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SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication

WEEK

CONSTRUCTIONWEEKONLINE.COM

SEP 12–18, 2009 [287]

NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST

INSIDE NEWS Poor quality materials blamed for Deira building collapse PAGE 9

LEGAL Penalty impositions in Qatar and how they affect both parties PAGE 20

TOP 5 PROJECTS

OVER

LOADED

HOW THE DOWNTURN HAS IMPACTED THE HEAVY EQUIPMENT MARKET

The best of Leed certified projects within the GCC PAGE 30

CITY FOCUS The latest news and opportunities within Tripoli, Libya PAGE 44


CONTENTS SEPTEMBER 12-18, 2009 | ISSUE 287 10

15

FEATURES 21 SPECIAL REPORT CW discovers the market outlook for the heavy equipment sector.

30 TOP FIVE Five Leed certified buildings located in the Gulf.

17

DIRECTORY 34 TENDERS 38 PROJECTS 40 SPECIALIST SERVICES

13 21

19

REGULARS 2 ONLINE 6 MAIL

FRONT 9 POOR QUALITY MATERIALS TO BLAME FOR BUILDING COLLAPSE An investigation into the building collapse that took place in Dubai last month, has revealed that poor quality materials were used.

15 FACE TO FACE Experts discuss what’s in store for the construction sector after Ramadan.

BACK

17 EVENTS

44 CITY UPDATE

Industry dates for your diary.

The latest news and projects from Tripoli, Libya.

10 DAMAC CEO TO QUIT

19 COMMENT

Damac Properties CEO Peter Riddoch is due to leave the company next month.

Mohammed Azad Hossain highlights, in the second of a two part series, the most common reasons for building failure.

46 CONSTRUCT SAFE

Highlights of the week.

20 LEGAL

48 DIALOGUE

13 NEWS IN PICS

Dr Chandana Jayalath discusses his beliefs that time extension provisions are not for the benefit of anyone.

Emirates Green Building Council chairman discusses where the UAE is going in terms of green building.

The industry’s very own comic strip on health and safety best practices.

12 NEWS IN BRIEF

Topical images with the latest news.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

1


ONLINE

www.ConstructionWEEKonline.com MOST POPULAR EXCLUSIVE: PM FIRM CLAIMS CITY OF ARABIA WALKOUT HRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDE VIDEO: STUNT LOADER DRIVING STRIKE-HIT FIRM CLEARED OF ANY PAY VIOLATIONS UK CONSTRUCTION GIANT EYES QATAR PROJECTS IN 2010

HAVE YOUR SAY WHAT WILL BE THE METRO EFFECT?

Do you think we’ll be seeing greater interest in mass transit in the region now the Dubai Metro’s up and running?

IN PICTURES: THE WORLD’S GREATEST CRANES A look at the big, bad and bizarre in the world of cranes, including the largest, the oddest…and the most mysterious. See more images at www.ConstructionWeekOnline.com

JOBS OF THE WEEK

Finishing site engineer, Doha Senior proposal engineer, Al Khobar Claims surveyor, Damman

ONLINE POLL WHAT’S YOUR OPINION ON CUSTOMER RESPONSES TO SERVICE CHARGES?

FEATURES MEP

Design

INVISIBLE INFRASTRUCTURE From power supply to telecoms, cables and cabling constitute the ‘invisible infrastructure’ that holds buildings together.

ALL-ENCOMPASSING The award-winning City Hospital focuses on carers and families as well as patients.

Architect

CITYSCAPE PRE-SHOW REPORT A look at why Cityscape is so important for the industry.

42.9% 28.6%

RERA needs to step in with stronger guidelines for all developers

More needs to be done to communicate the value gained from service charges to end users

28.5%

A few developers are outright unfair when it comes to the costs they pass on

PMV

RETREAD TYRES The secrets behind reusing tyres.

2

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com


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MAIL implemented and enforced and continually monitored. VORPAL SWORD

RE: STRIKE-HIT FIRM CLEARED OF ANY PAY VIOLATIONS

RE: HRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDE These rich construction bosses are dragging the name of Dubai and the UAE through the mud. And all in the name of greed. Don’t blame the workers and don’t blame the international press. Blame those rich bosses who continue to put their personal interests before the interests of their own country. As Holy Ramadan is a time of reflection for Muslims, and as charity is a fundamental tenet of the great Islamic faith, perhaps it is not too late for construction bosses to reflect on their actions and to show some charity to their workers.

GEORGE THOMAS

I think that the attainability of the productivity bonuses needs to be examined first before images of increased hardship are portrayed. Surely getting overtime is not a right! Any work has to be measured by results.

Damac’s ‘big picture’ sentiments are laudable, but it needs to apply this transparency to relations with its own investors before he [chairman] advises others. EWOUD

MIKE

RE: WORKER DIES IN BAHRAIN FALL

RE: DAMAC CHAIRMAN CALLS FOR GREATER TRANSPARENCY

The directors of the company should be personally responsible and liable to imprisonment if their company was found to be negligent, and they had not taken measures to ensure that proper safety practices are

I think the chairman has to start to making his company transparent before discussing this issue. OSCAR

I wonder why these poor brothers went on strike? Was it because of delayed wages, poor accommodation and lack of medical coverage? Or maybe it was something more endemic. May I suggest the blatantly exploitative wages? MOHAMMED KERR

everything always covering up or twisting the reality in Dubai. Everyone in the construction industry knows there was not enough money at the start of the project so it obvious it wouldn’t be completed. The original date for completion was August 2008. Where is all the money people paid in advance for the Wadi Walk apartments, for instance? The group has a reputation of not paying their consultants or contractors on time, if at all. DRIES

RE: RAK INVESTORS WIN COURT CASE RAK will not honour original payment plans, and will insist upon advance payments from investors. Escrow accounts are not guarantees of completion, nor of protection of investor’s money. WILL

RE: 30,000 FAKE TRUCK PARTS SMASHED IN SHARJAH It is very admirable, because fake spare parts for vehicles take the lives of many innocent people. I congratulate the Sharjah Municipality to go on with this, not only on truck parts, but with all spare parts for all types of vehicles. VG NAIR

RE: EXCLUSIVE: PM FIRM CLAIMS CITY OF ARABIA WALKOUT I am actually amazed that there are still consultants left on that project. Why is

RE: ARE YOU EXPECTING A SEPTEMBER UPTURN? The coming months will witness a major change in the construction market. I hope developers and clients will take a stand and continue with projects they are working on as it is almost a year since the meltdown began. The entire equation has changed and only the fittest will survive. All the small-timers are disappearing from the market. CLARENCE LEWIS

RE: WORKERS FLEE DUBAI BUILDING COLLAPSE Having served for the last 30 years in the construction field I could say that safety failure comes when it is filed in the page of expenditure rather than production. An accident affects the production. Safety is a long journey, not a destination. JALEEL NAZIRUDEEN

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.

4

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009


FOREWORD

MOVE INTO THIRD GEAR

“WE’D LIKE TO SEE HOW MANY COMPANIES TAKE HEALTH AND SAFETY SERIOUSLY”

With Eid around the corner and the ‘busy season’ looming, we’re expecting things to get a little out of hand up here in the Construction Week towers. Cityscape comes to town next month, and we’re looking forward to it with keen interest since the show has become a sort of testing ground for the regional construction industry. Just like the exhibition was used as a benchmark to judge the health of the sector last year, this year it’s being watched even more closely. Fingers crossed. The Construction Week Conference is also not too far off - in November, followed by what has come to be known as the industry’s event of the year, the much anticipated Construction Week Awards. This year we’ve included several people awards, in order to recognise individuals who make a difference in their fields and to their companies. Construction Week has always upheld best practice within the industry and so in appreciation of others who do the same, it has included a special award – The Build Safe UAE Award for Best Practice. BSU has been doing some great work and we love those who love doing great work. The idea for this additional award came out of a meeting between Build Safe coordinator Elias McGrath and myself, a couple of weeks ago. As we all know, health and safety, particularly the issue of falls from height, is not being dealt with adequately, to say the least. And from my understanding, the reasons for this broadly fall into two categories: one – some companies, usually the smaller ones (a cliché I know, but the sad truth nonetheless) don’t care much about safety issues or can’t afford it, and two – the importance of safety isn’t explained enough to the workers. Many HSE officers that I’ve spoken to have expressed frustration over workers having a couldn’t-care-less attitude towards safety. But I don’t believe that anyone, whether a company CEO or an illiterate worker, wouldn’t care to keep his own life. Thanks to the recent media coverage, we already know how much (or less) some companies care for their workforce. Now, we’d like to see who, and how many companies, take health and safety seriously. Hopefully, this award will put on a pedestal that company, which shows superior intelligence and the best business sense by protecting its biggest asset - its workforce.

This is the last week to submit your nominations for the awards. Nominations close at 6pm Tuesday, so please do hurry.

CONRAD EGBERT EDITOR conrad.egbert@itp.com

WRITE TO THE EDITOR Please address your letters to: Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest articles.

6

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009


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10

>News in brief

12

>Face to Face

15

>Industry events on the horizon

17

>Building failure

19

KHALED TERMANINI/ITP IMAGES

FRONT

>Damac CEO to quit next month

IRON POLES USED TO SUPPORT THE CONCRETE IN THE BUILDING THAT COLLAPSED IN DEIRA LAST MONTH ARE SAID TO HAVE BEEN FAULTY.

POOR QUALITY MATERIALS TO BLAME FOR DEIRA BUILDING COLLAPSE By James Boley

An investigation into the building collapse that took place in Deira, Dubai, last month has revealed that one of the main reasons for the catastrophe was the use of poor quality materials during construction. Speaking at an informal Ramadan dinner at the Dubai Press Club, municipal director-general Hussain Lootah said the municipality’s technical team had questioned both the quality of materials and the manner in which they were used. He also said there were faults in the iron poles used to support the concrete in the building, and that an ‘unorthodox’ structural style had been used.

