Construction Global magazine - February 2016

EDITOR’S COMMENT

Complex projects W E L C O M E T O T H E February 2016 issue

of Construction Global. The cover story this month features Urbacon Contracting & Trading, and looks at some of its most high-profile projects across the Middle East, including the Mall of Qatar. We also take a look at the innovative work on the new Scottish National Blood Transfusion Service (SNBTS) National Centre, due to be completed at the end of 2016. This building needed to be designed and built in a way that met a very complex set of needs, so it makes for a fascinating story.

Other topics we are looking at this month include why construction companies need to be embracing mobile tech and alternative sources of power for construction projects – both of these can improve efficiency and cut carbon emissions.

We do hope you enjoy the issue; please get in touch on Twitter @ConstructionGL

Enjoy the issue!

Lucy Dixon Managing Editor EMEA lucy.dixon@wdmgroup.com

3

CONTENTS

Features

6

How alternative power generation can reduce the carbon emissions of construction projects LIFE SAVER The new facility being built for the Scottish National Blood Transfusion Service

12 4

February 2016

8 REASONS to embrace mobile tech

20

Company Profiles

30

42 SaskBuilds

UCC (Urbacon Contracting & Trading)

Lake Oswego - Tigard Water Partnership

54

68

Turner Construction

Latinco

78

5

TECHNOLOGY & EQUIPMENT

THE BIGGER

PICTURE EMISSION REDUCTION TARGETS, such as the 2030 climate and energy framework in Europe which sets to reduce greenhouse gas emissions by 40 percent, and the UK Government 2050 target which aims to reduce its emissions by at least 80 percent, represent an appropriate contribution to global emission reduction.

However, more has to be done to meet these stretching targets.

6 February 2016

Emissions within the construction industry In the UK, over half of its emissions are accounted for by the construction industry alone. As a result, reduction of CO2 and NOx emissions have become a key consideration for main contractors. When considering reducing emissions in this sector, all too often the focus is on the sustainability of the actual building components, with not enough

How alternative power generation can reduce the carbon emissions of construction projects W r i t t e n b y: A n d y M e a d , D i r e c t o r a n d F o u n d e r o f F i r e f l y

focus on the products used to enable the build. Temporary power, for example, is an important contribution to the overall emissions footprint of a construction project, particularly where there is a requirement for 24-hour power.

Reducing CO2 and costs with hybrid power Running diesel generators is expensive, yet despite this they are

still typically used to supply 24-hour power; in the UK, this includes high daytime loads and low overnight loads. Although high daytime loads are necessary to carry out the building work, low loads overnight – for security and lighting for example – result in large amounts of fuel being burnt unnecessarily, making the generator inefficient. If we compare this to France, generators are turned off overnight, yet they 7

TECHNOLOGY & EQUIPMENT are still used during the day even when low loads are required. What’s more, diesel generators always consume a baseline of fuel even if they are delivering no power.

Ultimately, the constant use of diesel generators regardless of the load requirement, makes them more costly than they need to be, along with producing unnecessary CO2 and NOx emissions. In addition, running diesel generators at very low loads can damage and ultimately reduce the life of the generator In order to reduce a site’s operating emissions and costs, and go some way to help to meet the UK, Europe and ultimately global targets, diesel generators can be used in conjunction with hybrid power.

Good quality hybrid power units, such as Firefly’s Cygnus product range, which now includes the Cygnus 4 product, simply integrate with all standard 20 kVA- 250 kVA diesel generator fleets with no modifications required. As well as having a timer function, these systems also have Load Sensing Management. In this mode, the diesel generator provides high-load power when required, whilst also charging the batteries of 8 Feburary 2016

the HPG. The HPG then intelligently detects when the diesel generator is powering a low-load and turns the diesel generator off, allowing the power to then be provided by the HPG. When the load increases, the diesel generator turns back on and the HPG returns to recharging mode.

This process delivers continuous and dependable power on site in all weathers while optimising energy efficiency, reducing fuel costs and cutting emissions. In fact, by simply integrating hybrid power with a diesel generator, fuel usage can be reduced by as much as 50 percent or more, with the added benefit that CO2 output can be reduced by the same amount. In addition, Firefly’s solutions can also be coupled with renewable sources on site such as solar PV or wind turbines, providing 100 percent silent carbon neutral energy.

Silent power with HPGs Diesel generators are also noisy and the use of them for low-load overnight power is intrusive to local residents. Comparably, HPGs are ideal as they deliver completely silent power during the night.

This also offers the opportunity

THE BIGGER PICTURE

9

TECHNOLOGY & EQUIPMENT for construction workers to work overnight without aggravation and helps meet the requirements under the Considerate Constructor Scheme. It is particularly useful for the rail industry which carries out much of their maintenance at night.

Stand-alone power It is also important to note that a HPG can also provide standalone power where it offers zero carbon emissions, zero noise and requires zero fuel as well as being a back-up source of power in the eventuality of a diesel generator breakdown.

The importance of data and reporting Power is clearly an important consideration because of the significant CO2 and fuel savings that can be achieved. However, working with the right power solution is just one element; the monitoring of this solution is also paramount. With site energy efficiency appearing high on the priority list for contractors, achieving this efficiency comes hand in hand with good quality data and reporting.

Software telemetry, such as GLOW 10

Feburary 2016

‘Working with the right power solution is just one element; the monitoring of this solution is also paramount’

RFM, which is a hybrid first, provides users with the data to integrate with their own Environmental Management Systems and inform key CSR business performance indicators, while providing a complete overview of a hybrid fleet – anytime, anywhere.

It allows users to make informed decisions with clear comparisons in performance from the diesel set and the hybrid generator.

Generator idling and oversizing are a common challenge within the industry. Using the intelligent controls within the cloud platforms allows for parameters to be set

THE BIGGER PICTURE

INTERESTING FACTS & FIGURES • The Climate Change Act established a target for the UK to reduce its emissions by at least 80 percent from 1990 levels by 2050.

• The 2030 climate and energy framework sets to reduce greenhouse gas emissions by 40 percent from 1990 levels.

• Simply running welfare power overnight by integrating hybrid power with a diesel generator can reduce fuel usage by as much as 50 percent or more, with the added benefit that CO2 output can be reduced by just as much.

and optimised for each site, to achieve maximum energy efficiency. As a result, inefficiencies and needless excessive fuel costs can be eradicated.

The future of hybrid power Although contractors are clearly going some way in implementing carbon reduction plans to help meet targets through careful selection of building products, operational site activities are a significant area in which operational and carbon savings still need to be made. For this, wider adoption of hybrid power solutions is key.

11

MAJOR PROJECTS

LIFE

SAVER W r i t t e n b y : LU C Y D I X O N

The new facility being built for the Scottish National Blood Transfusion Service will dramatically improve the organisation’s ability to process essential blood, cells, and tissue 13

MAJOR PROJECTS THE NEW SCOTTISH National Blood Transfusion Service (SNBTS) National Centre is due to be completed at the end of 2016. The £33 million (by construction value) project is being delivered by Interserve Kajima and will centralise the processing, treatment and screening of all blood, cells, and tissues collected in Scotland. This will deliver significant efficiencies in the journey of collected blood, helping to meet the increasing demand for blood transfusions for patients in Scotland. Given that over a million pints of donated blood spoil every year in the UK and the number of new blood donors fell last year by nearly 40 percent, the innovations of this centre could literally be life-saving.

