ANALYSIS ARE FAKE PRODUCTS A SERIOUS THREAT TO THE REAL THING? N E W S • A N A LY S I S • I N T E L L I GE N C E • PR OJECT S • CON T R ACT S • T EN D ER S
AN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY
Back to school American School of Dubai to open in time for term
AUG 14–27, 2010 • ISSUE 332
CONSTRUCTIONWEEKONLINE.COM
Results focused A sector by sector look at critical first half results Page 38
Page 32
‘WE COULDN’T FAIL, WE HAD TO SUCCEED.’ How Keiron Taylor, MD of ALEC, built a billion dollar group in just eight years
COMMENT
CONTENTS AUGUST 14-27, 2010 • ISSUE 332
32
BACK TO SCHOOL Gerhard Hope visits the American School of Dubai in Al Barsha to get a progress update on construction
REGULARS
12 18 20 56
ONLINE EDITOR’S LETTER GUEST COLUMN FOREMEN
INTELLIGENCE
6
EGYPT INVITES TENDERS FOR FIRST NUCLEAR POWER PLANT Egypt is starting an international bidding process this year for its first nuclear energy plant. FINANCE
10
TOP Q3 PERFORMANCE FOR MAZAYA The company’s stock has risen the most among GCC developers so far.
ROUND UP
14
SAUDI CONSTRUCTION GROWTH TO HIT 7% IN 2010 Construction in KSA is being boosted by infrastructure projects.
ANALYSIS
24
FINDING THE FAKES CW looks at the business of counterfeit building materials and the need for regulation.
FACE TO FACE
26
SMART ALEC The MD of ALEC tells CW why his company is worth US $1 billion.
TECHNOLOGY
44
PALM CRANES Greg Whitaker takes a look at a crane anti-collision in operation.
48
STAKE OUT Elizabeth Broomhall talks to the Middle East’s techno-teams to get the latest on survey technology.
ON SITE
32
BACK TO SCHOOL Gerhard Hope visits the American School of Dubai in Al Barsha with an update on the construction progress.
BUSINESS
40
RESULTS ARE IN As the market continues to shift, CW looks at the winners and losers of Q2 based on listed construction companies’ financial results. AUGUST 14-27, 2010 CONSTRUCTION WEEK 3
The most important project, contract and tender information, updated every week
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4 CONSTRUCTION WEEK AUGUST 14-27, 2010
INTELLIGENCE
Egypt is a leading contender to be the first country in the region to develop nuclear power, with tenders looking likely to appear before the year’s end.
The Egyptian government has announced a tender for its first nuclear power plant
H
assan Younes, the country’s electricity and energy minister made the announcement to alAhram newspaper that the ministry had already invited several firms for consultancy and project briefings in preparation for the construction of the new energy plant. Younes said: “Egypt’s nuclear project is progressing steadily and we expect to start the tender before the end of this year.” He added that among those invited to tender were the French nuclear reactor-maker Areva, and engineering group Alstom and Westinghouse Electric Co. The plans are in line with a wider strategy to develop the country’s soft and hard infrastructure in order to attract foreign investors. “Egypt needs to work hard on both development and infrastructure,” the Egyptian General Authority for Investment’s chairman,
6 CONSTRUCTION WEEK AUGUST 14-27, 2010
Osama Saleh told CW. “It would be very hard to attract foreign investors with an extreme deficiency in the infrastructure area.” Egypt has a population of 81 million, growing by 1 million per year – and the power projects are designed to cope with that growth. Last month, the electricity ministry undersecretary, Aktham Abul Ela, announced that a US$1.5 billion joint project to meet demand in Egypt and Saudi Arabia. Egypt will send Saudi Arabia electricity through the connection in the afternoons, and Saudi Arabia will send electricity to Egypt in the evenings, taking advantage of a difference in peak-use hours. The two countries would split the cost of the project – which aims to exchange 3,000MW of electricity between the countries through direct current electrical lines – based on the amount of work on their land. – By Elizabeth Broomhall
INTELLIGENCE For upto the minute tenders log in to constructionweekonline.com
Jeddah mayor flags more road projects
Makkah underlines transport drive
Jeddah is to launch three further road projects this year as part of a ‘comprehensive plan’ to construct 90 intersections in the city, according to its mayor. Adel Fakeih announced the upcoming projects at the official opening of the latest bridge at the intersection between Price Majed and Hira Street. It is the ninth road project to be completed in a year as city authorities battle to reduce the traffic congestion in one of the kingdom’s most populous cities. The overpass is 15.2 m wide and 800 m long, and has been constructed over three levels. The mayor added that work on 30 of the intersections was already in process, including the development of areas to the east of the Haramain Expressway, which will be ready in three months.
Makkah Mayor Osama Al-Bar, chairman of Albalad Alameen announced new tender opportunities for contractors following growth to the public-private initiatives to boost the city’s transport facitlities. Al-Bar is also chairman of Albalad Alameen, a company that is spearheading the transport sector in the city as well as the holy sites of Mina, Arafat and Muzdalifah. The board is composed of private sector and government-backed individuals. “Our company will call tenders to implement a number of projects shortly with private sector support,” he said. Later that day the city’s governor, Prince Khaled Al-Faisal, highlighted the importance of the transport sector in the development of the city into ‘one of the most beautiful and modern in the world’.
Proposed Oman rail network could be up for expansion.
Further rail projects in Oman A proposed rail network to Salalah is to be extended earlier than originally planned according to Omani officials. The Oman Observer reported
that officials aim to include the port city to give the proposed network a broader reach. The Oman National Rail Network will
comprise a double track, standard gauge system with provision for high-speed trains capable of up to 350kph. Initially, however, freight trains will run at between 80-120kph, and passenger trains up to 200kph. All trains will be diesel-electric, powered by overhead powerlines. More than 30 companies have registered to pre-qualify for contracts relating to the engineering design and supervision consultancy services. The process is expected to be completed by the fourth quarter of this year, with a short-list of 15 extracted and invited to tender for the work.
TOP TENDERS Construction of 10 Classrooms Mixed Basic Education School at Wadi Al Arabiyeen Country: Oman Closes: Aug 23, 2010 Category: Buildings Issuer: Ministry of Education Design and Construction of Service Roads at Tiwi Country: Oman Closes: Aug 23, 2010 Category: Infrastructure Issuer: Ministry of Transport and Communication The Ain Humran Houses Project in Salalah Country: Oman Closes: Aug 23, 2010 Category: Buildings Issuer: Ministry of Tourism Construction of Yanbu Power and Desalination Plant Country: Saudi Arabia Closes: Sep 22, 2010 Category: Power & Water Issuer: Saline Water Conversion Corporation Rehabilitation of All Fire Fighting System at Shuqaiq Plant Country: Saudi Arabia Closes: Aug 22, 2010 Category: Infrastructure Issuer: Saline Water Conversion Corporation Construction of 380-kV Ras AlZour Substation Country: Saudi Arabia Closes: Aug 21, 2010 Category: Power & Water Issuer: Saline Water Conversion Corporation Annual Maintenance of Track Roads in Al Dakhliyah Region Country: Oman Closes: Aug 2, 2010 Category: Infrastructure Issuer: Ministry of Transport and Communication Jaber Ahmed Al-Jaber Al-Sabah Bridge (Al Subiya Connection) Country: Kuwait Closes: Aug 8, 2010 Category: Infrastructure Issuer: Central Tenders Committee Construction of 380-kV Ras AlZour Substation Country: Saudi Arabia Closes: Aug 21, 2010 Category: Power & Water Issuer: Saline Water Conversion Corporation AUGUST 14-27, 2010 CONSTRUCTION WEEK 7
INTELLIGENCE For upto the minute tenders log in to constructionweekonline.com
TOP TENDERS
CCC wins contract for Abu Dhabi palace Athens-based Consolidated Contracting Company earlier this month was selected to construct the new presidential palace in Ras Al-Akhdar, Abu Dhabi. The palace will house the offices of HH the president, HH the Crown Prince, as well as ministers. It will be set on a 150 hectare site, including the palace, which will be 160,000m2, according to RW Armstrong, the project manager for the massive project. RW Armstrong is undertaking a design review of the development, encompassing the architectural, civil and MEP work among others and is also involved in the assessment of tenders for all the works. The large collection of ancillary buildings, which will be spread over a site of 23,000m2, will include a public majlis, a mosque, staff and military accommodations, a services compound, and various gatehouses and watchtowers.
Housing complex, Phase 2 Buildings Country: Saudi Arabia Closes: Jul 31, 2010 Category: Residential building Issuer: Saline Water Conversion Corporation Housing Complex in Different Areas of Saudi Arabia - Phase 2 Country: Saudi Arabia Closes: Jul 31, 2010 Category: Buildings Issuer: Saline Water Conversion Corporation Construction of New Ahmadi Hospital & Residential Building Country: Kuwait Closes: Jul 27, 2010 Category: Industry Issuer: Kuwait Oil Company Refurbishment of Several Pumping Stations - Phase 8 Country: Qatar Closes: Jul 27, 2010 Category: Power & Water Issuer: Public Works Authority Construction of Royal Commission Public Housing Country: Saudi Arabia Closes: Jul 25, 2010 Category: Residential development Issuer: Royal Commission for Jubail & Yanbu
The palace will include the UAE’s presidential offices.