“There were faults found in all three of the categories,” Lootah said, according to UAE daily Gulf News. “There was an engineering fault, misuse of building materials, and the structure of the building was found to be weak. That is evident from the fact that the building collapsed on itself from its middle.” The building was in the final stages of completion when it collapsed on August 16. Eleven construction workers narrowly escaped death when the six-storey building fell to the ground. According to Dubai Police, the contractors on the project, Hazaa Contracting and Bait

Al Emarat Engineering Consultants, are being interrogated in co-ordination with Dubai Municipality. A committee was set up to identify the causes of the collapsed building by Dubai Municipality the day after the collapse. The investigation report will be released to the media after it has been viewed by the Executive Council. The building next to the collapsed building will be demolished because of damage to its structure. The firm had insured the building for a contract value of US $19 million (AED70 million) with National General Insurance.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

9


FRONT AL HABTOOR SLAMMED OVER OBSCENE ATTITUDE By James Boley and Conrad Egbert International human rights campaigners Human Rights Watch (HRW) has slammed Al Habtoor over their “obscene� attitude towards their staff following a labour strike last month. Al Habtoor managing director David Savage had said, “The company is in the process of implementing a new productivitybased incentive scheme, whereby workers are rewarded for increased productivity as opposed to working longer hours. The scheme is expected to result in workers increasing their take-home pay.� Speaking to Construction Week, HRW Middle East head of research Samer Muscati criticised Al Habtoor’s payment scheme and raised questions over the personal safety of its workers. “There is something a bit obscene with company bosses telling workers, who toil for long hours in the punishing summer heat of the Emirates for low wages, that they are just not sweating enough to justify higher pay,� said Muscati. “Al Habtoor’s proposal that workers work harder could well result in an increase in the number of work-related accidents.� Muscati was also concerned about the fate of the strike leaders. “We know that in the UAE, workers who attempt to organise, bargain collectively, or strike to demand their rights may face deportation.� “Al Habtoor disagrees with the comments of Human Rights Watch. The company continuously reviews the employment contract conditions – including accommodation - of its workforce,� a spokesperson for Al Habtoor said. “Our ability to retain a high quality workforce is an important element of the company’s success.�

DAMAC CEO PETER RIDDOCH WILL LEAVE HIS COMPANY NEXT MONTH.

DAMAC CEO QUITS FIRM By Conrad Egbert

Damac Properties CEO Peter Riddoch is due to leave the Dubaibased developer next month, he said in a statement emailed to Construction Week. He said he wished to focus more on personal interests and family, and that he felt it was time for him to move on. His resignation comes at a time when the global job market is at a low and most ďŹ rms still have a freeze on recruitment. “To leave an organisation that has been a signiďŹ cant part of my life for so many years will not be easy, but I know that the time is right for me to make some changes, focus a bit

more on my personal interests and family, and possibly even take on new challenges,â€? Riddoch said. Hussain Sajwani, Damac’s chairman, confirmed that he had “reluctantlyâ€? accepted Riddoch’s resignation. He said: “Peter has contributed signiďŹ cantly in steering our business over the past seven years and as an organisation we have greatly beneďŹ ted from his industry knowledge and experience.â€? Day to day operations will be run by senior management at Damac Properties under the direction of the chairman until a replacement is found, the company added.

MATERIALS INDEX 2009 STEEL

CEMENT

READY MIX

GLASS

STEEL PROPS

SCAFFOLDING ALUMINIUM

$551.26

$4.08

$98

$4.89

$12.25

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Last week This week

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Last week This week

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CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

Last week This week

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Last week This week



Last week This week

* These materials ďŹ gures can be found on ConstructionWeek Online.com


FRONT HIGHLIGHTS Infrastructure

MAYKOL BAGS AL BATINAH ROAD JOB Turkish construction company Maykol has bagged a US $325.5 million (OMR125.3 million) contract to build a 126km road in Oman. A tender board official told newswire Reuters that the contract was for the first phase of Al Batinah coastal road project. The contract for the second phase is expected to be awarded by the end of the year. Projects

DEYAAR TO DOUBLE PORTFOLIO Dubai-based developer Deyaar has said it plans to double the size of its property management portfolio in the

NEWS IN NUMBERS

Qatar’s Midmac Contracting and Belgium’s Six Construct JV have won the

US $490 million

next five years. “Since the past year, Deyaar has been working with a long-term strategy of diversifying its income streams, and our planned expansion in property management is in line with this overall strategy,” said company CEO Markus Giebel.

Projects Banking

CENTRAL BANK TAKES STEPS TO STIMULATE BANK LENDING The UAE Central Bank announced that it is lowering the interest rate on the liquidity support facilities extended to the banks and clarified its position on minimum capitalisation targets. These measures are aimed at restarting bank lending in an economy that

RAK PROPERTIES GETS FINANCE FOR PROJECTS UAE-based real-estate developer, RAK Properties, has obtained a five-year US $150 million (AED552 million) loan from state-owned Investment and Development Office, the investment arm of Ras Al Khaimah, Bloomberg has reported. The loan will be used to finance RAK Properties’ projects including the $2.72 billion Mina Al Arab

2013,

the project’s main contractor Arabian Construction Company (ACC) has said

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

beachfront development, the developer said. Real Estate

GREEN SHOOTS IN UAE PROPERTY SECTOR Property in the UAE showed further signs of recovery after transaction volumes in June and July reached levels of the third quarter last year, a new report has found. In its August sales guide, real estate adviser Landmark Advisory said end-users remain the dominant buyers of freehold property in Abu Dhabi, but investors continue to make up the bulk of demand in Dubai. “Sales in both emirates during June and July 2009 have been the most active since Q3 2008, with the majority of transactions in Abu Dhabi.

Dutco Balfour Beatty has picked up a

The Pentominium is to be completed by the second half of

contract for the extension of Qatar’s convention centre at Education City 12

has come to a standstill following several years of rapid growth. Banks in the UAE, and particularly in Dubai, have been reluctant to lend despite supportive measures taken by the Central Bank.

A phased handover will begin by the end of

2010 for the

US $5 billion

City of Arabia development despite delays to the project, company officials have said

US $40.8

million contract for the completion of all commercial buildings at the Al Ruwaya Golf Club at the Tiger Woods Dubai


> For in depth coverage of the metro log on to www.ConstructionWEEKonline.com/dubaimetro

FRONT

NEWS IN PICS RIGHT: Last week, Dubai made it into the history books by being the first in the region to launch a metro line. With the trains set to ease traffic and make the city less polluting, the UAE’s environmental footprint is expected to fall drastically in the coming years. RIGHT MIDDLE: In celebration of Ramadan, Dubai Municipality organised a charity Iftar at its labour camp in cooperation with Dubai Charity. Momin Al Jasmi, head of the housing and internal transportation unit, said the event was organised to draw attention to the importance of interaction with the employees, labourers in particular, during the holy month. RIGHT BOTTOM: A mechanical dancing troupe is set to wow the crowds as they take their first ever bow in Dubai at the Big 5 PMV Show. The ‘Dancing Diggers’ comprise a dozen JCB 3CX backhoe loaders. Formed some forty years ago by the Staffordshire firm’s founder to promote the versatility of the hydraulic system, they have curtsied for the Queen of England, pirouetted for TV, and appeared at countless machinery and agricultural shows across the UK. Due to the scale of the show, each performance will take centre stage at The Plaza, an area at the immediate entrance to the new exhibition halls.

KHALED TERMANINI/ITP IMAGES

BELOW: Princess Tower is on track to be completed by August, 2011, Tameer has told Construction Week. The Dubai Marina project has reached the 54th floor and is continuing to advance in accordance to the developer’s schedule. The 107-storey tower will be the tallest residential building in the world once completed. However, the 124-storey Pentominium tower, also located in the Dubai Marina, is set to break this record if completed by the planned date, which is the second half of 2013.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

13


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FRONT FACE-TO-FACE

LEE ALLEN

SALEH MURADWEIJ

Cracknell Associate

Gulf Technical Construction Company executive director

ROAD TO RECOVERY DO YOU EXPECT THE CONSTRUCTION INDUSTRY TO FULLY RECOVER FROM THE DOWNTURN AFTER RAMADAN? We are hoping for positive movements in the market after Ramadan. The reduced focus on business activities and delayed decision making processes, during this time, naturally has an effect on our organisation. Although we are not expecting business to return to the levels of previous years, we should notice an increase in the market as Ramadan ends.

The construction industry will recover, but not straight after Ramadan. It is still too soon. There is still an over supply in the market that needs to be balanced by demand. The overall real estate and construction industry in the UAE is directly affected by the international markets and since these markets have not fully recovered, signs of recovery will take a bit more time.

HOW HAS YOUR COMPANY BEEN AFFECTED BY THE HOLY MONTH? HAS BUSINESS BEEN SLOWER THAN USUAL? Traditionally, Ramadan reflects a slowdown in some business activities. However, this has been compounded this year by the overlap of the summer leave period. In previous years, key decisions were often made immediately before the summer, resulting in a productive summer period.

Ramadan is usually slower than other months due to short working hours. It is expected that business will be slower during this holy month. Progress and project schedules incorporate this period into the overall programme.

WHAT SHOULD CONTRACTORS BE FOCUSING ON GOING INTO Q4 2009? As landscape consultants we are focusing on buoyant territories in the region and we are looking to increase our presence. As construction funds are slowly released we will focus on continuing a dynamic cash flow. To maintain a healthy project turnover in Q4, our fees need to be increasingly competitive to win bids.

The biggest challenge for contractors has been the collection of payments and banking. Contractors must focus on this so that they can successfully move forward to Q4, 2009. Also, diversification and presence in emerging markets is essential for continuity, growth and existence.

