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A CULTURAL OVERHAUL IS NEEDED TO RESOLVE CONSTRUCTION DISPUTES IN ABU DHABI

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MONEY MATTERS TECH TO DISRUPT MIDDLE EAST SPENDING TRENDS P36

DUBAI MALL HAS REINVENTED THE UAE’S RETAIL ECONOMY P12

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24

INTELLIGENCE Aldar awards Alghadeer contract FINANCE UAE’s Arabtec reports profit hike ROUND UP EGA inks waste management deal CAREERS Khansaheb seeks QA/QC engineer

06 10 12 19

ANALYSIS DISPUTE RESOLUTION QUESTION TIME Legal experts at CW’s conference in Abu Dhabi outline how the business culture must change so that construction remains profitable for companies in the UAE capital

22

EDITOR’S COMMENT Can higher salaries close the Middle East’s engineering skills gap? @ JAYDAWT @ CWMIDDLEEAST

12 RESEARCH DUBAI MALL As Emaar’s iconic retail facility celebrates its 10th anniversary, CW rounds up Dubai Mall’s impact on the UAE’s retail economy, as well as its construction sector

For daily updates and subscriptions, log on to constructionweekonline.com

CW AWARDS 2018

34

A preview to the gala event that will be held in Dubai on 4 December, 2018

PROJECT UPDATE

36 SPECIAL FEATURE COST MANAGEMENT Technology can help to disrupt cash management practices in the Middle East, and along the way, it may also change the definition of ‘construction cost’, a regional expert says WWW.CONSTRUCTIONWEEKONLINE.COM

A review of CW’s most recent site visits, including Bee’ah headquarters and Binghatti Stars in the UAE, and Al Araimi Boulevard in Muscat, Oman

EVENTS CALENDAR

38

42

Get up to speed on all of the construction industry events taking place in 2018, from awards evenings to trade shows, and conferences 17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 3

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INTELLIGENCE

Alghadeer will add 14,000 residential, commercial, cultural, and entertainment units to Abu Dhabi, but Dubai residents will beneȌt too due to its close proximity.

Contract of note: Aldar picks contractor for second phase of $2.7bn Alghadeer project

A

bu Dhabi stock market-listed Aldar Properties has awarded a main construction contract for its “sustainable destination” Alghadeer to Al Rakha Contracting and General Transport.

Under the terms of the agreement, Al Rakha will work as main contractor for the infrastructure buildings and early works package, which relates to the first neighbourhood of the $2.7bn (AED10bn) Alghadeer’s Phase 2.

Worth $91.2m (AED335m), the contract covers the construction of 707 maisonettes, townhouses, and villas, all of which will be preceded by site preparation work.

Located in the northwest section of the masterplan, the neighbourhood is part of Alghadeer’s wider design that includes 14,000 6 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

homes, commercial properties, cultural and institutional amenities, and entertainment attractions. These concrete assets will be built over a 15-year period, the developer has said.

Since Alghadeer’s launch in April 2018, Aldar has announced two plot sales within the megaproject, which will feature additional community amenities such as a British curriculum school, a Lulu-branded supermarket, and a clinic.

Commenting on Al Rakha’s contract award, Aldar’s chief executive officer, Talal Al Dhiyebi, said: “From its location at the centre of the UAE, Alghadeer offers residents a peaceful community with sustainable living initiatives within close proximity to both Abu Dhabi and Dubai. We have seen solid interest in Alghadeer, which expands our successful WWW.CONSTRUCTIONWEEKONLINE.COM

INTELLIGENCE For up-to-the-minute tenders log on to constructionweekonline.com

$50BN THE VALUE OF AGREEMENTS SIGNED AT THE KINGDOM’S RECENT FII SUMMIT

destination-led strategy to new areas of the emirate,” he continued, according to a report by Abu Dhabi-based Emirates News Agency.

The multibillion-dollar Alghadeer is the centrepiece of Aldar’s future development strategy, and is located close to Seih Al Sdeireh, where the world’s first commercial hyperloop system will begin to rise from the ground in 2019.

This October, Aldar’s executive director for commercial activities told Construction Week that Abu Dhabi’s ongoing industrialisation efforts would play “an important role” in increasing demand for Alghadeer’s property units.

“[Adnoc] is investing heavily in building the world’s largest integrated refining and petrochemical hubs,” Maan Al Awlaqi said to Construction Week at Cityscape Global 2018, held at Dubai World Trade Centre on 2-4 October.

“That’s going to bring about 15,000 employees into the country while adding roughly 1% to the UAE’s gross domestic product by 2025.

“So, the workforce coming off the back of this industrialisation strategy will need places to live,” he added.

In April 2018, the developer signed an escrow agreement with Abu Dhabi Bank worth $2.7bn (AED10bn) to support Alghadeer buyers.

Contracts for Saudi megaproject sail to $320m Construction contracts awarded for King Abdullah Economic City (KAEC) in Saudi Arabia have surpassed $320m (SAR1bn) this year.

KAEC’s acting chief executive officer, Ahmed bin Ibrahim Linjawy, said contracts handed out for the megaproject, which is being developed by Emaar, The Economic City (Emaar EC), included packages to develop the mixed-use Industrial Valley.

The commercial and residential development is

situated along the Red Sea on the kingdom’s west coast and is located just an hour from Jeddah, Makkah, and Medina. It boasts good road, rail, air, and sea travel routes thanks to the King Abdullah Port, National Highway Network, and the Haramain High Speed Rail network.

Construction contracts have also been awarded

by KAEC for work on residential areas, as well as the development of numerous other projects spanning tourism, entertainment, and sports.

WWW.CONSTRUCTIONWEEKONLINE.COM

TOP TENDERS Water network in Ardiya Al Shamaliya Country: Saudi Arabia Closes: 19 Nov, 2018 Category: Power and Water Issuer: Administration of Water Services in Makkah Implementation of a tank and pipelines in Khorma Country: Saudi Arabia Closes: 22 Nov, 2018 Category: Power & Water Issuer: Administration of Water Services in Makkah Implementation of a sewerage pipeline (Rabegh) Country: Saudi Arabia Closes: 12 Dec, 2018 Category: Infrastructure Issuer: Administration of Water Services in Makkah Water network in Adam Country: Saudi Arabia Closes: 14 Dec, 2018 Category: Power & Water Issuer: Administration of Water Services in Makkah Water network in Al Laith Country: Saudi Arabia Closes: 19 Dec, 2018 Category: Power & Water Issuer: Administration of Water Services in Makkah Water network in Muthelif Country: Saudi Arabia Closes: 25 Dec, 2018 Category: Power & Water Issuer: Administration of Water Services in Makkah Supply and install student housing with furniture Country: Saudi Arabia Closes: 9 Jan, 2019 Category: Buildings Issuer: Imam Muhammad ibn Saud Islamic University Development and improvement of Central Region – Phase 1

King Abdullah Economic City is near Jeddah.

Country: Saudi Arabia Closes: 15 Mar, 2019 Category: Infrastructure Issuer: Secretariat of Baha 17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 7

FINANCE FINANCIALS

Contract wins push Arabtec proȌts up 140% Net profit for UAE construction heavyweight Arabtec Holding has grown by 140%, according to a company filing on Dubai Financial Market.

Arabtec Holding’s net profit attributable to parent for the nine months to 30 September, 2018, climbed to $42.9m (AED181m), with the business generating revenue of $1.9bn (AED7.2bn) during the same period.

The company’s financial results were bolstered by contract wins in Q3 2018, including an $871m (AED3.2bn) award from Adnoc LNG, and a $42m (AED155m) Dubai Municipality contract for sewerage and drainage work.

Its backlog is currently valued at $4.4bn (AED16.4bn) and the engineering and construction giant said it boasts a pipeline of “identifiable opportunities” worth $12.4bn (AED45.8bn). In its filing to Dubai Financial Market, the company said

Arabtec’s Ȍnancial results were boosted by contract wins in the third quarter of 2018 [representational image].

it will continue to “review non-core assets” into 2019.

Commenting on the latest round of figures, Arabtec Holding’s group chief executive officer, Hamish Tyrwhitt, said he was satisfied with the contractor’s operational performance in Q3.

“Debtors days are continuing to decrease through our efforts to close out completed projects and shorten the payment cycle for current projects,” he went on to day say, noting such moves helped to reduce net debt at the group by $39.4m (AED146m).