Dr Safia Qureshi, SNBTS National Centre Project Director, says: “Having the right facilities in the right place is key to the efficient and effective delivery of our services to patients across Scotland and that is why we are working with Interserve Kajima to ensure our blood service is delivered from state-of-the-art facilities. Not only will the new centre ensure ongoing compliance in an increasingly complex regulatory environment, but it will facilitate the effective introduction of new developments, products and safety measures in a flexible, future-proof building.”

Richard Coe, Project Director for Interserve Kajima (who works for Kajima Partnerships) has been

LIFE SAVER

involved in the project for three years and explains how it has been funded: “This project initially came to the market as a capitally funded project, that all fell by the wayside with difficulties in public sector financing, and then came back to the market as an NPD project – in recent years Scottish Procuring Authorities have progressed an increasing number of privately financed projects using the Non Profit Distributing (NBD) model.

The NPD model was developed and introduced as an alternative to and has since superseded the traditional Private Finance Initiative (PFI) model in Scotland. So we funded the National Centre through Nord/LB, we’re building it with Interserve Construction and we’re going to operate it through the 25-year concession with Interserve Facilities Management.”

The construction site was initially a farmer’s field, owned by HeriotWatt University, and Coe says it’s the perfect location for SNBTS with excellent transport links including Edinburgh airport. Constructing a completely new centre has allowed the team to create exactly what SNBTS needs. “There is one main building, and that is split up into three

Key features

• Central arcade with views of the main blood processing hall, testing, NMRU and R&D laboratories • High degree of transparency throughout the building (partitions are floor to ceiling glass) • Layout designed to reduce travel distances between departments • Additional space built in to allow for future innovations in blood, cell and tissue treatments • Significant community benefits programme

15

MAJOR PROJECTS elements, so three storeys of openplan offices, a learning centre, café – all the paperwork side of the business.

This is connected to an arcade, which is the heart of the building; it’s a three-storey space that connects the offices to all of the scientific space within the building, and those are big, open-plan areas that are set up for a variety of blood, cell and tissue functions. Then there’s a separate energy centre and a large garage for 24 operational vehicles,” says Coe. The building is being purposely designed to foster communication – a huge improvement on the three separate sites currently operated by SNBTS. Coe adds: “We’re connecting through the design and through the use of glass, for example, but from the offices, you can see through the arcade, you can see into blood processing. And there’s additional space in that area that will allow for different blood testing regimes that may need to be incorporated in the future.”

The build is now over half way through a two-year construction process and one very important aspect of the centre is that the space has been designed – by Reiach and Hall Architects – so that new equipment 16

Febuary 2016

can be brought in or maintenance can be carried out without impacting on the essential work of SNBTS. Coe explains: “On level one, we’ve got an interstitial floor, which incorporates a walk-on ceiling (capable of taking live load as required to complete regular maintenance duties) which is suspended from the structure forming the interstitial service zone which permits the servicing and maintenance of light fittings, service distribution measures etc. from above in order to avoid undue disruption to the activities below. Steel trusses span over the space to provide a column free zone for production and to support the Level 2 accommodation.

Columns are located at the perimeter of the spaces to provide flexibility.

In order to create such a building, Interserve Kajima, working closely with SNBTS, took a lot of time looking at the work flows – when the blood arrives and how it is processed, stored and then sent out again, and how waste material is dealt with. Coe says: “You can’t have any crossovers between all of the different flows within the building because that would promote, or may cause, contamination of the blood product, or the cells and

LIFE SAVER

17

MAJOR PROJECTS

tissues, which then are obviously going to patients in Scotland.”

One of the innovations to help the work flows was the incorporation of two service lifts – one to take process samples from manufacturing to testing, and one to remove waste from testing, NMRU and RD&I. These two dumb waiter type lifts and shafts have been integrated with the building layout to address the pressure differentials between floors and departments. In both cases the pressure differential is the same as the principal direction of operational flows (products/waste).

18

Febuary 2016

Coe says the centre will be as energy-efficient as possible, not easy when you consider it will be running round the clock. He adds: “The offices are south facing to maximise daylight and we’ve worked very hard on the building envelope and the insulation.

The office areas are all naturally ventilated with windows and louvres that are controlled by the building management system.” In addition the centre has a combined heat and power (CHP) system and a solar photovoltaic array on the roof to generate some of the electricity it will require.

LIFE SAVER

Once operational, the centre will be of real European significance and a key part of UK infrastructure. “If you think back to the awful tube bombings in 2005, treating all the burns victims meant the supply of skin disappeared overnight. Unfortunately, those things are likely to happen again, and organisations such as SNBTS work with sister organisations across the UK to respond.” And this response will be so much easier to manage thanks to the new building. In addition, the building has to be pretty resilient itself, to deal with any number of

possible problems that might arise.

Coe concludes: “In terms of incoming power, we’ve got dual site supply, we’ve got diesel and fuel oil for generator and backup boiler supply. There is an on-site supply of vehicle fuel, a water supply with backup storage, and then independent IT and data ducts coming into the building. There are five comms rooms throughout the building with a resilient connection. The building can cope with a whole variety of different scenarios, and it can still operate, which obviously is very important.”

19

LIST

8 REASON TO EMBRA MOBILE TE

Why construction firms need to know ab

NS ACE TECH

Written by: Colin Yates, Business Programmes Director at WorkMobile

bout tablets, smartphones and beyond 21

LIST As we dive into 2016 the digital revolution is still going strong and mobile technology, such as tablets and smartphones, are continuing to become increasingly integrated into daily life. Two thirds of people in the UK now own a smartphone, as a result, an increasing number of companies are discovering the benefits of going digital.

In 2011, the UK’s Government Construction Strategy was

published by the Cabinet Office and a scheme was set out to help reduce costs in the construction industry, as well its carbon burden.

Central to this strategy is the adoption of Construction Operations Building Information Exchange (COBie) and Building Information Modelling (BIM) technologies to help make processes more efficient throughout

8 REASONS TO EMBRACE MOBILE TECH

the life-cycle of a project.

Thanks to the digital revolution and the use of mobile applications, digital building design and realtime delivery, the UK government’s strategy is becoming a reality and many firms are benefitting.

Here are just some reasons why more and more construction firms are embracing mobile technologies:

1 BYOD

Otherwise known as bring your own device, BYOD is essentially businesses allowing employees to bring their own laptops, tablets, and smartphones into the workplace and use them to access company information, data and programs. In construction many workers tend to be mobile, so welcoming internet enabled devices, such as smartphones and tablets, can help improve productivity for those operating across a number of different sites.

With many UK construction businesses now having to cut operational costs and improve efficiencies in order to remain competitive, adopting BYOD policies provides a whole host of valuable benefits.

23

LIST

IMPROVING EFFICIENCY

2 SPEEDING UP PROCESSES Mobile technology can dramatically speed up the communication process for construction firms. Using mobile data capture services, documentation, such as health and safety forms for site inspections, can be filled out and submitted on site using access to the cloud and email. Digital signatures for signing off tasks and documents are also instantly available, preventing delays.

24

Feburary 2016

Speed and efficiency come hand in hand, once processes and communication become faster, efficiency levels increase.

For example, using mobile data capture, vehicle and machinery checks can be carried out remotely and maintenance forms can be issued to the back office with any problems, meaning vehicles and equipment aren’t out of work for longer than necessary. Likewise, staff and contractors can digitally capture onsite updates and repair work via photographs and videos and upload them to a platform hosted on the cloud. This information can then be instantly accessed by head office and the relevant actions issued to workers on site.