WHAT LESSONS SHOULD HAVE BEEN LEARNED FROM THE CRISIS? A diverse spread of clients, regions and projects should assist in greater stability in the future. Exposure to a small number or even a single developer has placed many consultants in a vulnerable position. As a region, which has acutely benefited from the upturn – those same areas are now suffering on the other side.

I think our industry has learnt that moderate growth is sustainable growth, and that not every company that claims to be a developer or construction company is fully equipped. There needs to be a more planned and steady way forward so that the industry does not find itself in another pit.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

15


EVENTS

Event: MEP Kuwait Overview: This conference aims to shine the spotlight on Kuwait and will discusses the challenges of engaging with Kuwait developers; future opportunities; the technology required now and in the future; and the long-term plans for the country and how these will impact on operations. Strong desings coming from architects offer an incentive for MEP companies to relocate or set up offices in Kuwait. Date: October 28 Venue: Radisson SAS, Kuwait City Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate. Date: November 3 Venue: Raffles Hotel, Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences

Event focus

MIDDLE EAST ARCHITECT AWARDS 2009 DATE: SEPTEMBER 30 LOCATION: THE WESTIN, DUBAI PHONE: +971 4 435 6133 EMAIL: ANNIE.CHINOY@ITP.COM WEBSITE: WWW.CONSTRUCTIONWEEKONLINE. COM/MEAA The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. The awards recognise both regional and international architects and engineers who have made significant contributions to the development of the Gulf. Award categories include overall project of the year, restoration/conservation project of the year, green project of the year, mixed-used development of the year and infrastructure project of the year. 

Event: Building Sustainability into the Middle East Overview: Construction Week has merged the Building Sustainability into the Middle East conference, and the GreenBuilding training series in order to offer

strategic insight and practical learning in one exhibition. Date: October 25-26 Venue: Crown Plaza Hotel, Abu Dhabi Phone: +971 4 4356464 Email: samiulla.khan@itp.com Website: www.constructionweekonline. com/conferences

Event: Construction Week Awards 2009 Overview: In its 5th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in 15 key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Award categories include project manager of the year, construction manager of the year, sustainable project of the year and developer of the year among others. But, this year’s awards promise to be bigger, better and tougher than last year. Date: November 4 Location: Grand Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cwawards Event: Construction Week India Conference Overview: This event is designed to equip individuals in the construction industry to identify project risks and implement risk mitigating processes that can be easily and efficiently integrated into the entire construction process which will be essential in the transformation of Indian cities. Date: November 11-12 Location: New Delhi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: CID Awards 2009 Overview: This year’s CID Awards will celebrate the success of the Middle East design industry

and demonstrate how the region’s sector can stand alongside its international peers. Date: November 15 Venue: Park Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cidawards Event:Buidsmart 2009 Overview: The official launch of buildingsmart Middle East alliance. Speakers at the event will present new technologies and best practice for improvements in efficiency, productivity and quality in construction. Date: November 15-16 Venue: Yas Hotel, Abu Dhabi Website: www.itp.net/events/buildsmart Event: MEP Awards Date: December 9 Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/mepawards Event: Construction Week North Africa Conference. Overview: This Construction Week conference will provide a firm basis for all interested parties to come together and share their experience of the economic renaissance in North Africa. Date: December 17 Venue: Intercontinental Hotel, Cairo Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Cityscape Dubai Overview: International property and development event. Date: October 5-8 Venue: Dubai International Exhibition Centre Phone: +971 4 332 1000 Website: www.eventseye.com Event: International Symposium on Architectural Membranes Overview: The workshop will address the theoretical bases for structural analysis necessary for computer implementation. Date: October 14-15 Venue: American Univeristy in Dubai Website: http://isam-dubai.web.officelive. com/about.aspx Event: The Big 5 Overview: Big 5 is the annual meeting place for all industry professionals. Over 58,000 key buyers and decision makers from the public and private sectors attended the 2008 event. Date: November 23-26 Venue: Dubai World Trade Centre Website: www.thebig5exhibition.com

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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COMMENT > For the latest news and comments log on to www.ConstructionWEEKonline.com/comment

Building failure — Part 2 AFTER THE BUILDING COLLAPSE IN DUBAI LAST MONTH, MOHAMMED AZAD HOSSAIN HIGHLIGHTS, IN THE SECOND OF A TWO PART SERIES, THE MOST COMMON REASONS FOR BUILDING FAILURE AND HOW TO AVOID A COLLAPSE

Common material faults Most structural failures are associated with materials and are the consequence of human error involving a lack of knowledge about materials or the combination of contrary materials. There are structural failures that can be endorsed to irregularity in materials. Although much reliance is given on modern structural materials, the manufacturing or production faults may exist even in the most dependable structural materials, such as standard structural steel. Stone frontage sheets or glass curtain walls may have hidden serious faults. Prevention Most of the structural failures (other than those caused by natural disasters) have occurred due to such faults, which are controllable. Good operational planning and detailed deliberations can save the failures of the valuable structures. The well-designed structures, coupled with the hard effort of the experts and correct materials can ensure the structure a complete success. Some other important points of failure prevention are: Professionalism It is of extreme significance for building professionals, including builders and government bodies, to understand that the design process does not stop at the conclusion of design drawings and specifications. The design aim must take second place in the construction stage. Increased antagonism during construction bidding, along with developers’ aim of profit making, can place intense pressure and demand on the engineers/consultants to create the most inexpensive and efficient design. However, this should not compromise safety. Building experts have a great liability to make sure that the safety of the buildings and infrastructures is to the maximum.

Statutory bodies should be more proactive in imposing strict regulations in building design, codes and standards and impose penalties for the violators. Integrated efforts by all parties Consultants and contractors must have total control of site operations and quality. Site staff are required to be well qualified and competent and correctly trained in the trade in which they are working to ensure good workmanship and high quality of building works. Independent inspections by statutory bodies are essential to make sure that the building is constructed in accordance with approved plans and specifications. A check system must be utilised to assess the integrity of structures based on the professional engineer’s design and to give independent design results to ascertain the sufficiency of the major structural rudiments of the buildings. The recognised check should therefore give particular concentration to unusual design details. The inspector and checker should concentrate on significant areas such as transfer beams and columns, and the centre of attention should be kept on areas where errors are critical and frequent. Conclusion Design is a human endeavor and thus it is subject to error. Due to this, some designs are destined to fail. In case of a building failure there must be a transparent investigation with professional engineers and forensic experts experienced in identifying the root cause of failure. And having found the possible causes of the failure, it is vital to know how to avoid it in the future. The primary step in preventing building failures is to develop a programme for educating all parties on lessons learnt from past failures. It is not advisable that a mistake once committed and affected is repeated.

“STATUTORY BODIES SHOULD BE MORE PROACTIVE IN IMPOSING STRICT REGULATIONS IN BUILDING DESIGN”

Mohammed Azad Hossain is the head of the contracts department for Gulf Consult, Kuwait. His background includes 30 years of experience in all types of contractual, constructional and financial aspects and procedures of projects in the GCC. Hossain is a professionally qualified chartered quantity surveyor and is a fellow of the Institute of engineers.

The opinions expressed in this column are of the author and not of the publisher.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment

Penalty imposition – a real life experience in Qatar CHANDANA JAYALATH BELIEVES THAT TIME EXTENSION PROVISIONS ARE NOT FOR THE BENEFIT OF THE CONTRACTOR AND LIQUIDATED DAMAGES FOR THE EMPLOYER

“CONTRACTS RIDDEN WITH PENALTY CLAUSES KEEP THE CONTRACTOR FROM MANAGING THE PROJECT”

Dr Chandana Jayalath is a Member of the Royal Institution of Chartered Surveyors and a senior contracts specialist for the Public Works Authority (PWA) in Qatar. His latest industrial exposure has been sidelined in the settlement of various commercial and contractual issues, claims and disputes arising in the infrastructure projects spearheaded by the PWA.

The opinions expressed in this column are of the author and not of the publisher.

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Penalty and Liquidated Damages (LD) has no difference in Qatar. Everyone talks about penalty without fear of being contested in court. A penalty is imposed as stipulated in the contract per day, subject to a ceiling limit, usually 10% of the contract sum, or adjusted contract sum, as the case may be. Although the contractor’s exposure to a penalty starts only when he fails to achieve scheduled completion, there are some notable exceptions. Levying a penalty starts according to a schedule of eventaualities already qualified in the contract. These may be, for instance, on a road project where the contractor is delayed in commencing designated trench work or even a section of asphalt work. There are cases where a penalty is applicable due to a delay in either commencement or in completion of almost all individual activities shown in the bar schedule. A delay, due to submission of a traffic management plan would even be a case for penalty in addition to usual delay in completion of the entire work. Sometimes the engineer has been given discretion to consider a further penalty if he feels its is required. However, this discretion has no legal effect and is called a ‘dummy’ clause that is non-enforceable. Contracts ridden with penalty clauses keep the contractor from managing the project. This is simply because of the wrong belief that extension of time (EOT) provisions are for the benefit of the contractor and

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

LD for the employer. However, a closer look at these provisions, along with the case history, suggests that they promote the reverse of true intensions. The primary idea of including an EOT provision in a contract is to preserve the contractor’s obligation to complete work within a specified time. The fact that the contractor is gaining relief from LD is a secondary outcome. If such provisions are not in place, the contractor would be able to claim time at large and the contractor’s obligation would be to complete within a reasonable time. Courts will never uphold LD when the client has contributed to delays and restricted the contractor to complete on time. Such a penalty arrangement definitely upsets the contractor’s technical movements freely within the project and tilts the even risk in the contract. While liquidated damages are early calculations of expected loss under the contract, penal damages strictly go further and seek to penalise a party in some way beyond the loss suffered. Even if two parties, genuinely and without coercion, wish to consent to a contract which includes a penal clause, they are unable to. As such, the imposition of a penalty on each activity of the programme is imprudent if the true intension is to persuade timely completion. If the intention is to counter slow progress, then there is a separate provision in the contract where the engineer calls for a recovery action plan that is technically feasible.