Expert views Client selectivity urged for growth: WSP’s Greg Kane shares advice

While Greg Kane believes the Middle East’s late payment culture has not worsened for WSP, the consulting giant’s Middle East managing director has cited his ‘disappointment’ that it has not improved either, even as other aspects of the regional market continue to advance.

“A perennial problem for this region is getting paid,” said Kane, speaking to Construction Week on the consultancy’s regional business as the end of 2018 approaches.

“I don’t think it has necessarily got worse for us at WSP, but

8 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

perhaps a point of disappointment is that is hasn’t got better. If we look at our day sales outstanding [rate] – the number of [days] it takes for us to get paid – the Middle East is the highest in the world for us.”

With this in mind, Kane adds, the consultancy has “good relationships and good clients that pay on time and really value” what WSP does.

“It goes back to being selective and trying to Ȍnd the clients that you are well aligned with, who [appreciate] value, and are willing to pay for it,” he added. “We’ve got

some superb clients, but there are instances where getting paid is increasingly challenging.”

Contractors, as well as consultants like WSP, are also adopting a more selective approach when it comes to picking the projects and clients they engage with.

Speaking to Construction Week in July 2018, Rajesh Kumar Krishna, chairman and CEO of Beaver Gulf Group, said pricing margins and increased costs have led his company to take an even more discerning view of the projects it bids on.

WWW.CONSTRUCTIONWEEKONLINE.COM

FINANCE

Kuwait’s UPAC sees 10% hike in 9M 2018 net proȌts Kuwaiti real estate and facilities management firm United Projects for Aviation Services Company (UPAC) has reported a near 10% increase in profits for the first nine months (9M) of 2018.

Net profits at UPAC for 9M 2018 stood at $24.77m (KWD7.58m), a 9.96% increase on the first nine months of 2017, when net profits totalled $22.58m (KWD6.89m), a regulatory filing on the Kuwait stock exchange has revealed.

Total operating revenue remained largely flat, with the firm bringing in $34.67m (KWD10.53m) during 9M 2018, a marginal 0.08% increase on 9M 2017 when operating revenues stood at $34.6m (KWD10.52m).

On a quarterly basis, net profit in Q3 2018 was up 2.24% year-on-year

WWW.CONSTRUCTIONWEEKONLINE.COM

(YoY), hitting $669,087 (KWD2.46m).

Total operating revenue stood at $934,672 (KWD3.43m) in Q3 2018, a slight 4.18% fall on the same period last year when the figure stood at $975,092 (KWD3.58m).

In the same 6 November bourse filing, UPAC explained the increase in net profit is “due to unrealised gain on financial asset at fair value and increase in the interest income”.

Speaking on the results in a separate statement, Nadia Akil, chief executive officer at UPAC, said: “Our indicators are on par with expectations, with our net profits increasing steadily during the third quarter of the year. Growth continues to be driven by our income generating projects at the Kuwait International Airport as well

as other prominent projects in the country. Construction of Abu Dhabi’s Reem Mall is moving ahead according to schedule. Al the above elements give us confidence and optimism that we are on the right track. I look forward to report further milestones for the remainder of the year.”

Reem Mall is a 185,806m2 retail, leisure, dining, and entertainment destination, located on Reem Island, the master-developed residential and commercial zone adjacent to Abu Dhabi island that will eventually be home to more than 200,000 people.

The commercial space and facilities at the Kuwait International Airport, Sheikh Saad Terminal, and Discovery Mall are operating at “almost full capacity, with a continued focus on optimisation and efficiency”.

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 9

ROUND UP

SUPPLY CHAIN

Industrial giant EGA in Arkan deal to cut waste Emirates Global Aluminium (EGA) will supply Abu Dhabi-based Arkan Building Materials with tonnes of waste from its smelting operations, as the UAE industrial giant looks to monetise its waste.

EGA will supply Arkan with spent pot lining, a waste material generated by aluminium smelting, which the building materials company will be able to use to manufacture cement. It is unclear how much or how often EGA will deliver spent pot lining to Arkan.

Spent pot lining is the used inner lining of aluminium smelting pots, which is replaced every four to five years. This wasted product contains carbon, an alternative fuel, and refractory materials that survive the firing process and can become part of finished cement.

EGA claims the global aluminium industry produces more than one million tonnes of the stuff every year, much of which is stored indefinitely without any purpose, so it just piles up.

Its agreement with Arkan comes as

the business, which operates smelters in Abu Dhabi and Dubai, explores circular economy initiatives that find customers who may be able to use EGA waste for other purposes. One such initiative is supplying spent pot lining to cement firms. Last year, EGA supplied more of the material to cement firms than it produced and this trend is expected to continue moving forward.

In a bid to support this, the company is building facilities at its Al Taweelah site in Abu Dhabi, claimed to be one of the largest industrial construction sites in UAE. Part of the Al Taweelah facility will process spent pot lining that can be delivered to cement companies who can use it as an alternative fuel or raw material.

Arkan said it has been exploring how to use EGA’s spent pot lining in its own operations since 2017. HE Eng Jamal Salem Al Dhaheri, chairman of Arkan, said the company could reduce its dependence on fuel by using EGA’s wasted spent pot lining in its manufacturing processes.

EGA produces millions of tonnes of cast metal every year.

MATERIALS Source: London Metal Exchange | $ per tonne | Prices correct as of 13 November, 2018

COPPER

STEEL

$6,083 10 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

NICKEL

$510

$11,280 WWW.CONSTRUCTIONWEEKONLINE.COM

ROUND UP

Around the GCC 2 4 1

5

3

ALUMINIUM

$1,933 WWW.CONSTRUCTIONWEEKONLINE.COM

1. UAE

4. BAHRAIN

Gemini restructures amid expansion

Tender opens for causeway project

Dubai-based Gemini Property Developers has restructured its board of directors in preparation for expansion to Saudi Arabia and India, a move that comes just a month after the appointment of its new chief executive ofȌcer. A restructure of the Gemini board of directors is one of the Ȍrst major changes carried out by the company’s new CEO, Sunil Gomes, who joined last month and told Construction Week he wanted to avoid “adversarial” relationships with contractors. Sailesh Jatania has been named an advisor to the developer’s board of directors.

Bahrain’s King Fahd Causeway Authority (KFCA) is inviting bids from transaction advisory services consultants to implement the transition phase of the 25km King Hamad Causeway project.

The submission deadline is 21 February, 2019.

2. KUWAIT

3. SAUDI ARABIA

5. OMAN

Sabah Al-Ahmad City deals inked

Aramco breaks ground in Russia

Damac in $2bn harbour project

Kuwait’s Public Authority for Housing Welfare has awarded two construction and infrastructure contracts worth $210m (KWD60m) for work on the Sabah Al-Ahmad City mega development. The scope of the Ȍrst contract includes the construction, implementation, and maintenance of infrastructure, main roads, and secondary power stations in Sabah Al-Ahmad City, a largescale project that will be home to 250,000 people upon completion.

Oil titan Saudi Aramco has broken ground on a research and development centre at Lomonosov Moscow State University that will explore upstream technologies and artiȌcial intelligence. The ninth research facility that Saudi Aramco has built outside of the kingdom to date, the new centre will enhance strategic collaboration between the oil-producing heavyweights of Russia and Saudi Arabia – two key players in the Organisation of the Petroleum Exporting Countries (Opec).

Damac has noted construction progress on its Mina Al Sultan Qaboos project in Muscat, Oman, which it is developing in a joint venture with Oman Tourism Development Company. Groundwork has begun on the $2bn (OMR770m) waterfront project, the Dubai-based real estate company’s Ȍrst urban redevelopment scheme in the world.

The project aims to transform the old port and trading hub into a thriving mixed-use hub of commerce and activity.

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 11

RESEARCH

A ten-year history Dubai Mall opened its doors on 4 November, 2008.

The growth of Dubai Mall The Dubai Mall is officially the world’s largest shopping centre now. But how has this retail behemoth faced down online competition, while establishing itself as an entertainment destination for tourists and residents alike?

WORDS BY NEHA BHATIA

T

he Dubai Mall is the world’s largest Somewhere, Katsuya, Wagamama and Shake shopping centre according to Shack – and 1,300 retail outlets, with Galeries Guinness World Records, and Lafayette and Bloomingdale’s anchoring the on 4 November, 2018, the UAE shopping mall. retail giant officially turned 10 years old.