Qatar Petroleum enters Algerian cracker project Qatar Petroleum was drafted into the joint venture of France’s Total and Algeria’s Sonatrach to construct an ethane cracker in Arzew, Algeria, following a change to government rules that demanded a greater stake for the local partner. A source told Construction Week that Sonatrach, the largest oil and gas company in Africa, had originally award the US$5 billion construction project for the cracker solely to Total, with the French company owning a 51% stake in the venture.
Supervision Consultancy Services for an IWPP in Salalah Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: SAOC
But a change in laws has demanded Sonotrach as the dominant partner, with Qatar Petroleum brought in to take a 10% share of the project that comes out of Total’s stake. “The Algerian government has accepted the entrance of QP in the project, and to hold 10% of the project,” said the source. “Now the Algerian and the French government have arrived to an agreements allowing QP to control 10% of the project, Total 39% and Sonatrach 51% of the project.”
Upgrading of Khuwair South Substation Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: SAOC EPC for Upgrading Water Supply System at Kumzar Plant Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: SAOC
MATERIALS PRICE CHECK
$3.27
$748.67
$3.81
$32.67
$4.36
$72.15
$98
$721.45
$14.97
$580
$10.88
Alum. profiles
Beech wood
Cement
FF plywood
Glass
MDF
Ready mix
Red meranti
Scfldi planks
Steel
Steel props
Per tonne
Per piece
Per tonne
Per piece
Per kg
3
Per m
Per bag
8 CONSTRUCTION WEEK AUGUST 14-27, 2010
Per sheet
Per m
2
3
Per m
3
Per m
FINANCE STOCK MARKETS
Mazaya tops Q3 so far for developers Al Mazaya Holding’s stock has risen the most among GCC developers so far this quarter. Shares in the Kuwaiti company grew 27% from KD85 at the beginning of July to KD108. The company had posted six-month net profits of KD2.533 million, down 75% against the same period in 2009. Barwa Real Estate, the Qatari developer of Barwa City, was the closest climber, up 9% to QR31.2 on 8th August, with Emaar Properties edging up 3.5%. Elsewhere price changes were almost flat for Deyaar Development, Saudi’s Dar Al Arkan and Saudi Real Estate Company and United Development Company. Aldar Properties has seen a decline of 19.8%. Dubai’s Grand Real Estate Projects Company fell from AED26 to AED22 in six weeks.
Al Mazaya has a diverse portfolio in Kuwait (above) including villas and the Clover Medical Centre.
Against the grain Al Mazaya’s resurgence in July runs against declines for rivals. Al Mazaya Holding Half year
Aldar Properties PJSC Half year 5.50
160 150 140 130 120 110 100 90 80
Jan
Feb
Mar
Apr
May
Jun Jul
5.00 4.50 4.00 3.50 3.00 2.50
Jan
Feb
Mar
Apr
May
Jun Jul
Expert Views Saudi Basic Industries Corporation (SABIC) The firm is a steel giant. Will our stock watchers view it as a golden opportunity?
Saudi Basic Industries Corporation (SABIC) has been one of the most traded stocks by value this year in Riyadh, and its recent multi-million Riyal investment in its fertilizer division, to make it more environmentally friendly, certainly seems like it is a company with strong cash flow. On the construction side, the company is one of the dominant steel suppliers; two months ago Argaam, the market data provider, found that it was the biggest individual supplier to the region. Its share value has flitted between SR84 and SR90.5 since the start of the quarter. Most analysts from the three continents
10 CONSTRUCTION WEEK AUGUST 14-27, 2010
researched by ConstructionWeek like the look of this SR264.75 billion company. In June Justin Tantalo at Calyon Credit Agricole Chevreux believed the stock would outperform its 19.7 benchmark. This was followed by a ‘buy’ recommendation by Scott Darling, an analyst at Nomura in London, who also predicted a return of 27.7%. Last month Hassan I Ahmed at Alembic Global Advisors in New York posted an overweight position in the stock, as did AlexComer at JP Morgan Chase. Most recently, on 3rd August, Sriharsha Pappu at HSBC Bank Middle East was also overweight.
THE VERDICT
BUY: Stock pickers indicate no reason why one of the kingdom’s biggest companies cannot thrive.
FINANCE
Going public:
TEN BIGGEST RISERS
New deal:
30
15
Union Cement Company: Gulf Cement Company: Kuwait Buildings: National Industries Co.: Hilal Cement Company: Fujairah Building: United Projects Group: Specialities Group: Saudi Arabian Amiantit: Nass Corporation:
rise in AECOM net income (US millions) for third fiscal quarter against 2009
value of KEC project (in Saudi Riyal billions)
9.4%
2.8%
fall of the Tadawul’s cement index since 7th March
fall in tender price forecast for 2010 (BCIS)
KEC and Al Jouf list on AECOM swoops for Saudi exchange Davis Langdon Knowledge Economic City and Al Jouf Cement listed on the Tadawul stock exchange, although questions still remain as to the success of their initial public offerings launched in the second quarter. The two sets of shares went live last Monday and Wednesday respectively, as announced by the Capital Markets Authority. The KEC is the investment vehicle that will oversee the development of the ‘Smart City’ in Madinah. Al Jouf Cement Company, a Riyadh-based manufacturer and marketer, both retail and wholesale, issued the equivalent of half its total outstanding shares. The offer price for the 65 million shares was be SR10 per share and closed on 13th July. The company has a market capitalisation of SR1.02 billion.
+13.57% +9.46% +7.62% +6.81% +6.56% +5.96% +4.72% +4.13% +3.82% +3.77%
TEN BIGGEST FALLERS
AECOM, the US technical support provider, bought project consultant Davis Langdon for US$324 million earlier this month as its construction-related portfolio of firms continues to grow. The Los Angeles-based firm, whose building consulting arm Maunsell merged with Gulf-based Cansult in 2006, is to take on board the 2,800 employees of the consultant, which operates globally in a number of sectors. Davis Langdon offers a number of services including cost management for projects in rail, utilities, hotel, retail and commercial building market, among others. Its previous local projects include the Abu Dhabi International Airport. The company has offices in Dubai, Abu Dhabi and Bahrain.
RAK Co for White Cement: RAK Ceramics: National Cement: Arkan Building Materials: Qassim Cement Company: Salbookh Trading: Kuwait Co. for Portland: National Marine Dredg.: National Ranges: Saudi Vitrified:
-6.25% -5.05% -4.8% -4.73% -4.24% -3.67% -2.48% -2.13% -1.99% -1.91%
SECTOR INDICES: Banking: +4.55 Insurance: +10.96 Fin & Inv : +4.51 Real Est & Constr: +20.48 Transportation: -1.39 Utilities: +7.21 Materials 0.00 Consumer Staples 0.00 Telecoms 0.00
+0.53% +0.38% +0.25% +0.74% -0.29% +1.08% 0.00% 0.00% 0.00%
(Data accurate as of close 8th August 2010)
Update 10 latest school and university projects updates PROJECT TITLE
LOCATION
STATUS
VALUE / VALUE RANGE (US$)
CONSTRUCTION OF THREE NEW SCHOOLS AROUND DOHA AND VILLAGES - PACKAGE 5
Qatar
Construction
46,000,000
CONSTRUCTION OF FOUR NEW SCHOOLS AROUND DOHA AND VILLAGES - PACKAGE 2
Qatar
Construction
54,000,000
EXPANSION OF LABORATORIES AT THE SHUWAIKH UNIVERSITY CAMPUS
Kuwait
Construction
100,000,000
PRINCESS NORA BINT ABDULRAHMAN UNIVERSITY IN RIYADH
Saudi Arabia
Construction
11,500,000,000
CONSTRUCTION OF ADMINISTRATIVE BUILDING IN AL-SHUWAIKH
Kuwait
Construction
250,000,000
REFURBISHMENT OF 13 SCHOOLS AROUND DOHA AND VILLAGES
Qatar
Construction
11,000,000
EDUCATION CITY - ISLAMIC STUDIES CENTRE
Qatar
Design
TBC
CONSTRUCTION OF EDUCATIONAL FACILITIES AT JALMUDAH DISTRICT
Saudi Arabia
Construction
21,000,000
DEMOLITION & RECONSTRUCTION OF ALI IBN ABI-TALEB ELEMENTARY SCHOOL
Kuwait
Construction
8,600,000
GIRLS SCHOOL IN CORDOBA
Kuwait
Construction
11,000,000
AUGUST 14-27, 2010 CONSTRUCTION WEEK 11
ONLINE Getty Images
For breaking news, analysis, interviews, tenders and projects, log on to constructionweekonline.com
MOST POPULAR
1 2 3 4 5
CCC wins Abu Dhabi presidential palace contract Traffic chaos after sinkhole opens up in Kuwait World’s largest clock to start tests in Ramadan AECOM buys Davis Langdon for US$324 million Iran courts controversy with London embassy
IN PICTURES
Khaled Al-Ghosaibi (above) said the five-year plan was in line with wider development goals.
Saudi ministers endorse $373bn five-year plan Saudi Arabia’s Council of Ministers has endorsed the Kingdom’s Ninth Five-Year Development Plan (2010-14), a US$373 billion plan that details spending on the nation’s infrastructure and welfare projects for the next half decade. Just over half the money will be set aside for “manpower development”, including education and training, while social development and healthcare will receive 19% of the total budget. The remaining amount will be split between economic resource development (15.7%), transport and telecommunications (7.7%) and municipal services and housing (7%). Economy and Planning Minister Khaled Al-Gosaibi told Saudi reporters that the five-year plan was prepared in line with a long-term strategic vision aimed at achieving sustained development. Apart from fighting poverty, it focuses on providing housing, employment, education, health care and other services and facilities. “Increasing economic growth, improving the living standards and quality of life of citizens, and achieving balanced development of the kingdom’s regions are some of the plan’s main objectives,” the minister said.