3

8 REASONS TO EMBRACE MOBILE TECH

4

IMPROVING ORGANISATION AND PRODUCTIVITY Many construction firms have a large percentage of the workforce constantly operating out on site, at various locations. Going mobile means that job scheduling and work flow can be managed in real-time. Mobile applications allow management to create timesheets and job posts which are instantly received to a field-worker’s mobile device. Time stamping, location tracking and geo-stamping can also be submitted by the employee to notify management or customers of when a job is complete.

25

LIST

SAVING THE ENVIRONMENT

5 REDUCING COSTS All of these points work collectively towards reducing operational costs through increased speed, efficiency and productivity. Most notably perhaps, as well as helping the environment, it has been calculated by WorkMobile that mobile technology has on average saved over ÂŁ2,000 per employee, per year for construction firms just by eliminating the need for paper-based forms.

26

Feburary 2016

Mobile technology reduces the need for paper-based forms and processes, cutting down on the unnecessary harmful effects unleashed into our environment.

Many companies are looking to take up more of these types of processes as part of their CSR programmes to reduce their carbon footprint and make for a healthier environment.

6

8 REASONS TO EMBRACE MOBILE TECH

7

ELIMINATING RISK As well as being able to monitor and share all manner of information, mobile applications linked to the cloud can automatically update and back-up information at the touch of a button, both on-site and off. This kind of mobile solution reduces user errors and the risk of losing important information, something easily done using paper-based methods.

27

LIST

8

KEEPING AHEAD OF THE COMPETITION With mobile technology, the possibilities are endless. Most good providers will be able to tailor mobile applications to the specific needs or size of a business to keep you ahead of the game. Customer feedback surveys and mobile payment processes are just a few ways to make your firm the first choice for customers.

28

Feburary 2016

8 REASONS TO EMBRACE MOBILE TECH

As the construction industry becomes more tech-savvy, businesses need to keep up with the competition and be open to adopting new devices and processes. Now is the time for construction firms to take advantage of the opportunities mobile technology presents for the industry.

For more information, please visit http://www.workmobileforms.com/

29

Constru

Written by: Lucy Dixon Produ

ucting Qatar

uced by: Jordan Platten

UCC (URBACON CONTRACTING & TRADING)

In just five years, UCC has become one of the leading construction companies in Qatar, working on high-profile projects across the country

32

February 2016

U

rbaCon Trading & Contracting Company LLC, also known as UCC, is a Qataribased international construction company with over 30 years of experience, building everything from highways and bridges to luxury residential and hotel projects. The company was founded in Syria back in 1983, by Mohamad Raslan Al Khayyat when it was known as Al Khayyat Contracting and Trading (KCT).

The founder’s son, Moutaz Al Khayyat, is the current CEO and he explains the company’s ethos: “At an early stage, the company vision was to ‘Build Trust’ and this vision has been inherited by UrbaCon Trading and Contracting (UCC) who, while being formed in Qatar in 2011, has a legacy of experience to build on. We are based in Qatar but with operations ongoing within the GCC, USA, Europe and Asia.”

Since it was set up in 2011, UCC has experienced remarkable growth and its strategy

EUROPE

going forward is to continue on this path, while further diversifying into different markets. Al Khayyat explains: “UCC continually looks to see how it can strengthen its procedures and subsequently its performance, whilst having a strong emphasis on quality, safety and productivity. As a group, we are already quite diverse with companies engaged not just in construction, but also in facility management, hospitality, shipping, restaurants, clinics, retail, real estate, cargo, travel, manufacturing, farming and farm products. We continue to invest into various business sectors based on market analysis. Within the construction sector we are expanding now into the oil and gas field together with major infrastructure.”

One of the high-profile projects that UCC has been involved with is the Mall of Qatar, which is a challenging design and build of a 550,000m2 project, which engaged every facet of the group’s

2011 The year UCC was founded

w w w. u r b a c o n - i n t l . c o m

33

U R B A C O N I N T E R N AT I O N A L

Spectra Arts offers specialized glass solutions for the local fabrication and installation of decorative and architectural glass works for the exterior and interior of a building with techniques that include: • Stained Glass • Etched and Carved Glass • Fused Glass • Painted Glass • Printed Glass • Laminated Glass

• Tempered Glass • Curved/Bend Glass • Fire Rated Glass • Mirrors • Stainless Steel

The mentioned techniques can be applied to a number of uses and applications, such as: • Glass Partitions (i.e. Shower Enclosures, Office Partitions, etc) • Facades/Shop Fronts • Skylights • Windows and Doors

• Glass Floorings and Ceilings • Wall Cladding • Staircase and Balustrades • Counters and Wash Basins

Spectra Arts Tel: +974 4458 1112 Fax: +974 4458 1113 Email: info@spectraarts.com Website: www.spectraarts.com

EUROPE

capabilities, and is on schedule for opening in autumn 2016. “In addition to the mall, an adjacent five-star hotel is also under construction by ourselves and is scheduled for completion at the same time. The surrounding infrastructure, including highways and metro links, are also well advanced by the Public Works Authority and we look forward together to making this new iconic designation available for the local population later in 2016,” says Al Khayyat.

The company is also bidding to work on the stadiums required for the 2022 World Cup, as Al Khayyat explains: “There are many projects to be completed in line with the FIFA World Cup in 2022 and the national vision requirements. We are confident that UCC will undertake its share of these projects, and consider that having now established the company’s reputation, we can build on it to ensure further compliance with

“UCC continually looks to see how it can strengthen its procedures and subsequently its performance” – Moutaz Al Khayyat, CEO

w w w. u r b a c o n - i n t l . c o m

35

UCC (URBACON CONTRACTING & TRADING)

Key Personnel

Moutaz Al Khayyat Executive Director As part of a great vision set by the country’s leadership for Qatar, we are privileged to share the collective responsibility to realize this vision and meet this country’s challenges and aspirations. Our establishment in Qatar since 1983 was in response to the special and unique needs of the local and international markets.

36

February 2016

our motto and vision. As we have seen in other Gulf Countries, the current investment into the country will not only provide opportunities for construction, there will be multiple growth in all sectors which will be a very positive environment for Qatar and its people.

With regard to stadium projects, UCC are actively participating in the tenders for all stadium projects. UCC is, together with BAM, a specialist stadium contractor. We are confident and are looking forward to our

EUROPE

Key Personnel

Ramaz Al Khayyat Managing Director

participation in the stadium delivery.”

Other clients UCC is working with include the Public Works Authority (ASHGHAL), Lusail Real Estate and Development Company, Manateq (Economic Free Zones), Qatar Development Bank, Aspire Zone, Qatar University, Qatar Foundation and several private sectors projects.

UCC’s motto ‘We Build Trust’ and this is at the forefront of its relationship with clients. Al Khayyat says: “Our objective is to ensure we give our clients the product they require, on time,

As a grade one general contracting company in Qatar, UrbaCon Trading & Contracting LCC has undertaken full turn-key development, design, construction, and operational capabilities to drive projects forward and surpass our clients’ expectations.

Our capabilities have extended to international markets and projects while maintaining our reputation of excellence.

w w w. u r b a c o n - i n t l . c o m

37

UCC (URBACON CONTRACTING & TRADING) safely and to the highest possible standards.

The Sheraton Project is a perfect example of this trust, where the client had just seven months before a key event was planned and awarded us the contract to completely renovate the hotel, the convention center and all its external surrounding, including all MEP systems, in just seven months on a design build basis. The project was handed over complete, tested, commissioned and fully operational ahead of time.