In 2012, Emaar announced the opening However, the Downtown Dubai facility of an 820m air-conditioned metro link that – which is regularly in the news and is a connects The Dubai Mall to the Dubai Metro popular Google search term, thanks to its rail network. In a statement at the time, Emaar Reel Cinemas screens, aquarium, stores, ice said the walkway comprised 10 travellators rink, and food court – continues to grow ranging between 70m and 120m, spanning through expansion projects supported by 1.4m in width. Designed in glass, drawing, and developer Emaar Properties, with visitor a mashrabiya-style façade, the link, according numbers simultaneously rising. to one company official at the time, was “a It is necessary to understand The Dubai priority” for Emaar.

Mall’s history in order to understand the But what are the major attractions within future plans charted out for the mega-facility The Dubai Mall, how were they developed, in an era where e-commerce websites are and how many visitors does the mall pull globally challenging brick-and-mortar stores. each year? In addition to the F&B and retail On 31 October, 2004, UAE newspaper outlets, The Dubai Mall includes an Gulf News reported that Dutco aquarium with a 270° walkthrough Balfour Beatty-Al Ghandi and tunnel and the world’s largest Consolidated Contractors window, an Olympic-sized ice International had been named rink, the world’s largest indoor YEAR IN WHICH gold souk, and a 260m indoor/ main contractors for the project EMAAR ANNOUNCED DUBAI MALL’S through a $735m (AED2.7bn) outdoor streetscape with a fully METRO LINK contract. Turner Construction retractable roof, according to was picked to project manage the ProTenders. An entertainment space development, for which DPA Singapore focused on virtual reality and augmented and Meinhardt respectively worked as reality named VR Park opened at the mall architect and engineering consultant. Then this March. part of the Burj Dubai project masterplan, Moreover, The Dubai Mall features an The Dubai Mall was due to feature 111.5ha entertainment centre, a 7,432m2 children’s of total space. edutainment facility, Kidzania, and Dubai’s Today, the mall features 54.8ha of total largest cineplex, its ProTenders listing shows. internal floor area, with 35ha of gross leasable Last August, the world’s largest OLED screen, space. According to its website, the mall which spans almost 710m2 with a resolution includes more than 200 food and beverage of 1.7 billion pixels, was also unveiled at the (F&B) stores – including local favourites mall. The OLED screen above the The Dubai

2012

12 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

Mall aquarium’s main tank also holds the Guinness World Records for being the highestresolution video wall and the largest highdefinition video wall. These are in addition to amenities such as free WiFi, a sleeping pod lounge, Emirates Post services, numerous ATMs, and centres of Etisalat, Du, and major banks including Emirates NBD, HSBC, and First Abu Dhabi Bank.

These attractions and amenities consistently translate into tangible growth for the Dubai Mall team. Nine-month 2018 figures released

by Emaar Malls – the majority-owned malls and retail business of Emaar Properties – show that The Dubai Mall recorded 60 million in footfall between January and September this year. Emaar Malls said this growth “was driven by the recently expanded Fashion Avenue”, a section that has added 150 international brands and activities to The Dubai Mall.

Additional work planned around The Dubai Mall includes the “ongoing Sheikh Mohammed bin Rashid Boulevard expansion that links it to the Sheikh Mohammed bin Rashid Boulevard, as well as the Fountain Views and Zabeel extensions”, Emaar Malls said. This January, it was revealed that Mammoet had been picked by Eversendai to help erect the Fountain View link bridge at The Dubai Mall extension site. The mall, in addition to Emaar Malls’ other assets such as Dubai Marina Mall, Souk Al Bahar, Gold and Diamond Park, and its community centres, together attracted 99 million visitors in the first nine months of this year.

Over the years, The Dubai Mall has proven to be an excellent case study for design, construction, and facilities management WWW.CONSTRUCTIONWEEKONLINE.COM

RESEARCH

(FM) professionals alike. Take the example of the Apple store, a project with which Foster + Partners was involved. The store’s design, according the company’s head of studio, Stefan Behling, is about “bringing to the fore new ideas about the evolving role of Apple flagships in the community”. The Emirati culture-inspired Apple store, located on its first floor and closest to Dubai Mall’s P2 Grand Parking, features kinetic solar wings to shade the outdoor terrace during daytime. The installation is made entirely of lightweight carbon fibre – chosen for its resistance to oxidisation – and each wing has multiple layers of tubes forming a dense net, Construction Week’s sister title Middle East Architect reported last year.

With millions of visitors each month, waste management is a major area of focus for the mall, which facilitated the production of 26 tonnes of compost from its food outlets last September. The Dubai Mall’s soft FM team worked with the mall’s F&B outlets and Suez Middle East Waste Management on the programme. All waste collected from the WWW.CONSTRUCTIONWEEKONLINE.COM

outlets and the mall’s food court was collected for composting by Tadweer, with the material then used for landscaping at Emaar’s lifestyle communities in Dubai.

F&B outlets are, in fact, one of the prime examples of The Dubai Mall’s waste management efforts. In August 2017, Construction Week’s sister title Facilities Management Middle East reported that in 2013, the mall invited Tetra Axis and five other service providers to clear drainage blockages with biological dosing products.

Six restaurants in the mall were allocated to Tetra for a testing phase, during which the biological products were trialled, using automatic dosing pumps. Commenting on the operation, Tetra’s group managing director, Robin Gibbs, said: “Twenty days into the trials, the camera inspection was repeated, and in some cases revealed 100% removal of built up fat, oil and grease.” Upon conclusion of the 30-day trial, a detailed report was submitted to Emaar, and subsequently Tetra was invited to propose a solution for grease and fat removal from the drain lines for the entire mall.

Despite global concerns about traditional retail being taken over by online shopping giants, the future looks bright for the mall, which has cemented its position as a retail hub and entertainment destination over the last decade. Retailer worries are not unfounded when the growth of e-commerce websites is noted; indeed, the Middle East is witnessing a growing base for online shopping websites such as Amazon’s Souq.com and Noon.com – the latter being a product created by Emaar founder Mohamed Alabbar, and backed by Saudi Arabia’s Public Investment Fund as well as Kuwait’s Alshaya & Co. The Dubai Mall is, in some ways, the centrepiece of Emaar Malls’ portfolio, and continues to grow. November 2018 is a busy period for the mall’s management team, with numerous anniversary celebration events planned. Considering the mall’s impact on the UAE’s – and the Middle East’s – business communities and societies, it is likely that The Dubai Mall’s 10th anniversary is only the first of many milestones that the development will celebrate in the years to come.

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 13

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BUSINESS

LINESIGHT DETAILS SAUDI EXPANSION PLANS

THE FUTURE OF FM WITH TRANSGUARD

12 November, 2018

29 October, 2018

In this special episode of Construction Week Viewpoint, Ciaran McCormack, regional director Middle East at global construction consultancy Linesight, sits down with Jack Ball, senior reporter at Construction Week, and talks disputes and growth in Saudi Arabia. He also touches on a consultant’s ever-shifting role in alleviating problems, as well as the group’s plans as it eyes growth opportunities in key regional markets like Saudi.

S02E15

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ON SITE

ON SITE

THE FUTURE OF BUILDING SUSTAINABLY

THE CHALLENGES OF BUILDING NEW KUWAIT

5 November, 2018

22 October, 2018

Sustainable construction will face unprecedented challenges in the future as the global population booms to nearly 10 billion people, but what is the trade doing about it? In this episode of Construction Week Viewpoint, the brand’s deputy editor and senior reporter look at the innovations improving sustainable development, from drones and laser-guidance systems to biomaterials and humidity harvesting at Expo 2020 Dubai.

ENGAGEMENT

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Greg Ward, Transguard’s managing director, reveals the three things he wants to change about the facilities management (FM) industry in this episode of Construction Week Viewpoint.

Ward says it is vital to address the liquidity problems plaguing the FM sector. “There is, at the moment, an issue of liquidity in the market, but [another concern is that] customers hide behind that issue,” he said. Ward also outlines plans to acquire six companies.

Construction is the backbone of a development strategy called New Kuwait Vision 2035, a roadmap for social and economic change. But this seven-pillar plan poses challenges that range from balancing contract awards fairly between local and international firms, to the role of publicprivate partnerships. In this episode of Construction Week Viewpoint, the hosts take a look at the risks and rewards of Kuwait’s vision for the future.