SPOT POLL How will the ban on BlackBerry services effect your business?
44%
Huge. Our business relies on the services for worldwide communication.
24%
20%
12%
It’s going to be a problem but we’ll work around it.
No effect whatsoever.
It’s an annoyance. I hope they find a solution before the ban.
12 CONSTRUCTION WEEK AUGUST 14-27, 2010
Sowwah Island, Abu Dhabi CW visits the project at the heart of the city’s financial future
LATEST FEATURES
Analysis Ben Roberts takes a detailed look at the uses and benefits of copper in construction. Analysis Elizabeth Broomhall unravels the truth behind the claimed advantages of construction computer software. Interview Ben Roberts talks to Damac’s GM Ziad El Chaar about contract awards and delivery in a competitive market.
ROUND UP
PROJECTS
Saudi construction growth to hit 7% in 2010, says BMI Saudi Arabia’s construction industry will grow 7% this year as infrastructure continues to be central to the government’s expenditure plans, a new report has estimated. Business Monitor International made the forecast based on the $80 billion of infrastructure projects underway as well as those in the pipeline for the future. Based on the number of ongoing projects, BMI analysts said they are optimistic for the medium term outlook for Saudi Arabia, with average real growth of 4.13% forecast per year between 2010 and 2014. “Although not exactly booming, considering the size of the industry, it is strong growth,” the report said. Industry value is forecast to rise from SR92.2 billion to SR122.48 billion over the same time period, the report added. “This is couched in strong fundamentals for continued demand for
construction projects, from housing to transport.” The kingdom’s ‘strong native population’ has been a key cause of the demand for infrastructure, along with government commitment to invest in the sector, it added. Analysts added that projects are likely to be pushed through even if private financing is unavailable. Saudi Arabia’s construction sector grew 4.71% in 2009, according to the Saudi Arabian Monetary Agency above BMI’s estimate. “This strong growth in the face of difficult access to credit and a global recession illustrates just how resistant the Saudi Arabian construction industry is,” BMI’s report said. Housing would be one of the strongest sectors, BMI added, as the government plans to invest heavily in affordable housing to meet a substantial shortfall. Investment in utilities is also planned.
Magnificent seven: Strong growth is predicted for Saudi construction.
In Quotes “We’ve learned from some of the master developers in the UAE what went wrong, and we are working very hard to prevent that happening.” Mubadala senior architect ABDULLAH AL-SHAMSI on Abu Dhabi’s Sowwah Island project.
14 CONSTRUCTION WEEK AUGUST 14-27, 2010
“Everyone knows there are business lifescycles, and definitely real estate is tied to the credit market.” Damac Properties general manager ZIAD EL CHAAR.
“Dubai is not as it was before, but there is still work. Dubai passed through a period which was a bit unnatural to the extent of there being too much work.” Al-Futtaim Engineering (AFE) Elevator Division GM SYED SHAMSUL HAQ.
ROUND UP
Around the GCC 3 1 2
1. BAHRAIN
Abandoned workers leave Bahrain Most of the 113 Indian workers left stranded at a camp without food, money or power are to leave Bahrain by next week, it has emerged. Labour Market Regularity Authority officials said 95 of the men will return to India after the company they had been working for handed back their passports. The workers claimed they had not worked or been paid for three months, and that their employers had cut power to the camp and told them to leave after stating the company had no more work available and could no longer afford to pay rent or bills for the camp. The Labour Ministry and Indian Embassy intervened to resolve the issue.
General President of the Laborers’ International Union of North America TERRY O’SULLIVAN on the state of the US construction industry.
5
4. QATAR
Premier Inn checks in to Doha Dohaland and Premier Inn is to build a 200-room hotel as part of a joint venture. The hotel will be built in Education City, home to some of the world’s top educational institutes. It shall be administered by Dohaland Hospitality, which is part of the effort to promote tourism and hospitality.
2. KSA
3. KUWAIT
5. OMAN
Work is due to start next year on the expansion of the King Fahad Causeway linking Bahrain and Saudi Arabia, which will handle up to 100 million passengers a year. The plan includes the construction of two artificial islands: one located on the Bahrain side of the causeway, the other on the Saudi side. Saleh Al Khileiwi, Saudi customs manager and King Fahad Causeway director-general, told reporters that tenders for the project will soon be issued.
Sanitary drainage works under a road are suspected to have caused the massive sinkhole that obstructed traffic flow last week. The Ministry of Public Works is currently cooperating with the Ministry of Interior to find out the cause of the sinkhole, which occurred on the sixth ring road next to Amghara bridge and towards Al-Jahra City. The new sanitary drainage line is being laid at the site of the incident, from Al-Jahra station to Kabd station .
Jotun Paints, the paint and coating supplier, has launched its Colour Trends 2010 range in Oman. The 2010 collection comprises 17 new vibrant shades, including both classic and modern hues. The collection has three ranges: Jazz Up, Pure Nurture and Mystic Elegance. “The upbeat investment outlook in the Omani consumer and construction sectors makes it a very important market for us,” said Espen Solberg, sales and marketing manager, Jotun Paints.
Causeway work to start in 2011
“In July, our nation shed another 11,000 construction jobs and employment in the industry fell to its lowest level in 14 years.”
4
Drainage blamed for sinkhole
Jotun boosts Oman range
AUGUST 14-27, 2010 CONSTRUCTION WEEK 15
ROUND UP
Bahrain faces social housing crisis
FREDERIC J BROWN/ AFP / Getty Images
The waiting list for social housing in Bahrain has reached critical levels, according to regional real estate consultants CB Richard Ellis. There are around 53,000 households on the waiting list, with demand growing by up to 4,000 per year – beyond the rate at which the government can address the problem. "The situation looks set to worsen in the short term,” the report says. Social housing is offered to Bahrainis earning less than BD400 per month. Affordable housing, the next step up from social housing, has two main difficulties, according to the detailed report. Firstly, Bahranis don’t see an apartment as a logical step towards ultimately owning their long term home. Secondly, due to recent 'rampant' land trading, 'prices of land earmarked for low density residential development have risen sharply'. “When the costs of construction are added in, it is simply not possible for developers to meet the demand for 'affordable' housing,” the report says.
PICTURE PERFECT
LABOURERS WORK AT AN IRON AND STEEL PLANT IN HUAIBEI, in eastern China's Anhui province on July 31, 2010. Manufacturing in China contracted for the first time in 16 months in July, an independent survey showed on 2nd August, lifting Chinese shares on hopes that policymakers will refrain from any new tightening moves.
BUSINESS
Fibreglass plant to create 1,200 jobs A new $200m fibreglass plant in Bahrain’s International Investment Park in Hidd will create up to 1200 new jobs and boost the local economy, according to officials. The facility is part of a joint venture between the Chinese Chongqing International Corporation (CPIC) and S&A Abahsain Company. Abahsain already has an operation in BIIP, which started production last August after it invested $65 million. The current facility has an output
of 60,000 tonnes of fibreglass. The 45,000m2 plant will have an annual capacity of 210,000 tonnes of fibreglass products. PROJECT
Iran's UK embassy causes controversy London residents have asked Prince Charles for help to
prevent a bold new design for Iran’s embassy from getting the chance to be built. The appeal comes just weeks after the royal heir’s intervention in the design of the Chelsea Barracks site, to be developed by Qatari Diar. Iranian architect Armin Hohsen Daneshgar defended his six-storey marble and stone structure, which will act both as an embassy and a cultural centre. “I believe the problem is not with the design of the building but more probably with the function of it being used as an embassy," he said.
In Numbers
324m
Amount, in US dollars, AECOM paid for project consultant Davis Langdon
16 CONSTRUCTION WEEK AUGUST 14-27, 2010
40m
Amount in US dollars the delayed Tubli bay project is worth
350
Train speed (kph) the Omani rail network is designed to cope with
ROUND UP
PROJECT
WS Atkins to help expand Kuwait City WS Atkins, the international consultancy, is to develop an expansion plan for Kuwait City in line with the country’s 2030 initiative. The project will take about 13 months to complete and will focus on turning the city into a world financial centre, the Kuwait Times reported. “It's expected that in the year 2030, Kuwait's population will touch five million. We have to be prepared for this increase to avoid complications,” Dr Fadhel Safar, minister of public works, told the paper. WS Atkins and a local consultancy firm not named in the report will also study
the city’s roads infrastructure and public transport network in a bid to reduce congestion in the city as its population continues to grow. Construction work will begin about a year after the study has been completed and approved, Safar said.
PROJECT
BUSINESS
The world's largest clock tower under construction in the Makkah will begin testing in the first week of Ramadan, it has been announced. The 601-metre Makkah Clock project, which has been developed by engineers from Germany and Switzerland along with specialists from Europe and around the world, will be fully completed after three months in operation. The tower will be the tallest in the world and will be able to be viewed from a distance of seven kilometres. Located near the Grand Mosque, the project has attracted some controversy because of its placement.
