua in Chicago, the WMS Boathouse at Clark Park on the Chicago River, and the Nature Boardwalk at Lincoln Park Zoo. Completed in 2009, Aqua is the third tallest building in the world designed by a woman, as well as being the largest project ever awarded to an American firm led by a woman. Gang has also authored and co-edited several publications and has been awarded multiple commendations, including the recent Architect of the Year, Women in Architecture, 2016.

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TTOOPP T1E0N

TATIANA BILBAO Tatiana Bilbao is perhaps best known for her incredible attitude towards low cost housing, and has offered design-led low-income and climate appropriate housing in Mexico as a solution to the country’s housing crisis. At the inaugural Chicago Architecture Biennial in 2015 Bilbao presented her building prototype; a low cost house that can be adapted and expanded to accommodate varying numbers of residents and family growth. The prototype could also be altered to suit ranging climates by utilising a variety of materials and spatial layouts, and was commissioned by the Mexican government as a part of their subsidy programme for low income families looking to buy property.

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ANGELA BRADY Angela Brady is just as well known for her success as an advocate for females within the construction industry as for her work as an architect. In 2011, she was the first non-British person and the second woman to be elected to a two-year term as President of RIBA, and she has also held a position as chairperson of the Royal Institute of the Architects of Ireland. Brady has worked relentlessly in campaigning for greater involvement in architecture by women and ethnic minorities since her foundation of RIBA’s Architects for Change group in 2000, and has stated that she hopes to raise the current estimate of only 18 percent of architects being female to 40 percent. In 2012, Brady was awarded the Women of Outstanding Achievement Award for Leadership and Inspiration.

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By https://www.flickr.com/photos/114061274@N07/16137815698/

SHEILA SRI PRAKASH Regarded as a child prodigy from a young age for her aptitude for the Arts, Sheila Sri Prakash founded Shilpa Architects in 1979; she was the first woman in India to have started and operated her own architectural firm. Known widely for her versatility in architecture, Sri Prakash has completed over 1200 projects throughout her career and has been recipient of many awards, namely being named in the 50 most influential names in Architecture and Design in 2015 by Architectural Digest and within the Top 100 architects in the world by the prestigious Il Giornale dell’ Architettura. Sri Prakash invited to enhance the sustainability of the Olympics Infrastructure at the London 2012 Games, and her recommendations to the United Nations 2012 Rio+20 Summit in Brazil have been adopted in the mandate for Sustainability presented to heads of nations. She also spoke at the Global Green Summit by Bloomberg in Singapore as a breakthrough thinker for her pioneering work on the Reciprocal Design Index that she developed at the World Economic Forum.

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SARAH WIGGLESWORTH Famed for her unconventional building materials, Sarah Wigglesworth was responsible for the infamous Straw Bale House in Islington, London, which has featured extensively in architectural literature. Wigglesworth’s repertoire of alternative resources has included straw bales, cement filled sandbags, silicon-faced fibreglass cloth, and gabions filled with recycled concrete, and the architect prides herself on creating non-traditional eco builds – mainstream urban and urbane green buildings. Wigglesworth was also the first woman to ever be appointed a Royal Designer for Industry in 2012.

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TTOOPP T1E0N

EVA JIRICNA Eva Jiricna is a Czech architect and interior designer active in London and Prague, famed for her innovative use of industrial materials in retail and commercial spaces. In 1968, Jiricna moved to London, working as an architect with the Greater London Council and later as an associate in the Louis de Soissons Partnership. Her practice, Eva Jiricna Architects, works not only on architectural projects but also on interior and furniture design, with Jiricna as renowned for her architectural work as for her many store design commissions. In this way, she serves as an innovator in demonstrating how retail design can be treated with architectural concepts.

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08 ZOKA ZOLA

Born in Rijeka, Croatia, Zola moved to Chicago in 1997 to work as an adjunct professor at the School of the Art Institute of Chicago, where she won Architecture Magazine’s Home of the Year Award of North America for her Pfanner House. Zola has also been responsible for three zero-energy houses, including the Rafflesia House in Kuala Lumper, which won the Bird Island Zero Energy Homes Competition, and is meant as a study of the human habitat that is an integrated part of its tropical, urban, and site-specific ecosystem. Zola was also recipient of Young Architect of the Year Award in 1995 and has a wide portfolio of published and exhibited work.

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http://www.domusweb.it/en/interviews/2011/06/26/zoka-zola-as-unimprisoned-as-possible.html

TEN OF THE MOST INFLUENTIAL FEMALE ARCHITECTS


By Rama - Own work, CC BY-SA 2.0 fr, https://commons.wikimedia.org/w/index.php?curid=6377545

TOP TEN

KAZUYO SEJIMA Kazuyo Sejima’s work is characterised by her clean, modern tastes, and regularly features slick surfaces such as glass, metals, and marble; cube, square elements and large expanses of window can be seen throughout her portfolio. Over the course of her career, Sejima has designed several projects both in Japan and internationally, such as the New Museum in New York and the Glass Pavilion for the Toledo Museum of Art in Spain, and has received more than 22 awards, including the prestigious 2010 Pritzker Architecture Prize alongside Ryue Nishizawa.

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ZAHA HADID Iraqi-born British Architect Dame Zaha Hadid deserves an incredibly honourable mention on our list. Famed for her expressive and fluid designs, Hadid came far in paving the way for women within construction, being the first sole female to be awarded the RIBA 2016 Gold Medal, the first female and the first Iraqi recipient of the Pritzker Architecture Prize, and in 2014, the first woman to win the top prize of the Design Museum Design of the Year Award for her work on the Heydar Aliyev Cultural Centre. Hadid also held various academic roles, including the Kenzo Tange Chair at the Graduate School of Design, Harvard University and the Sullivan Chair at the University of Illinois, School of Architecture, and her architectural design firm, Zaha Hadid Architects, employs over 400 people. Her work will, undoubtedly, continue to inspire many.

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Data vs How CyrusOne is dominati

Written by Weda

Produced by T


Goliath ing the data centre industry

aeli Chibelushi

Tom Venturo

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Construction Global caught up with Vice President of CyrusOne, Laramie Dorris. We discussed growth, the future of technology, and its long-awaited ‘Goliath Project’

C

yrusOne’s newest 30 Megawatt Northern Virginia facility is completed in less than six months, shattering all known data center construction timelines Global data center provider CyrusOne (NASDAQ: CONE) recently announced the recordsetting, six-month time period from ground breaking to completion of its newest 30 Megawatt facility on its Northern Virginia campus. Completed in less than six months, the project was delivered in the shortest known time to market interval for an enterprise scale data center of this size. Driving this outstanding accomplishment was the company’s use of Massively

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Modular® engineering methods and advanced manufacturing supply chain techniques which enable the company to provide for the lowest costs and fastest time to market in the data center industry. CyrusOne’s stated goal has been to improve its supply chain efficiency to the point whereby it can deliver a completed data center in the same timeframe that customers can order and receive the computing equipment that will reside in the data center. CyrusOne never wants its customer’s business objectives to be slowed down by the speed of their data center deployment. The record setting time it delivered the Northern Virginia facility proves CyrusOne can remove


CONSTRUCTION

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CYRUSONE

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CONSTRUCTION

Laramie Dorris

Vice President of Data Center Design & Construction Laramie Dorris is the Vice President of Data Center Design & Construction at CyrusOne, and is responsible for enterprise wide project development & execution of data center construction projects. In his years at CyrusOne, Laramie has been responsible for overseeing CyrusOne’s 2014 record-breaking 107-day Chandler I campus completion in Phoenix, Arizona, as well as the arguably more aggressive 180-day Sterling II facility completion in 2016 located in Northern Virginia. Prior to joining CyrusOne, Laramie was a seasoned construction and design executive for mission critical construction firms. He also previously worked at J.P. Morgan and Bear Sterns on a wide w w w . c y projects. rusone.com 37 range project. Laramie has managed both domestic and international


CyrusOne

that uncertainty for them.  The unbridled demand for growth that cloud and social media companies are experiencing is volatile and overwhelming. Against this backdrop, companies are unsure whether they will be growing at a 50 percent, 100 percent, or 200 percent rate of growth, and the accuracy of the forecasts significantly deteriorates as the forecast horizon lengthens. CyrusOne’s ability to deliver

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large quality data centers with record-breaking speed eliminates the risk customers feel with inaccurate capacity planning, and by reducing the time it takes to deliver a data center CyrusOne is able to lower the cost of delivery, passing those savings on to its customers. CyrusOne previously set an industry record when it delivered a 6 MW facility in Phoenix in 107 days. The newest facility


CONSTRUCTION

Total Solutions: Design. Build. Maintain. IES is a full-service national provider of technology services with superior resources, buying power and the best-trained people in the business. We are structured cabling turnkey installation specialists with extensive experience in Data Center infrastructure design, installation and service. Our wide breadth of services, national workforce and service record means you only have to make one call to handle all your Audio Visual, Structured Cabling, Life Safety, Security and Wi-Fi/DAS needs. Together with our customers and partners, we design, build and service solutions that empower your world.

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Working in the customer’s best interest is the heart and soul of our business.

A PPLIC A TIONS Data Processing Centers Telecommunication Facilities Network Operations Medical Imaging

PRODU C TS Static Uninterruptible Power Supply Systems Diesel and Turbine Generators Paralleling Gear Electrical Distribution Switchgear Power Distribution Units Medium Voltage Rotary UPS (DRUPS Systems)

SE RVIC E S Owner Representative Site Commissioning Conceptual Design Site Surveys Installation Supervision Comprehensive Service

Since 1996, Integ has provided one source responsibility for the conceptual design, sales, installation management and coordination for the support/service of critical electrical back up systems. Integ was formed to provide integrated power protection solutions for mission critical data, communication, medical imaging and industrial facilities nationally. Our Company’s mission is to be the leader in critical electrical support systems by integrating the most reliable products available in today’s marketplace. We look forward to supporting your mission critical needs.