TOP AUDIENCE LOCATION

Dubai, UAE

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 15

YOUTUBE

THE LATEST FROM CONSTRUCTION WEEK’S YOUTUBE CHANNEL S02E27

CONSTRUCTION WEEK IN FOCUS MBR SOLAR PARK A design change was recently announced to expand Dubai’s Mohammed Bin Rashid Al Maktoum Solar Park (MBR Solar Park), but how has the project progressed in 2018?

This episode of Construction Week In Focus explores how the globally renowned MBR Solar Park is reshaping Dubai’s energy sector.

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CW SPECIAL

HOW IT’S BUILT

EXPO 2020 DUBAI’S THEMATIC PAVILIONS Expo 2020 Dubai’s site is home to numerous highprofile projects, but how will its three Thematic Pavilions look in 2020? This video, shared by Expo 2020 Dubai, shows how the world expo’s Opportunity, Mobility, and Sustainability Pavilions will look in 2020.

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TOTAL VIEWS

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CAREERS

APPOINTMENTS

JOB OF THE WEEK

QA/QC engineer | Dubai

The inaugural 2018 Construction Week Skills Gap Survey attracted 132 responses from construction professionals, with more than half coming from the UAE

72%

think co-workers struggle to carry out basic job tasks

33%

Dubai, UAE Construction Full time Dubai-based Khansaheb is hiring a quality assurance (QA) and quality control (QC) professional in the city.

The QA/QC engineer will be a member of the divisional site team, reporting directly to the division manager, operations manager, and group QA manager. The engineer will supervise the quality aspects of Khansaheb’s construction activities.

Ideally, the candidate must become conversant in and familiar with the company’s quality management system, established in line with the requirements of the ISO 9001:2015 standard. They must also support Khansaheb’s QC team, and study drawing specifications.

They will also be responsible for the visual inspection of incoming materials, and to ensure that it matches approved drawing specifications, material submittals, and samples.

For more information about this role, visit buildingmena.com.

Check out this vacancy and other construction roles in the Middle East on constructionweekonline.com.

said their employer provided learning and development opportunities

54%

plan to enrol onto an educational programme

HE Sultan Ahmed bin Sulayem has been named the chairman of Virgin Hyperloop One amid a leadership shake-up that was sparked by Sir Richard Branson’s resignation last month.

Sulayem, group chairman and chief executive ofȌ cer (CEO) of DP World, which is set to become Virgin Hyperloop One’s largest investor, has been elected chairman of the company that wants to build an ultrahigh-speed transport network across the GCC in the near future.

Jay Walder, former chairman and CEO of New York’s Metropolitan Transportation Authority, has been appointed CEO and replaces Rob Lloyd, who served as CEO for more than three years at the company.

Sulayem said Virgin Hyperloop One needed new leadership and fresh ideas to guide the business through “uncharted territory” as it implements an “entirely new kind of mass transportation system”.

He added: “We could not have found a more ideal candidate than Jay Walder for the next stage of the company’s development and the historic growth of this new industry.”

On joining a company that wants to revolutionise the transport industry, Walder said: “I have focused my career on using technology to advance innovation in transportation, so I could not pass up the opportunity to lead the company that has pioneered hyperloop.”

The shake-up at Virgin Hyperloop One came after former chairman Sir Richard Branson stepped down in October this year to focus on his philanthropic work

About BuildingMENA.com BuildingMENA is the Ȍrst and only job portal dedicated to the Middle East and North Africa region’s construction and engineering sector. A collaborative venture between Construction Week and Taylor Sterling Associates, the easyto-use and highly efȌcient platform is designed to connect the industry’s biggest talent network with key regional employers, both large and small.

To learn more about the platform, email sales@buildingmena.com.

18 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

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CAREERS

TAYLOR TALKS When it comes to hiring the best staff, Marcus Taylor, managing partner at Taylor Sterling Associates, says companies that want to bring top talent on board need to focus on why people leave within a year

A

s companies become more costconscious, it makes sense to track k recruitment performance. f However, a lot of companies are still tracking the wrong things and they could be missing out on crucial information.

For a long time in the UAE and further afield, standard recruiting metrics have been the time taken to fill a position and the cost-to-hire numbers.

While these metrics are still valid, they do not give the whole story. For example, is it considered a success if a candidate is hired quickly, but does not stay with the company?

We need to use metrics that focus on quality of hires. It’s true that quality is a subjective term, but there are things we can measure that take out the guess work.

The first thing to consider is voluntary leavers within the first 12 months. When a new hire leaves, the time and money spent are effectively wasted. Why do employees leave within the first year? Salary may be a factor, but is often not the only reason. New hires may leave because the job differs from expectations set during the hiring process. Companies must be careful not to oversell the position when interviewing.

New employees may also leave if they feel ill-equipped to do the job, which suggests they

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The Ȍrst thing to consider is voluntary leavers within the Ȍrst 12 months. When a new hire leaves, that time and money spent is effectively wasted. Why do employees leave within 12 months? Salary may be a factor, but is often not the only reason why they leave.” were not right for the role in the first place or did not receive the required support. Although there’s not much companies can do to stop new employees resigning for personal reasons, they should check-in with new employees frequently to ensure they are engaged and expectations are being met.

Companies must be cognisant of involuntary leavers within the first 12 months. Although redundancies are sometimes unavoidable, careful long-term analysis is required before hiring new employees. If an employee is not a good fit and is asked to leave, this highlights a weakness in the hiring process.

Applicants per opening is another important metric to consider. A low response rate to a job listing may indicate a company either does not have a good reputation in the market or the listing did not reach enough people. In addition

to offering fair salaries, companies should review their benefits package. To ensure a listing is wide-reaching, companies should look beyond traditional media and utilise social media.

Finally, there is nothing more frustrating than finding the perfect candidate only to have that person turn down the job. Further investigation and follow-up with the candidate is required.

Feedback on why the offer was declined can be used in the future to improve the search for the right candidates and interview process.

While it is important to keep track of how long it takes to fill a vacancy and the costs involved, if a company wants to be an employer of choice and put the right people in the right jobs, it must expand its view. From posting a vacancy likely to attract a wide pool of candidates to following up with new hires, the company must use all of its resources at its disposal.

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 19

THE BIG PICTURE

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THE BIG PICTURE

90% THE COMPLETION RATE OF THE UAE’S FOUR-UNIT BARAKAH NUCLEAR ENERGY PLANT IN ABU DHABI

All of the main concrete and heavy equipment lifting work at the Barakah Nuclear Energy Plant has been completed. This marks a major milestone for Emirates Nuclear Energy Corporation, which is developing the four nuclear reactor units located in the Al Dhafra Region of Abu Dhabi.

Read more about the project on constructionweekonline.com.

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 21

COMMENT

NEHA BHATIA WHATS YOUR VIEW? COMMENT ONLINE

CWMIDDLEEAST

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โ A necessity-driven job culture may work in the short term, but the longevity of a construction company relies on the cumulative knowledge of its workforce.โ

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

24 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 25

DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

MEET THE EXPERTS Meet the panellists and moderator of Construction Week’s first Dispute Resolution Question Time: Abu Dhabi conference

Ian Maund Quantum Global Solutions

Conrad Bromley HKA

The event was expertly moderated

by Ian Maund, regional director UAE of Quantum Global Solutions, a construction consultancy that helps the industry manage projects and avoid disputes.

With more than 22 years of experience, Maund is a construction professional with a strong track record of experience in contractual, commercial, and project management.

Appointed to his current position in 2016, Maund leads teams in the management of claims and construction disputes, with particular expertise in the provision of forensic delay and quantum analysis services.

Conrad Bromley is a quantum expert and director of the HKA ofȌce in Dubai.

He specialises in quantum expert witness and arbitration support in construction and engineering disputes in the Gulf.

Bromley has more than 19 years of experience working internationally in the construction and engineering sectors on a variety of major oil and gas, power and infrastructures projects, as well as disputes across the UK, Middle East, Africa and Australasia.

He is experienced in presenting to tribunals, counsel, clients, and other expert disciplines, and possesses the capability to lead complex disputes through the whole dispute process.

James Harbridge, HFW James Harbridge is a partner at the HFW Dubai ofȌce and has been based exclusively in the Middle East as a disputes resolution lawyer since 1999. He qualiȌed as a lawyer in the UK in 1995, and after several years working as a medical negligence lawyer defending hospitals and doctors, he has dedicated his legal career to the Ȍeld of dispute resolution in the following specialist areas: construction, taxation, employment law, lease disputes, franchise matters, high quantum general contract disputes, and insurance issues.