SPECIAL REPORT

HEAVY MACHINERY CW DISCOVERS THE MARKET OUTLOOK FOR THE HEAVY EQUIPMENT SECTOR

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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TOP MIDDLE EAST AUCTION HOUSES WORLDWIDE AUCTIONEER Worldwide Auctioneers’ holds fully unreserved auctions, with no minimum bids, seller bids or reserved items, assuring buyers and sellers that equipment is traded at fair market value. Its Middle East auction centre comprises a 100,000m² compound in the Jebel Ali Free Trade Zone, Dubai. The firm held a market share of more than 65% of all industrial equipment auction sales concluded in Dubai in 2005, 2006, 2007 and 2008. It has held auctions in other countries such as Qatar and plans to expand its auction and

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private equipment sales business into other GCC countries. www.wwauctions.com

RITCHIE BROS AUCTIONEERS Canada-based Ritchie Bros Auctioneers is the world’s largest industrial auctioneer, selling equipment to both on-site and online bidders. The firm sells a wide range of used and unused equipment for the construction industry through unreserved public auctions. It offers auctions at more than 110 locations worldwide, including 38 auction sites, such as the one at the Jebel Ali Free Zone.

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

In 2008 it sold US $3.57 billion (AED13 billion) of used and unused equipment at 340 unreserved auctions, including a wide range of heavy equipment, trucks and other assets for the construction industry. www.rbauction.com

IRON PLANET US-based online auction house Iron Planet is targeting Middle East buyers and sellers via its European base in addition to its American auctions. The firm is also aiming to increase its presence in the region in the future. http://eu.ironplanet.com


> For more special reports visit www.ConstructionWEEKonline.com

HEAVY DUTY HOW ARE HEAVY EQUIPMENT SUPPLIERS BEING AFFECTED BY THE ECONOMIC DOWNTURN AND WHAT DOES THIS MEAN FOR PURCHASERS AND END-USERS? CONSTRUCTION WEEK INVESTIGATES By Alison Luke

T

he effects of the global economic downturn have rippled through the Middle East construction industry over the past year, reaching all connected sectors in turn. Manufacturers and suppliers of heavy equipment have not escaped the tide, with orders for new plant dropping as mega projects in the region were cancelled or put on hold. With an increased emphasis on cash flow and uncertainty about future workloads it’s inevitable that contractors have been taking stock of all aspects of their business. One of the first steps in terms of plant was the reassignment of existing equipment, but how are firms approaching the issues of new requirements and any excess stock?

MARKET FIGURES There have been a number of changes to the spread of heavy equipment sales over the past year. While the second-hand market appears to have grown in strength, the overall demand has reduced and the cost of units sold has fallen. In addition, Middle East traders of both new and second-hand plant, have begun to expand their sales targets into other countries to counteract the fall in demand in the local markets, in particular the UAE, and offload excess equipment. Several of the major manufacturers have announced large drops in profits, yet their long-term outlooks generally remain positive. Japanese firm Komatsu’s net sales for April to June 2009 showed a drop of more than 47% compared to the same period in 2008. The firm also reported a 90% fall in operating income over the three-month period. The overall worldwide demand for construction equipment remained sluggish during this period, the firm states. Atlas Copco also reported a drop in sales during Q2 of 2009, with revenues down by 14%, which represents a 27% organic decline. The firm’s profitability, however, was in line with Q1 and cash flow was strong. The group is implementing restructuring measures in response to the lower global market demand, which has included cutting the workforce by 5440 since September 2008. “We have achieved a strong result in light of the tough demand situation and we will continue optimising our manufacturing

structure,” Atlas Copco Group president and CEO Ronnie Leten stated at the release of the figures. The firm stresses that it is taking a long-term view of the market and is investing in product development and services. But not all firms have seen a loss. India-based Tata, for example, reported continuing profits in 2009. The firm’s medium and heavy commercial vehicles sales during August 2009 were 10% higher than the August 2008, showing the second consecutive monthly growth for the business.

MEETING LOCAL DEMAND In terms of local sales, enquiries are continuing to varying degrees across the region and there is more than enough available stock to meet current demand, according to dealers. Firms with dealerships in several countries are showing the most success in the current economic conditions. Hitachi Construction Machinery Middle East sales representative Jawad Qureshi confirmed: “We still have many enquiries, and, although sales are down, the UAE market share is lower compared to other regions. But we have dealers in other countries as well that have stronger sales [figures].” The firm has taken steps to ensure continued sales and reports recent positive changes in the market. “In the UAE [the market] was fine up until September last year, then to July this year the conditions have been bad; but they have been improving over the past few months,” reports Qureshi. Mohamed Azeem, marketing analyst with Al Bahar, the sole agent for Caterpillar in Bahrain, Kuwait, Qatar and the UAE, reports: “All departments have been affected by the recession, but Al Bahar [in general] has not been badly affected because we have 11 branches in the Middle East and the Abu Dhabi branch is still going well, for example.” Other market developments include a move towards buying from local dealers rather than directly from overseas manufacturers. China-based LiuGong managing director Tang Longgui reports: “Regarding the Middle East market, this year we are mainly selling our stock through our dealer due to the economic crisis and there are very few purchases from the factory.” The firm reports good sales growth on forklifts during 2009, with Longgui attribut-

“WE HAVE ACHIEVED A STRONG RESULT IN LIGHT OF THE TOUGH DEMAND SITUATION AND WE WILL CONTINUE OPTIMISING OUR MANUFACTURING STRUCTURE”

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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“OMAN AND THE LEVANT MARKETS ARE STILL HEALTHY, PLUS IRAQ AND SYRIA ARE STILL NEEDING AND BUYING EQUIPMENT”

WORLD WIDE AUTIONEERS REGIONAL SALES DIRECTOR AND VICE PRESIDENT KEITH LUPTON.

ing this to the fact that there was no heavy stockpiling of the equipment in 2008.

EXPANDING MARKETS While suppliers expand geographically in order to gain sales, this will also have

positive implications for end-users, as their immediate choice of equipment rises. Manufacturers have also been quick to recognise the need to diversify sales into other countries. Hitachi, for example, made significant moves throughout the Middle

East and Africa during summer 2009. In May the firm’s Middle East Centre (MEC) announced a new dealership agreement with Yusuf Bin Ahmed Kanoo of Saudi Arabia, under which the firm will specialise in the promotion and sales of crawler cranes. This is in addition to MEC’s long-standing partnership with the Kingdom’s Al-Esayi, which specialises in excavators and wheel loaders for the Saudi Arabian market. In July, MEC received its first order for four ZX350H-3, a ZX210H-3, a ZW180, and a ZX470H-3 from the China Road and Bridge Corporation, Kenya and Rock Plant, for use in quarry and road construction projects. “We are delighted to deliver our first machinery shipment to Kenya. The markets of Libya, Algeria and Egypt are huge and


> For more special reports visit www.ConstructionWEEKonline.com

this modest preliminary order is just the beginning; we are hopeful of many future sales in Kenya’s rapidly developing region,” commented MEC general manager Mutsumi Kitai. “MEC expects this pivotal order to expand the Hitachi Brand throughout surrounding countries including Tanzania and Uganda. We look forward to becoming a key player in the East African market,” Kitai added. In a further move, during August Hitachi’s MEC signed a memorandum of understanding (MoU) with international trading firm JSM and Iraqi Hitachi dealer, Savanna Group. The MoU reinforces the agreement for MEC to sell machinery and parts to Savanna Group via international traders, hence increase Hitachi’s operations in the Iraq market. And, as well as starting operations in other countries, an outflow of equipment from the

UAE is occurring as locally-based firms are local demand] but orders were placed in selling and shipping machinery to buyers 2008 to Caterpillar [to meet the region’s and dealers out of the Emirates to counteract predicted demand, which has now fallen] lower local demand following the delay to and we don’t have enough storage space major projects such as the Arabian canal, for these units,” Azeem explains. This unexpected over-supply has resulted for which suppliers had begun to prepare in the immediate availability of Caterpillar in anticipation of large contract awards. “We’re selling lower quantities in the UAE, plant worldwide being among the highest but we are also selling into other countries. in the UAE, with the manufacturer referWe’re seeing good demand out of the UAE ring other worldwide dealers to Al Bahar and selling in the GCC, Iran and African for new equipment reports Azeem. The region’s auction houses are also witcountries,” confirms Qureshi. “The branches are dealing with dealers nessing this changing geographic trend. “At worldwide [to offload any excess stock]. our auctions before [the recession] normally We have been shipping both new and used 60% to 70% of items were sold into the equipment to Saudi Arabia, UAE, but over the last nine Pakistan and the Russian months 70% has been sold “WE ARE SEEING States,” adds Azeem. “This [to purchasers] outside the GOOD DEMAND was a move the firm made UAE. We’ve seen a shift OUT OF THE UAE due to the recession. We in equipment leaving the AND ARE SELLING have enough stock [to meet IN THE GCC” region, including to Saudi

HEAVY EQUIPMENT FIRMS TO WATCH ATLAS COPCO

LIUGONG

Atlas Copco is a leading worldwide provider of industrial productivity solutions. The firm’s products and services include compressed air and gas equipment; generators; construction and mining equipment; and industrial tools and assembly systems. The firm offers a variety of heavy machinery for the construction industry including road construction equipment, underground vehicles and a wide range of demolition equipment. www.atlascopco.com/aeus/