One of the keys to UCC’s success is its approach to the training and development of its employees. Al Khayyat says keeping top quality staff is a priority: “Rapid growth

Our group turned 70 in 2014, a year which has been marked by a turnaround in trends for Abantia with a 7% increase in revenues compared to 2013 to reach a consolidated figure of €195M. The order book to be produced in 12 months also grew by 13%, up from €157M in 2013 to €178M in 2014, which consolidates our growth path for 2015.

Operational Areas • Installions and Systems • Electromechanical Assembly • Operation and Maintenance • Renewables Development and Intergrated Projects

Tel. +974 4451 55 59 | qatar@abantia.com | www.abantia.com

EUROPE

coupled with market fluctuations can create an environment where it is challenging to attract and retain the required calibre of staff, however as a group of companies, we continually benchmark ourselves against the market and consider that we do remain as an employer of choice within the construction sector. Of course in turn, all employees are expected to perform to meet our expectations.”

The company has a dedicated section within its Human Resources department. “This coordinates both internal and external training across all designations, utilising our Oracle HCM and Taleo capability as a base for this development. Training is also cascaded down

“We continually benchmark ourselves so we remain as an employer of choice within the construction sector” – Moutaz Al Khayyat, CEO

w w w. u r b a c o n - i n t l . c o m

39

UCC (URBACON CONTRACTING & TRADING) to the skilled workforce, where internal trainers routinely take in teams of skilled workers for enhanced skill training in our purpose built skilled workforce training centers,” says Al Khayyat.

The Oracle HCM and Taleo platforms that Al Khayyat mentions are part of its use of technology across the business. “We have procured a comprehensive ERP application via Oracle, and its implementation was undertaken by Oracle Consultancy Services, to ensure that we get the maximum out of the available applications. The modules cover all core business functions such as finance, procurement, human resources (HCM and Taleo), payroll, projects, time attendance and project planning and costing. The HR modules cover all aspects of HR from recruitment allocation, employee relations and employee self service. In addition, we have invested in a fleet management PMV software, again with Oracle, which is tailor-made to control our PMV activities, which involves the allocation of some 2,000 items across our projects.” In addition, UCC uses iris scanners to monitor time attendance

40

February 2016

EUROPE

of its staff, by quickly and accurately registering each worker at the start and end of the day.

UCC has a centralised procurement chain and has structured its procurement team so that there are dedicated personnel for each specialised field. “Certain procurement officers just cover hard finishings such as marbles and ceramics, others FFE items. Each is positioned within the department to ensure the company benefits from their expertise and the employee benefits by continuous improvement of his specialist knowledge and in-depth database,” says Al Khayyat.

All of these elements together help to set UCC apart from its peers, thanks to its ability to successfully perform and deliver a wide range of diverse projects on a design build turnkey basis. Al Khayyat says: “UCC has achieved this by employing experienced professional staff at all levels, by building up a substantial inhouse work force of skilled workers, and by developing an extensive procurement chain in the local and international markets.” ww

w w w. u r b a c o n - i n t l . c o m

41

SaskBuilds builds a brighter Saskatchewan Hon. Gordon Wyant and CEO Rupen Pandya discuss growth and new P3 approaches to build Saskatchewan’s future Written by: Sasha Orman Produced by: Tom Venturo

43

Regina Bypass construction

B

uilding infrastructure does not happen overnight, and the process starts long before foundations are laid. One of the most crucial preliminary steps is the procurement of resources needed to build a proposed bridge or road or facility—and effective cost-conscious procurement can make all the difference in the budget and timeline of a project.

In Saskatchewan, these vital procurement strategies are the 44

February 2016

responsibility of Treasury Board Crown corporation SaskBuilds.

Created by the Saskatchewan government in 2012, SaskBuilds is on a mission to manage and advise the construction of Saskatchewan’s large-scale infrastructure projects.

Through its dedication to its core values, including integrity, transparency and innovation, SaskBuilds is working to ensure that Saskatchewan projects are completed on time and under

Saskatchewan Hospital North Battleford rendering

Rupen Pandya

budget to best serve the province and its population. “We have committed to being transparent in our actions and our integrity is demonstrated in our accountability to that commitment,� said SaskBuilds President and CEO Rupen Pandya. “Our work is highly innovative in nature. We are committed to improving traditional procurement by applying the lessons we learn through alternative procurement, and by leading a w w w. s a s k b u i l d s . c a

45

Proud partner on the Regina Bypass & Saskatchewan Hospital North Battleford Projects

EXCELLENCE IN DESIGN Joint Use Mutual Partnership, comprised of Concert Infrastructure Ltd. and Bird Capital Limited Partnership, is pleased to be partnered with the Saskatchewan Ministry of Education, SaskBuilds Corporation and other respective Project stakeholders to deliver these critically needed schools to the communities of R egina, Saskatoon, Warman and Martensville.

9th floor, 1190 Hornby Street Vancouver, BC V6Z 2K5 Tel: 604.688.9460Â www.concertinfrastructure.com

5700 Explorer Drive, Suite 400 Mississauga, ON L4W 0C6 Tel: 905.602.4122 www.bird.ca

SASKBUILDS comprehensive long-term capital planning process.”

Entering the field of P3 “Saskatchewan has experienced remarkable growth over the last several years, and with growth comes an increasing demand for new highways, schools, healthcare facilities and more to support an improved quality of life for Saskatchewan people,” said Minister Responsible for SaskBuilds, Hon. Gordon Wyant. Part of SaskBuilds’ mandate to examine the best procurement options has included a thorough look into alternative procurement models, including public-private partnerships (P3).

“For large and complex projects – generally in the $100 million or more range – P3s have proven to be the right approach for building infrastructure projects on-time and on-budget,” said Wyant. “The long-term nature of the contract ensures there is a strong incentive for the private sector partner team to build operating efficiencies and innovation into the project’s design, construction, and long-term maintenance.”

USA

But as Wyant explains, SaskBuilds approaches the P3 model from an analytical point of view—to engage in this alternative model, it must offer value and make financial sense for Saskatchewan.

“Saskatchewan people trust the government to make the best possible investment decisions with their taxes. That is why SaskBuilds explores and compares procurement options to make recommendations based on which model of procurement, traditional or alternative, will drive the greatest

Hon. Gordon Wyant

w w w. s a s k b u i l d s . c a

47

PAVING THE WAY TO A BETTER REGINA. Proud to partner with SaskBuilds and the Government of Saskatchewan to design, build, operate and maintain the Regina Bypass.

reginabypasspartners.ca

GRAHA-0009A_BusinessReview_print_196mmx137mm_110915.indd 1

2015-11-10 1:04 PM

SASKBUILDS value for taxpayers,” he added.

“P3s are not the right approach for every project—there needs to be sufficient complexity in the project to drive the value. For this reason, pursuing a P3 is not made on the basis of ideology—it’s based on the numbers. There needs to be qualitative and quantitative value for taxpayers.”

Projects on the agenda That growth that Saskatchewan has experienced is still going strong.

SaskBuilds is currently overseeing several major infrastructure projects

USA

including 18 elementary schools, a bypass to improve safety in the Regina region, a long-term care centre, and the new Saskatchewan Hospital North Battleford facility.

All of these projects are being developed with the goal of improving everyday life for Saskatchewan citizens. For instance, through careful planning SaskBuilds predicts that the full Regina bypass project will be completed under budget by 2019. “This is a full six years sooner than could have been achieved through a conventional approach,” said Pandya. “Coming in $380 million

Saskatchewan Hospital North Battleford rendering w w w. s a s k b u i l d s . c a

49

SASKBUILDS under the budget we estimated for a traditional build, the bypass is delivering savings of almost 17 per cent and will be an important asset in the national transportation network.”