Conceptual Design Integ Systems collaborates with business partners offering a myriad of services. Integ will often provide conceptual designs that allow a project to move on the required fast track. The conceptual design also allows critical electrical/mechanical equipment to be pre-purchased, ensuring a timely delivery and on-time project completion. The process continues by working closely with Engineers, Architects, Construction Managers, General, Mechanical, and Electrical Contractors to ensure that the project proceeds on schedule. Working in the customer’s best interest is the heart and soul of our business. Whether that interest is an owner’s representative or as a team player with other business partners, Integ maintains the customer’s goals as the driving force behind our designs and decisions. The basis behind our design process is a system concept philosophy that not only offers Built-In Redundancy, when required, but also ensures Built-In Maintainability. Without both concepts working in harmony, the system uptime can be severely impaired.

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USA

“We are incredibly proud of our strong team of architects, engineers, and contractors for their hard work and ingenuity in bringing this project to completion in a record-setting time.” is almost twice the size of the Phoenix facility, offers 500 percent more power capacity, and only took twice as long to deliver, further highlighting the company’s continuing focus on supply chain efficiency. “Completing a data center of this magnitude in this short time frame is a monumental accomplishment and it continues to prove out CyrusOne’s ability to meet even the shortest customer deadlines. This level of breakneck speed to market helps eliminate the risks executives face when making IT capacity planning decisions,” said Laramie Dorris, vice president, data center design and construction, CyrusOne. “We are incredibly proud of our strong team of architects, engineers, and contractors for

their hard work and ingenuity in bringing this project to completion in a record-setting time. By accomplishing this feat, we have completely revolutionized the dynamics of building out new infrastructure for the industry, and established a new norm for rapid deployment and expansion of customers’ critical infrastructure.” Completion of the new facility dramatically expands the scope of the Northern Virginia campus, providing an additional 30 megawatts of critical power capacity. The new facility represents the second phase of construction for the campus. Occupancy of leasable space is currently over 75 percent. Phase three of construction on the Northern Virginia campus is scheduled to

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“By accomplishing this feat, we completely revolutionized the d of building out new infrastructu industry, and established a new for rapid deployment and expan customers’ critical infrastructu


e have dynamics ure for the w norm nsion of ure� - Laramie Dorris, Vice President of Data Center Design & Construction


CyrusOne

commence in the near future. “In Northern Virginia, CyrusOne made an educated decision to go with an all-precast structural concrete building, with modular power and cooling units,” Dorris explains. “This enabled us to set up advanced supply-chain operations to manufacture or pre-fabricate the components we needed for the data center, which gave us significant savings in time and costs.

CYRUSONE SHATTERS KNOWN DATA CENTER BUILD RECORDS CHANDLER II DATA CENTER (Completed October 2014)

107 DAYS

BIGGER

180 DAYS

• 107 day completion • 120,000 square foot building • 30,000 square feet of data hall • 6 megawatts of critical power STERLING II DATA CENTER (Completed June 2016) • 180 day completion • 220,000 square foot building • 120,000 square feet of data hall • 30 megawatts of critical power

©2016 CyrusOne. All rights reserved.

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“For example, a normal data center building has tilt-up concrete walls, which are cast on-site at the construction site. But for the Sterling II data center, we set up a separate off-site facility where we could cast pre-fabricated concrete wall panels. We then brought those panels to the construction site on trucks and used them to set up the data center building. It saved time because we didn’t have to stop work at the building site while the concrete walls were being cast. “Also, we decided to use prefabricated concrete supports in the data center building, which we could also cast off-site. This saved additional time and money because we didn’t have to buy a reinforced steel framework for the building or wait for it to be delivered to us. Using pre-cast concrete walls and supports shaved a couple of months off our time to market for Sterling II.” The Northern Virginia data center campus is also part of CyrusOne’s National Internet


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Exchange (IX) to enable interconnection to other CyrusOne data centers. The CyrusOne National IX marries low-cost robust connectivity with massively scaled data centers, and it creates a data center platform that virtually links more than a dozen of CyrusOne’s enterprise facilities and third-party locations in numerous metropolitan markets. CyrusOne operates more than 30 carrier-neutral data center facilities across the United States,

Europe, and Asia. The company provides customers with the flexibility and scale to match their specific IT growth needs. CyrusOne facilities are engineered to include the power-density infrastructure required to deliver excellent availability, including an architecture with the highest available power redundancy (2N). Renowned for exceptional service, building enduring customer relationships, and high customer satisfaction levels,

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CY y rRuUsSOOnNeE

CyrusOne serves nine of the Fortune 20 and more than 175 of the Fortune 1000 among its more than 945 customers. CyrusOne Solutions’ built-tosuit data center product is the best solution for cloud, internet or enterprise customers who need quality data center facilities built in the shortest time possible. The standardized construction approach is a repeatable process employable in multiple locations to ensure rapid speed

to market for data center projects, with significant cost savings for customers. By delivering data centers like the Sterling II and Phoenix facilities in record times, CyrusOne is continuously setting the bar higher for the data center industry. Additionally, CyrusOne is helping ensure its customers are able to scale at hyper-speed to meet their data center capacity needs by removing the risks of running out of space or power. Readers can learn more about the

450

Number of employees at CyrusOne

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July 2016


CONSTRUCTION

Divcon Controls is driven to design and implement the best control systems in the industry. • Mission Critical Controls and Monitoring • Mechanical and Electrical Systems • Design, Engineering, Installation, Project Management, Commissioning • System Analytics • Vendor Independent

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there’s never been a better time to break recordS. 30 Megawatts 220,000 square feet CyrusOne’s New Data Center in Northern, VA

180 days

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“We are incredibly proud of our strong team of architects, engineers, and contractors for their hard work and ingenuity in bringing this project to completion in a record-setting time. By accomplishing this feat, we have completely revolutionized the dynamics of building out new infrastructure for the industry, and established a new norm for rapid deployment and expansion of customers’ critical infrastructure.” Laramie Dorris, vice president, data center design and construction, CyrusOne.

Endless Possibilities. Always Improving. Ahead of the Current.

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USA

L O C AT I O N S Arizona

Totowa

Phoenix – Chandler I Phoenix – Chandler II

New York

Connecticut

Ohio

Norwalk Stamford

Illinois

Chicago – Aurora I Chicago – Lombard

Indiana

South Bend – Crescent South Bend – Monroe

Kentucky Florence

New Jersey

Wappingers Falls I Cincinnati – 7th Street Cincinnati – Blue Ash Cincinnati – Goldcoast Cincinnati – Hamilton Cincinnati – Mason Cincinnati – North Cincinnati

Texas

Austin I Austin II Austin III Dallas – Carrollton

Dallas – Downtown Dallas – Lewisville Houston – Galleria Houston – Greenspoint Houston – West I Houston – West II Houston – West III San Antonio I San Antonio II

Virginia

Northern Virginia – Sterling Northern Virginia – Sterling II

Singapore

International Business Park

United Kingdom London – Woking

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planning and construction process of CyrusOne’s Northern Virginia data center by downloading the case study entitled, “Ability to Build

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Hyper-Scale Data Centers at HyperSpeed Helps Eliminate IT Expansion Risk and Uncertainty” here or at http://www.cyrusone.com/speed.


CONSTRUCTION

Engineered Computer Rooms has served mission critical customers since 1982 as a manufacturer’s representative for the selection & application of power, cooling, monitoring systems and IT critical infrastructures. ELECTRICAL MECHANICAL DCIM / MONITORING IT / DATACENTER

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Mission Critical Environmental Control User driven. Purpose built. STULZ is a TCO focused solution provider of energy efficient temperature and humidity management technology. Our expertise is listening to our customers and delivering purpose built cooling solutions for data centers and other mission critical applications. STULZ is ready to listen to you at www.stulz-usa.com STULZ engineers a full line of air conditioners, air handling units, ultrasonic humidifiers, and custom solutions. STULZ is a proud strategic project partner of CyrusOne Data Centers.

Simplify. Communicate. Deliver. DESIGN CONSULTING LLC

TLD is a National Technology Consulting Firm Providing Low Voltage System Design and Project Management services for Data Centers, Healthcare & Corporate Facilities. Design services include Infrastructure, Audio Video, Access Control & Surveillance.

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in


USA

Customer Demand Drives Growth Historic Timeline July 1, 2015 CyrusOne announces the completion of the Cervalis acquisition and its four data-center facilities in the New York metro area. June 29, 2015 CyrusOne announces that construction is underway on a new 120,000-square-foot shell at the company’s Phoenix data-center campus, adding an incremental 4.5 MW of power. April 29, 2015 CyrusOne announces a transaction to acquire Cervalis with a definitive agreement to acquire four data-center facilities in the New York metro area. April 1, 2015 CyrusOne purchases the Austin III data center, projected to be the company’s largest facility in Austin, Texas. Austin III has 172,000 total square feet of shell and offers 120,000 colocation square feet. December 2014 CyrusOne commissions new data center in Sterling, Virginia, as the first of a multiphase data center in northern Virginia. The 124,000-square-foot building will have 15,000 square feet of office space and up to 12 MW of critical load.