A $400 million solar-grade polysilicon plant is to be built in the UAE following the formation of MBM Solar Holding. It will be the first upstream plant of its kind in the region. According to MBM, locally-produced polysilicon will be price-competitive to Chinese imports and cut around project lead time.
Makkah clock to undergo testing
UAE to get $400m polysilicon plant
CONTRACT
Emcor wins Al Ain mosque contract Emcor Facilities Services won a three-year AED62 million contract to provide maintenance for 650 mosques in Al Ain, including the servicing of the MEP equipment.
TDIC Construction Opportunities Pre-Qualification Invitation for Al Bateen Wharf, Main Contract Works - Phase 2 Tourism Development & Investment Company (TDIC) hereby invites suitable Contractors with commensurate experience to undertake the Phase 2 Main Contract Works for Al Bateen Wharf. The works include three basement car parking structures and G + 2, Mixed Use Retail, Food & Beverage Outlets, 2
Community Centre, Yacht Club and a Yacht Marina. The approximate built up area of the plots (P6 & P7) is 52,300m . Contractors who meet the criteria can register their interest and request a Pre-Qualification Document (PQD), at bateenwharf@tdic.ae before 16th August 2010 and arrange for the collection of the PQD by 23rd August 2010 from: Tourism Development & Investment Company Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi Conditions and Rules: Interested companies must demonstrate successful delivery of relevant construction projects that meet the following requirements: 1. Recent experience on projects similar in size, character and complexity. 2. Be a major registered construction company with representation in the UAE. 3. Have had a minimum annual company turnover for construction activities within the UAE of AED 1,500 million in each of the last 3 years. 4. Successfully completed 5 projects each in excess of AED 500 million within the UAE in the last 3 years. 5. Be prepared to be one of up to ten short-listed companies willing to submit a construction works tender under a single stage competitive tender process. A non-returnable payment (in the form of a manager’s cheque made payable to the Tourism Development & Investment Company) of AED 25,000 will be required at the time of collection of the PQD. Responses to the PQD must be submitted in a sealed envelope no later than 4pm on 31st August 2010 to:
Prequalification for Al Bateen Main Contract Works (P052 – C08) Tourism Development & Investment Company Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi
www.tdic.ae
COMMENT
STUART MATTHEWS
BlackBerry jam
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or some, October 11 is going to be a traumatic day. They will be cut off from the services of an increasingly ubiquitous business and social tool, as the UAE’s Telecommunications Regulatory Authority hits the off button on the BlackBerry’s messenger services. According to a ConstructionWeekOnline spot poll, communications turmoil could be awaiting some 44% of the construction industry’s BlackBerry users, who see the phone’s services as an essential business tool: 22% think it’s a problem they can work around and 20% think its no problem whatsoever. It’s likely to be the bigger contractors and firms affected. The BlackBerry deals offered at an enterprise level are designed to get the phones into everyone’s hands and have been effective in doing so. The wide reach has made international communication easier for companies whose staff travel between projects around the region. It has also helped with getting information to site more quickly. That said, at least one project manager I know is actually breathing a sigh of relief. A self-confessed Luddite, he frequently bemoans incessant updates and will not miss the feeling of constant contact. His employers may be less thrilled. Swift conveyance of information has undoubtedly upped the pace of progress and companies have introduced new systems based on the availability of the technology. A sudden change in that availability may set things back. 18 CONSTRUCTION WEEK AUGUST 14-27, 2010
The phone’s addictive qualities had earned it the informal moniker ‘CrackBerry’. A recently converted colleague can testify to the truth of this. Since buying one, he has become increasingly dependent on the happy ping of incoming mail; his unimpressed girlfriend had her silence bought with an engagement ring. He will soon return from holiday to find himself on a cut-off countdown. There’s unlikely to be a BlackBerry patch to help wean him off, but he’ll definitely be richer; personal data contracts are pricey, even by the byte. For companies, the true cost is yet to be measured. So far all the fuss has been about the loss of service, but the cost of finding alternatives will soon loom large. An IT manager who runs servers for a modest legal outpost of a global law firm, made an offthe-cuff estimate of US $300,000 to get a competitive replacement up and running. This doesn’t include the cost of their handsets, which can just be sent overseas. Nor does it account for the fact that it means a portion of the global company will be using an inconveniently different system. The good news is it may make it more difficult for those lawyers to track their billable hours, while on the phone. As we went to press, the Saudi government, which was also threatening to block services, was in reach of an agreement with the phone’s makers. Construction users in Dubai will be hoping for a similar result, or they could find themselves in a BlackBerry jam.
JOSEPH EID/AFP/Getty Images
Will construction companies find themselves caught short come October 11?
Last call: could the UAE be saying goodbye to this business tool?
So far all the fuss has been about the loss of service, but the cost of finding alternatives will soon loom large.
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SURPREME BUILDING TECHNOLOGY
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Door Technology | Automatic Door Systems | RWA and Ventilation Systems | Safety Technology | Glass Systems
BEWEGUNG MIT SYSTEM
COMMENT
ORLANDO CROWCROFT
Ticked off Orlando Crowcroft asks if Mecca really needs a 600 metre high clock tower
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EW COULD DENY THAT SAUDI
Arabia needs the housing units, metro lines and office buildings that have been springing up in the nation in the last couple of years. But while mega projects in Riyadh, Al Khobar and Jeddah have been largely praised by outside observers, the development of the holy cities of Mecca and Medina has been more contentious. This week, the Saudi government is due to unveil the Mecca Clock Tower, the 601metre tall building that currently looms over the Grand Mosque and will soon be home to some of the world’s richest Muslims, Saudi royals and wealthy pilgrims, at the 1,005 room Fairmont Hotel. It is clear that the clock tower is a magnificent feat of construction, with a huge footprint, five separate towers and the clock tower centrepiece, which will be six times the height of London’s Big Ben – not to mention making it the second tallest building in the world. But equally, it is easy to see why the monumental project is controversial. Last month Saudi architect Sami Angawi hit out at the project in an interview with Middle East Architect, while online blogs and forums, as well as ConstructionWeekOnline readers, have expressed alarm at a tower that will be visible from anywhere in Mecca. The clock tower may be the biggest development to happen in Mecca since the Grand Mosque itself, but its critics see it as just one in a long line of projects that have collectively decimated the historic fabric of
20 CONSTRUCTION WEEK AUGUST 14-27, 2010
Islam’s holiest city. Like Jeddah, Mecca’s old buildings are seen more as an inconvenience to city planners than a part of city’s heritage – as a result, they are increasingly making way for malls and metros. Five years ago, the Independent reported that fewer than 20 structures remained in Mecca that date back to the time of the Prophet (PBUH). Those that have disappeared include the house of Khadijah, the wife of the Prophet (PBUH), demolished to make way for public lavatories, and the house of Abu Bakr, which is now the site of the local Hilton hotel. It is little surprise that money is the ultimate cause of this sorry state of affairs. Mecca now welcomes some 13 million visitors every year, and boasts hotels and malls that would give Dubai or Doha a run for their money. At the current building rate the city could have 80,000 hotel rooms by 2015, and plans to expand the size of the mosque again will bring even more pilgrims to Mecca in the coming years. Meanwhile, the Saudi national airline, Saudi Arabian Airlines, generates 12% of its income from the pilgrimage. Fares paid by pilgrims to reach Mecca by land also generate income; as do the hotels and lodging companies that house them. Investors are catching on. A 2008 report by the Saudi British Bank, one of the kingdom’s biggest lenders, estimated that £15 billion will be invested by foreign and Saudi companies in construction and infrastructure in Mecca by 2012.
It is understandable that the Saudi authorities want to develop Mecca. More and more pilgrims will want to visit Saudi Arabia’s holy sites, as travel to the kingdom gets both cheaper and easier. Those pilgrims will need hotels, and places to eat, and transport, and developments such as the Mecca clock tower will cater to these people – albeit only the very wealthiest of them. The kingdom is also not alone in ignoring its architectural heritage during its drive towards modernisation. China, for example, has systematically destroyed the historic heart of cities like Beijing and Shanghai in its push to get city-dwellers out of the hutongs and into high-rise apartments. But despite all this, it is easy to see why recent development has got many so upset. Mecca is not a modern, evolving city like Shanghai or Riyadh, and it is too important to become little more than a tourist destination for the super rich. At the same time, Saudi Arabia has already come under fire for failing to protect the historical districts of cities such as Jeddah, and with Mecca the stakes are far higher. As for the clock tower, if it had been built in Riyadh, Jeddah or Damman, I would probably be praising it right now for both for its significant achievements in terms of both engineering and construction. But, as it happens, Mecca has had a major landmark for the last 1,400 years, and it is difficult to see why it needed another. Orlando Crowcroft edits Middle East Architect.
ONLINE COMMENT The duty used to protect this industry in the GCC. Now in the present grave market situation, the removal of duty will just bring an end to local industry. As a matter of fact the anti-dumping council in Riyadh had suggested in a finding to add $40/T for merchant product imports, but that has been rejected. Turkey, CIS and China are also dumping. Thus with this measure we would be killing the local industry of steel converters. We sincerely hope that over and above the duty, protection, as suggested by the anti-dumping council, should be implemented, to protect local industries, who have already invested huge amounts and take care of providing significant employment to locals. BHASKAR DUTTA Is lighting really a big worry when it comes to a building’s power consumption?