Leveling the playing field for Saskatchewan business “Ensuring local Saskatchewan businesses have a level playing field to compete upon is a priority for our government,” said Wyant.

“We created Priority Saskatchewan to look at procurement across

government ministries and the Crown sector to see where there are opportunities to do things better – more strategically and more consistently.”

Priority Saskatchewan is a branch of SaskBuilds dedicated solely to looking at alternative procurement methods and ensuring that all procurement across ministries and the Crown sector is kept fair and transparent. As a central strategic infrastructure agency, Wyant explains, SaskBuilds was a natural

THE CHOICE TO PURSUE A P3 IS NOT MADE ON THE BASIS OF IDEOLOGY—IT’S BASED ON THE NUMBERS. THERE NEEDS TO BE QUALITATIVE AND QUANTITATIVE VALUE FOR TAXPAYERS.” Hon. Gordon Wyant

USA

Regina Bypass construction

fit to take on the responsibilities of Priority Saskatchewan—and when the agency found that there were clear opportunities to improve, it took action with the launch of the Procurement Transformation Action Plan in March of 2015.

“The Procurement Transformation Action Plan resulted from the Priority Saskatchewan team reaching out to more than 140 businesses, associations, municipalities, colleges and universities, and other government partners to understand what was working and what needed to be fixed,” said Wyant.

SaskBuilds used this data to build

an implementation strategy into the procurement system for both vendors and buyers.

“The plan looks at procurement from all angles,” he added.

“Everything was on the table from simplifying documentation and language, to awarding contracts on best value versus lowest cost, and ensuring we use all available room in the trade agreements to benefit Saskatchewan businesses.”

Looking ahead The priorities for SaskBuilds are always clear: deliver on the projects at hand. This remains true with the w w w. s a s k b u i l d s . c a

51

SASKBUILDS

Regina Bypass construction

52

February 2016

current projects: Pandya notes that a key milestone for both the SaskBuilds team and the Government of Saskatchewan is delivering its current five P3 projects ontime and within-budget. With that in mind, SaskBuilds also has further overarching goals it is working to achieve.

“We will continue to make progress implementing the Procurement Transformation Action Plan’s initiatives,” says Pandya. “Concurrently, we will continue to engage with industry to identify opportunities for further improvement.

We see procurement improvement as an ongoing process.”

As an ongoing process, SaskBuilds sees continuous improvement as a part of its strategy well into the future, as a means to keep improving the process of strengthening Saskatchewan’s public infrastructure.

“We will continue leading long-term integrated capital planning to ensure best practices are being consistently applied across government,” says Pandya. “Building in the discipline of rigorous upfront planning is a win-win. It not only ensures ministries take the time needed to develop the business cases, but also ensures decisionmakers have the best possible advice upon which to base infrastructure investment decisions.”

COMPANY OVERVIEW

INDUSTRY Construction/Government

HEADQUARTERS 1855 Victoria Ave #720 Regina Saskatchewan Canada S4P 3T2

ESTABLISHED October 2012

EMPLOYEES 20

REVENUE $4.5 million (operating budget)

CONTACT p: 306-798-8014

Lake Oswego 路 Tigard Water Partnership sharing water 路 connecting communities

Lake Oswego 路 Tigard Water Partnership

A Water Partnership sharing water 路 connecting communities

Built to Last The Lake Oswego Tigard Water Partnership will provide both cities with affordable, high-quality drinking water for decades.

Written by: Eric Harding Produced by: Tom Venturo

55 Copyright 2015, City of Tigard

L A K E O S W E G O T I G A R D WAT E R PA R T N E R S H I P

W

ith the support of its community, the City of Tigard partnered with the City of Lake Oswego in 2008 to make a long-term investment in its future water source. The Lake Oswego Tigard Water Partnership provides Tigard shared ownership in its future water supply and delivers customers in both communities safe, reliable drinking water through what will be the most seismically resilient water system built in Oregon.

The project began during an economic crisis at the local and national levels. As it turned out, the recession resulted in lower borrowing costs for local governments and greater competition for municipal work by construction firms. These two facts made it the best time for the partnership to begin construction.

John Goodrich, public works manager for the city of Tigard, calls it serendipity.

“It was the best time to design and build this project, because those dollars weren’t going overseas,” said Goodrich. “The workers were 56

February 2016

The newly constructed River Intake both cities. The Clac

local, so that money was going to the local economy. It was just a winwin situation all around. All these little things came together, and I think that just really enhances the project.”

T H E B AC KG R O U N D OF T WO CITIES Founded in 1961, Tigard is a 50,000-person municipality

Copyright 2015, City of Tigard

CONSTRUCTION

e Pump Station on the Clackamas River will provide a sustainable water source for ckamas River is one of Oregon’s high-quality drinking water sources

bordering the southwest corner of Portland, Ore., which is now home to more than 3,000 businesses.

Tigard had been searching for a water supply company of its own for nearly 10 years, in part to meet expected growth and the future demands of business and residential customers.

The city has never owned its own water supply. Instead, water was

purchased from other suppliers elsewhere and piped in, while the city pursued potential alternatives for developing a water supply.

When the neighboring city of Lake Oswego found itself with an aging water supply system in need of capital investment, the two partnered to create a mutually beneficial relationship, with construction on the project w w w . l o t i g a r d w a t e r. o r g

57

L A K E O S W E G O T I G A R D WAT E R PA R T N E R S H I P

beginning in 2013.

“We could not have implemented and delivered this $254 million program had it not been for the vision and support of the residents in our two communities and elected officials,” said project director Joel Komarek. “Water supply and wastewater treatment systems across the country are in a state of disrepair, if not outright failure, and the cost to renew or replace this critical infrastructure is staggering.”

Dennis Koellermeier, Tigard Water Partnership Program Director, added, “Our customers are making a serious investment here, so we want to provide a product that is as resilient as possible.”

The project required a new river intake on the Clackamas River, more than 10 miles of large-diameter pipeline, upsizing and replacing the water treatment plant in its current location, an added reservoir for increased storage capacity and a

Copyright 2015, City of Tigard

CONSTRUCTION

The River Intake Pump Station on the Clackamas River will provide a sustainable water source for both cities. Both communities are committed to preserving, protecting and enhancing water quality and fish habitat in the Clackamas River basin

new pump station across the I-5 freeway in Tigard.

Now, water is taken from the new system and the pump station delivers it to several different locations throughout Tigard.

When Lake Oswego built its Clackamas River supply system in the 1960s, more than 50 percent of the cost was paid by the federal government. But that is not the case today. Both communities are funding the entire $254 million dollar project from local water rates.

“While we did it independent of each other, both communities have

“It was the best time to design and build this project, because those dollars weren’t going overseas. The workers were local, so that money was going to the local economy. It was just a win-win situation all around. All these little things came together and I think that just really enhances the project.”

– John Goodrich, Public Works Manager for the city of Tigard

w w w . l o t i g a r d w a t e r. o r g

59

C O M PA N Y N A M E

All new structures and pipelines at the new reinforced piles to kee

essentially doubled their water rates to repay the bonds sold to build the improvement,” said Koellermeier.

“I think it’s more common than most people realize, and I think you’re going to see more of it into the future. It leverages the dollar so much further.”

60

February 2016

BUILDING A RESILIENT SYSTEM With a greater understanding of how future seismic activity in the Pacific Northwest will impact infrastructure, new facilities and pipelines are being developed to withstand a major earthquake.