He has also successfully defended individuals involved in criminal complaints connected to commercial construction disputes. He is routinely involved in matters involving roads, desalination plants, sewerage systems and Ȍt-out contracts. He has signiȌcant experience acting for multinational and Middle Eastern clients in high-value and complex disputes, and has strong knowledge of the Omani market.

26 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

24 OCTOBER

SOFITEL ABU DHABI

Robert Jackson Rics

Antonios Dimitracopoulos BSA

Oxford Universityeducated Robert Jackson joined the Royal Institution of Chartered Surveyors (Rics) as a director in 2013.

Prior to joining Rics, he spent over 20 years working in senior management roles in the Middle East, including the management of 24 multidisciplinary businesses throughout the GCC, Asia, and Asia PaciȌc with a team of more than 1,000 staff.

His roles have been at senior management and global board level focusing on strategic growth, organisational change and efȌcient plan delivery. Jackson sits on the Rics Global Operating Group and is responsible for the Rics strategic growth plan and delivery in the Middle East and North Africa markets.

He is leading several initiatives in the GCC where Rics is working with, and advising governments and regulators to create sustainable property markets underpinned by appropriate processes, standards and regulation. One key priority is driving collaborative delivery in the construction sector, and Jackson is leading the institution’s Dispute Resolution Service to ensure initiatives such as conȍict avoidance, expert determinations and all methods of alternative dispute resolution are embedded into the contracting environment.

He was a panellist on Construction Week’s Ȍrst Dispute Resolution Question Time, held in Dubai earlier this year.

Partner and the head of arbitration, dispute resolution, and construction practices at BSA Ahmad Bin Hezeem & Associates, Antonios Dimitracopoulos is based in the Dubai International Financial Centre (DIFC) ofȌce of his high-proȌle Ȍrm.

He is an accredited Fellow of the Chartered Institute of Arbitrators and a registered arbitrator with the Dubai International Arbitration Centre.

Dimitracopoulos is a practising solicitor-advocate and undertakes his own advocacy in his arbitration practice. He is also a DIFC Courts Registered Practitioner with rights of audience before the DIFC Courts.

Dimitracopoulos has been practising in the UAE for more than twenty years. He started at Clifford Chance Dubai and subsequently joined Al Tamimi & Co before starting at BSA Ahmad Bin Hezeem, formerly known as Bin Shabib & Associates, as a partner in 2007.

He specialises in arbitration and DIFC litigation, mainly within the construction industry and acts primarily for contractors, subcontractors and architects. Dimitracopoulos is ranked in both Legal 500 and Chambers Global. He is said to possess an excellent understanding of the market and the local culture, having been in the UAE for 27 years.

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 27

DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

Improving the efficiency of dispute resolution tools in the UAE capital and beyond will require a cultural overhaul in the client and contracting communities

A

mong the most commonly asked questions in the construction industry is whether construction disputes can be avoided. Lawyers familiar with Abu Dhabi’s building sector think it is possible, but contractors and developers may have to adopt newer ways of doing business to achieve this target.

Whilst once a topic discussed behind closed doors, dispute resolution has, in recent years, taken centrestage in discussions about the global construction industry’s future. Legal firms working in the Middle East have made several construction-focused hires in 2018.

Additionally, these companies’ are also displaying a growing understanding of the construction sector’s nitty-gritty.

This industry evolution was in full show at Construction Week’s Dispute Resolution Question Time: Abu Dhabi conference, which was held at the Sofitel Abu Dhabi Corniche hotel on 24 October, 2018. A panel comprising some of the UAE’s and the Middle East’s foremost legal experts discussed topics including late payment management, contract claims, arbitration, and alternative dispute

WWW.CONSTRUCTIONWEEKONLINE.COM

resolution mechanisms on the day. Also on the agenda were industry-introspective themes, such as the creation of an industry that is inherently dispute-averse.

Quantum Global Solutions’ regional director for the UAE, Ian Maund, moderated the panel, which included HKA’s director, Conrad Bromley, and HFW partner, James Harbridge. Antonios Dimitracopoulos, head of arbitration and dispute resolution at BSA Ahmad Bin Hezeem & Associates, and Robert Jackson, regional director at Royal Institution of Chartered Surveyors (Rics), completed the panel of experts for the conference.

The discussion started with a simple question: what causes construction disputes in Abu Dhabi – or even in the Middle East and beyond? HKA’s Bromley said liquidity is among the factors that are leading to disagreements in the construction market, adding that the amount of money in circulation “drives people’s decision-making process”.

HFW’s Harbridge, meanwhile, said that the “quantum size” of monetary claims can also lead to disputes if project teams comprise stakeholders that feel they

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 29

DISPUTE RESOLUTION QUESTION TIME: ABU DHABI shouldn’t have to pay the high amount in dispute. But according to Dimitracopoulos, some disputes in the construction sector are “camouflaged in terms of their cause”.

He continued: “I think that on a dayto-day basis, there are two driving factors behind disputes in this part of the world – one is a cultural difference in understanding how an issue, which later becomes a dispute, needs to be handled.

The other is to do with the more technical aspects of variations, extensions of time, concepts of prolongation costs, [and] lump sum arrangements that form the technical [...] basis of day-to-day disputes. [This is a] bit far removed from the general sort of presence or absence of liquidity.”

Rics’s Jackson said “it is inevitable that there are going to be issues and disputes in the construction world”, but the processes used to tackle and resolve these disagreements varies, based on the “the state of the market”.

He explained: “When a market is extremely buoyant, we often see a lot of issues that just get left […] or held. You then deal with them at the end of the project, and I think that’s what we’re seeing now in Abu Dhabi. We are starting to see a lot of disputes that occurred over the previous few years coming out of the closet, and they now need to be dealt with.

I think that’s what’s driving the current proliferation of the number of disputes.”

The exact number of construction disputes in the UAE capital is difficult to ascertain since, as BSA’s Dimitracopoulos explained, “there are no official public records, either in mediation, arbitration, or litigation”.

“I would say that if the number of registered cases […] is rising, then chances are that the number of construction cases is also rising,” he continued.

HKA’s Bromley, on the other hand, said that the volume of overall disputes “is certainly a relevant” metric, but the figure does not capture ongoing disputes “that don’t make it to the arbitration stage”.

The team at HKA spends “a lot of time working on disputes that don’t quite get

30 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

More than 60 construction professionals attended the Abu Dhabi conference.

to the formal dispute resolution level”, Bromley said, adding: “It’s certainly a buoyant, busy market at the moment. I don’t think there’s any shortage of disputes, but in a positive way, a lot of them don’t make it to arbitration. They’re addressed through party-to-party negotiation or early expert determinations.”

THE ROLE OF CONTRACTORS Market growth is good news, but is the construction industry doing enough to efficiently manage and maintain its ongoing expansion? Citing a McKinsey study, Jackson pointed out that productivity improvements remain rare in global building markets, with the current state of supply chain and skills management also in need of an overhaul.

“But the one area that [the study] said will have the greatest impact on improving productivity [is] rewiring

the contractual framework, and sadly, I think the way in which our contracts are [drafted] at the moment means most – not all – contractors in Abu Dhabi are set up to fail [and encounter] disputes before the projects have even started,” he continued.

“I think this is one of the problems that absolutely needs tackling.”

According to the Rics expert, a typical construction contract-led project around the world tends to be delivered with a budget overrun of 20-40%, based on its initial tendering price. In fact, the tendering process often starts with a view to drive the lowest price possible, and some contractors bid on these schemes with the expectation that “they will recover profitability through claims”, Jackson explained.

“The whole tendering contract setup is there to create disputes […] and that’s the root cause that needs to be changed,” he

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

xxxxxxxxx xxxxx

added. “Until that’s changed, we’re going to see [a] continued proliferation of disputes.”

Quantum’s Maund, as moderator, pointed out that contractors being made to sign up for “unrealistic or downright unachievable programmes” is a problem that needs addressing: “We need to have achievable targets [so we can reach] the goals that we set in the first instance.”

BSA’s Dimitracopoulos equally sought to empower contractors, stating that “the one factor that is within the control of the contractor” is how they price their

A panel comprising the Middle East’s top construction lawyers headlined the conference.

services – contractors must certainly bid competitively, but they must also refrain from undercutting their prices to an extent that eventual profitability is reduced.

This situation can lead to contracts breaking past what might already be a slim margin, and eventually culminate in disputes. After all, the “characterisation of something as a dispute” stems from fundamental contractor concerns about loss-making or profit elimination.