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CyrusOne

May 2014 Cyrus One launches a new product line, CyrusOne Solutions, in response to growing customer demand for large-scale and innovative build-to-suit deployments. April 2014 • CyrusOne successfully attains International Organization for Standardization (ISO) 27001 certification at 18 facilities located across six states, including Arizona, Illinois, Indiana, Kentucky, Ohio and Texas. • CyrusOne breaks ground on its northern Virginia campus, extending its East Coast footprint to meet existing and new customer demand for data center space in the region. December 2013 CyrusOne begins its third expansion project in west Houston, making the site the largest geophysical center of excellence for seismic exploration computing. May 2013 CyrusOne launches the first national Internet Exchange (IX), created to deliver interconnection between numerous CyrusOne data centers and metro-enabled sites. February 2013 CyrusOne’s data center in Phoenix begins operations. June 2012 CyrusOne breaks ground its 57-acre Phoenix data center campus, slated to be nearly 1 million square feet of space – the largest of its kind.

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• A.dvanced A.diabatic Solutions

Shapiro & Duncan Inc.,

A third generation family owned Mechanical Contractor, has been serving customers in the DC Metro area since 1976.

"'Design. Build. Sustain.

We are the mechanical solutions "Provider of Choice" for complex commercial, government and institutional design-build projects that require first-rate performance, work quality and customer service.



Creating world-class attractions Written by Lucy Dixon Produced by Jordan Platten

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Dynamic Attractions is capitalising on the growth of the theme park industry, offering clients expertise in every element of rides and attractions

T

he theme park industry is booming, with new and expanded attractions opening around the world. And this interest in theme parks is good news for Dynamic Attractions, a company with years of experience creating and building attractions for the biggest and most successful theme park operators around. Earlier this year, Dynamic Attractions created a new division called Unlimited Attractions, to reflect the holistic approach it takes to creating world-class theme park experiences. Not all of today’s theme park operators have the decades of experience and expert staff needed to be able to combine telling a compelling story with

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creating a superb ride experience, which is where Unlimited Attractions comes in. Housed in its new, 40,000 square foot ‘Attraction Development Center’ the new division has the capability of offering everything needed for world-class attractions. George Walker, Vice President Creative Development, explains: “The market had a need for an entity that could provide all the intricate services involved in building attractions. There are so many new theme parks opening around the world, there’s really a kind of second life happening and we’re capitalising on that. If you look at typical attractions, there are many, many components that all have to


CONSTRUCTION

come together – but what we found was the backbone, the core of every attraction, is the ride system. This is the most expensive element. This is the element that drives the schedule and has the greatest amount of impact on the facility, so it makes sense to also design, manage, and deliver the show elements that wrap around the ride system. But people who design ride systems tend to be really good at

math and really bad at story telling.” At the helm of Unlimited Attractions is the expert trio made up of Walker, Mike Haimson (VP Technical) and Cindy Emerick (VP Business Development). Together they offer an unparalleled mix of skills and experience when it comes to creating theme park attractions. They originally met working on the Ferrari World expansion in Dubai, as Walker explains: “It is

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truly a massive expansion of that park, with a 40 percent increase in capacity that includes eight rides and attractions, as well as new facades and environmental updating. For the most iconic attraction of the project we hired Dynamic, and this is how Cindy, Mike and I found that we worked extremely well together. This was around the same the CEO of Dynamic Attractions, Guy Nelson, was interested in improving the way in which his company was able to provide these services for clients.” And the result of this was Unlimited Attractions. Haimson adds: “I think the three of us work so well together because we take an attraction that has a ride system at its core, but then we start to fold in all the other elements. The storytelling moments, building the scenes. The way in which the experience is going to unfold for the guest. All of that is a combination of technology and art. It’s very delicate and if you get it wrong you essentially spend a whole lot of money to not have as good an experience as you could have if you had done it right.” So, how does any theme park operator know when its attraction is hitting the target? Ticket

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PROUD PARTNERS WITH DYNAMIC ATTRACTIONS FOR OVER 15 YEARS

Altec Integrated Solutions are specialists in the design, supply and commissioning of complex control systems for the entertainment ride industry for over 15 years. Through our ongoing relationship with Dynamic Attractions and their sister company Dynamic Structures, we have delivered and commissioned ride control systems throughout the world, including North America, Asia, Europe and the Middle East. Our control systems are designed according to the latest international safety standards by ISO, ASTM and CSEI using modern and innovative safety control solutions. Our control panels are manufactured, tested and certified to uL, CE, CSEI and CSA standards at our in-house facility. All of our work is controlled by our ISO 9001-based quality management system. We are proud of our record of supplying safe and reliable control systems to Dynamic Attractions and we are very proud of the successes we have enjoyed with Dynamic Attractions in delivering some of the most exciting attractions in the industry today.

Altec Integrated Solutions Ltd | 120 - 85 Golden Drive Coquitlam | BLV3K 6T1 | Canada Tel: +1 604 529 1991 | Fax: +1 604 529 1992 WWW.ALTECONLINE.COM


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“We train maintenance staff and work on other attractions that are not ours, because we have a talent pool within our company that can handle it, and a reputation for quality” - Cindy Emerick, VP Business Development sales are a big indicator, of course, but it goes further than that, says Walker: “The pay off in the world of theme park design isn’t the one that comes from the bank. It’s the one that comes off the faces of the people exiting the attraction. That’s the reward. So you never know for sure until you open.” But the Unlimited Attractions team has enough success behind it that it has pretty good instincts for this now. Cindy Emerick adds: “I guess the challenge is always understanding how to mix the ingredients very well together, like a chef. How do you know it’s going to taste good when you’re done? You don’t know, but because that’s what you’re trained for, that’s what you’ve dedicated

all of your time and studies and experience to, you are probably going to be pretty close to right.” Being a one-stop shop for theme park attractions offers many benefits to Dynamic Attractions’ clients, beyond just the creation and construction of an attraction. Emerick says: “Dynamic Attractions also has probably one of the most extensive parts and service divisions. In effect, we can actually assist, maintain and audit a park technically. We train maintenance staff and even work on other attractions that are not ours because we have a talent pool within our company that can handle it, and a reputation in the industry for quality.” Added to this long-term

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relationship with clients, Dynamic Attractions can bring together a group of specialist companies that have the know-how to produce every detail of an attraction. Haimson explains: “If you do one particular discipline – a fire effect, for example, or a special kind of media – then we’re going to involve you directly into our design and bring you onto the project under out contract.” These enterprises can partner with Dynamic Attractions, meaning they are potentially working across multiple projects for Dynamic and thus spreading the risk for themselves. And the client benefits from the economies of scale by contracting directly with Dynamic Attractions so they don’t need to spend the time and money sourcing these smaller, but highly skilled, companies. So, it’s a situation where everyone wins. Haimson adds: “That’s how we’re going to be able to get a better product at a better price; there is no downside to it.” The team knows well which partner is right for a particular project – depending on what the client wants to achieve, as well as their budget. Smaller parks don’t have the big budgets of, for example, Disney and Universal. Emerick says: “They see these wonderful projects and they can’t compete with

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the pocketbook of those parks but and we balance them together from they do want to deliver something a creative standpoint,” says Walker. great for their guests. So, we use And these days, the trio Mike and George’s expertise at acknowledges, visitors are being able to put on a big show anticipating bigger and better with a reasonable budget.” And it experiences when they visit a theme is a constant challenge park. Walker says: “The for the creative team, audience is expecting alongside the ride more. They want experts at Dynamic more than just a ride Attractions, to system, they want to marry up the be entertained all the artistic and time, while they’re Number of Employees at the technical queuing. While they Dynamic Attractions elements of an wait for 45 minutes, attraction at the right we have the opportunity price for their client. to get their attention and “I like to think of it as an artist’s entertain them – that’s what the palette. The different colours, clients are wanting and that’s what the different paints, the different these smaller parks and locations are materials are all like the different finding out. The level of expectation elements used in an attraction, like of the public is increasing. A great scenery, lighting, audio, media, example of this is the Flying Aces or effects. All of these ingredients attraction that I recently opened at are interdependently related to the Ferrari World Abu Dhabi. The queue technical and ride system elements, for this attraction takes you back in

400+

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“We’re working with clients right now at making things more interactive, in terms of augmented and virtual reality, moving scenery, media and real-time generated graphics” - Mike Haimson, VP Technical

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time to the golden age of flying where we explore the origins of the Ferrari logo which comes from a WWI pilot who painted it on his plane. So the attraction recreates this with a story that leads you through the pilot’s barracks, through an old radio room, and to an airfield that is recreated using projection that fills the sky with planes everywhere. The environment is filled with scenery, props, rockwork, and even a plane crashed in a tree.” Constantly coming up with the wow factor is at the heart of what Dynamic Attractions does, and it has a research and development team in Orlando, in the attraction development centre, looking into new – and sometimes established – technologies and what they have to offer theme parks. Interactivity is a hot topic at the moment and, as Haimson explains, it goes a lot further than simply live tweeting your

ride experience: “We’re working with clients right now at making things more interactive either in terms of augmented and virtual reality, moving scenery, media and realtime generated graphics. But we’re also looking at ways to make the big mechanical stuff interactive as well. So imagine you as a guest can choose your path in a ride system and at the same time, try to make sure the client still achieves the return on investment that they need. So we’re trying to stay ahead of the curve by investing our own research and development dollars into things and that’s one of the reasons we built the Orlando facility. Ultimately how we make the guest experience better for the new guest, this new audience. “Clients out there will hear the buzzword interactivity and they think that means the guests need to be able to either shoot at something or look at their phone. That is not what

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interactivity means. Interactivity is getting the guest to be engaged in their environment in a way that they can affect and in a way in which the environment can affect them. So I encourage anyone who wants to use interactivity to take that fresh approach and if you don’t have any thoughts or ideas on how to do that, please give us a call. We’ve got lots. ” And these ideas, when realised, will be right the first time. This is because of the precision engineering approach taken by Dynamic Attractions – making sure each part of a ride or attraction is perfect from day one can significantly reduce costs and time for both Dynamic Attractions and its clients. Emerick illustrates this point with an example: “We just designed and manufactured an attraction and because of the details and the special attention that the team

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did on the precision engineering, your design intent is properly executed. You want to ultimately provide a safe, functional, smooth and exciting attraction to the rider. They don’t know what it takes to get there, but we do everything it takes to ensure the end experience is as great as possible.” The motivation behind the team at Dynamic Attractions comes from their passion. Walker describes it this way, “We live in a world that is sometimes more harsh than it should be. Great attractions can take people out of that world for a moment. They can become an escape where you get a chance to be something impossible, or feel something you normally couldn’t. It’s a chance to give people a lasting memory that makes the world a better place, even if just for a moment. Who wouldn’t want to do that for a living?”