RE: New fibreglass plant creates 1,200 jobs in Bahrain
RE: Black hole sun While I completely agree with the article regarding the use of solar panels, I was again annoyed by the assumptions made by western experts regarding similar issues in the Middle East. This time it is the assertion that lighting can account for up to 50% of a building’s total power consumption. This is so off the mark I am left wondering. In this region, air conditioning far outstrips lighting accounting for 60-80% of consumption. The energy requirement for air conditioning is so high it is not really fair that lighting comes into it. SAHAR NAJIB KHARRUFA RE: Iran courts controversy with London embassy
Victorian aspic. Shameful. JACK
RE: Import duty for steel and cement to be scrapped
Beautiful design set to be built on an ugly old carpark. Hopefully the dull Kensington nimbies and their cheerleader, the duller Prince Charles, will not be able to stop this. London is organic and might be here for another millenia. These people want to preserve it in
I have seen this plot empty since 1980, opposite from the site is the Elysee French school. It is a wonderful design and just like the locals, it’s modern. I think the objections come because it is the Iranian Embassy, just as it did way back in 1980. AMETIS
The removal of import duty for the GCC will have a severe effect on the local manufacturing industries, who convert semis to finished products. There is not enough capacity of semis in the GCC and all such industries rely on imports. Thus the additional freight cost has to be borne.
22 CONSTRUCTION WEEK AUGUST 14-27, 2010
If you create 1,200 new jobs and they are all going to expatriates, then why do you think this is bringing anything to the national economy? DOCTORE MO
RE: Abandoned labourers head home from Bahrain What about the employer company? Has it been penalised? EMKAYBEE What about the sponsor of the company? Where is the humanity? TINA KING To submit a letter, write to editor@ constructionweekonline.com or by post: Construction Week, PO Box 500024, Dubai, UAE. Letters relate to stories posted on www. ConstructionWeekOnline.com, not just those in the print magazine. Please provide your full name and address. Letters may be edited for space and style. Submission constitutes permission to use. You can also log in to www. ConstructionWeekOnline.com to join the conversation.
Leaflet.ai
7/22/10
11:27:48 AM
ANALYSIS FAKE MOUNTAIN: This pile of fake pumps was seized after Sharjah authorities busted the dealer.
Finding the fakes Counterfeit building products and materials has become a huge business that will require diligent market attention and regulation to halt ast-growth construction activity gives opportunities to innumerable firms. Foreign companies enter whichever country is building, local companies innovate, deals are struck and prices across the supply chain become a battle ground for margin. But for some building materials and products suppliers there is a significant downside to this international mix and healthy competition – the proliferation of counterfeit products. Sharjah last month saw a dramatic example of construction’s black market. Following a discovery by Italian electric pump manufacturer Pedrollo that products bearing its name were offered in a showroom in Dubai by Chinese firm Shano International, with its main storage in Sharjah, the Economic Development Departments of Sharjah and Dubai swooped on the outlet, claiming and destroying 13,750 pumps based on the Pedrollo design. The value of the pumps was estimated at US$ 1 million, according to Pedrollo’s general manager Joseph Gomes.
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24 CONSTRUCTION WEEK AUGUST 14–27, 2010
Gomes says this is an issue the company has fought for a number of years in Italy, and that the only resolution is a collective effort from all companies affected. “After 15 years the problem is yours, the problem is mine, the problem is everybody’s. It has become a global problem, and we need to fight it globally, not individually,” he says. The impact of counterfeit goods goes beyond the loss of sales, or even the infringement on copyright, manufacturers say. Low quality copies of products for MEP and finishing work can present significant risks to an unsuspecting end user. Pedrollo points out that a genuine electric pump from their factory contains a copper-enamelled motor winding part at the centre. The fake versions contain motor winding parts made of aluminium. “If electricity is passing through inside the motor and the copper is not high quality, then automatically the motor will burn, then catch fire,” adds senior sales executive AN Natesan.
15-30
percentage of counterfeit goods in Saudi Arabia, estimated by Hemaya Universal
11 million
estimated number of containers reaching Dubai each year
700 million estimated value of black market products in UAE (2006)
ANALYSIS For upto the minute analysis log in to constructionweekonline.com
Gomes adds that the pumps go through a year of internal testing before it is brought to the market. When fake versions appear on the market soon after an official launch, they typically lack any certification to an international standard, nor have they been through any testing. It was the second major haul from the Sharjah department in the last quarter. At the beginning of April inspectors destroyed thousands of expired and defective LPG cylinders. HE Ali bin Salem Al Mahmoud, SEDD general manager, at the time outlined the three-point approach by the department that resulted in the successful claim. “Firstly, we monitor the market and seize any LPG cylinders flooding in through a variety of unauthorized distribution channels; secondly, we regularly check the cylinders in the market and exchange the defective and expired ones; and thirdly, we launch awareness campaigns to raise public awareness on the safe use of LPG cylinders, and to educate the public to reject defective and expired cylinders,” he said. Black market opportunities arise when providers cannot fulfil orders at the official market price. The size and speed of growth seen in the last decade, in places like Dubai, increases the need for quick and cheap products that can be sold on. Even in markets that have seen slower growth, such as Oman, a deficiency of supply leaves holes for rogue traders, especially when they are one step ahead of authority action to balance the market. From 2007 to 2008, the country had suffered a shortage of cement as the number of developments increased. In 2008 two Asians were arrested for selling counterfeit cement above market rates in the Wilayat of Ibri in the Sultanate. It was less than ten days after the Chamber of Commerce and Industry announced it was considering a revision to its import duty, to help reduce the local cost.
Fake funds Counterfeit products is a business worth billions every year
$200 – (billion) in pharmaceutical drugs $100 – (billion) counterfeit electronics $64.82 – (billion) prescription drugs $60 – (billion) web video piracy $51.4 – (billion) software piracy $2 – (billion) counterfeit airline parts $850,78 – (billion) Other
Source: Havocscope Black Market Products
Saudi Arabia has not been immune to fake goods either. Ahmed Al-Dedy, a manager at Exova Company in Saudi Arabia, revealed in a whitepaper earlier this month that Saudi Arabia loses more than SR41 billion from commercial fraud. In the first half of 2010, eight million counterfeit items were confiscated, he found. In the UAE, Gomes says it is important that consultants and contractors are aware of the proliferation of fake merchandise, but, more than that, he says there needs to be a better regulatory framework to act as both protectorate and deterrent. An AED 5,000 flat fine for a rogue trader is too low and needs to be proportionate, he adds, and traders found guilty should have their licenses revoked. “A trader may have sold ten containers and may be losing a small amount of money [in fines],” he adds. “[The authorities] are on the right track, but not much is done to safeguard the companies that are investing millions into Dubai’s economy.” AUGUST 14–27, 2010 CONSTRUCTION WEEK 25
FACE TO FACE
26 CONSTRUCTION WEEK JUNE 5–11, 2010
FACE TO FACE
SMART ALEC A period of consolidation for industry and company has not stopped the contractor’s astute development of its business lines. Kez Taylor, managing director, outlines why the company is now worth $1 billion By Ben Roberts
I
n the ascent of Dubai and Abu Dhabi’s building markets over the last decade Al Jaber LEGT Engineering & Contracting (ALEC)’s building business grew from almost nothing to a US $1 billion company. Winning its first contract in January 2002 for the Mina a’ Salam complex – commissioned by His Highness Sheikh Mohammed, Vice President and Prime Minister of the UAE and Ruler of Dubai, no less – the company and its managing director, Keiron ‘Kez’ Taylor, haven’t looked back, except perhaps to marvel at the dramatic decade just gone. “We’ve been through the two extremes: a massive boom whereby the only restriction was your capacity – whatever it was, you could perform at that level – to an extreme where you are consolidating where it’s a tight market,” says Taylor in the company’s office in Dubai Industrial City. Alec has another office in Abu Dhabi, and Taylor points out that the more challenging market conditions in the region’s contracting markets has resulted in a ‘huge shift’ in business from the former to the latter. But when it comes to some of the company’s projects – in particular the AED 4.5 billion contract to build the third concourse for Dubai International Airport – calculating the work split between the two emirates is not so straight forward. “The airport is a huge job in terms of resource, and we have a lot of people here working on it. With that project the split in business is about 60% Dubai and 40% Abu Dhabi in terms of work, value and turnover,” he says. “If we didn’t have it, it would be a totally different mix – I’d say 80 or 90% of business based in Abu Dhabi. There has been a huge shift towards Abu Dhabi.”