Dimitracopoulos continued: “So, the control factor on that is how you price

“THE WHOLE TENDERING CONTRACT SETUP IS THERE TO CREATE DISPUTES […] AND THAT NEEDS TO BE CHANGED.”

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[the bid] and how you compete with others so that you get the job, but [without undercutting] them so much that the slightest thing [...results] in a choked situation, where [the contractor] has no choice but to elevate things to a dispute.”

(LIQUID) GOLD STANDARDS Drawing from the BSA expert’s point, moderator Maund added that contractor competencies are critical to dispute avoidance. Citing the high volume of oil and gas work as a market differentiator in Abu Dhabi, Maund said the demands placed on contractors in the energy sector “should make for a better playing field” in the UAE capital. HKA’s Bromley agreed with this view, adding that the financial and technical demands placed

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 31

DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

The conference was held at SoȌtel Abu Dhabi hotel.

“PROJECTS THAT ARE UNDER-DESIGNED BEING PUT OUT TO TENDER [IS AN ISSUE].” on contractors of oil and gas projects act as quality gatekeepers, which tend to be less stringent in the buildings sector.

“The barriers to entry are far lower on less complicated construction projects – be it a hotel or an apartment block – and there’s really very little to prevent a contractor from coming in and winning a job at a loss, hoping [that they will] recover that loss through the dispute process,” Bromley explained.

The maturity of energy sector clients is a major contributor to the relatively dispute-free nature of the sector, according to Rics’s Jackson, who added: “The number of disputes we see coming from the oil and gas sector is significantly lower than that from the building sector.

Oil and gas clients are a bit more mature and they realise that if they want an asset constructed, then it needs to be delivered

32 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

on programme so that it starts [operating] in the right timeframe.

“We see a more mature, partnershipled approach on oil and gas projects compared to the real estate sector. I think from a contractor’s perspective [in] the real estate building sector, [it is important to be] selective about your clients,” Jackson said.

In recent months, notable contractors active in the UAE and across the Middle East’s other major markets have told Construction Week that they are, indeed, embracing selectivity to protect their businesses against market risks.

However, it is not enough to be discerning only during the tendering process, and contractors must ensure that they maintain a professional, successdriven relationship with employers during the construction phase as well.

A FAILED RELATIONSHIP? Commenting on how contractors in Abu Dhabi and the GCC can improve construction operations and prevent disputes, Bromley said: “Respect your contract. It’s so common for contractors to try and maintain a friendship-like relationship between themselves and the employer. In effect, they shoot themselves in the foot. “[The job] is not about making friends; it’s about performing the works in accordance with the specification [mentioned within] the contract. If you have a claim, submit a notice to help yourself [and let] the engineer help you.

It’s really of no benefit to anyone if you put your entitlement in a drawer and save it for another day, because time passes and it’s gone.

“That would be my biggest recommendation to any contractor – respect your contract, [and] know your rights. Employ [a skilled lawyer] to help you understand your rights and obligations at the start, and keep records [to] help yourself. It’s easy to do.”

In fact, as Harbridge explained, the “underdeveloped” nature of project designs in the region means contractors must more seriously consider involving lawyers “to iron things out at the frontend”, instead of only involving them if, or when, a dispute occurs.

“You start off with the issue of projects that are under-designed being put out to tender – that’s what everyone in the construction industry tells me is where the problem stems from,” he continued.

“What, if anything, can a contractor do to avoid such a scenario? From a lawyer’s perspective, it does seem to be a very problematic situation because if you don’t bid, you don’t get the work. But if you say ‘we’re not going to bid because we think there’s insufficient tender documentation’, I don’t know where that takes you. Probably not very far,” Harbridge continued.

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DISPUTE RESOLUTION QUESTION TIME: ABU DHABI

“DEVELOPERS CAN CHANGE [CONTRACT FORMS] AND IMPROVE THE PROCESS.” “I think you do see a lot of contracts where scopes of work are ill-defined, [with] even the wording of who’s going to do what [poorly drafted]. That’s why I’m an advocate of trying to use lawyers at the front-end as much as possible. Dare I say it, the legal spend may well be less because you’re [pre-empting problems].”

Contractors must undoubtedly create and maintain cordial relationships with clients and other stakeholders, the panel’s experts explained, but the association must be led by the common goal of successfully completing their projects without delays, within budget, and ideally, without running into disputes.

DEVELOPER DILEMMA Maund pointed out that Abu Dhabi’s government projects are implemented through “sensible operations”, noting that the competencies of client organisations xxxxxxxxx are crucial to minimising disputes. HKA’s xxxxx said employers “have a real ability Bromley to make change”, even in the simplest form through the fairer allocation of risk.

Commenting on client tendencies to tweak the standards laid out by International Federation of Consulting Engineers (Fidic), he added: “Why not just stick with Fidic? It’s been drafted by some very intelligent people and is fit for purpose. There’s no need for developers or anyone else to try to amend that to shift this allocation of risk.

“Developers can improve the relationship between the contractor and themselves by opting to allocate that risk fairly. It’s a simple process that can have a big impact, and that’s within their powers.

As an extension of that, it would [require] a less cost-based procurement process and make it more value-driven. [This would encourage] some real metrics beyond just who is offering the lowest price, which

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prepared to embrace more commonsense, collaborative delivery, because it will give those projects more chances to be delivered [as needed]. Even some banks in the region are now advocating a real shift away from this adversarial positioning by clients [and focusing] on collaboration.”

is usually why we get into the situations wherein the contractor, from Day 1, knows they’re [spending] millions out of their pocket and must thus drive disputes. RESOLVING DISPUTES IN THE FUTURE “I’m sure as much as they would like to Both traditional and alternative dispute drive that process, contractors are not in the resolution methods – such as negotiation, driving seat – developers are. Contract terms conciliation, mediation, and arbitration – are almost unilaterally imposed – I think are finding takers in Abu Dhabi and across that’s fair to say. Developers can change that the wider Middle East.

Of course, each route is accompanied and they can improve the process.”

It is not unfair to assume that this by a specific list of challenges and change will require a shift in mindset, opportunities, and contractors, as well and only be achieved over the long term. as developers, must consult experts to Harbridge explained that even making ensure that they pick the best option for the process of dispute resolution easy their legal hurdles. However, as the panel and efficient will require incentives at Dispute Resolution Question Time: for developers, especially if they are Abu Dhabi pointed out, the construction likely to be the eventual paying party industry must equally focus on the following a contract claim. For instance, pursuit of cost- and time-efficient dispute timely project completion – especially resolution avenues.

The panel, which spanned a little over of revenue-generating assets – is one benefit that developers can expect from 90 minutes, ended with the same question the implementation of efficient dispute it started with – can a Middle Eastern resolution mechanisms – but it is far from construction project ever be completed without a dispute? Experts agreed that this being the only advantage for clients. may yet be undoable due to various “Another incentive for reasons, which range from the developers to rethink the high value of disputed sums contractual framework is to the complexity of typical to [recognise] where their FOLLOW CONSTRUCTION construction jobs. investment is coming from,” WEEK However, as the legal Rics’s Jackson said. @CWMIDDLEEAST leaders pointed out during “We deal with a lot of Dispute Resolution Question institutional investors, and Time: Abu Dhabi, the building have recently worked with UK sector must primarily focus on Export Finance, which is funding a significant number of projects here in Abu elevating dispute resolution to a stage Dhabi and elsewhere in the region. If these where it becomes a less painful process investors are funding [local] projects, for construction stakeholders.

“You can always seek to improve upon they want to see them being delivered to an appropriate level of health and everything,” Harbridge concluded.

“What’s good is that so many people safety. [Developers] must be successful at delivering what they are meant to, and are [attending this event], and I think a lot of professionals in Abu Dhabi share that when they must do so,” he continued. “[International] investors are very keen appetite to take [dispute resolution] to the to provide funding to developers that are next level.”

17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 33

CONSTRUCTION WEEK AWARDS 2018

#CWAWARDS

CELEBRATING THE BEST

The 14th edition of Construction Week Awards returns in Dubai next month as the Middle East’s most influential professionals vie for the top prize

T

he nominations deadline for Construction Week Awards 2018 has closed, and the shortlist for the Middle East’s biggest construction awards show is imminent.

The Construction Week Awards celebrates the achievements of the Middle East’s construction industry heavyweights. Taking place on 4 December in Dubai, the event this year will recognise and reward individual excellence, 34 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

corporate prowess, and success. The event is more than just an awards presentation.