By requiring each of its new water

w water treatment plant are supported by 1,110 deep ep them in place during shaking

supply facilities to be designed to remain functional after a large earthquake, the partnership is improving its odds of bouncing back quickly from a significant seismic event. Lake Oswego and Tigard will be in much better shape than most other water supply systems in the region because of the new, robust

“backbone” infrastructure that supplies and distributes water.

“Because we’re building this entire supply project at the same time, the Lake Oswego Tigard system will be the most seismically resilient water supply system in the Portland metro region for a long time,” said Koellermeier. w w w . l o t i g a r d w a t e r. o r g

61

Copyright 2015, City of Tigard

SECTOR

Copyright 2015, City of Tigard

C O M PA N Y N A M E

All new structures and pipelines at the new water treatment plant are supported by 1,110 deep reinforced piles to keep them in place during shaking

Not only are the new facilities designed and constructed to withstand major earthquakes, the network of interconnected water systems also expands – increasing water reliability for Lake Oswego, Tigard and communities across the region.

“Tigard and Lake Oswego are taking on a much higher responsibility, and are part of the pioneering effort of working towards providing a high-quality 62

February 2016

water product to the community,” Goodrich added.

MAKING BETTER DECISIONS WITH GIS Both Tigard and Lake Oswego have also used geographic information system (GIS) technology for a number of years. The technology can access and view mapping while in the field, which is important for creating infrastructure.

It also provides information for

Copyright 2015, City of Tigard

CONSTRUCTION

The Clackamas River is one of the Oregon’s most pristine water sources, whose headwaters lie downstream from Mt. Hood and the Oregon Cascade range

people who need it most, as data management employees have the information captured in the GIS to help make decisions.

“To be honest, we kind of take it for granted,” said Goodrich. “For underground technology, it’s really great. It just provides so much information at the fingertips of people who really need it out in the field.”

Koellermeier noted, “Where we are really starting to be innovative is

now we have supervisors, managers and decision makers manipulating that data to make decisions and figure out where investments need to be made and predict problems.”

THE TEAMS BEHIND THE PROJECT According to Koellermeier, Slayden Construction Inc. is doing a great job constructing the treatment plant and river intake, Emery and Sons Construction Group worked w w w . l o t i g a r d w a t e r. o r g

63

Major construction on the Bonita Pump Station finished in 2015, including a new 24-inch diameter pipe laid underneath I-5 that connects the facility with the water system

CONSTRUCTION

efficiently to install more than seven miles of large diameter welded steel pipe, while Pacific Excavation Inc. was a major partner on Tigard’s pump station.

To assist with the delivery of this large, multiyear public works program, Lake Oswego retained the services of Brown and Caldwell, a national consulting engineering firm with expertise in program management. Using outside resources, in addition to its own project delivery team, allowed the partnership to more flexibly and efficiently meet the needs of the program as it ebbed and flowed during the planning, permitting, design and construction phases of the project.

“We are extremely pleased with the quality and responsiveness of their efforts and would definitely consider hiring a program management firm again for future large public projects,” said Komarek.

“They have helped us develop the tools to provide the right level of oversight and communicate issues to our elected officials,” said Koellermeier. “Everyone I’ve worked with over the

“We could not have implemented and delivered this $254 million program had it not been for the vision and support of the residents of our two communities and their elected representatives over the last eight years.”

Key Personnel

Joel Komarek Project Director

Dennis Koellermeier Tigard Water Partnership Program

John Goodrich Public Works Manager for the city of Tigard

– Joel Komarek, Project Director w w w . l o t i g a r d w a t e r. o r g

65

L A K E O S W E G O T I G A R D WAT E R PA R T N E R S H I P

Proud to be a committed partner to the success of the Lake Oswego Tigard Water Partnership Finished Water Pipeline Project

INDUSTRY LEADER FOR

UNDERGROUND UTILITIES AND

SITE-WORK

OF ANY SCOPE OR SIZE 503.588.7576 | WWW.EMERYANDSONS.COM | CCB #203633

last eight years has added a lot.”

A NEW ERA The goal for the partnership is to have the capital program wrapped up within the next 12 to 18 months.

“That will be a major milestone, as this is the largest public works project ever undertaken by the city of Tigard,” said Koellermeier.

“As an organization, we’re always challenged to do more with less, and now we have this new major 66

February 2016

infrastructure to own, operate and maintain.”

In the past, Tigard has essentially been a renter of water through a wholesale contract with the Portland Water Bureau. If there was a waterquality issue or something else they did not like, the solution was making a phone call to somebody else to fix the problem.

Now, there’s no one else to call.

Tigard has the ability to handle future water quality and delivery

Copyright 2015, City of Tigard

CONSTRUCTION

Company Information INDUSTRY

Municipal Construction HEADQUARTERS

Lake Oswego, Oregon FOUNDED

2008 ABOUT

issues on their own.

“It’s going to be different for us,” said Goodrich.

“I’m confident the staff we have is up for the challenge. We’re working in conjunction with the partnership, so it’s not like we’re doing it alone.

In the next 18 months, we’ll be getting used to operating the system, and making sure we’re meeting all the needs of our water customers.

“The people have stepped up and provided the support to construct a $254 million project. Now it’s going to be up to the next group of people to maintain and operate it in a manner that will make it last for a long time.”

The Lake Oswego Tigard Water Partnership expands Lake Oswego’s existing drinking water infrastructure so that it can serve both Lake Oswego and Tigard communities. Under the partnership, Tigard also will share ownership and control of the new water system that will serve Tigard water customers.

Lake Oswego currently withdraws water from the Clackamas River in Gladstone as it has been doing for almost 50 years

w w w . l o t i g a r d w a t e r. o r g

67

TURNER CON CONRAC P

Building a better rental car center

Turner Construction is creating convenience for ren Airport’s new consolidated Written by: Sasha Orman

NSTRUCTION PROJECT

r solution for San Antonio Airport

nters and operators with San Antonio International d rental car center project Produced by: Tom Venturo 69

C O M PA N Y N A M E

Existing Parking Garage Demolition

T

he airport rental car business is changing—and to meet customer expectations, savvy airports are building to reflect that change as well.

“The rental car industry at airports is getting consolidated,” said Eric Wildt, senior project manager for Turner Construction Company.

“That’s where the business model’s 70

February 2016

running, because it creates operational efficiencies for the rental car operators and it elevates the level of customer service provided to the renting public.”

San Antonio International Airport (SAT) is one airport making the change, and the city of San Antonio has selected Turner Construction to help it realize its vision of a new

SECTOR

consolidated car rental (CONRAC) “If you’re pushing the envelope on facility to maximize convenience and catching a flight and trying to find customer satisfaction. where you’re supposed to return your vehicle, it can be very stressful.”

A new vision on an existing site To address this issue, SAT looked “The way that the current rental to the site of its short term parking operations are scattered around garage. After demolishing the the airport, they’re not co-located in existing short term garage, Turner any one place and some of them are Construction is rebuilding the very difficult to find,” Wildt explains. structure as a brand new seven-level w w w. t u r n e rc o n s t r u c t i o n . c o m

71

UNIFIED SERVICES OF TEXAS, INC.

Fuel System Contractor UST is a full service contractor providing Fuel System construction to a wide range of clients. Our highly skilled professional’s have been successful in building long lasting relationships with our customers by exceeding their expectations and gaining their trust through exceptional performance.