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Construction without barriers, pa without boundaries Written by Alice Young Produced by Jordan Platten


artnership

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A B D U L L AT I F J A M E E L M A C H I N E R Y

Arif Chishti, Managing Director 76

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MIDDLE EAST

Adbul Latif Jameel Machinery has grown to become a key supplier of commercial vehicles, industrial and heavy equipment and associated services to customers in Saudi Arabia in a very short space of time

A

bdul Latif Jameel Machinery was established in 2013 to meet the demands of the Saudi Arabian market in terms of construction and mining equipment. Komatsu was the first brand the company represented and was followed by the successful inclusions of more brands to its portfolio, including Manitou, FotonLoxa and Teksan Generators. The company has further complemented its offerings in the market by developing extensive aftersales capabilities. In just three years, it has become a major force in the machinery segment. Business Review Middle East speaks to Abdul Latif Jameel Machinery’s Managing Director, Arif Chishti about how this was executed, and how the company intends to grow in the next few years while maintaining its exemplary reputation and crucial supplier relationships.

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Operations

Abdul Latif Jameel Machinery is a business of Abdul Latif Jameel. With dual headquarters in Jeddah, Saudi Arabia, and Dubai, United Arab Emirates, Abdul Latif Jameel’s interests encompass a number of sectors, including automotive distribution, auto parts manufacturing, financial services, renewable energy, environmental services, land and real estate development, logistics, electronics retailing and media services. With a presence in over 30 countries across five continents, Abdul Latif Jameel positions itself as a preferred business partner primarily for inward investment into the Middle East, North Africa and Turkey (MENAT) region.

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“Abdul Latif Jameel Machinery was founded in 2013,” Chishti explains. “In the same year, we were selected to represent the Komatsu brand in Saudi Arabia. Komatsu is a world renowned brand of Construction and Mining Equipment, and it has been present in Saudi Arabia since the 50’s. “In just over three years, we expanded by adding a number of

global brands including Manitou, Foton-Loxa and Teksan Generators. By successfully launching five facilities across Saudi Arabia, we also expanded our geographical footprint to be closer to our customers. We call them “4S” facilities– Sales, Services, Spare parts, and customer Support.” Abdul Latif Jameel Machinery, as the name suggests, is primarily

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“We recently moved into our state-of-the-art facility rated by Komatsu as the world’s largest. It’s built on a land area of 17,000 square metres” - Managing Director Arif Chishti

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responsible for supplying high operator training, technical training, quality machinery, commercial immediate availability of parts vehicles, and industrial and heavy and more. Our customer support equipment to the Saudi market. standards ensure best in class upAlongside this it also provides best in time, thereby providing optimum class aftersales support throughout utilisation of the equipment.” the life cycle of the equipment. Its Chishti adds: “We recently moved product range consists of dump into our state-of-the-art facility, trucks, dozers, excavators, wheel which spreads over an area 17,000 loaders, motor graders, telescopic square metres in Jeddah. The handlers, and concrete facility is designed to ensure delivery trucks. The optimal productivity, company has also workflow efficiency and made recent increased flexibility. entry into the It also has a training Number of employees generator market. centre which helps at Abdul Latif Chishti explains: us give young Saudi Jameel Machinery “Customer talent the opportunity care is central to to experience and our business. We be part of a specialised endeavour to become work environment. We are our customers’ preferred partners, also proud to say that our facility is supporting them through the life of currently rated the world’s largest their equipment. Our scope includes by Komatsu. A similar facility is initial consultancy advice on the under construction in Riyadh.” type of product they should buy or rent, proposing financing solutions, service agreements, onsite repairs, Abdul Latif Jameel Machinery

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recognises the value of its employees and is backing this up with a range of initiatives. “We sell premium products and our employees are equally experienced to provide consultative services to our customers. We have a truly multicultural workforce comprising of 19 nationalities but we also have a lot of local talent. Despite the fact that our company only

has a formalised three years of presence, we can proudly say that we are in the green zone which means that 30 percent of our workforce is comprised of Saudi talent,” explains Chishti. “We have a very important role to play in Saudi Arabia and that’s to build national talent.” Chishti adds, “We are always keen on hiring fresh Saudi graduates and putting

“We have a very important role to play in Saudi Arabia and that’s to build national talent”

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them through training on parts, services, or sales. Today, we have 10 graduates who are undergoing this scheme which will last for two years, after which they will have full time employment with us.” The company uses a mixture of in-house and outsourced training programs to ensure that its employees comply with both internal and customer expectations. Chishti adds: “As site conditions vary significantly with temperatures ranging from zero to 52 degrees and humidity of more than 90 percent, our service crew have to pass physical ability tests as well.”

Industry challenge

Chishti explains: “Having experienced buoyant growth over the past years, the industry is currently going through challenging times; customers and suppliers alike are reducing workforce, and capital expenditure. At Abdul Latif Jameel Machinery, customer satisfaction is our top priority and we

continuously look at innovative ways to meet the changing needs of our customers. We carefully “listen” to their requirements and provide them with the best customised solutions.” Chishti adds: “While there have been casualties in the industry, we are investing on our talent which will ensure that we continue to have the best talent through these tough times. Specialised talent is not an easy find.” Abdul Latif Jameel Machinery has also used its supply chain to drive customer satisfaction. By optimising its inventory and logistics procedures using a centralised Enterprise resource planning (ERP)

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Komatsu – Construction & Mining Equipment Matched with a Commitment to Excellence.

www.komatsu.com


MIDDLE EAST

“It is the team of people which brings life into a company” system, the company is able to aim for 95 percent first pick across its parts. The company also adheres to Kaizen principles in line with Abdul Latif Jameel’s broader continuous improvement structure.

alike. Such solutions comprise of on-site modular support units including workshop, parts warehouse, and lube service shops at the customer site. He adds: “We don’t actually call them customers - we refer to Chishti highlights them as guests because that Komatsu has guests have the highest The year that an installed base of degree of respect in the Abdul Latif thousands of pieces Arab world. We have Jameel of equipment in what we call a ‘guest Machinery Saudi Arabia and, delight index’, and we was founded subsequently, customer have a dedicated guest support is at the delight department cornerstone of Abdul Latif Jameel that calls our guests to ask them Machinery as a business. Chishti about their experience with us and his teams have worked hard and areas we can improve on.” to provide innovative solutions “Equipment constitutes a large for new and returning customers proportion of capital investment

Innovation

2013

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on a project - perhaps the largest. Recognising this dynamic, we continually train customer operators in safe and efficient operation and maintenance procedures. Our guest support standards ensure best in class up-time, thereby providing optimum utilisation of the equipment,” continues Chishti.

Information & communication technology (ICT):

“To provide timely recommendations to customers, Abdul Latif Jameel Machinery installs Komatsu’s remote machine operation management system (KOMTRAX) in every Komatsu piece of equipment delivered, along with its subscription. “This allows pre-empting possible failures and reducing diagnostic time. Through KOMTRAX, operator training needs are also identified and this goes a long way to delight our customers. KOMTRAX is also available as a retrofit for older Komatsu equipment,” Chishti explains.

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Sustainable growth

It is the team of people which brings life into a company, as Chishti highlights: “Our core values are Respect, Integrity, Passion and Empower (RIPE); these are indoctrinated in every employee. We refer to them as associates. Our associates are emphatically attached to our company and they contribute valuable ideas which are key drivers of growth in good and not so good times.” Abdul Latif Jameel Machinery has been able to build an extensive business and develop into a well trusted partner of choice in only three years. Having developed a series of key relationships with equipment manufacturers, the company holds true to its reputation for being a supplier of global brands with a local touch. By investing in both its physical and human assets, the company has proven that its business model is not only viable, but capable of delivering for its staff, its customers, and its partners.


Arif Chishti

Managing Director Arif Chishti is the Managing Director of Abdul Latif Jameel Machinery. He graduated from Nigeria in 1990 with a Degree in Civil and Water Resources Engineering; and from France in 1992 with an MBA Degree in International Management. He also attended IMD business school in Switzerland. Having worked successfully in the region with leading brands of heavy equipment including Caterpillar and Volvo, Chishti has more than 25 years of in-depth experience in setting up and driving 4S – construction machinery and industrial equipment dealerships.


CONSTR COMMU

Family firm Martin-Harris Construction sold and is undergoing profound leadership clients, and even the founder and his f

Written by: J

Produced by


RUCTING UNITIES

n, 40 years from its foundation, has been p change: the enigma is that for employees, family, the transition is imperceptible.