Alec’s construction business has produced some large and eyecatching projects. Its growth and attraction to developers has allowed it to work on major projects across the two emirates in retail, airports, hotels as well as high-rise buildings. This has included work on hotels and golf clubs on Saadiyat Island and Yas Island in the capital, both the Abu Dhabi and Dubai international airports, the Dubai Marina mall and the ambitiously green Mirdiff City Centre, and the multi-purpose Madinat. The company was forged through a joint venture between Al Jaber Group and Grinaker-LTA, a multi-disciplinary construction firm in South Africa. After a few years Al Jaber bought out the shares from Grinaker-LTA and offered 20% of them to what is now the current management. But Cape Town-bred Taylor and around 8% of the staff retain the connection to South Africa. Graduating in construction management in University of Witswatersrand in Johannesburg, Taylor’s association with Grinaker-LTA began with a bursary at the firm. The company’s joint venture with Al Jaber took him north east in October 2001, to Dubai, to help set up the construction division of Alec. Within three months, the company had snapped up that all-important mandate from Dubai’s ruler. As he looks back now on that first project, he smiles: “We couldn’t fail, we had to succeed! That was the first project and it was a very quick programme. We had to building it in 17 months in time for a conference and we successfully did that.” Over the last few years Alec has grown by adding new business lines – sensibly termed Related Businesses – that complement its AUGUST 14–27, 2010 CONSTRUCTION WEEK 27
FACE TO FACE
Dubai International Airport: the company is working on the expansion of the site, specifically Concourse 3, which will help accommodate passengers from the new A380 superjumbo.
core construction strength, and in a sense fill in the gaps along the contracting chain. These include MEP work, fit-out, ceilings and partitions and architectural precast. “These related businesses complement what we do as activities,” says Taylor. “The reasons for setting these up are that they assist us to complete our projects in a timely and integrated way.” Of the MEP work, now four years old, he adds: “At the time we were struggling to find good, confident MEP contractors with the capacity who could meet our kind of demands. That pretty much started it off, and we decided: let’s start up an MEP arm. It’s been very successful.” The Qasr Al Sarab Desert Resort & Spa project, a 156-room five-star hotel in the Liwa Desert, is one such project in which the company has been mandated for MEP work. It is also providing the same service for the Park Hyatt Hotel on Saadiyat Island (in a joint venture with TransGulf ), a proj-
“If you can be participating in the design and getting it integrated with the construction, what you end up with is a much more costeffective result.” ect for which it is also main contractor – a good example of Alec’s ability to work on multiple parts of a project based on its expanded suite of services. “This is pretty much a resort design, right on the beach and will be the first operational hotel on Saadiyat Island,” he notes. “We have completed the structures and are now busy with the finishing.”
Saadiyat Island is also the venue for the company to explore ways in which it can use technology to build more environmentally beneficial buildings. “We’re looking at a project now on Saadiyat Island that has a glazed roof,” he explains. “We are investigating whether you can utilise photovoltaic glass sections that can be incorporated into the design.” The process by which subsidiary businesses are created is a matter of accommodation, he says. Alec typically brings in specialists who are known in the industry, often those the company has worked with before. There is a degree of fluidity in bringing in new talent – the companies are not tied exclusively to Alec and so their range of experience as to how the rest of the market is building can only increase. The work by its ceilings team on the 587,000m2 Mirdiff City Centre mall, the second biggest shopping centre in the Middle East, is a key example.
ALEC HAS BEEN IN THE UAE SINCE 1999 • AED215 m WAS ITS FIRST CONTRACT 28 CONSTRUCTION WEEK AUGUST 14–27, 2010
FACE TO FACE
Dubai Marina Mall while in construction (above and below).
“Alec is an umbrella – a platform whereby these businesses can flourish and operate,” Taylor explains. “If you look at Mirdiff City Centre, Alec did all the ceilings and there was no issue in holding up the project. It was actually a benefit that we had the in-house business and the expertise to do that job – and there was about 80,000m2 of ceiling there. “I think what we strive for is to pull off jobs on time. We have a track record of completing projects on time and that’s what we try to achieve.” The Yas Links Golf Club House on Yas Island saw the company win an even wider mandate, this time driving both the design, construction, MEP work, ceilings, fit-out and pre-cast components in an AED 195 million contract from Aldar Properties, the developer. Taylor points out that although the company might end up working on more elements of a single project than before,
THE BIG DEALS: Dubai: • Dubai Marina Mall & Hotel/ Apartments – AED2.25 bn • Mirdiff City Centre – AED2.3 bn • Kempinski Hotel – AED407 mn • Madinat Jumeirah Resort (phase 3) – AED382 mn • Al Manzil & Qamardeen Hotels – Burj Dubai- AED255 mn • Mina A’ Salam – AED215 mn Abu Dhabi: • Qasr Al Sarab Desert Resort & Spa – AED1.4 bn • Manarat Al Saadiyat – AED350 mn • Yas Links Golf Club House, Yas Island – AED195 mn • Abu Dhabi Airport Terminal 1A & Terminal 2 – AED177 mn
THE COMPANY’S MEP AND PRECAST DEPARTMENTS WERE ESTABLISHED IN 2006 AUGUST 14–27, 2010 CONSTRUCTION WEEK 29
FACE TO FACE
The Mirdiff City Centre mall opened in March.
the input from the consultant remains the same. But he is adamant that closing the gap between design and construction is vital for producing the most cost-effective building. “A lot of the delays in construction are in design flow,” he says. “So if you can be participating in the design and getting it integrated with the construction, what you end up with is a much more cost-effective result. Often a designer working in isolation without a specialist contractor working side-by-side doesn’t always end up with the best result. “We found we can add a lot of value in that process; our specialist MEP guys will know what equipment is most cost effective than if a designer is in isolation.” It is an argument likely to gain more credence as cost saving becomes a daily priority for developers across the region. “By working together you can get a lot of value. It’s not just about the cheapest price up front. It’s been proven in research that a good designer will save a developer up to
5% [when] coupled with guys in tune with their business; you can end up saving a development substantial amounts of money. “Often the wrong choices are made, and maybe once a decision is made it is difficult to change down the line, as everyone is under pressure time-wise.” Talk of efficiency brings him onto the latest business line that Alec is considering: facilities management. This would be through its MEP business, he says, and there are clear benefits in being able to use the knowledge of how a building has been constructed and finished to provide ongoing maintenance. But the growth and success of the subsidiaries and the portfolio of renowned projects does not detract from an undeniable reality in the wake of the economic slowdown: the market is contracting, and with it the companies. Taylor – who admits that like a lot of firms there have been staff cut-backs – says that overall, a period of contraction is a good thing. “As opposed to growth, you’ve got to say: ‘what is a sustainable business going into the future?’ “We feel our present size is probably sustainable. We can refocus internally on efficiency, and utilisation and making sure we’re working well together. You’ve got to diversify and you’ve got to look at expand-
ing geographically. I think it would be quite difficult to grow and just focus on this market in the current scenario.” With an eye on Qatar – notably due to the presence in that market of its parent Al Jaber – Taylor is particularly excited by the opportunities in Oman. Though the country will probably be always modest in scope, the potential for the areas of construction in which the company has proven itself – hotels, multi-use complexes, and airports – present a horizon of possible new developments. “Oman is beautiful – the country is upgrading the airport, and tourism will definitely be on the up there,” he believes. “The kind of work that happened in Oman we feel suits what we are looking at.” He emphasises that choosing new countries in which to expand needs to be done with care. It is partly down to the demand in the market and also assessing what that market needs next. “Pretty much our strategy is to follow select clients into specialist knowledge into areas of operation. Alec has done large retail centres, as well as completing a line of resort hotels in the UAE. Now we’ve looked at taking very specialist knowledge – with an ability to construct and sometimes be part of the design – into others areas.”
BIOGRAPHY Kez Taylor studied a Bsc. Building (Construction Management) at the University of Witwatesrand in Johannesburg. Starting his career as a bursar for Grinaker-LTA, Taylor’s career has seen him work throughout South Africa, Namibia and Zambia, before transferring to the Middle East to establish a building operation in the UAE in 2001. He has more than 22 years experience in construction management and project execution in building works, including nine years’ experience in the UAE working for ALEC. He is married to Micheline and has two sons.
10 MONTHS TO BUILD THE YAS LINKS GOLF CLUB HOUSE (AED195m CONTRACT) 30 CONSTRUCTION WEEK AUGUST 14–27, 2010
ON SITE
Back to school Gerhard Hope visits the site of the new campus of the American School of Dubai (ASD) in Al Barsha to update progress on this fast-track project 32 CONSTRUCTION WEEK AUGUST 14–27, 2010
ON SITE TEAM GAME: From left: Mushtaq Patel, assistant safety officer; Pradeep Panakkada, senior HSE project in charge: MEP, Dubai operations; Ahmad Shaker, manager of projects; Rami Farouq, electrical engineer; Yousef Syed Ahmed, electrical project engineer; Mr. Karam, mechanical engineer; Zahir Akram Hamad, mechanical project engineer; Yagoob Ali Al Manzeer, mechanical engineer; and Mohammad Khatibur Rahman, project manager.
AUGUST 14–27, 2010, 2010 CONSTRUCTION WEEK 33
ON SITE
ON SITE
SCHOOL DAYS The school is heading toward a September 14 opening.
T
h American he A i School S h l off Dubai b i (ASD) is a fast-track project being carried out by Al Ahmadiah Aktor. The anticipated opening date of the new campus is 14 September, to coincide with the new academic year. This fact is putting added pressure on the construction team, which includes DG Jones & Partners as project managers, and RMJM, an architectural firm that specialises in school design. The AED85 million MEP works was awarded to Drake & Scull International (DSI).
34 CONSTRUCTION WEEK AUGUST 14–27, 2010
The design of the new campus has incorporated the latest sustainable trends, with wind patterns and orientation being considered carefully in terms of the direction and placement of structures. In order to conserve energy, the buildings have been designed so that windows are not in direct sunlight, while special shadings have also been added. DSI manager of projects, Ahmed Shaker explains that the company’s works are progressing well, and running in line with the tight schedule.