OUR EXPERTISE: • CRITICAL FUEL FACILITIES • LUBE OIL SYSTEMS • EMERGENCY GENERATORS • CONRAC FUELING • AVIATION FUELING SYSTEMS • MILITARY FUELING SYSTEMS

We are DBE, HUB, VOSB and SBA 8(a) certified.

2110 Greenbriar Dr, Southlake, TX 76092 Phone: (817) 481-9510 | Fax: (817) 488-1729 | Email: info@ustgc.com

www.ustgc.com

No one understands the time-sensitivity and complexity of concrete construction better than FABco. Our team has gone through great lengths to offer products and services that enhance the procurement of reinforced concrete materials. FABco offers a range of products, carefully designed, efficiently fabricated, and quickly delivered.

CONTACT US

713.633.6500

info@FABcoUS.com

TURNER CONSTRUCTION – CONRAC PROJECT

multi-use CONRAC solution. The first two levels will serve as public parking to replace the former short term parking garage—on top of this, levels three through seven will be rental car operations. Adjacent to this, a quick turnaround area (QTA) is being built to supply the rental car services with support from fueling stations to maintenance and car wash bays to get rental cars back in shape for their next adventures.

Innovating rental car convenience The new CONRAC structure is much more than the parking garage it is replacing. “We’ve got some really cool features,” said Wildt. One of these signature features is a sky bridge that will connect directly from the airport terminals to the CONRAC customer service center.

“There will be a sky bridge you can walk across after you get your baggage, which takes you over the

Last Phase of the Existing Parking Garage Demolition w w w. t u r n e rc o n s t r u c t i o n . c o m

73

Last Phase of the Existing Parking Garage Demolition

TURNER CONSTRUCTION – CONRAC PROJECT

drive lanes to level 4 and into this large expansive lobby that will have all the rental brands in front of you,” said Wildt. “If you have a vehicle reserved, you check in and go down to your vehicle. If you don’t, you’ve got all of the brands right there available to you that you can rent from. It creates instant and easy access for the renting public—you don’t have to get on a shuttle for 1020 minutes, it’s a direct connect.”

Wildt adds that this centralized location is of benefit to departing travelers as well. “On the other side, when you’re coming back to return your vehicle, you don’t have to return it somewhere offsite and then take a shuttle to the airport to catch your flight,” he said. “The rental car center is right there in the center, so I can drop off my car, walk across the sky bridge and go to my gate.”

While the sky bridge to Level 4 creates convenience for consumers, the adjacent QTA creates convenience for the rental car services with amenities like 54 fueling points and direct connections of its own.

“The actual service levels are 2, 3 and 4, and each of those floors is

connected via a combination sky bridge and circulation helix to the rental car center,” said Wildt. “This is set up for operational efficiency: every functional level where you’re renting vehicles is connected via direct drive lane over to this QTA, so they don’t have to take the cars all the way down to the ground to some facility offsite to have them cleaned and refueled. It’s a very simple and direct connection that makes things very efficient for the operators.”

Balancing progress with safety Construction projects are regularly complex, but that complexity compounds when it’s a 1.6 million square foot project underway in the middle of a busy transportation hub populated by thousands of travelers and employees passing through every day.

“It’s smack dab in the middle of airport proper, so logistically it’s a very tight project,” said Wildt. “On the west boundary of our site we have a long term parking garage that has to stay up and operational, and on the east side are the drive lanes for the terminals that have to stay up and operational.”

w w w. t u r n e rc o n s t r u c t i o n . c o m

75

TURNER CONSTRUCTION – CONRAC PROJECT

Pull Planning with Subcontractors a technique used as part of the Last Planner System

®

DYNAMIC SYSTEMS, INC.

MECHANICAL CONTRACTORS

Dynamic Systems, Inc. is proud to be a part of the SAIA CONRAC Project.

University Health System Hospital

We are a world-class leader in the fabrication and installation of sophisticated process and high purity piping systems, process exhaust, HVAC piping and sheet metal, and plumbing systems.

JW Marriott Hill Country Resort & Spa

Our projects include the healthcare, hospitality, commercial, laboratory, life sciences, microelectronics, mission critical, and solar construction markets.

UTHSC South Texas Research Facility

www.DynamicSystemsUsa.com ATLANTA • AUSTIN • BOSTON • DALLAS/FT. WORTH • HOUSTON • NEW YORK • PHOENIX • SAN ANTONIO

76

February 2016

Turner Construction has risen to the challenge of tackling this project while ensuring that pedestrian and traffic flow through SAT is able to function smoothly and without major interruptions.

“Site management—the interface with the public—is a big deal,” said Wildt. Turner Construction has employed several strategies to maximize site safety, from working at night when traffic is lower, to building a 600-foot covered walkway for pedestrians to safely bypass the construction zone on their way

USA

from the long-term parking garage to the airport terminal. The construction company is also working closely with the FAA for construction and equipment approval that maintains full visibility for the control tower, ensuring safety both on the ground and in the air.

Paving the way for further growth With construction well on its way, Turner Construction estimates that the first two levels will be open for business by April of 2017, followed with the launch of rental car operations by March 2018. Once open, the benefits will be clear.

“The customer service aspect that’s being enhanced in this program is huge,” said Wildt. “It’s really going to elevate the airport’s ability to offer that customer service to the passengers, and really the satisfaction that everyone flying through that airport is going to experience.”

But the completion of this project will not be the end of growth for SAT—rather, it’s just the beginning of a more expansive plan for the airport. SAT sees further expansion in the future, with even a new terminal in the works down the line, and the smarter transportation and parking options put into play with the new CONRAC facility allow it to effectively support that growth.

“It ties into the master plan to grow San Antonio as an airport over the next many years,” said Wildt. “This asset that they’re creating gives them the ability to continue that vision of growth and expansion in a very smart way.”

Company Information INDUSTRY

Commercial construction HEADQUARTERS

1077 Central Parkway South, Suite 600 San Antonio, Texas, USA, 78232 FOUNDED

1902 EMPLOYEES

22 on project REVENUE

$129.5 million

w w w. t u r n e rc o n s t r u c t i o n . c o m

77

INFRASTRUC HYDROELECT ALL OVER C

LATINCO’s involvement in highwa benefit millions of C

Written by: Mateo Rafael Tablado Produced by: Jassen Pintado Interviewee: Ramiro Perez, President of LATINCO S.A.

CTURE AND TRIC POWER COLOMBIA

ay infrastructure and power plants Colombia nationals

L AT I N C O S . A .

L

ATINCO S.A. was created during the mid-1990s with support from multiple stockholders including the Correa family, which by then owned most of prominent El Condor construction co. The Correas only needed Mr. Ramiro Perez’s stocks at El Condor to own the whole company, a feat accomplished in 1999 when the family proposed a trade of Perez’s Condor stocks in exchange for a share of an upcoming, promising construction venture called LATINCO. Once into the 2000s –a very difficult time for Colombia- the Perez Ramirez family held LATINCO’s reins. The company engaged

Highway concessions are one of LATINCO’s most important business units

80

February 2016

L AT I N A M E R I C A

in important infrastructure projects all over Colombia, where road design and construction efforts are challenged by the territory’s numerous mountains and rivers. Some of these projects have produced constant revenue for LATINCO, experiencing constant growth for years.

“The company has a reinvestment policy, which has proven as a stronghold in order to run all of the concession ventures,” explained Ramiro Perez, President of LATINCO, S.A. Perez graduated in civil engineering and soon after joined the Conconcreto company, where he became construction manager. Afterwards, in 1984, he joined El Condor as a junior partner, remaining with the Correa family until 1999 when he was offered LATINCO stocks in exchange for his share of El Condor, in what became one of the most challenging transactions in his career.