John O’Hanlon

y: Tom Venturo


MARTIN-HARRIS CONSTRUCTION

I

t’s not uncommon for an entrepreneur to emerge when their career path becomes blocked. Others might be content to wait, but a livelier mind will look for another way. That’s what happened when 29 year-old Frank Martin, a carpenter by trade and with twelve years’ experience, was overlooked for a promotion that should have been his. That was in back in 1973. Martin, taking a break on a scaffold at the Las Vegas building site he was working on, shared his frustration with his younger colleague and fellow carpenter Frank Harris, who threw out the suggestion that they set up in business together. The partners developed the idea and decided that general

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contracting was the field they should break into. Martin set about beefing up his qualifications, and together they purchased a rundown property. “We used our carpentry skills to fix the house up,” he recalls. “We paid ourselves nothing but made $15,000 on the deal. With $7,500 of that we bought a piece of ground, which my wife and I still own today, and with the other half we started the company.” Even in the early 1970s that was not a huge amount of seed capital for a business but together with a good name in the Las Vegas construction business it was enough to enable them to incorporate Martin-Harris Construction in 1976. 40 years later it is a $200 million a year business, and having grown with the growth of the city is one of the best trusted names in Nevada.

Key People

Frank Martin President Guy Martin President Paul Toplak Sr. Vice President Operations Ray Newmiller Vice President Preconstruction Larry Johnson Vice President Estimating Steve Shelton, PrVice President Field Operations

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MARTIN-HARRIS CONSTRUCTION

Harley-Davidson Las Vegas

Admittedly Las Vegas was much smaller then, with fewer than 400,000 inhabitants compared to over 2,000,000 today. With no business qualifications and no knowledge of accounting practices, the business had to fall back on indispensable assets such as integrity, common sense and a good knowledge of the local construction scene. 92

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“A long time ago I learned the simple three-part business guideline; you have to get the work, do the work and keep score. I was a very good ‘get work’ guy, we were both very good ‘do work’ guy, and our very first employee was the ‘keep score’ person.” The three vital functions of business development, operations management and w w w. m a r t i n h a r r i s . c o m

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Henderson Justice Expansion & Parking Garage

“I think

many family

companies

decline

because they hold on

too long.” – Frank Martin, President 94

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accounting, then, were filled respectively by Frank Martin, Frank Harris and their bookkeeper, who stayed with the company till 1990. In December 1979 Martin bought out Harris, though he too continued to work in the company until the early 1990s, and since that date Frank has been the sole proprietor of the company – until very recently, that is. In the early days it was difficult to get work. Martin relied on building individual private homes, work for the local churches and a certain amount of work for the city authority. “In those days Las Vegas was a very different kind of a city from today,” he explains. “Development money was basically controlled by five or six families. Those families did not really start doing business with us


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Henderson Justice Expansion & Parking Garage

till we had been going for around a year.” Finance had to be arranged on a case by case basis, and he admits that at the outset he didn’t have a clue what ‘bonding’ meant. That was a deficiency that had to be remedied if the business was to scale up, as owners invariably secure large projects with construction and performance bonds to take out the risk of contractor failure. Frank met an insurance agent who introduced him to the small business network in Las Vegas, which enabled him to bond his first job for the city. Networking was a vital skill in the days before construction industry organizations like NCA and NAIOP came, he stresses. And once they had Martin-Harris on their radar, the w w w. m a r t i n h a r r i s . c o m

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controlling developers began to think of the rising construction firm when growing their real estate portfolios. Martin speaks of his long association with Irwin Molasky and his family, with the America Nevada Corporation under the Greenspun family, and with that later arrival in the Valley the Howard Hughes Corporation, for which at one time he had 11 projects under construction at the same time. “These were just shrewd businessmen who would see an opportunity and seize it. They played straight, but those guys surely had influence: most of the private sector construction jobs depended on them.” Martin-Harris’s portfolio includes schools, hospitals, civic buildings, retail stores and offices. It also includes projects you’d expect to find in Las Vegas, such as the recently completed, $40 million, 200,000 square foot expansion for Konami Gaming, a slot machine and systems development company. It’s adding to a building Martin-Harris had built for them ten years earlier - returning customers are a sign of a healthy company, Martin points out. For another major client, Ainsworth Game Technology, Martin-Harris built its $30 million headquarters for the Americas to reflect quality, innovation and excellence. The 300,000 square foot facility is in the ‘Gaming Manufacturers Corridor’ a few minutes from the Las Vegas strip on Sunset Road. It’s tempting to talk only about the higher profile projects, but some are more

AWARDS

NAIOP

AGC SAFEST 2014

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utilitarian. The company recently completed phase one of the Lone Mountain Corporate Center, a new warehouse and distribution facility that will cover a staggering 690,000 square feet. With the company approaching 40 and himself approaching 70, Frank Martin is as energetic as ever. However, the question of succession is one that every family business has to face sometime, and over the last month that question has been addressed at Martin-Harris. Perhaps the obvious thing would have been for him to just hand over the reins to his son. Guy Martin started at the shop floor, working on one of the family’s construction sites from a young age and


USA

dreaming of following his father’s footsteps to learn the carpenter’s trade. “I started working for Martin-Harris the summer I turned 13,” he says, “at the Toys R Us store here in LV. I was hooked and grasped at every opportunity to learn the business of construction and every aspect of the construction industry I could. With the wide variety of market sectors we serve, every day offers a challenge and the opportunity to learn the equivalency of a masters degree.” Had it been a question of just signing over the business, this being a private company, the bonds for major contracts have to be secured on Frank Martin’s personal wealth. Under anyone else’s ownership it would only have been possible to bid for smaller contracts, and the company would have shrunk. So when in October 2013 Frank received an unsolicited call from the president of one of America’s leading construction groups the billion dollar Big-D Capital Corporation, a solution suggested itself that might secure the firm’s ability to bond far larger projects, while securing the family interests and the jobs of a loyal workforce. After further discussions a letter of intent was signed in July of 2014, with the full co-operation of Frank’s wife Bonnie, Guy – who by then had been appointed senior vice-president – and his other son Jerrad – an independent contractor in his own right. The senior employees were brought in on the deal without delay. The deal was closed in November 2014 and

“A long time ago

I learned the simple three-part

business guideline;

you have to get the work,

do the work and keep score.” – Frank Martin, President of Martin-Harris Construction

Legal Aid of Southern Nevada

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Martin-Harris became an independently managed subsidiary of Big-D Capital. The event made a big splash in the construction industry press that day, but then the press went quiet. “Nothing changed,” says Guy. “We all came in to work on the next day and did what we always do. Nobody working here noticed any difference, and they don’t today.” This was because the acquiring group had no desire to interfere with success. “It is a real testimony to our people that they had the faith, first of all in myself but also in Guy and our people, to continue making this place one that is unique both to work for and to do business with,” explains Martin. Emotionally, Frank admits that the transition from owner to president was tough. “I think many family companies decline because they hold on too long.” 16 months on, another change took

CCSN Science

CSN Telecom

CCSN Health w w w. m a r t i n h a r r i s . c o m

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place on May 2 when the presidency passed from father to son. Both say that they are still trying to figure out exactly what this means, but once again neither employees nor clients are likely to see any change. “The feedback I’ve had from the industry is they are really happy for my dad,” says Guy. “They see him as a man who has dedicated his entire life to building an amazing place for great people to live out their careers: he was able to find a company to come in that cares as much about his legacy as he does, cares as much about people as he does, and allows him to shed some risk while still staying directly involved in the daily development and execution of a succession plan. I would say


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that our acquiring entity is a photocopy of us, just ten years down the line.” Now the company will go forward under Guy’s leadership as President, with Frank serving as CEO for the short term and committed for the next five years as a consultant. Don’t get the idea that the last two years have been without challenges, but in overcoming them their relationship has grown. “I think that through Guy’s patience and my wisdom we have been able to work through both challenges and opportunities,” says Frank, while Guy adds: “I feel in my heart a sense of duty to everybody who works for the company. When my father and I get in a room and have the opportunity to talk about the real issues, great things happen – and look at our associates in the company; they go out and do amazing things every single day.”

“With the wide variety of market sectors we serve, every day offers a challenge and the opportunity to learn the equivalency of a masters degree.” – Guy Martin, president

Konami Gaming Expansion

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Hoover Dam Spillway House


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Company Information NAME

Martin-Harris Construction INDUSTRY

Construction HEADQUARTERS

3030 South Highland Drive, Las Vegas, Nevada, USA, 89109 Hoover Dam Spillway House FOUNDED

1976

Generational issues arise from time to time, he admits, but these are not unique to Martin-Harris. “Throughout the construction industry, like the Molasky companies for example, the older guys have apprentices and assistants under them they are mentoring, bringing along and inspiring and they are going through the same processes that Martin-Harris did. They have the same generational convergence to deal with, and we are all doing it together.� Frank Martin has other businesses to which he will now be able to dedicate more time. He also looks forward to supporting the church activities that are a priority for him as a committed Christian, and other charity work.

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EMPLOYEES

240 REVENUE

$225 million WEBSITE

www.martinharris.com

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COLLABORA IN THE COMM

The importance of the community is at the heart of everyth as Business Review USA reports Written by: Patricia Carswell Produced by: Tom Venturo


ATING MUNITY

hing for Ghilotti Construction,


G H I L O T T I C O N S T R U C T I O N C O M PA N Y I N C .