Held during a gala dinner at a five-star venue, the ceremony will round off a busy year for the region’s construction sector and has become a great social occasion. For the leading lights of the region’s construction industry, it is also an essential opportunity for networking.

With nominations for all categories now closed, the shortlist

of winners will be announced in the days to come. Among the most popular categories to look out for are Contractor of the Year and Infrastructure Project of the Year.

Book your seat now to make sure you have the opportunity to meet the most influential construction professionals at the CW Awards ceremony next month. For more information about the awards, visit constructionweekonline.com.

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CONSTRUCTION WEEK AWARDS 2018

For a comprehensive list of upcoming industry awards and events, visit constructionweekonline.com. Alternatively, if you would like to explore the various commercial opportunities that our brand has to offer, contact Construction Week's sales director, Mark Palmer, at mark.palmer@itp.com, or on +971 4 444 3398.

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 35

COST MANAGEMENT

Tech can redefine how Middle East construction spends and saves its money, Neha Bhatia reports

C

“increased cautiousness from financial ash flow has been a institutions” at the time, noting that “a significant challenge for lack of proper and effective contract construction companies management” could also be a factor in 2018. During the year, causing regional liquidity problems. numerous business leaders have told Indeed, efficient control is a pivotal Construction Week that this issue has point for solid contracting businesses. been exacerbated by the problem of Project outcomes are informed by the delayed payments. input – of cost, time, and talent – made Andrew Greaves, partner and by their stakeholders and, as Andrew head of GCC at Addleshaw Goddard Skudder, chief executive officer of (Middle East), told Construction Week CCS explains, “control is at the earlier this year that liquidity remains heart of profitability when it a hurdle for construction comes to construction”. companies in the UAE and Speaking to Construction across the region, adding: Week, Skudder continues: “The main challenges “Construction performance and opportunities for the AVERAGE RATE AT WHICH and progress cannot be construction industry GLOBAL CONSTRUCTION PROJECTS OVERRUN monitored on financial revolve around a tighteningTHEIR BUDGETS data alone, and engineering liquidity environment in the [PAGE 28] information is just as – if not market, which is likely to lead more – critical. Engineering control to a greater consideration and use of includes generating and managing alternative funding structures such as allowable and actual quantities of public-private partnerships and export resources, wastage, manhours of labour, finance and, perhaps, a more active production of equipment, and time for claims market.” construction activities.”

Greaves’s comments followed similar views expressed by Sanctum Consult’s THE ROLE OF TECHNOLOGY chief executive officer a year ago. In The last few years have been a tipping September 2017, Craig Beeson told point for construction technology and Construction Week that it was “apparent its adoption in the Middle East, but that all actors across the value chain” in a region accustomed to operating were facing difficulties related to cash without digitisation, is cost management flow. He added that this trend could software truly a requirement? be driven by oil-price fluctuations or

20-40%

36 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

“Most companies have some form of control, but to be successful, the key is to capture the cost long before it hits the book of accounts [and] in one system, thereby having one source of truth,” Skudder says.

According to the CCS boss, it is also important to clearly define ‘cost’, which at his firm is considered “purely as actual cost incurred”. Cash management includes monitoring, comparing, and predicting the actual cost versus the budgeted spend “as a value […] that is practically achievable, comparable, and informative”. In the contracting sector, costs and budgets “take on an additional dimension”, which covers the allowable and actual utilisation of factors such as resources, equipment, manpower, wastage, time, and so on.

Skudder says “it is one thing to know that there’s been a [case of] over-spend”, but the next step should be to find out WWW.CONSTRUCTIONWEEKONLINE.COM

COST MANAGEMENT

Andrew Skudder, CCS.

“ESTIMATORS AND ACCOUNTANTS DO NOT SPEAK THE SAME LANGUAGE.” company together to make informed decisions, from a complete holistic view of the project costs.”

how to rectify the excess and plan for the future: “Historically, information has been late or nearly impossible to compare, as it comes from independent silos […] in the group. Estimators and accountants, after all, do not speak the same language. Without digitisation, you have no clear indication of the actual status of the contract.”

CCS’s Candy and BuildSmart systems, according to the company chief, have been designed to allow “accurate comparison” of actual values against expectations “in real time”.

“BuildSmart’s architecture allows all cost information – such as payroll, plant, stock, yard stock, and so on – to be entered once where the information is first produced – for example, onsite, or at the head office or a work yard.

[The information can then] be managed through a single database for full integration and real-time analysis.”

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CONTRACTOR PERSPECTIVES Skudder agrees that for the most part, the procurement, finance, and technology teams of contractors Cost management is a priority for construction understand the benefits of cost Ȍrms in the Middle East [representational image]. consulting software, but “the challenge they face is in bridging the gap”.

“This gap includes segregated or The need to speedily involve cost separate systems producing different consulting experts in a project must not information at different points in time, a be forgotten. Skudder says “you cannot lack of collaboration, and the existence control what you cannot measure”, and of silos within the company,” he tells costing or budgeting, despite all their Construction Week. accuracy, eventually depend on “the So, what comes next for a company quality and timing of the quantification, that has already been picked to work specification, and aggregation of the on landmarks such as Burj Al Arab, Yas work to be done”. Estimates are “the Water Park, Kingdom Tower, and foundation of control” for a project, King Abdulaziz International but they are also often “out of Airport? Skudder seems the contractor’s hands”. intent on raising awareness “[This] is where FOLLOW about the need for cash experienced people, CONSTRUCTION management technology, processes and systems WEEK and how it can lead to not come into play – for the @CWMIDDLEEAST only monetary savings, but cost conscious, these are also a new definition of ‘cost’. priceless. The right software “We consider a more apt will give you not only control [barometer] to be ‘earned-value of money, but also an intimate level management’,” he concludes. understanding of budgetary amounts, “It is theoretically simple, but often quantities, rates, and actual costs. [This not so in practice.” brings] all the key role players in the 17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 37

PROJECT UPDATE

PROJECTS

ON SITE CW provides a collection of its most recent site and plant visits to keep you up-to-date with project progress WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email the editor: neha.bhatia@itp.com

BEE'AH HQ Location Sharjah, UAE Visited October 2018

BINGHATTI STARS Location Dubai, UAE Visited October 2018

AL ARAIMI BOULEVARD Location Muscat, Oman Visited October 2018

Waste management company Bee’ah is building its new headquarters in Sharjah that aims to become the most sustainable and futuristic building in the emirate upon completion in 2019. Designed by Zaha Hadid Architects, the ofȌce is, according to Bee’ah ofȌcials, a tremendous feat of engineering, design, and environmental efȌciency. Located in Al Saj’ah, the under-construction ofȌce sits on a total built up area of 7,450m² and will be the place of work for 170 staff, with sufȌcient room for 200 people. Construction started in 2016, when Al-Futtaim Carillion (AFC) was appointed in May.

Located in Dubai Silicon Oasis, Binghatti Stars is a 16-storey residential building worth $68m (AED250m). The underconstruction property is located in the Ȍrst masterplanned smart city in the UAE and it is one of 20 towers Binghatti Developers has either completed or is building in the government free zone. In terms of layout, it boasts 274 studio apartments, 44 one-bedroom ȍ ats, 55 two-bed units, and six retail outlets located on the ground ȍoor.

Construction began in August 2017 and the property is scheduled for completion before the end of 2018.

Located in the upcoming Al Khoud area of Muscat, Al Araimi Boulevard is set over two ȍoors, covering 14.72ha, and features the sultanate’s largest glass atrium and largest skylight, measuring 5,190m2. Set to open in the last quarter of 2018, the near-complete mall will have room for more than 220 retail outlets over a leasable area of 70ha, with 30% of the space committed to entertainment – including virtualreality parks, trampolines, and indoor rides. Around 1,650 workers were on site to Ȍnish the project, for which Unique Construction and Contracting is the main contractor.

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38 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

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PROJECTS

EXPO 2020 DUBAI Location Dubai, UAE Visited August 2018

MANAR MALL Location Ras Al Khaimah, UAE Visited August 2018

MUTEENA MIXEDUSE BUILDING Location Dubai, UAE Visited July 2018

NASMA RESIDENCES Location Sharjah, UAE Visited May 2018

Major construction work for Expo 2020 Dubai will be completed in October 2019. Work is progressing well on the three Thematic Districts – named Mobility, Opportunity, and Sustainability – that form the core of the expo site. The districts will be connected by Al Wasl Plaza, where work has started on the erection of steelwork pieces that form the structure’s domed trellis. Foundations and structural works are now complete within the three districts, and concrete works have also been completed, with 243,000m³ of concrete having been poured to date.