“The main challenges h ll h have b been th the timeframe and complexity of design,” says Shaker. “Schools and hospitals, for example, cannot be compared to commercial projects like apartment buildings. They are far more complex structures that require careful integration of multiple requirements.” DSI is not unfamiliar with the rigours of working on educational facilities, with Zayed University in Dubai and KAUST in Saudi Arabia already under its belt as topnotch achievements in this specialised field. ASD superintendent Harold Fleetham says
FACE TO CE ONFACE SITE
th t while that, hil there th are 973 students t d t at ASD’s existing campus, the new campus has been designed to cater for around 1 600, with a phased enrolment scheduled to take place in stages. The first year will see approximately 1 400 students enrolled, with the balance gradually introduced later. The new campus is divided into two separate schools, separating the elementary (comprising kindergarten to Grade 5) and secondary levels (comprising middle school and high school).
Shaker says the project site is 92 903 m2. The total gross internal floor area is 58 622m2. In comparison, the existing campus is 31 424m2. Designed to withstand the inclement UAE weather, the new campus is also expected to set a benchmark for educational facilities in the region in terms of quality, aesthetics and technology. AUGUST 14–27, 2010, 2010 CONSTRUCTION WEEK 35
ON SITE
Integrated Described as an ‘integrated, world-class facility’, it will feature an auditorium, black-box theatre, field house, running track, regulation soccer field, other large playing fields, separate elementary and secondary gyms, two swimming pools, elementary play areas, secondary school and elementary school libraries, two cafeterias, music rooms, meeting spaces, a wireless school environment and landscaped garden areas. In addition, DSI was also responsible for the security system, which has been designed to the highest international standards, which posed its own challenges to achieve within the larger civils framework, says Shaker. 36 CONSTRUCTION WEEK AUGUST 14–27, 2010
86 11 1600
The number of air-handling units deployed at the school
The number of Daikin-McQuay chillers on the school’s roof
The total number of students the school will cater for when finished
Shaker explains that DSI’s involvement has focused on five sectors. Sector A comprises the plant room and chiller yard, Sector B is the admin building and theatre, while Sectors C to E are made up of classrooms, laboratory facilities and playground areas. There are 11 rooftop Daikin-McQuay chillers, and 86 air handling units (AHU) in total. “We have opted for AHUs and a variable air volume (VAV) system, as opposed to fan-coil units, as the former is far more flexible, as well as providing better environmental control.” The extensive cabling needed for the chillers was completed in a record two weeks.
FACE TO ONFACE SITE SPECIALIST SKILLS Specialist requirements, such as labs, make school building a greater challenge than regular residential work.
Electrical load There are twelve primary chilled water pumps and eight secondary pumps. The air-con system is ducted, with preinsulation internally and galvanized iron (GI) sheeting externally. The total electrical load is 10MW, with two substations and nine transformers in total, says Shaker. “A big challenge was that we passed the DEWA inspection with flying colours,” says Shaker. “We received high praise for our high level of completion in terms of the substations. From the air-con point of view, we will be flushing wild air through the system by the
“Schools and hospitals cannot be compared to commercial projects like apartment buildings. They are far more complex structures that require careful integration of multiple requirements.” – Ahmed Shaker end of July, and deliver chilled water soon thereafter,” says Shaker. “We proud ourselves on our professionalism, attention to detail and quality and our speed of delivery – all attributes that have stood us to good stead on this flagship project,” concludes Shaker. AUGUST 14–27, 2010, 2010 CONSTRUCTION WEEK 37
COMPANY DETAILS
RESULTS ARE IN As the market continues to shift, CW looks at the winners and losers of the first half of this year of the listed companies based on their financial results By Ben Roberts
F
ollowing CW’s stock stars analysis in June, the magazine has followed 16 major listed companies in construction that had disclosed their half-year results at deadline. Though the last six months has seen the launch of many new projects in this year’s financial powerhouses – in particular Abu Dhabi and Saudi Arabia – it is clear that the GCC construction industry’s health can only really be gauged when companies are seeing the numbers in black and white on their balance sheets; whether through materials sales, contract revenue or a return on a project under development.
DEVELOPERS The last half-year has been dominated by the financial restructuring of Nakheel and with it an overall caution from a number of developers. Deyaar, for example, in June walked away from the opportunity to manage the Skycourts residential project after a two-year association with the development. A quieter market for new buildings has also brought a renewed drive to complete projects. Damac Properties, a private company, has pledged to deliver many of the projects launched two and three years ago and is aiming for a handover of 4,000 units by the end of this year.
38 CONSTRUCTION WEEK AUGUST 14–27 2010
AL MAZAYA HOLDING Gross profit: AED55.32 million Net profit: AED32.6 million (down from AED128.7 million) Sales highlight: Al Mazaya has management teams in Dubai and Kuwait and offices all over the GCC. Projects include Health Care City and nine plots in the Downtown Jebel Ali development in Dubai and the Seven Zones Design Centre in Kuwait – which is complete with 75% rented out - and the Clover Medical Centre. It also has three towers in Riyadh.
UNITED DEVELOPMENTS COMPANY (UDC) Gross profit: QR288.187 million Net profit/operating profit: QR353.25 million Sales highlight: Dohabased United Developments Company’s biggest project by far is the Pearl Qatar, of which the Pearl Qatar Company is a wholly-owned subsidiary of UDC. The work in progress was valued at QR3.59 billion in the company’s last financial statement. The value of its assets that are considered work-in-progress increased from QR2.764 million to QR3.593 million. Net profits were 96.5% attributable to the owners of the company; 3.5% to the noncontrolling interests. Its noncurrent assets have risen since the end of last year, from 4.856 million to QR5.273 million.
ALDAR PROPERTIES PSJC
EMAAR PROPERTIES Gross profit: AED2.324 billion Net profit: AED1.562 billion Sales highlight: The company has 24% of properties in the Burj Khalifa, the world’s tallest tower and a project critical to the company’s success in its home market. Emaar recorded an increase in revenue for the second quarter of 37% compared to the previous period in 2009. Mohamed Alabbar, chief executive, pointed to the growing diversification of the business, “with an increasing share from the rental and hospitality operations”.
Gross profit: n/a Net loss: AED789.5 million Sales highlight: The company has seen a significant dip in sales in the last half-year, which has resulted in revenues falling by more than a half compared to the same period last year, from AED1,068.1 million to AED427 million. However, it has increased investment in investment in projects under construction since the end of last year, from AED17.9 million to AED21.225 billion and says it has apparently secured more than AED1.5 billion of additional financing. It is hopeful that the end of this year will open the floodgates of income following the completion and handover of several key developments.
COMPANY DETAILS
CONTRACTORS ARABTEC HOLDINGS Gross profit: AED436.6 million Net profit: AED301.7 million Sales highlight: The company’s revenue for the first half has decreased by more than AED1 billion from AED3.9 billion to AED2.8 billion, even though its direct costs seem to have declined by a similar proportion.
NATIONAL MARINE DREDGING COMPANY Gross profit: AED296.164 million (up from AED195.634 million in 2009) Net profit: AED296.355 million Sales highlight: NMDC’s contract revenue increased since the half-year last year, from AED532.2 million to AED950.3 million. Its net profits include its operating profit, which was AED288.2, up from AED188.9. The net profit is up on the AED195.747 in the first half of last year, which saw AED188.747 in operating profits.
MATERIALS Materials suppliers have almost certainly seen a reduction in price for their products, generally through the ongoing dip in construction projects in their home countries, in particular those in the UAE. Some companies, such as Saudi Cable Company, have signed big contracts recently with Saudi Electricity Company, the state-owned power giant, and have also seen revenue from the manufacture of its own copper. Cement suppliers, as highlighted in the finance pages of the last issue, have experienced a mixed year so far, though analysts point out that this is dependent on your country of domicile. Qatar National Cement, for example, has a near
monopoly on cement production in the country. It has also reduced the amount of cement it is importing, which also cuts the overall cost of sales, and has boosted home-grown production. Companies in Saudi Arabia, Qatar and Oman have the advantage over UAE counterparts in receiving energy subsidies from their respective governments. Steel suppliers have also experienced a difficult market, with some suppliers in the UAE reporting losses on steel imported and then sold locally by as much as AED200 a tonne. However, other suppliers, such as Zamil Steel, have been testing the production lines of new plants.
SOUTHERN PROVINCE CEMENT COMPANY
CEMENT & GYPSUM PRODUCTS
Gross Profits: SR712.2 million (down from SR723.7 million in 2009) Net profits: SR375 million (down from 412.3 million in 2009) Sales highlight: The first half saw sales of SR586.61, down from the SR870.8 million posted for the first half of 2009. Net profits for the first quarter of this year fell 5.3% on what it called the “lower sale incentives” and the effects of the import ban that has been in place since mid-2008. The export ban itself, imposed on the back of high international prices for cement and a threat to local supply, has led to a saturation in the market and thus a decline in prices.
Gross loss: OR131,601 (against a gross profit of OR479,971 in 2009) Net loss: OR298,971 (2009 profit: OR356,339) Sales highlight: The only company of the list to suffer a gross loss, turnover was more than half that of last year, from OR1.34 million down to OR565,114. It attributed the fall in sales to a limbo period between the completing projects and preparing for upcoming projects.