G

hilotti Construction Company is an established family owned and operated General Engineering Construction Company located in Santa Rosa, California, just north of San Francisco. At Ghilotti Construction Company the experienced staff utilizes state of the art technologies and equipment for the construction of large and small public and private construction projects. It’s rare for construction workers to feel welcome at the start of a community project. The inevitable noise, dust and disruption invariably

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mean their arrival on site is greeted by long faces. Not in the case of Ghilotti Construction Company Inc’s current project in the city of Davis, in Yolo County, CA. It’s partly because the federally-funded $20 million project, whose aim is to bring clean water to the city, is long overdue. Ghilotti is installing an eight-mile water pipeline, 12” to 30” in diameter, connecting the city’s water system to Woodland-

Key People

Dick Ghilotti

President and Owner

Brian Ongaro, Partner and VP of Operations

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Willie Ghilotti Partner and Facilities Manager


G H I L O T T I C O N S T R U C T I O N C O M PA N Y I N C . Davis Clean Water Agency’s system. The joint pipeline system will transport water from the Sacramento River to the regional water treatment plant in Woodland, and deliver the new surface water to residents and businesses in Davis. The University of California Davis is a partner with the City of Davis and will also benefit from this project. Until now, explains Ghilotti Project Manager and Estimator, Steve Hanak, Davis residents have had to make do with ground water of inferior quality. “The community is excited about

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the project because they know it’s going to help,” he says. “It’ll provide much cleaner water for them. The upgrade is going to be substantial and they’re going to be able to deliver better drinking water to the city. People are very excited about that.” Ghilotti has not taken community support for granted, though. Hanak is aware how much disruption a project like this causes. “Being in the construction industry as long as I have been, no matter where you go or who you deal with, construction is a disruption.”

Dino Ghilotti Motta Stadium

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8 miles of pipeline in Davis California

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The company goes to great lengths to address this. “Communication is probably the most important thing,” he says. “The city provides us with a media and communications officer who provides communication to residents and businesses throughout the project before we get to those locations.” A letter goes out two weeks before the arrival of the construction team to give people a chance to prepare. Then unusually they go door to door. “We put door hangers on the door 48 hours in advance.” The communication is bearing fruit. “It’s a pretty good effort and it seems to be working,”


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Laying 42 inch diameter diameter welded steel pipe in Novato for North Marin Water District

says Hanak. It helps, of course, that Ghilotti’s reputation precedes it. A family business going back more than 100 years, it has maintained its community roots, despite growing from modest beginnings to having an annual revenue of almost $200 million. “Alongside the multi-million dollar projects on its books, Ghilotti Construction’s foundation is based around community involvement. Dick Ghilotti, President and owner lives by the words of his grandfather, founder of the company James Ghilotti, who said: “Do good work, be responsible, and take care of the community, and people who work for you”. The past two years, Ghilotti Construction and The dg Foundation has been one of the recipients of the North Bay

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G H I L O T T I C O N S T R U C T I O N C O M PA N Y I N C .

Grading San Marco a 380 lot single family home subdivision in Pittsburg California


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Business Journals Community Philanthropy Awards, recognizing it’s philanthropic efforts in the North Bay. The dg Foundation is a nonprofit organization established by Dick and Nancy Ghilotti in honor of their son, Dino. Recently, Nancy has been added as an honoree of the foundation. To carry on the legacy of a young man and his mother with a passion for academics, athletics, and arts, The dg Foundation is dedicated to helping students with similar passions by awarding scholarships and improving art programs and facilities that fit the criteria of the foundations interests. Ghilotti Construction is a major supporter of the foundation and has teamed up with the foundation in numerous ways to improve athletic facilities and art studios in the community.

Legal Aid of Southern Nevada

The company also promotes local businesses and schools, says Hanak. “There’s always something pro bono going on, whether it’s a church, a school or a child center. The Ghilotti name is out there. Wherever you go people will ask who you are affiliated with, and they all say, ‘I’ve heard of them.’” The family ethos of the company makes it a popular place to work. “As a family business it’s comforting. It’s the ability to just be yourself and speak to people as if they’re a member of the team. You’re not afraid to talk to somebody and feel your job’s in jeopardy.” Needless to say, the water pipeline is at the w w w. g h i l o t t i . c o m

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G H I L O T T I C O N S T R U C T I O N C O M PA N Y I N C .

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other end of the scale from the company’s pro bono projects. “This is the largest public works project the city of Davis has put out since its inception,” says Hanak, “so the exposure is extreme. It’s important to everybody that the job goes smoothly.” It’s not just big by the city’s standards. Although it is by no means the largest project Ghilotti has undertaken, it is the largest utility underground project it has ever acquired. “It’s eight miles of pipe,” says Hanak. “You have your main transmission operation, which consists of concrete cylinder pipe and PVC pipe, and it

President and Owner Dick Ghilotti in front of 1928 Green Chevy 1 Ton

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includes four bore jacks under highways and railroads.” Flow and meter vaults and electrical & telemetry will provide the communication to operate the system to deliver the surface water. One of the main challenges has been drilling under a highway. “We had to drill a 1200’ directional drill under Highway 113, 90’ deep. You have to picture an arcing drill that comes back out of the ground. Then when that hole is constructed they have to pull the pipe back through that hole. They did that aerially, so it was very exciting. The pipe actually sat about 30’ above the ground, crossing the road. It took 17 hours to complete.” This kind of highway work brings traffic complications, says Hanak. “Any of the intersections that the pipeline travels through are extremely busy, so we go to night work to eliminate some of the traffic inconveniences for the residents and businesses.” The project has to abide by strict environmental regulations. “California has strict compliance guidelines that must be adhered to,” says Hanak. “What the city did initially when they came out with the project was to inform the contractor that they would be responsible for having an archaeologist on site every day, and that we would have an arborist to do a full tree evaluation on every single tree within the route of our pipeline and develop a report so those trees were not hindered or damaged throughout the project.” The construction has to take particular care with water run-off during the winter months. When

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Experience Makes The Difference!

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they are working, they have to ensure the runoff water is filtered before it discharges into the storm drain. By far the biggest challenge, though, is dealing with the unknown utlities. “Davis used to be a farm town,” explains Hanak. “It’s very hard to find any type of history of what’s actually in the ground, so we tend to encounter many unknown utilities. It’s one of the largest things that hinders us during an excavation.” The solution is forward planning, says Hanak. “We have to overcome that by locating [the unknown utilities] before we start our actual pipelines operation. We transfer that information to the engineer and the engineer then goes to check his records. If there are any differences, he makes changes in advance well before we get there so that we’re not delayed.” The project has just reached its first milestone – connecting to the system transporting water from the river to the regional water treatment plant in Woodland – and is on track to complete at least 30 days earlier than expected, all within budget. Hanak is delighted not only by the progress of the project, but by the agency’s response. “Many agencies take it for granted when you have a good contractor on the project. It’s really nice when they step out of the cloud and say these guys are doing a terrific job, and let the public know that. The city has done that for us. They’ve become more of a team member. Everybody’s become one to reach a certain goal, and that’s what we’ve done.”

Company Information NAME

Ghilotti Construction Company Inc. INDUSTRY

Construction HEADQUARTERS

246 Ghilotti Avenue, Santa Rosa, California, USA, 95407 FOUNDED

1914 WEBSITE

www.ghilotti.com

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Right first time

An innovative approach has helped Delta Group to become the largest demolition company in the southern hemisphere

Written by: Jackie Cosh Produced by: Tom Venturo


D E LTA G R O U P

D

elta Group clients have unique challenges that need to be solved safely, quickly and at a price that represents value for money. Delta Group excels at creating innovative solutions that safely accelerate project schedules while enhancing the quality of result and reducing cost. Clients benefit from our vertically integrated business model that delivers a ‘one stop shop’, which in turn adds certainty and value to construction projects of all sizes. More than 30 years of experience enables us to advise on the best methodology to provide a solution to your particular challenge. Our ‘Right 1st Time’ behavioural health and safety programme has given Delta Group an unparalleled safety record. Our unwavering commitment to quality through our ‘Delta Way’ triple certified integrated management system allows our clients to sleep easy knowing we are actively managing all risks.

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Our collaborative approach embedded in our Early Contractor Involvement (ECI) model means we can better understand our clients’ problems and better contribute to a solution that delivers real and meaningful value. This teamwork ethos, our ability to create and implement innovative solutions, together with our ‘we will never let you down’ definition of integrity has made us Australia’s largest demolition company. Innovation is an integral part of any successful company’s ethos and key to building up long term relationships with clients. For Delta Group, the largest demolition company in the southern hemisphere, all projects are undertaken with the view that being ahead of the game can potentially be the start of a long term relationship. “We don’t undertake projects with a view of only working with a client once, we undertake them to kick off a relationship and move forward with them,” says Anthony Papalia, Western Australian Projects

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Key people Anthony Papalia WA Projects Manager Papalia heads the WA Projects Team overseeing Projects Delivery, Engineering and Quality, Safety & Environment. He has strong Commercial and Mining Industry knowledge in the fields of Demolition, Civil, Remediation, Rehabilitation, Hazardous Material Removal and Temporary Supports & Induced Collapse Engineering. Papalia has built relationships with Clients, Suppliers, Local Communities and State Legislative & Building Governing Authorities. These relationships aid Anthony’s ability to communicate and lead the delivery of Projects on time and on budget with a strong safety & sustainability focus.