LiuGong is one of China’s top heavy equipment manufacturing companies. The firm manufactures and sells more than 36,000 machines annually and has a service network that includes 124 global dealers that cover more than 80 countries and regions worldwide. It achieved sales in excess of US $1.6 billion (AED5.8 billion) in 2008. The firm has 12 product lines in its portfolio, ranging from hydraulic excavators; road equipment, such as rollers, pavers, motor graders, millers and planers. Compact products include skid steer and backhoe loaders; forklifts; cranes; concrete pumps and mixers; to its signature wheel loader, which holds the highest market share in China. www.liugong.com

CATERPILLAR Caterpillar is represented in Bahrain, Kuwait, Qatar and the UAE through the Machinery Group of the Mohamed Abdulrahman Al Bahar business. The firm’s associate - Oasis Trading and Equipment - represents Caterpillar in Oman. With a head office in Sharjah, Al Bahar offers a caterpillar machinery and power systems for a wide range of applications including earthmoving, building and heavy construction, road making and demolition. www.albahar.com

HITACHI CONSTRUCTION MACHINERY MIDDLE EAST (HCME) HCME Middle East Centre is a branch office of Hitachi Construction Machinery (Europe). Founded in 2002, it is a distributor of heavy equipment and provides products and support for the earthmoving and construction industries throughout the region. Sales and product support are

available through the company’s network of branches and dealers. From operating weights of 970-780,000kg, Hitachi provides a variety of equipment and attachments to cover functions including digging, loading, carrying, breaking, grabbing, cutting, crushing and screening. It offers a wide portfolio of machines for general construction work, from hydraulic excavators to articulated dump trucks, wheel loaders and a range of factorymodified excavators. www.hitachi-c-m.com/mideast/

JCB JCB is one of the world’s top three construction equipment manufacturers, and sells its products in 150 countries through around 1500 dealer depot locations. Founded in 1945, the firm has continually invested heavily in research and development, and now produces a portfolio of more than 300 machines for the construction equipment market. Products range from the tracked excavator, to the robust range of wheeled loading shovel, and the JCB Dumpster. www.jcb.com

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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Arabia and Qatar, which are still strong markets,” reports Ritchie Bros Auctioneers regional manager Steve Barritt. “We’ve started seeing movement into Iraq and a lot of bidders from Africa r, including areas such as Nigeria,” adds Barritt. “[Dealers] are trying to move [excess stock] into other markets worldwide,” he explains. “Oman and the Levant markets are still healthy, plus Iraq and Syria are still wanting, needing equipment and buying,” adds World Wide Auctioneers regional sales director and vice president Keith Lupton.

SECOND-HAND One of the most obvious ways in which contractors can buy additional plant for lower capital costs is to opt for used machinery and this market has seen a sharp upturn. Auction houses are playing a large role here, reporting strong increases in sales during 2009. “Our attendees have increased by 25% this year and we have increased our volume [of sales] massively,” reports Barritt. “Ritchie

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Bros’ previous biggest sale in Dubai was Older models are now more realistically three years ago and made US $36 million priced, giving end-users an edge when tackling (AED132 million); this year the June sale the current cost-cutting trends. “This year made $46 million. Every sale this year has we’ve sold more two year old equipment increased massively in revenue. Our turnover [than older plant] and the older equipment per year generally rises by 15% to 20%, this that was sold at high prices before is now year it’s at the top end,” Barritt adds. being sold at more realistic prices, which But despite the large increase in revenue, is good for end-users,” explains Barritt. the wider availability of second-hand units “These prices were previously inflated due has meant auction prices have fallen. There to the high demand and [vendors] were has also been a move away from buying older getting prices that they wouldn’t receive plant due to local regulation changes. elsewhere in the world,” he adds. “The GCC now has many age limitations And it’s not only auction houses that are and strict pre-licensing testing,” stress- focusing on second-hand equipment, many es Lupton, “but the banks are not financing of the major plant manufacturers are also new products, so a discounted second-hand offering used products. unit has attraction,” he explains. “The strong Last year thousands of second-hand CatEuro means that machines are not cheap erpillar machines were sold through Cat from the Euro zone and Chinese products, Certified Used programme. with a few exceptions The plant available through based on solid, well the programme is ‘low hour’ “WE HAVE engineered designs, machines, which are subjected to STARTED SEEING have lost their market an inspection and refurbishment MOVEMENT INTO attraction,” Lupton process by the local Caterpillar IRAQ AND BIDDERS FROM AFRICA” reports. dealer prior to sale.

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“BANKS ARE NOT FINANCING NEW PRODUCTS, SO A DISCOUNTED UNIT HAS ATTRACTION” “During the challenging economic times of today, buyers are naturally cost conscious and Cat Certified Used, benefitting from the same financing options as the new Cat equipment, has become a real option for budget conscious customers. The rigorous inspection and refurbishment process gives our dealers absolute confidence,” explains Caterpillar used equipment manager Emmanuel Feront.

INTO THE FUTURE With the predicted timescale for the end of the recession still a moveable feast, what preparations is the heavy equipment industry making for this eventuality? And will enough plant be available for the potential workloads?

MANUFACTURERS OF HEAVY EQUIPMENT HAVE STARTED TO DIVERSIFY SALES INTO OTHER COUNTRIES.

“We expect the current trend to continue until at least mid-2010, however people are becoming more optimistic again,” states Barritt. But he warns: “Manufacturers have dropped their output, which means that when the world recession ends there’s going to be a shortage again. There wasn’t ever enough plant here when [the market] was going at its peak, [suppliers] were trying to catch up with the market demands,” explains Barritt.

“Recovery is there but it will be slow and a long while before it reaches the inflationary and speculator-driven 2007/8 marketplace,” predicts Lupton. “There is loads of equipment available, because of the insatiable buying spree. This will take time to clear.” And with major manufacturers like JCB, Volvo and Caterpillar all adding new products to their portfolios over the past six months, it seems the choice for the end-user can only get larger, at least in the short-term. 

HEAVY EQUIPMENT FIRMS TO WATCH (continued) KOMATSU MIDDLE EAST

TADANO

Komatsu is one of the world’s largest manufacturers of construction, mining and utility equipment. It offers a variety of construction and mining equipment, ranging from super-large machines capable of mining applications to mini units for urban use; the product portfolio also includes a wide variety of attachments and system products. The Middle East branch was established in 1999. www.komatsu.com

Established in 1948, Tadano is one of the world’s largest manufacturers of hydraulic cranes, with a wide product range that includes rough terrain cranes, all-terrain cranes, truck cranes, truck loaders, aerial platforms and a variety of related products and equipment. The firm re-established a Middle East office in the Jebel Ali Free Zone in 2003, its previous Bagdhad office closing in 1990. The office serves the wider Middle east region including the UAE, Saudi Arabia, Kuwait and Egypt. www.tadano.co.jp

MANITOWOC CRANE GROUP Manitowoc lattice-boom crawler cranes, Potain tower cranes, Grove mobile hydraulic cranes and National Crane telescoping cranes are built, sold and serviced at multiple locations on five continents. The Middle East facility based in Jebel Ali Free Zone serves 20 countries in the Gulf, Arabian peninsula, Turkey and central Asia. The 1400m2 facility includes sales offices, a workshop, parts warehouse and a training centre. www.manitowoccranes.com

TATA MOTORS Established in 1945, Tata Motors is India’s largest automobile company and among the world’s top five manufacturers of medium and heavy trucks. The company began manufacturing commercial vehicles in 1954 and its range now extends from the light two-tonne truck to heavy dumpers and multiaxled vehicles of more than 40 tonnes. The firm has several associates include construction equipment and allied services

firm Telco Construction Equipment Company, of which Tata holds 60% makes; the rest is held by Hitachi Construction Machinery. The GCC is a key market for Tata, the firm having established in the region in the early 1990s. www.tata.com

VOLVO CONSTRUCTION EQUIPMENT Volvo Construction Equipment is one of the world’s top three largest construction equipment manufacturers. The firm offers a broad range of products for the construction industry, with a total of more than 150 different models of excavators, wheel loaders, motor graders and articulated haulers. It has operations in a number of countries in the Middle East including Iran, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. In the UAE the firm is represented by Al Futtaim Auto and Machinery Company; Al Rehab Equipment and Machinery represent the firm in Saudi Arabia. www.volvoce.com

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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TOP 5 LEED CERTIFIED BUILDINGS IN THE GULF AS GREEN BUILDING AND SUSTAINABLE DESIGN ARE NOW TOP PRIORITIES ON THE CONSTRUCTION SECTOR’S AGENDA, CW HAS LISTED FIVE ENVIRONMENTALLY FRIENDLY PROJECTS IN THE GULF By Sarah Blackman Buildings listed in this feature are in order of Leed ratings

PACIFIC CONTROLS HEADQUARTERS

DMITRY DOLZHANSKIY/ITP IMAGES

Leed rating: Platinum In 2007, the Pacific Controls Headquarters based in Techno Park, Dubai became the first Platinum rated building in the Middle East and the 16th in the world for achieving 55 Leed points. The 11,000m², 5-storey, green building focuses on developing automation solutions and products for global markets. Some of the green features of the building include soil erosion measures, water efficient equipment and solar-thermal air conditioning for fresh air requirements. High-efficiency chillers, solar photovoltaic for building lighting have also been used, as well as materials with high recycled content.

METITO HEADQUARTERS Leeds rating: Gold Metito is an international company specialised in the design and supply of water and waste water treatment. In 2007, Metito’s headquarters in Technopark, Dubai was certified as the first green building in the Middle East to receive the Gold Leed after having met green building standards, such as sustainable site development, water savings, energy efficiency and indoor environmental quality.

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CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

ABN AMRO BANK INTERIOR WORKS PROJECT Leeds rating: Gold In December last year, Abn Amro Bank, was declared as a Leed Gold certified building. The bank is located in Dubai Outsource Zone and is a commercial interiors development, which includes call centres and offices. A number of aspects lead to the certification such as the eco-friendly, recycled materials selection; segregation and recycling of waste during operations, recycling and diversion of 75% construction waste from landfill; daylight control; and 100% covered car parking.