Manar Mall’s $98m (AED360m) expansion is set for completion in December 2018, and will see the shopping centre’s gross leasable area increase from 27,000m² to 55,000m². While the increased facility will have room for more than 80 new retail outlets, the expansion programme covers more than just the mall's retail sections. Plans for the project include G+2 and G+3 car parks, a family entertainment centre featuring the region's tallest indoor drop tower, a food court, and a promenade looking out on one of the largest natural mangroves in Ras Al Khaimah.

The construction of Al Ghurair Real Estate’s Muteena Mixed-Use Building in Dubai’s Deira neighbourhood was 60% complete at the time of CW 's site visit. Finishing and Ȍt-out, as well as mechanical, electrical, and plumbing works, were underway. Beaver Gulf Group (BGG), which is working as the 6.68ha project's main contractor, said that the building was on track to be completed in 2019. BGG is implementing around 95% of all activities related to the L-shaped, 233-unit project through a $65.3m (AED240m) contract. WME is the project’s architect of record.

Arada’s development of Nasma Residences is moving at a rapid pace to meet its Q4 2019 completion target. Khatib & Alami has completed all infrastructure designs for the project. Enabling works commenced in September 2017, with the main contract for Phase 1 awarded to Intermass Engineering & Contracting. The contractor began construction of the project’s Ȍrst phase this January. Arada has announced that Phase 1 is 60% complete, with handover scheduled for end of 2018. A semi-detached villa is the Ȍrst property completed and open to the public as a show home.

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 39

PROJECTS

1/JBR Location Dubai, UAE Visited May 2018

SHARJAH WATERFRONT CITY Location Sharjah, UAE Visited March 2018

ONE PALM Location Dubai, UAE Visited February 2018

TOPAZ RESIDENCE 2 Location Dubai, UAE Visited February 2018

There has been much talk about Dubai Properties’ $272.2m (AED1bn) 1/JBR project, a 46-storey luxury residential building under construction off the coast alongside Jumeirah Beach Residences (JBR). The building of 1/JBR is moving at a rapid pace – at the time of CW 's site visit, the project team was completing one ȍoor of the building every week. Core walls had been cast as far up as the 15th ȍoor, and slabs had been cast to the 13th ȍoor. Block work was also progressing up to the ninth ȍoor, and Ȍnishing work was being carried out on the basement and podium levels.

A mixed-use, masterplanned community, Sharjah Waterfront City is being developed by Sharjah Oasis Real Estate Company for an estimated cost of $6.8bn (AED25bn).

The project has a total land area covering more than 557.4ha and consists of eight interconnected islands, which the developer hopes will eventually become home to more than 60,000 residents. At the time of Construction Week 's site visit, construction activity was largely concentrated on Sun Island, where Tech Construction, a subsidiary of Tech Group, was in the process of building 295 pre-cast villas.

Dubai-based developer Omniyat is building the One Palm residential project on Palm Jumeirah. Ground was broken for the 100m-tall tower in 2016, and the 84,541m2 development will be the tallest residential structure on the man-made island. The project, for which Multiplex is the main contractor, topped out in September 2017. At the time of CW 's site visit, 60% completion had been recorded.

Designed by New York architect Soma, the building features a complex scheme of varyingly stacked apartments, resembling a Jenga puzzle. Completion is due in Q4 2019.

Gulf General Investment Company (GGICO) is developing Topaz Residences Towers. The Dubai Silicon Oasis project spans a total built-up area of 64,839m2, and comprises 448 units within three buildings. One of the towers that was under construction at the time of the site visit was Topaz Residence 2, a G+8+R building that includes 200 one-bedroom apartments, with unit sizes ranging from 93m2 to 111m2. At that time, the project was more than 55% complete. The development is being built by Reem Capital Contracting and was designed by Incorporated Consultants.

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PROJECTS

NOVOTEL SHARJAH EXPO Location Sharjah, UAE Visited January 2018

MOHAMMED BIN RASHID LIBRARY Location Dubai, UAE Visited December 2017

ICD BROOKFIELD PLACE Location Dubai, UAE Visited November 2017

GLITZ RESIDENCES Location Dubai, UAE Visited November 2017

The Novotel Sharjah Expo hotel is being developed by an entity called Sharjah Expo Hotel LLC, and Klampfer Middle East (KME) is involved in the project through a designand-build contract. The development vehicle is owned by Basma Group, which awarded KME the hotel’s contract, worth almost $34.6m (AED127m), in 2016. The property’s ȍoor plan features 200 units in three categories – standard rooms, club ȍoor rooms, and executive suites – as well as a business centre, food and beverage outlets, and two meeting halls, one of which spans approximately 200m2.

The $272.3m (AED1bn) Mohammed Bin Rashid Library project was unveiled in February 2016 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in support of President HH Sheikh Khalifa bin Zayed Al Nahyan’s declaration of 2016 as the Year of Reading. Construction of the library commenced in October 2016, with ASGC winning the main contract, valued at $245m (AED900m).

The project's sub-contractors include Al Shafar Steel Engineering, Emirates Beton, and Al Shafar United.

At the time of CW 's site visit, the $408.4m (AED1.5bn) ICD BrookȌeld Place’s (ICDBP) project site was home to the world’s largest lufȌng jib tower crane, the Favelle Favco M2480D. A lufȌng jib crane as large as the Favco M2480D had never been used in the UAE before. A partnership of Investment Corporation of Dubai (ICD) and BrookȌeld Property Partners is leading the project’s development.

Designed by Foster + Partners, ICDBP features 9ha of Grade-A commercial space. The 55-storey building offers column-free units.

Located in Dubai Studio City, Danube’s Glitz Residences have a combined construction value of $89.5m (AED328.8m), with the main contracts having been awarded to Naresco Contracting. EDMAC Engineering was brought in as consultant for all three projects. The main contracts for Glitz Residence 1 and 2 were awarded in July 2015, and the contract for Glitz Residence 3 was awarded in February 2016. Naresco hoped to have completed the delivery of all three projects by the end of 2017, since Glitz 1 and 2 were already completed when CW visited the site in November.

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17 - 23 NOVEMBER, 2018 CONSTRUCTION WEEK 41

EVENTS CALENDAR

For up-to-the-minute conference and events information, log on to constructionweekonline.com/conferences

CONFERENCES & EVENTS

Middle East Architect Awards

The Big 5 Heavy

The Big 5 Saudi

Date: 21 November, 2018

Date: 14-16 January, 2019

Date: 10-13 March, 2019

Venue: Dubai, UAE

Venue: Dubai, UAE

Venue: Jeddah, Saudi Arabia

The Big 5

Saudi Clean Expo

Date: 26-29 November, 2018

Date: 28-30 January, 2019

Venue: Dubai, UAE

Venue: Riyadh, Saudi Arabia

Construction Week Awards Oman Date: TBC Venue: TBC

Construction Week Awards Date: 4 December, 2018 Venue: Dubai, UAE

Middle East Coatings Show

Gulf Glass

Date: 26-28 February, 2019

Date: 24-26 September, 2019

Venue: Dubai, UAE

Venue: Dubai, UAE

construction sector and has become a great social occasion.

For the leading lights of the region’s construction industry, it is also an essential opportunity for building business ties.

With nominations for all 16 categories now closed, the judges and the shortlist of winners will be announced in the days to come. Among the most popular categories to look out for are Contractor of the Year and Infrastructure Project of the Year.

Winners will receive a commemorative trophy, plus extensive print and online coverage of their success by Construction Week.

For more information about the awards, visit constructionweekonline.com.

For sponsorship enquiries, contact Mark Palmer on +971 4 444 3398, or drop him an email at mark.palmer@itp.com.

To book your seat at the gala event, email Teri Dunstan at teri.dunstan@itp.com.

CONFERENCE NEWS The Construction Week Awards will take place on 4 December in Dubai’s JW Marriott Marquis.

The event this year will recognise and reward the individual excellence, corporate prowess, and success of the Middle East’s construction industry heavyweights.

Now in its 14th year, the event is more than just an awards presentation. Held during a gala dinner at a Ȍve-star venue, the ceremony will round off a busy year for the region’s

42 CONSTRUCTION WEEK 17 - 23 NOVEMBER, 2018

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