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Manager. “We envisage that we will be able to work with that client time and time again and to continue to prove them right, that we are the best company in the business.” Although job to job dependent with innovation led through a strong safety and sustainability focus, each state has its own safety advisors and coordinators, and a national safety manager who oversees safety and the ‘Right 1st Time’ programme countrywide. The philosophy behind this behavioural safety programme is about being able to recognise and understand hazards 124

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and potential issues, then identifying the correct control measures to be put in place to ensure that any work undertaken is – right first time. “The project execution team sits down, brainstorms together and devises a methodology, from there we bring in third party engineers, who we get to prove that what we have internally designed is going to work. Through engineering and 3D modelling they verify that our methods are appropriate, giving peace of mind to all stakeholders,� says Papalia. Papalia highlights Deltas methods as w w w. d e l t a g r o u p . c o m . a u

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“It is also a bit of an

addictive industry to be in. You never

get to demolish the same building

twice. So it keeps

you on your toes, keeps it interesting

and challenging”

being innovative in the way they develop their methodologies, programmes and equipment for their projects. They manage their own projects and generally don’t need a third party management team between them and the clients, meaning that they work directly with the clients as principal contractor. This, says Papalia, is a method that works well. “We generally engineer our projects to be the safest, the most practical, and the most viable options. Clients will give us a scope of work that may or may not include a methodology in it. We will put in a bid that allows them to see alternate options that can be undertaken that will best suit the outcome they are trying to achieve,” he says. Undoubtedly cost savings are important for clients, and Delta prides itself in being able to identify these, aided in part by the ability to selfmanage projects, but also by the fact that they are set up in many ways as a one stop shop, that can offer their clients turnkey solutions. As well as having multiple specialist divisions that complement their demolition business including hazardous removal, remediation, civil construction, rehabilitation, concrete crushing, recycling and rent they also have over 900 pieces of plant, and are able to do work both onshore and offshore. Sustainability has grown in importance, or as Papalia describes it “being able to do more with

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less”. In addition, as the world strives to become more environmentally friendly waste strategy is moving forward as well and is playing a bigger part in planning. “We need to diversify with waste initiatives, maximizing diversion from landfills,” explains Papalia. Remediation is followed by rehabilitation, working with clients at all stages to manage the project in the best way. Papalia gives an example of how a typical project may be delivered. “Whether it’s a mining or construction based project we can remove hazardous materials, do the demolition, then either remediate and rehabilitate the site or undertake the civil construction requirements of the build package to follow.” The company was started in 1974 in Victoria, by Con Petropoulos, and is today still a family owned company. He started the company predominantly as a demolition company and then grew it into a demolition and civil works company, moving it across the east coast, and then nationally. Today it has approximately w w w. d e l t a g r o u p . c o m . a u

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“Our people have good and gain a good, well ro of the construction 128

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d opportunities to grow ounded understanding n and mining game� w w w. d e l t a g ro u p . c o m . a u

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600 employees and its client base is major construction companies across the country and major world-class miners. The group is made up of multiple divisions and subsidiary companies; CMA Contracting, Whelan the Wrecker, Delta Mallard, Streetscapes and Whelan the Warehouse. Recent highlights have included undertaking the world’s largest steel stack felling demolition and being runner up in the World Demolition Awards in November in Amsterdam, which Delta was shortlisted for its BHP Billiton Tertiary Crushing Building 02 and Transfer Station 204 Project. Papalia has been with the company for more than six years. Having come in as a purchasing manager, he quickly moved into safety, working on the quality, safety and environment side of the company in Western Australia. As the company grew so did his remit moving him into project management and now he heads the WA Projects Team. With a good training regime and continuous development of employees, Delta goes out of its way to attract and retain staff, keeping them up-to-date, either with in-house tailored training, or externally via registered training centres and colleges. There are pros and cons to working in demolition. “It is quite a bit different w w w. d e l t a g r o u p . c o m . a u

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LEADING SOLUTIONS IN MINING AND MINERALS Tetra Tech Proteus is a leading provider of engineering services to the resources and energy sectors of Australia and Asia. Key strengths are Study, Design and EPCM or EPC project execution services across a wide range of commodities. Extensive experience in demolition design includes mine plants, oil & gas, industrial, infrastructure and explosive felling. Engineering support identifies the most suitable demolition methods.

t: +61 8 63133200 e: proteus@tetratech.com

www.proteusgroup.com.au


AUSTRALIA

from other areas of the construction field,” says Papalia. “So that in itself can be a challenge in finding people who are able to understand the demolition industry. We do definitely have a high retention rate, purely for the reason that once they get to experience and understand the complexity of the industry we like to keep them and keep them growing within the company. It is also a bit of an addictive industry to be in. You never get to demolish the same building twice. So it keeps you on your toes, keeps it interesting and challenging.” “Our people have good opportunities to grow and gain a good, well rounded understanding of the construction and mining game. Our versatility means we are very well set up to cover multiple sectors, so it becomes about continuous improvement and development for our people.” Citing the core values of safety, integrity, teamwork and excellence, Papalia is confident that these are at the heart of the business. He says, “We make safety and sustainability the primary considerations in decision making. We want to have integrity in what we do, and in doing what we say we are going to do. One team, one goal with open communication from the ground up. Always looking at new and better ways of doing things, creating solutions. This allows for a successful project delivery that exceeds client expectations building ongoing relationships with them.”

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Company Information NAME

Delta Group INDUSTRY

Construction HEADQUARTERS

577 Plummer Street, Port Melbourne, Victoria, Australia, VIC 3207 FOUNDED

1974 EMPLOYEES

600 WEBSITE

www.deltagroup.com.au

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Construction partner for tourism in the Caribbean

CODELPA has built a strong reputation in different sec buildings designed for the Dominican Republic, Haiti a Written by: Mateo Rafael Tablado Produced by: Jassen Pintado Interviewee: Ă lvaro PeĂąa, President of CODELPA


ctors, standing out for astounding and Jamaica’s tourism industry


C O D E L PA

C

onstructora del País (The Country’s Construction Company, CODELPA) was founded in 1988 in Santiago de los Caballeros. Beyond catering to different sectors, such as residential, commercial and public, the company is recognized for its remarkable buildings within the hotel industry. CODELPA’s clientele boasts an important number of the top hotel chains worldwide, including AM Resorts, Blue Diamond Hotels and Resorts, Barceló Hotels and Resorts, Puntacana Group, Marriott International, Hyatt Hotels and Resorts, Best Western International, Hard Rock Hotels, Bahía Príncipe Hotels and Resorts, NH

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Hoteles, Princess Hotels and Resorts, Hoteles Hodelpa, Cap Cana y Alsol Hotels and Resorts. CODELPA has diversified its products and services; and as a result of its success in the construction industry, CODELPA opened offices in Bavaro and Santo Domingo in 2002. It later expanded into Samana, Punta Cana, La Romana, Puerto Plata and other major tourist spots in the Dominican Republic, covering the entire territory. It then branched out into other Caribbean countries, where it established strong commercial ties currently contributing to the development of these countries. CODELPA carries into every project observing standards established by the International Building Code, the American Concrete Institute,

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Key People

Álvaro Peña President of CODELPA

Peña graduated with Honors in Civil Engineering from the Pontificia Universidad Catolica Madre y Maestra (PUCMM in the DR). His entire career has taken place in the construction industry. He founded CODELPA in 1988.


COD ME PA L PA NY NAME

CODELPA’s block factory supplies the construction sector in the Caribbean region

the American Society of Civil Engineers, and the American Society for Testing and Materials. Since 2011, the company’s quality management system has been certified to ISO: 9001: 2008. The Dominican Chamber of Construction recognized CODELPA as the best construction company in the tourism sector from 2005 to 2012. The company has also been distinguished by the Dominican Republic’s National 138

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L A T I N ASMEECRTI O CR A

Association of Hotels and Restaurants, and the Ministry of Labor. “We have built more than 13,000 trooms in major tourist resorts,” shared Alvaro Peña, President of CODELPA. Peña graduated with Honors in Civil Engineering from the Pontificia Universidad Catolica Madre y Maestra (PUCMM in the DR). “I have always dedicated my life to the w w w. c o d e l p a . c o m

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construction trade, founding CODELPA in 1988,” said Peña, who also possesses strong problemsolving skills and a sense of urgency in meeting client requirements. Vertical Integration, driving force for completion and cost-efficient management CODELPA is made of five strong business units: • Engineering and Construction, focused on the tourism sector. •

Blocks del País: created by CODELPA in 2005. A high-grade block manufacturer supplying quality products required within the tourism sector. The company’s plants (one in the DR and the other in Haiti) are capable of producing more than 50,000 blocks per day using the most advanced and energy-efficient technology.

CONCREDOM: concrete producer operating since 2002. Its monthly capacity is 25,681 tons. It is able to dispatch over 35 tons per hour to anywhere in the country.

“Our most important achievement is completing every work with a high quality level, resulting in our clients’ satisfaction” – Álvaro Peña, President of CODELPA

• Cemento Panam: an environmentally friendly cement manufacturer aligned to the highest quality and tech standards.

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C O D E L PA

CODELPA professionals eager to display their craftsmanship and capacity

República Dominicana, Haití y Jamaica son -desde hace tiempoterritorios donde CODELPA se ha ganado prestigio basándose en trabajos bien hechos

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“This cement production plant is the most modern and environmentally responsible factory in the region,” explained Mr. Peña. Professionalism and Standards in the Caribbean The Dominican Republic’s most important tourist destinations as well as other Caribbean tourist hot spots boast CODELPA’s most iconic projects: five star hotels, renowned resorts,


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boutique hotels and buildings for national and foreign hotel chains. CODELPA construction projects are prominent along Montego Bay and Negril (Jamaica) beaches. Several can also be found in Haiti as well as in the Dominican Republic. The company stands out for its organizational and logistical capacity, working projects simultaneously in different locations. “Our greatest achievement has been w w w. c o d e l p a . c o m

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Experience, Responsibility and Compromise

focused on the satisfaction of our clients. We are an electromechanical contracting company with more than 20 years of experience in electric, mechanical and hidrosanitary installations.