> For more top 10s visit www.ConstructionWEEKonline.com

DISTRICT COOLING CHILLER PLANT Leeds rating: Gold Wafi City’s district cooling plant received the Leeds Gold certification from the US Green Building Council in 2006. The utility building had already achieved the Silver Award the previous year but applied to be upgraded soon after. The project was short of a few minor points, which were mainly administrative, but after documents were gathered to prove certain green initiatives the development was accredited with the desired award. The plant utilises energy-efficient chillers and environment-friendly refrigerants and the habitable area of the automated plant has waterless urinals, waterbased paints and other green features.

HOW POINTS ARE DISTRIBUTED ACCORDING TO LEED 2009: Energy and atmosphere - 17 points Achieve points by: Optimising energy performance.

GEORGE DIPIN/ITP IMAGES

Indoor environmental quality - 15 points Achieve points by: Monitoring outdoor air delivery; control indoor chemicals and pollutants; and increase ventilation in the building. Sustainable sites - 14 points Achieve points by: Providing public transportation access; offering pollution prevention plans; reducing light pollution. Materials and resources - 13 points Achieve points by: Reusing building materials; recycle construction waste; and manufacture materials within 500 miles of the building site. Water efficiency - 5 points Achieve points by: Using innovative wastewater technologies; and reducing water use. Innovation and design process - 5 points Achieve points by: Have a Leed Accredited Professional as a principal participant on the project. Additional points for this category are awarded above and beyond 64 points.

LEED CERTIFICATION Rating Points Certified 26-32 points Silver

33-38 points

Gold

39-51 points

Platinum

52-69 points

DIAC IS SET TO SAVE US $626,000 PER YEAR FROM REDUCED ENERGY COSTS.

DUBAI INTERNATIONAL ACADEMIC CITY – PHASE 3 Leed rating: Silver The phase three complex at Dubai International Academic City (DIAC) has become the first certified academic facility in the Middle East. The DIAC, the world’s only free zone dedicated to higher education and a member of Tecom investments, earned Silver Leed certification in June this year and is expected to save approximately US $626,000 (AED2.3 million) per year from reduced energy costs, cooling demand, irrigation water costs, sewage tanker and domestic water costs. Phase three comprises four academic buildings and a food court spread over a built area of 55,741m². Its green features include heat recovery wheels, enhanced levels of insulation, optimisation of fresh air through variable speed drives, recessed windows, and low lighting power densities

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

31


www.ConstructionWEEKonline.com/directory

DIRECTORY

DIRECTORY TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

34 TENDERS 38 PROJECTS SPECIALIST SERVICES 40 Building materials 41 Construction chemicals/concrete 42 Education & training/flooring 43 Recruitment/steel CITY UPDATE 44 Tripoli, Libya

To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

33


TENDERS §

¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

BAHRAIN Issuer: Electricity and Water Authority Tender No: 204/2009/6000 Description: Construction of a multi-storey car park building in Juffair. Closes: September 16 Fees: BHD50 Bond: BHD5000 Contact: www.tenderboard.gov.bh Issuer: Bahrain Electricity and Water Authority Tender No: 226/2009/5310 Description: Supply an underground 11KV power cable. Closes: September 30 Fees: BHD50 Bond: BHD5000 Contact: www.tenderboard.gov.bh

To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com

Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09 Description: The scope of work includes the supplying of spare parts for Al Door Substation. Closes: September 30 Fees: BHD15 Contact: www.tenderboard.gov.bh

THE PPA HAS INVESTED IN THE US $10 BILLION KING ABDULLAH FINANCIAL DISTRICT.

Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09 Description: The scope of work includes the supplying of spare parts for Al Door Substation. Closes: September 30 Fees: BHD15 Contact: www.tenderboard.gov.bh

Tender focus

PUBLIC PENSION AGENCY The Public Pension Agency (PPA), a government organisation based in Saudi Arabia, was set up with the aim to secure financial resources for civil and military pensioners and survivors, as well as activating communication channels between pensioners in all social classes. Recently, the PPA has become known for being the owner of the US $10 billion (SAR37.5 billion) King Abdullah Financial District (KAFD) in Riyadh, a project that will house professionals working in the financial sector and host the headquarters of the Capital Market Authority, the stock exchange, banks, financial institutions and other service providers. In September 2007, the PPA awarded the project management contract for this project to Hill International and in October last year Saudi Oger was handed the main construction contract for two packages within the development. El Seif Engineering is also working on two parcels while Saudi Binladin is working on four. Last month, Construction Week revealed that the client is on the verge of awarding a major design and build contract for 30 parcels of land within the KAFD. The award is expected to be made later this month or early October and will account for the bulk of the development. The contracts, which run over a 30 month period, are expected to be completed by mid-2011 and around 70% of the entire project is due for completion by mid-2012. 

EGYPT Issuer: Potable Water and Sanitary Drainage Company Description: Request of offers from contractors to design and implement lifting stations household connections at villages within Gharbiya Governorate. Closes: September 16 Fees: EGP5000 Bond: EGP660,000 Contact: Potable Water and Sanitary Drainage Company, opposite the court yards complex, Tanta Issuer: Potable Water and Sanitary Drainage Company Description: Request of offers from companies specialised in water and waste water solutions and networks for the design of lifting stations at villages within Kafr El Sheikh Governorate. Closes: October 7 Fees: EGP5000 Bond: EGP500,000 Contact: Potable Water and Sanitaty Drainage Company, opposite the court yards complex, Tanta

OMAN Issuer: Oman Tourism Development Company Tender No: 249/2009 Description: Consultancy services for Oman convention centre. Closes: September 21 Fees: OMR1000 Contact: www.tenderboard.gov.om Issuer: Muscat Electricity Distribution Company Tender No: 250/2009 Description: The project calls for providing distribution Scada system for Muscat Electricity Distribution Company.

34

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009


Closes: September 21 Fees: OMR1500 Contact: www.tenderboard.gov.om Issuer: Oman Tender Board Tender No: 262/2008 Description: The scope of work includes the construction of new Salalah Airport. Closes: September 21 Fees: BHD1500 Contact: www.tenderboard.gov.om Issuer: Majan Electricity Company Tender No: 251/2009 Description: The scope of work includes construction of a new 2x10MVA 33/11KV substation in Tarrif Makhmra, Shinas province. Closes: September 21 Fees: OMR323 Contact: www.tenderboard.gov.om Issuer: Ministry of Manpower Tender No: 244/2009 Description: The scope of work includes construction of a Ministry of Manpower Building at Airport Height. Closes: September 27 Fees: OMR1500 Contact: www.tenderboard.gov.om

Issuer: Oman Wastewater Services Company Tender No: 258/2009 Description: The scope of work includes the development of Al Ansab wetland in Oman. Closes: October 5 Fees: OMR686 Contact: www.tenderboard.gov.om Issuer: Oman Wastewater Services Company Tender No: 258/2009 Description: The scope of work includes the construction of a car park for Haya Water Headquarters in Al Ansab. Closes: October 5 Fees: OMR686 Contact: www.tenderboard.gov.om

QATAR Issuer: Qatar Gas Tender No: LTC/A/1124/09 Description: The scope of work includes landscaping and maintenance services to be carried out at Qatar Gas premises at Ras Laffan. Closes: September 14 Fees: QAR500 Contact: Qatar Gas office, 6th floor, Salam Towers, West Bay, Doha Issuer: Public Works Authority Tender No: PWA/GTC/048/07-08/R2 Description: The scope of work includes the construction of a service building in Um Salal. The entire plot area of the site is 12,439m2. Closes: September 29 Fees: QAR1000 Contact: Contracts department, Public Works Authority

Issuer: Public Works Authority Tender No: PWA/GTC/009/09-10 Description: The design and construction of trunk and internal sewers within Musaimeer. Closes: October 13 Fees: QAR6000 Contact: Contracts department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/010/09-10 Description: Construction of trunk and internal sewers within Musaimeer – phase one. Closes: October 27 Fees: QAR6000 Contact: Contract department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/009/09-10 Description: Construction of trunk and internal sewers within Ain Khalid Area – phase 2. Closes: November 10 Fees: QAR8000 Contact: Contract department, Public Works Authority

SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC A-1011 Description: Procurement and construction of a bridge and intersections to connect the highway with the industrial and community areas at Yanbu Industrial City. Closes: September 13 Fees: SAR9000 Contact: Director of Purchasing, Contracting Department, PO Box 30031, Yanbu Industrial City Issuer: Royal Commission for Jubail and Yanbu Tender No: 113-C60 Description: Supply labour supervision, tools, materials and equipment necessary for the procurement and construction of residential apartment buildings in Jubail Industrial City. Closes: September 14 Fees: QAR1000 Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City

Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City Issuer: Holy Makkah Municipality Tender No: 4/00/00/296/1/2/19 Description: Construction of pedestrian facilities in several areas of Makkah. Closes: October 24 Fees: QAR5000 Contact: www.holymakkah.gov.sa Issuer: Saline Water Conversion Corporation Tender No: 1/2009 Description: Construction of a housing complex in Haql, Dhia and Al Wajh. Closes: October 24 Fees: SAR3000 Contact: Saline Water Conversion Corporation Issuer: Royal Commission for Jubail and Yanbu Tender No: 655-C13 Description: Construction of sports centres at Al Ferdos and Jalmudah. The work includes site preparation, construction of new roads, sidewalks and utilities. Closes: October 25 Fees: SAR9000 Contact: Contracts section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City Issuer: Holy Makkah Municipality Tender No: 4/0/0/296/1/2/19 Description: Construction of pedestrian facilities in several areas of Makkah – phase four. Closes: November 1 Fees: SAR9000 Contact: www.holymakkah.gov.sa Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1613003 Description: Expansion of Royal Commission Medical Centre in Yanbu. Closes: November 10 Fees: SAR9000 Contact: Director of purchasing and contracting department, PO Box 30031, Yanbu Industrial City