“I was the only non-family partner within El Condor’s stockholders; the family decided to own the whole company and we reached an agreement, as I was dealt shares of a new company called LATINCO,” Perez stated.

LATINCO’s new visual identity Entering 2016, LATINCO boasts a brand new logo, colors and even an updated website and other corporate contents. This new visual identity obeys a series of attributes and abilities featured by the company along its history.

The new visual identity for LATINCO displays w w w. l a t i n c o . c o

Key People

Ramiro Pérez President of LATINCO S.A. Perez began working in the construction trade at a young age, right after graduating as a civil engineer.

He worked his way into becoming project manager for Conconcreto construction co. In 1984 he became a junior partner for Construcciones El Condor company, leaving in 1999 as thecompany’s CEO. Perez exchanged his share of El Condorwiththe Correa family, which became the company’s sole owners, while Perez became a partner of LATINCO in the year 2000.

81

L AT I N C O S . A .

Bridge construction over the river at Avenida Longitudinal de Occidente

strength, stability, and a sense of each member of the company’s workforce being part of the same family. The new identity also embraces LATINCO’s roots, the sense of belonging to its homeland and territory. Evolution, permanent transformation and the ability to solve problems with intelligence are also addressed within the new visual identity.

“It also pertains to strategic thinking: this sums up the change the company was subject to,” the president said.

(ALO bridge), Cundinamarca Dept.

Highway concessions: investments connecting the entire country LATINCO’s venture into the Autopistas del Cafe highway network became the starting point for a set of profitable infrastructure projects benefitting transportation and commerce within Colombia.

“When I worked for El Condor I became experienced in the highway concession business,” Perez recalled. “When the time came to obtain a concession for LATINCO, we were ready to take on Autopistas del Cafe.”

Some of the highway concessions LATINCO is involved with, in partnership with other companies, include:

82

February 2016

L AT I N A M E R I C A

• Girardot - Ibague – Cajamarca: 13 percent

share of a $500 million investment.

• Cucuta - Pamplona: 10 percent share of

a $200 million investment.

Troncal Central del Norte highway, Malaga

•

Ibague - Cajamarca (part of the 4G – 4th Generation Colombian Highway Concessions), partnering with MINCIVIL, the Ethuss group and Colpatria construction co. in a $500 million investment.

– Capitanejo section, Santander Dept.

• Santana Neiva – Mocoa (also part of 4G highways), in partnership with GrupoSolarte construction co., Estyma and CONOISA (Infrastructure Operations Controller, affiliated to Mexico’s ICA construction group).

Hydroelectric plants LATINCO is also an important player in Colombia’s power generation business, as it operates several hydroelectric plants; some on its account and others in partnerships.

•

11 of its plants are joint ventures with Ethuss group and Estyma, these supply 250 MW. Currently only two of these plants are operational. w w w. l a t i n c o . c o

83

L AT I N C O S . A .

“LATINCO’s success results at financial man

– Ramiro Perez

84

February 2016

L AT I N A M E R I C A

s from years of good judgement nagement decisions�

z, President of LATINCO S.A.

w w w. l a t i n c o . c o

85

L AT I N C O S . A .

• Recreo hydroelectric plant, joint venture with MINCIVIL, supplies 60 MW. • The Tulpas plant is 100 percent LATINCO property, it supplies 50 MW. Troncal Central del Norte highway, Presidente – Malaga section, Santander Dept.

•

The Mayaba hydroelectric plant (still awaiting operation permits) is the result of a partnership between LATINCO, the Elemental group and Ethuss. It will supply 200 MW.

• LATINCO operates other 13 plans on its own (amounting for 200 MW).

Top brands provide

The El Eden plant is set to begin operations in April 2016, while the construction of the Montebonito plant will begin two months later.

“We have invested in power generation for seven years now,” the executive said.

LATINCO of consumables, machinery suppliers are also a

Technology: reliable brands for after-sale services

reliable source for the equipment fleet’s timely maintenance and replacement parts

86

February 2016

The most critical point in LATINCO’s supply chain is its construction machinery. Even the best equipment from global brands needs service and replacement parts at some point, and for this LATINCO relies on companies that deliver on time. LATINCO’s equipment fleet includes Atlas

L AT I N A M E R I C A

Copco equipment for tunnel digging; Caterpillar excavation vehicles; Astec as its go-to supplier for asphalt and road building machinery; Germany’s Wirtgen for paving works; Liebherr cranes and International Trucks to complete the company’s sources for heavy-duty vehicle use.

“Construction tech keeps development and finds itself at anyone’s disposal. But the key aspect is having the ability and skills to obtain the most out of every item,” Perez said.

Steel, fuel and concrete are also LATINCO’s regular consumables, supplied by Colombia’s leading companies, and LATINCO has established a long-lasting relationship with its purveyors.

“Our new image englobes evolution, permanent transformation and the ability to solve problems” - Ramiro Perez, President of LATINCO

Projects abroad In addition to its domestic projects, LATINCO is also involved in projects abroad. The company operates a landfill in Arequipa, Peru in partnership with with Interaseo, and runs a waste disposal business in Lima’s La Victoria district.

In Ecuador, LATINCO is in process of obtaining a highway concession: the stretch between Rio Siete – Machala – Huaquillas, within the Guayaquil – Huaquillas highway, is a $450 million investment in which LATINCO has a 66 percent share, with the remaing 34 percent belonging to FOPECA, a local company.

w w w. l a t i n c o . c o

87

L AT I N C O S . A .

These projects –either joint ventures or on the company’s own- result from ninefigure investments

Company culture and on-site learning

LATINCO’s personnel undergoes training workshops held by the company’s consultants in the projects’ premises

88

February 2016

LATINCO has been listed frequently by “Great Place to Work,” for a company culture that encourages education and development.

Its workers are provided such opportunities as a development program in which the same consultants hired for the company’s projects provide special training workshops in engineering, management, safety, finances, accounting and mechanics.

“We don’t send our employees to college, we bring college to them,” the executive said.

L AT I N A M E R I C A

El Eden Hydroelectric Plant is set to begin operations in April 2016

A link to society’s vulnerable groups An important number of sites within the inner country -towns and villages where LATINCO operates- were ravaged by Colombia’s ‘guerrillas’ combats during the 1980s. The company aims to reach vulnerable groups of these societies and benefit them, mainly: females that became the head of their family due to war casualties, abandoned elder citizens, and young people with age to attend college.

“We think it’s a must to invest in those three sectors in order to improve their living conditions,” Perez explained.

Remediation works for Road 19 in Armenia, Quindio Dept.

w w w. l a t i n c o . c o

89

www.mercovil.com

L AT I N A M E R I C A

Company Information

Consolidation in the horizon In just over 20 years, LATINCO’s engagement in highway concessions and other profitable projects resulted in exemplary development and growth, guaranteeing cash flow for the upcoming five years.

The company is now in the position of consolidating all of its business units, since growing into new ventures also demands finding the right personnel and huge investments of time and resources. LATINCO is taking a stance of not engaging in new commitments, at least for the short term.

“We need to become stable, using all of our strongholds in order to achieve consolidation,” said LATINCO’s president.

NAME

LATINCO S.A. INDUSTRY

Construction / Hydroelectricity HEADQUARTERS

Medellín , Antioquia, Colombia FOUNDED

1994 EMPLOYEES

1,500 REVENUE

US $130 million WEBSITE

www.latinco.co

w w w. l a t i n c o . c o

91