(809) 534-0303 | ged@ged.com.do | www.ged.com.do


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“Blocks del País” also contributes to CODELPA’s vertical integration

completing high quality construction projects with a high level of customer satisfaction, ready to use within agreed upon times,” said Peña. Current Projects The Now Onyx and Secrets Cap Cana hotels in the Dominican Republic and the Royalton Blue Water and Royalton Negril hotels in Jamaica are on the brink of being completed and delivered. These hotels are among the most outstanding projects that CODELPA is currently involved in. The company has already begun the Punta Cana International Airport expansion project and is remodeling the Embajador hotel in Santo Domingo. Another work in progress is the construction of the Palmeras del Este social housing project, consisting of 848 apartments. w w w. c o d e l p a . c o m

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HotelerĂ­a y fascinantes resorts... El sector turĂ­stico del Caribe tiene el privilegio de saberse socio de CODELPA


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Supplier Evaluation and Selection CODELPA evaluates its suppliers thoroughly based on criteria such as their infrastructure, production and delivery capacity, and product / service quality, adhering to ISO 9001 Quality Management System standards. “Our suppliers are critical to the timely delivery of our projects. All our suppliers have proven experience,” said Peña. Increasing Employee Efficiency and Safety Internally, CODELPA has designated 2016 as the “Year of Training”. Significant investments are being made in technical training and executive and operational management training. Inclusive company policies allow employees access to national as well as international courses, postgraduate and master’s degrees. “We believe in preparing our employees both for their personal development as much as for the future of our company. We believe in youth and its ability to create and innovate,” stressed Mr. Peña. As for the welfare of the productive force and other entities related to completed and works in progress, CODELPA created the Department of Safety, Health and Environment, which manages associated issues as a whole, contributing to the well-being of its employees and the work environment.

CODELPA’s training programs result in capabilities’ optimization

CODELPA is building since 1988

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Company Information NAME

CODELPA INDUSTRY

Construction HEADQUARTERS

New Goals CODELPA sets realistic goals, taking into account the market as well as its position in the industry as it ventures into luxury hotel construction projects. In addition, the company plans to expand to other Caribbean islands; as well as Latin America. Likewise, the company is investing in a new business unit, CODELPA Real Estate, focused on residential real estate. It intends on diversifying its portfolio into property development. “It is our priority to increase our investments as hotel developers,” concluded Mr. Peña.

Avenida Gustavo Mejía Ricart No. 113, Santo Domingo, Santo Domingo, República Dominicana FOUNDED

1988 EMPLOYEES

3,000 REVENUE

US$200 million WEBSITE

www.codelpa.com

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SOBOCE kee earns the com

Written by: Mateo Rafa

Produced by: Jassen P

Interviewee: José Luis

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OLIVIA’S

RTNER FOR SOLID

BLE CONSTRUCTION MATERIAL

eps the pace with the domestic market. Its product variety mpany a privileged place in the construction sector

ael Tablado,

Pintado

s Orbegoso, CEO for SOBOCE S.A.

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T

he Bolivian Cement Society (SOBOCE S.A.) has contributed to Bolivia’s growth and development during the last 90 years. During this time, it has become the country’s most important company within its trade. Strategic acquisitions became a constant throughout the years, as well as facility expansions, resulting in increased productivity, being able to supply the market’s demands for almost a century.

Expansion of the Viacha cement mix production facility is part of the Illimani Project

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Important investments have taken SOBOCE’s cement production rate to more than a million and a half metric tons per year. Currently, SOBOCE offers a wide variety of high-quality products in cement, concrete and prefab structures worth more than 40 percent of the domestic market share, propelled by the company’s products presence in each of Bolivia’s nine departments.

SECTOR Key People

José Luis Orbegoso CEO for SOBOCE S.A. Peruvian José Luis Orbegoso earned a bachelor’s degree in BA from his home country’s University of the Pacific, along with a Master in Finances. In Peru he worked for the Wiese Sudameris Bank as associate VP, CFO for Sindicato Pesquero S.A. and afterwards for Tecnológica de Alimentos S.A. His career abroad began in Chile as CFO for the Melón S.A. company in the building materials industry, where he later became the CEO. Orbegoso was hired as SOBOCE CEO in December 2014.

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The Warnes brand cement mix production plant is located in Santa Cruz de la Sierra, one of Latin America’s most important industry capitals

SOBOCE is part of Consorcio Cementero del Sur (Southern Cement Consortium), a holding with companies in Peru and Ecuador, also. The company is led by CEO Jose Luis Orbegoso. Orbegoso majored in business administration at Peru’s University of the Pacific, where he also earned a Master’s in Finance. In his native Peru, Orbegoso worked for Wiese Sudameris Bank as Associate VP from 1997 to 2002, as CFO for Sindicato Pesquero S.A., CFO for Tecnológica de Alimentos S.A. (part of the BRECA Peruvian holding). His work abroad and within the construction sector began also in the BRECA 154

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SOBOCE has contributed to Bolivia’s development and progress for more than 90 years

group when he became CFO for Melón S.A., in the cement and building materials production trade. Orbegoso was named CEO for SOBOCE on December 2014. Contributions to the construction sector SOBOCE’s constant efforts in facility expansion and acquisition of new business units have provided enough resources to maintain a solid presence throughout Bolivia. Coverage translates to more than geography, but also into serving different sectors such as infrastructure, commercial, residential, retail w ww w.wcw om . spoabnoycuer .l c . coom m

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“The increase in production capacity is a result of new product development ” – José Luis Orbegoso, Gerente General de SOBOCE S.A.

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El Puente cement factory, located in Tarija

Emisa cement plant, located in Oruro

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and the private sector. The company’s most important product is cement mix, sold through the Viacha, Emisa, El Puente and Warnes brands. Ready Mix stands out as the group’s premixed concrete brand. The most recent addition to SOBOCE’s product roster is SOBOPRET, its prefab material line, a reliable supplier from beams to complete prefabricated homes. Innovation in manufacturing processes and new products Maintaining the same pace as the construction industry in Bolivia demands significant investments to increase production by expanding the company’s facilities. The Viacha cement plant, located in the La Paz Department, is already into its 12th expansion process, which belongs to a larger scheme known as the Illimani Project. This time, a vertical grinding mill from FLSmidth will be deployed; this Danish company has been a supplier to SOBOCE since the 1970s. The vertical grinding mill will be the first in its class to be installed at Bolivia, and it will become the highest cement-grinding vertical mill above sea level. The Illimani Project also includes the deployment of automated systems for concrete mix bag packaging and palletizing, as well as silo construction. The aforementioned efforts are expected to contribute in increasing production to two million tons per year in the Viacha plant, which


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is currently delivering 900,000 tons annually. Another reason for the current facility expansion is the development of SOBOPRET, the company’s new prefab building material brand and also its newest business unit. SOBOPRET is introducing complete prefab housing and other materials for this purpose. This operation is currently under constant growth and development, and products such as prefab concrete beams are certified by the Bolivian Institute of Regulations and Quality (IBNORCA), with the IBNORCA Quality Seal. As part of the Southern Cement Consortium, operation management demands system updating. SOBOCE is taking care of this demand by installing a SAP/HANA latest-generation platform to standardize processes and display the best practices. Supplier evaluation and segmentation The company’s suppliers are classified into any of three categories: raw material vendors, purveyors related to goods and services related to the production process and quality, and suppliers contributing to proper compliance of occupational health and safety standards (OHSAS). Every supplier undergoes a yearly technical evaluation conducted under the country’s regulations as well as under ISO:9001, ISO:14001 and OSHSAS: 18001 standards, according to the group’s Integrated Quality Policy.

SOBOCE throws some variety into the market with Ready Mix premixed concrete

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Skilled staff, trained to face any challenge Production demands at every SOBOCE facility and the company’s safety standards demand high-skilled workers who undergo a yearly average of 20 hours of training. This effort is recipient of US $380,000 worth of investments. Talent development in SOBOCE answers the company’s upcoming necessities in production procedures, aimed at increased competitiveness

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and operational excellence. SOBOCE’s Leadership Development program is focused to individuals displaying the required attributes for management positions in areas such as operations, marketing and logistics. Outreach to the community SOBOCE’s CSR projects are driven by traits such as integration, upgrading the quality in

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SOBOCE workers receive up to date training for an average of 20 hours per year

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individual’s lives and education. One of the company’s most relevant efforts during 2015 was the construction of eight milk collection centers, which are to become fully-equipped by the end of the year. This facilities will benefit the area’s inhabitants and improve their conditions for milk vending. Projected growth Being part of the Southern Cement Consortium has benefitted SOBOCE by involving the company into large-scale plans along with business units in Peru and Ecuador. The specific strategic plan for SOBOCE projects investments of more than US $270 million to increase production capacity. Main expansion projects are planned for the existing Viacha cement plant and for construction of a new production facility in the Yacuses area, in Santa Cruz de la Sierra.

SECTOR

Company Information NAME

SOBOCE S.A. INDUSTRY

Producción de cemento, hormigón y prefabricados HEADQUARTERS

Calle Mercado No 1075, Edificio Soboce, La Paz, La Paz, Bolivia FOUNDED

1925 EMPLOYEES

1,500 REVENUE

US $280 million WEBSITE

www.soboce.com

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