ONE TO WATCH Issuer: Public Pension Agency Description: Design and build contract for 30 parcels of land within King Abdullah Financial District. Award date: September/October 2009 Contact: www.pension.gov.s www.pension.gov.saa

UAE

Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1589D Description: Construction of housing units for bachelor medical staff at Haii Al Nawa 3 at Yanbu Industrial City Closes: September 28 Fees: SAR1000 Contact: Director, Purchasing and Contracting Department, PO Box 30031, Yanbu Industrial City

Issuer: Dubai Electricity and Water Authority Tender No: CNE/0114/2008(R) Description: The construction of a water intake channel. Closes:September 13 Fees: AED5000 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE

Issuer: Royal Commission for Jubail and Yanbu Tender No: 325-S13 Description: Operation and maintenance of infrastructure including roads, storm drainage, material handling facilities in Jubail Industrial City. Closes: October 12 Fees: QAR12,500

Issuer: Dubai Electricity and Water Authority Tender No: CNE/0114/2008(R) Description: The construction of a water intake channel. Closes:September 13 Fees: AED5000 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

35

To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com

Issuer: Ministry of Transport and Communication Tender No: 261/2009 Description: The scope of work includes construction of airfield infrastructure for Sohar Airport in Oman. Closes: September 28Fees: OMR1500 Contact: www.tenderboard.gov.om

Issuer: Qatar Petroleum Tender No: GT09109900 Description: Irrigation, landscape maintenance and refurbishment works at Qatar Petroleum locations. Closes: October 4 Fees: QAR500 Contact: Contracts department, operations division, Qatar Petroleum, PO Box 3212, Royal Plaza, Green Wing, 4th floor, room G13, Doha

§ TENDERS

> Check the latest tenders online at www.ConstructionWEEKonline.com/tenders


PROJECTS §

¦PROJECTS A SAUDI ARABIA DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Project focus

KING ABDULAZIZ CENTRE FOR ENTERTAINMENT AND KNOWLEDGE

To list your projects in this section email details to editor@ConstructionWeekOnline.com

The US $400 million King Abdulaziz Centre of Entertainment and Knowledge is set to be built in Saudi Arabia’s eastern province city Dhahran. Currently at design stage, the project resembles a rock mass incorporating five separate buildings. For example, a keystone is suspended between a 17-storey tower and a library ‘pebble,’ which further reflects the appearance of a rock mass. Once completed, the development will contain some 60,000m² of cultural facilities, including an auditorium, cinema, library, exhibition hall and a museum situated underground beneath a landscaped dome. Each of the five buildings will have a unique function and structural geometry, and will be independent and isolated from the other buildings in the landscaped dome. Saudi Aramco – the client on the development – has invited companies to express interest in the tender for the main construction contract, which is expected to be issued this month. The closing date for bids is December, 2009. King Abdulaziz Centre for Entertainment and Knowledge is expected to be opened to the public in June, PROJECT TITLE

THE CENTRE IS DESIGNED TO RESEMBLE A ROCK MASS.

2012. The centre will mark the 75th anniversary of Saudi Aramco, the world’s largest oil producing company. The architect on the project is Snonetta, while Davis Langdon Schumann Smith is the design project manager. Construction is expected to start in Q1 of next year. 

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

STATUS

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - EP CRACKER PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

Kellogg Brown & Root

ISO-OCTANE PLANT AT JUBAIL

Alujain Corporation/Noble Americas

In House

Not Appointed

550

SECOND ALUMINIUM SMELTER IN JIZAN ECONOMIC CITY

Saudi Binladin/MMC Corporation Berhad/Chalco

Not Appointed

Not Appointed

3000

project under study

TANTALUM AND NIOBIUM DEPOSITS AT GHURAYYAH AREA

Tertiary Middle East

St Barbara Consulting/SRK Consulting

Not Appointed

100

project under study

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - POLYCARBONATE PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Asahi Kasei

Daelim Industrial Company

500

project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - EO/EG PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

China Technical Consultants Incorporate

500

project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - PP PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

Samsung Saudi Arabia

400

project under construction

RAS TANURA PETROCHEMICALS COMPLEX

Saudi Aramco/Dow Chemical Company

Kellogg Brown & Root

Not Appointed

17,000

project under design

AL ZABIRAH BAUXITE DEVELOPMENT

Maaden

Bechtel

Not Appointed

2000

project under design

SYNTHETIC RUBBER PLANT AT KEMYA

Sabic / ExxonMobil Chemical

Not Appointed

2.5 - 15

project under design

SAUDI ARABIA

38

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

1200

project under construction

award awaited for the construction contract


PROJECT TITLE

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

STATUS

§ PROJECTS

> For the latest projects information visit www.ConstructionWEEKonline.com/projects

SAUDI ARABIA BLDGTEC/Nukote Coating Systems

Building Technology Trading & Contracting

CAUSTIC CHLORINE/ETHYLENE DICHLORIDE FACTORY IN JUBAIL

Arabian Chlor Vinyl Company

CMAI Consulting Company

Not Appointed

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL 2 DOUBLE - WALL TANKS PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Corporation

Chicago Bridge & Iron

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - LDPE PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

STEEL PLANT IN JIZAN ECONOMIC CITY - PHASE 1

Pan Kingdom Investment Company

JUBAIL 2 EXPORT REFINERY - COKER UNIT PACKAGE

10

400

project under construction

award awaited for the construction contract

40

project under construction

Simon Carves

400

project under construction

Corus Consulting

Sabac

250

project under construction

Saudi Aramco / Total

Foster Wheeler

Samsung/Chiyoda

850

project under construction

ALUMINA REFINERY IN RAS AL ZOUR

Maaden/RCJY/Alcan

Bechtel

Fluor Arabia

6000

project under construction

AROMATICS PLANT IN YANBU

Safra Company

EN Global Corporation/Lurgi/GTC

Hanwha International

400

project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - PHENOLICS PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

Tecnicas Reunidas

1200

project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - AMINES PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia

Samsung Saudi Arabia

300

project under construction

KING ABDULLAH ECONOMIC CITY-ALUMINIUM SMELTER

Emaar/Emal International

Not Appointed

Not Appointed

5000

ALUMINIUM CHIP MANUFACTURING FACILITY IN JUBAIL

Al Ihsa Development Company

Not Appointed

220

PETROCHEMICAL COMPLEX - ETHYLENE CRACKER PACKAGE

Saudi Chevron Phillips Petrochemical Company/SPC

Parsons Engineering Corporation

JGC Corporation

RAILWAY TRACK MILL

Al Ittefaq Steel Products Company

Not Appointed

Not Appointed

SHRIMP FARM & PACKAGING PLANT

Jazadco

PETROCHEMICAL COMPLEX - POLYOLEFINS PACKAGE

Saudi Polyolefins Company

Parsons Engineering Corporation

INTEGRATED FERTILISER COMPLEX - AMMONIA PLANT

Maaden

Technip / Uhde

Haif Trading & Contracting Establishment

1200

250

project in concept stage

award awaited for the construction contract project under construction

project under study

27

project under construction

Daelim Industrial Company

1200

project under construction

Samsung Saudi Arabia/ Uhde

1000

project under construction

To list your projects in this section email details to editor@ConstructionWeekOnline.com

HIGH-TECH COATING FACILITY IN DAMMAM


CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM

Supplier focus

THYSSENKRUP ELEVATOR MANUFACTURER OF ELEVATORS Headquartered in Dusseldorf, Germany, ThyssenKrupp Elevator is one of the leading elevator companies in the world and represented at over 800 locations in more than 60 countries. The firm employs 43,000 employees worldwide. Its capabilities include passenger and freight elevators, escalators and moving walks, stair and platform lifts, passenger boarding bridges, as well as a quality service for all products. ThyssenKrupp Elevator UAE set up independently in Dubai in 2005 as a subsidiary of ThyssenKrupp Elevator AG after winning the largest contract in the history of the elevator industry – more than 800 elevators, escalators, moving walkways and passenger boarding bridges for Dubai International Airport’s Emirates Terminal 3. In recent years, the company has won contracts in the Gulf including the New Doha International Airport and QIPCO’s Tornado Tower in Qatar. ThyssenKrupp Elevator also supplies the Twin elevator system, which has two cabins in one shaft functioning independently, thereby saving on construction costs and increasing the level of saleable space in a building. Another technology offered by the company is the destination selection control in which all calls are distributed considering the shortest time to the destination. ThyssenKrupp Elevator UAE has branch offices in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. 

To advertise please call +971 4 435 6375 or email shishir.desai@itp.com

SPECIALIST SERVICES §

¦SPECIALIST SERVICES

THYSSENKRUP’S TWIN ELEVATOR SYSTEM BEING USED IN GERMANY.

BUILDING MATERIALS

40

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009


BUILDING MATERIALS

HARD LANDSCAPING SUPPLIER

CONCRETE

ยง SPECIALIST SERVICES

> For directory information visit www.ConstructionWEEKonline.com/directory

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

Introducing 4LZ$PPM for the First Time in the Middle East... 8IBUJT4LZ$PPM

XXXTLZDPPMDPNBV

)PX4LZ$PPMXPSLT Absorbed solar heat plus internal heat is radiated out of the building at 08-13 micron wavelength - escaping directly into space

e.g. Roof Temp. @ 41 deg.C (Recorded)

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Benefits: D,ARGE2EDUCTIONIN!IR CONDITIONINGPLANTSIZEANDOPERATINGCOST D-AJORCONTRIBUTIONTO'REENHOUSE'ASABATEMENT

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By Conventional means Roof Temp. @ 56 deg.C

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Interior Temp.@ 41 deg.C w/o 4LZ$PPM

(Steel Insulated & non-insulated Roof)

/FFICES 7AREHOUSES !IRPORT(ANGERS !IR CONDITION .ON !IR#ONDITION3HEDS&LAT2OOF 6ILLASAND#OMPLEXES FOR INQUIRIES, PLS. CONTACT US;

Invented, Developed and Manufactured in Australia...

UAE . Qatar . India (Sole Distributor in Middle East / Nearby Region & India)

CONSTRUCTION/MANUFACTURERS

Fiberglass reinforcing mesh

Tel +971 (04) 2830095 Fax +971 (04) 2830096 Email: ctt@eim.ae P.O. Box 25236 Dubai UAE Pls. visit our website at www.cheqpoint.com

DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae

SPECIALIZED DEWATERING SERVICES: โ€ข Specialized in Deepwell, Wellpoint, Open pumping techniques โ€ข Professional Service OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae

โ€ข Round the clock backup โ€ข Effective Groundwater control SEPTEMBER 12โ€“18, 2009 CONSTRUCTION WEEK

41

To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com

)TS0ERFORMANCE BASEDCOATINGNOTANAESTHETICPAINTORINSULATOR 2EDUCESSOLARHEATLOADSUBSTANTIALLYSAYAPPROXTO#OF)NDOOR4EMP 4LZ$PPMWORKSAS@0ASSIVE(EAT0UMP )SAWATER BASED NON TOXICANDENVIRONMENTALLYSAFEACRYLICPOLYMERMATRIX

Inc infr oming a-re d ra Solar dia tion >93% Reflected


SPECIALIST SERVICES §

¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM

CONTRACTORS/MANUFACTURERS

EDUCATION & TRAINING

To advertise please call +971 4 435 6375 or email shishir.desai@itp.com

FLOORING

HVAC & PLUMBING RELATED EQUIPMENT

42

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

PP CORRUGATED SHEETS


RECRUITMENT

RECRUITMENT

,OOKINGTORECRUITWORKERSFROM

)NDIA .EPAL

"ANGLADESH 3RI,ANKA

0HILIPPINES 4HAILAND

ยง SPECIALIST SERVICES

> For directory information visit www.ConstructionWEEKonline.com/directory

6IETNAM 0AKISTAN

ORLOCALLABOURSUPPLY 7EALSOUNDERTAKE-IGRATION3ERVICETO!USTRALIA#ANADA 4EL&AX% MAILASSIDUAA EIMAE STEEL

STEEL

HEM, IPE, IPN, UPN

STEEL

WOOD AND TIMBER

To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com

SEPTEMBER 12โ€“18, 2009 CONSTRUCTION WEEK

43


CITY UPDATE TRIPOLI, LIBYA

Test time for Tripoli HAVING BEEN SOMEWHAT ISOLATED FOR MANY YEARS, LIBYA HAS REMAINED SOMETHING OF AN UNTAPPED RESOURCE FOR DEVELOPERS IN THE MENA REGION. HOWEVER, ACCORDING TO A REPORT BY RESEARCH AND MARKETS, THERE ARE SEVERAL OPPORTUNITIES, PARTICULARLY WITHIN THE CAPITAL, TRIPOLI By James Boley

A

ccording to a report, Libya is “set to enjoy real annual GDP growth of over 8% from 2008-2011 and remains relatively immune from the international financial crisis”. Economic growth is accompanied by a population growth of around 2% per year in Tripoli – a city drastically under-supplied when it comes to quality housing. Office space also appears to be a likely area for growth.

44

There is almost no international A-grade office stock and less than 100,00m² of dedicated office space in the city. Meanwhile, R&M suggest that purchasing power and demand is increasing. “Growth in sales/ rental prices has been exceptionally high, with an average increase of approximately 65% to 70% in 2007-2008, rising to 150% in certain areas,” states the report. As a result, the country has a US $127 billion (SAR476 billion) five-year redevelopment plan to modernise water and sanitation facilities, and schools and housing.

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

CONSTRUCTION CONTINUES IN TRIPOLI DESPITE UNCERTAINTY.

With this in mind, Tripoli holds a great deal of promise. However the practicalities of doing business in the Libyan capital appear to be discouraging developers. “Everyone’s now flocking to Libya. From what I hear, anyone who’s been to Libya will not go back but those who haven’t been there are quite enthusiastic,” says Simplex Infrastructure country director Ani Ray. His view is supported by Six Construct GM Philippe Dessoy. “We used to work in Libya but we closed the office there. Everything takes a lot of time. You never know when they will start – we had to wait for

“ANYONE WHO’S BEEN TO LIBYA WILL NOT GO BACK BUT THOSE WHO HAVEN’T BEEN THERE ARE QUITE ENTHUSIASTIC”


MAHMUD TURKIA/AFP/GETTY IMAGES PATRICK BAZ/AFP/GETTY IMAGES

THE OIL AND GAS SECTOR UNDERPINS THE LIBYAN CAPITAL’S ECONOMIC GROWTH.

one or two years to get a contract. I don’t see anything changing.” How contracts are drawn up appears to be a particular flashpoint for developers. “What I understand is that they have a rate contract – it is government controlled,” says Ray. “So if they like you, they’ll tell you to go by their rates. If the parties agree, they’ll give you the contract but even that is very loose.” R&M suggest there are still deterrent factors, particularly the fact that most foreign

individuals cannot buy property or land in Libya, although in joint ventures with Libyan companies the foreign party may hold a stake of up to 65%. “Significant incentives are offered to large scale investors, including a five-year corporate tax holiday.” Therefore, it is clear that Tripoli holds potential for developers – but questions still remain over whether realising that potential is still possible. 

TRIPOLI IN NUMBERS: 400,000m² of office space expected to come online between 2010 and 2012. Foreign companies can have a stake of up to 65% in a joint venture.

MAHMUD TURKIA/AFP/GETTY IMAGES

Foreign companies in joint ventures get a tax holiday of five years. Tripoli’s population of 1.5 million is growing by 2% each year. House prices increased on average by 65% to 70% during 2008, and in some areas increased by 150%

INFRASTRUCTURE AND FACILITIES ARE A KEY AREA FOR GROWTH.

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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ConstructSAFE Construction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.

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CONSTRUCTION WEEK SEPTEMBER 12–18, 2009


> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com

Introducing the Construct Safe lead characters (from Left to Right)

experience. Poor health, safety & welfare knowledge

Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge

Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge

Achmat: Construction labourer with little

Illustrations by Jincom Publishing

If you have a health & safety or environment issue that you would like to see addressed through this comic strip email your ideas or comments to editor@ ConstructionWeekOnline.com. Alternatively, log onto www. ConstructionWeekOnline.com to see the comic strip.

SPONSORED BY: Lafarge Middle East (LME)

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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DIALOGUE JEFF WILLIS Green thinking Emirates Green Building Council (EGBC) chairman Jeff Willis talks to CW about his views on the progress made so far in terms of green building and his hopes for the future

By Sarah Blackman

What progress has been made in the Middle East so far in terms of green building?

Some progress has been made, and more will be made, as new regulations and Estidama come into use. Some developers have done more than others. Tecom, for example, has made a significant effort. But we had around 300 buildings that have been submitted to the US Green Building Council (USGBC) for certification and only about three or four of them got through to the end. The reasons for this was probably because of programme cost and because these projects have been approached in the wrong way. You can’t produce a glassfronted building and then expect it to be Leed certified. There have been lots of good intentions at the start but not enough to carry companies through to the future. Why do you think some contractors and developers are discouraged from implementing green initiatives into their projects?

It is commonly and wrongly accepted that greener is more expensive. It is difficult to change mind sets and habits, and here, as in any part of the world, it is difficult to get people to take steps to improve the conditions of operation of a building when the plan is to sell the building on. People have the idea that they wish to build something very quickly and very cheaply in order to sell it at a profit as soon as they can. The Emirates Green Building Council wishes to increase its members by around 30% per year. How will you achieve this?

We want to make people see the number of benefits of belonging to the EGBC organisation by raising our profile, making people more aware of our aims and encouraging them to take part in achieving them. We have increased our members by 30% per year in the past and I suspect, if we manage ourselves very well in the next six months, then we will achieve more than that. Also, we want to increase the variety of our members. We have a lot of contractors, consultants and

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FM managers on board, but not a lot from other occupations in the construction industry and we want to improve on this. There were reports that a regional ratings system for green buildings was going to be implemented in the UAE. Is this still true?

At the moment we are not producing our own rating system. We never were really. We were going to work with the USGBC to produce one that was our own but this also meant that we would have to have entirely our own infrastructure to operate it. The USGBC has changed its process in order to make the system more flexible to use here, which means that one of the main reasons for having our own ratings system has disappeared. So, we didn’t scrap the idea, things changed, which meant it was no longer the right way to go. Will there ever be a certifying body that will serve all of the UAE?

I would like to think there will be and Emirate-wide certified body, but I would not like to guess a timescale. It would also make sense for all building regulations to be consistent across the UAE. Do you think that green building will be a top priority once the downturn is over?

Jeff Willis is an engineer with nearly 40 years experience in the construction industry. He is the Arup representative and a founder member of the Emirates Green Building Council. He currently holds the position of chairman. Willis has been working for Arup for 30 years, located in offices in Europe, the Middle East and the Far East. During that time he has worked on a variety of projects from individual building design to master planning, and in commercial, industrial and transportation and infrastructure design.

CONSTRUCTION WEEK SEPTEMBER 12–18, 2009

The new regulations and Estidama will require that green buildings be a top priority. I think that the international concern with climate change will also bring a focus on green building issues. With the Irena HQ being located in Abu Dhabi, more of an emphasis is likely be put on appropriate technologies and buildings. What are your main aims for 2010?

We would like to establish regular functions, both educational and informative. Furthermore, we want to establish working relationships with government bodies related to green building issues.


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