40 CONSTRUCTION WEEK AUGUST 14–27 2010
COMPANY DETAILS
QATAR NATIONAL CEMENT Gross profits: QR258 million (up QR87 million) Net profits: QR256.7 million (up 1.3% from QR253.3 million last year) Sales highlight: The company saw a 32.6% fall in revenues, which was cushioned by a fall in the cost of sales by more than half to QR328 million – an unusual result among its cement rivals. This was due to the introduction of its fourth plant last year, which meant it no longer needed to import cement to meet local demands, it said in the financial results. Rajat Bagchi at NBK Capital described the results as “very solid numbers”, and pointed out that the company had grown greatly in the last few years from a capacity of around 1.5 million tonne of cement to around 5.5-6 million today. “The company was making a loss on the imported cement as there is a price cap in the country of QR250 per tonne,” he added. “That loss would have now vanished as it is making more of its own.”
OMAN CEMENT COMPANY
GULF CEMENT COMPANY Gross profits: AED302.4 million Net profits: AED37.36 million Sales highlight: Its statement shows a great increase in its exports, from AED7.4 million for the first six months last year to AED115.7 million this year, though this part is as yet unaudited, though the firm also saw an 11.9% increase in these sales’ cost.
Gross profit: OR13 million (up from OR12.2 million) Net profit: OR18.285 million (up from 11.178 – 63% up) Sales highlight: Cement sales dropped to 919,314 MTS from just over OR1.1 million MTS. The company imported more clinker and cement this year to respectively keep its production up and meet local demand. This year the company has received more than OR7 million in compensation from the government. Imports are expected to decline, though the management highlighted the “stiff competition” from rivals. NBK Capital highlighted a drop in clinker imports fell 44.3% when comparing the second quarter of this year and that of 2009. A doubling of clinker production should lead to increased margins (forecasted at 46% for 2010), a “strong free cash flow” linked to its listed shares, and a strong investment portfolio were the four reasons given for the company becoming NBK Capital’s ‘top pick’.
RAYSUT CEMENT COMPANY
OMAN CABLE INDUSTRY COMPANY
Gross profit: OR34.4 million (down 30.5% on last year) Net profit: n/a Sales Highlight: During the first half of 2010, total revenue was down 30.5% to OR34.4 million, excluding the government reimbursement, compared to last year. Rajat Bagchi at NBK Capital points out that the decline in total revenue was mainly due to a 46% drop in domestic revenue to OR10.7 million. Domestic cement volumes decreased by 40.4% to 364,000 tonnes during the second quarter, which according to management was due to the increased competition from the UAE.
Gross profits: OR8.248 m (2009: 5.107m) Net profit: OR4.024 million (2009: OR1,006 m) Sales highlight: Sales reached OR91.5 million this year, up from OR75.9 million in the first half of 2009, up 20.4%. The company says the Oman market continues to be positive, with international sales “slowly recovering”. The company is enhancing its production capacity. Earlier this year the board approved US$15 million for the expansion of its highvoltage cable production.
AUGUST 14–27, 2010 CONSTRUCTION WEEK 41
COMPANY DETAILS
RAS AL KHAIMAH COMPANY FOR WHITE CEMENT & CONSTRUCTION MATERIALS Gross profit: AED49.607 million (unaudited - down from AED48.9 million last year) Net profit: AED28.39 million (down from AED50.15 million last year) Sales highlight: Though the company saw a 14% increase in sales compared to the first six months of last year, from AED141 million to AED160 million, an increase in the cost of sales ate away at gross profits. Net profits succumbed to higher administrative costs and adjustments in its securities portfolio. Perhaps unusually, the company saw its biggest sales increase in the UAE – by just over AED11 million – against an increase in sales for the rest of the GCC of AED8 million.
AL ANWAR CERAMICS COMPANY SAUDI BASIC INDUSTRIES CORPORATION (SABIC) Gross profit: SR24.05 billion Net profit: SR10.45 billion Sales Highlight: SABIC – although perhaps more well-known internationally as a top producer of fertilizers and chemicals – is one of the Middle East’s biggest steel suppliers. Its increase in profits has been attributed by the company to “the increased production and sales volumes with the new capacity coming on-stream at SHARQ, YANSAB and the joint-venture with Sinopec in China,” it said. “Additionally, the improved pricing environment for most of the products had a positive bearing on the consolidated financial performance.”
Gross profit: OR9.185 million (up from 4,203,641 last year) Net profit: OR2.822 million (up from 2.601 million in 2009) Sales highlight: Al Anwar Ceramics produced 5.124 million metres2 of tiles, signifying a 5% increase over the previous year. All three production lines are operating at peak capacity, the company stated, adding that it has been able to reduce its prices based on greater efficiencies. Gross sales revenue during the period increased by 9% to OR9.185 million. “We are encouraged by our sales in Oman where we continue to be market leaders,” it said.
SHARJAH CEMENT & INDUSTRIAL DEVELOPMENT
1.5 30%
billions of AED in finance attracted by Aldar Properties
percentage increase in sales volume this year of Emirates Steel, an unlisted firm 42 CONSTRUCTION WEEK AUGUST 14–27 2010
Gross profit: AED26.921 million (down from AED129.369 million, H1 2009) Net profit: AED20.6 million (down from AED103.787 million last year) Sales highlight: AED312.553 million was down from AED560.295 for the six months last year. The company’s turnover has dropped almost 44% due to what it calls the “substantial reduction in market price for cement”. This fall has been rapid, seeing a net loss for the second quarter of AED3.268 million compared to a Q2 profit in 2009 of AED52.4 million. Management added that both local and international stock markets have further deteriorated – “the company’s portfolio was impaired,” it said.
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COLLISION PREVENTION
Palm cranes Greg Whitaker looks at a crane anti-collision system in operation
L
et’s face it; building sites are generally pretty grim places to work. A bleak landscape with heat, dust and occupational hazards are quite the industry norm out here. While there is little that can be done about the heat and the dust, the other aspects are a little better on the site that CW is visiting today. For one, the skyline is far from bleak, thanks to the ever-changing vista across the Arabian Gulf, but more importantly the workplace hazards have been reduced, thanks to a modern anti-collision system fitted to the tower cranes working on site. To be fair, this site is hardly the most complex in terms of cranes. Five fixed-jib Korean units are working on the resort which will comprise of the main hotel block, shaped roughly like a ‘W’, with a further block on the back. The rest of the development has half a dozen other buildings, plus various smaller structures, the shape of which is becoming apparent now that the formwork system is beginning to rise out of the ground. BREAKWATER The project itself is quite interesting. Situated on the breakwater of the Palm Jumeriah, next to the Atlantis Hotel, this is surely one of the most prime real estate sites in the world, whatever the economic climate. Mirk General Trading owns the local franchise of posh French hotel chain Sofitel and it has appointed Mirk Architectural and Engineering as the lead consultant and Evan Lim – Penta Construction as the 44 CONSTRUCTION WEEK AUGUST 14–27, 2010
COLLISION PREVENTION SITE SWING An anticollision system helps to prevent these cranes from getting too close.
Tight spaces Cranes also face dangers on very tight workspaces. Here are a couple that are currently jammed in a tight site in Singapore. Bovis Lend Lease construction superintendent Geoff Barrow says that the irregularshaped site has a 95 m frontage on Orchard Road and 70 m on Somerset Road, with the other two sides hemmed in by other buildings. Sited directly above one of the busiest stations on Singapore’s metro and with Stamford Canal running through the site, space for the contractors has been severely constrained. “We are very tight for space on this site, with buildings on either side of us,” says Barrow. “Conventional tower cranes would have been very limited in operational terms and might not have given us the construction speeds we need. The luffing jib cranes have however resolved the problem.” Liebherr’s HC-L series of luffing jib cranes has been designed to work in extremely restricted spaces, while still able to slew through 360 degrees. Barrow says that the building will be 45 m in height, which means that the 37.5 m tower height of the 160 HC-L coupled with the high placing power of the jib makes this model right for the project. The cranes are located in two of the lift shafts of the building, with the contractor having had no other choice but to place the foot of the cranes in the middle of the temporary course of the Stamford Canal, temporarily diverted while construction work is underway.
The cranes fit on site in a ‘curved oblong’ shape.
Crane operators can’t afford to be distracted by the view.
main contractor. Because the development is on the curved breakwater of the Palm, it is not completely symmetrical. Instead it resembles a kind of ‘curved oblong’ and as such the pattern that the cranes have been divided into meant that there are overlaps on each, as well as ‘no hoisting areas’, namely zones that the cranes are not permitted to slew into. Working on separate structures at the same time, means that communication might not always be clear between teams, and as such the project manager took the decision to install an anti-collision system known as the AGS AC3. ACCURACY Like most operations there is a need and an obligation to measure the wind speed accurately. This is why part of the system includes an anemometer, a device not dissimilar to the airflow meter on a car, and works similar in principle to an old fashioned weather vane. This is linked to a real-time display showing the wind speed, and a siren sounds and AUGUST 14-27, 2010 CONSTRUCTION WEEK 45
COLLISION PREVENTION
The anti-collision system is wired into the frame.
An engineer inspects some machinery. The CPU of the system (below) is unobtrusive.
The site looks bare, but is now rising fast.
lights flash if this speed is exceeded. This is a fairly fundamental piece of kit on any tower crane, but the box sullied to the Sofitel site can be further enhanced with an orange flashing beacon and a very loud 115db siren, in case the tower is being operated on the ground via remote. You can also have data links to a repeater or a repeater-recorder if needed. If the site manager had so desired, a number of wireless cameras could also be linked in to this system. Obviously, the primary use is to lose ‘blind spots’ around the operator, but it can also be positioned above the winch to make sure that the cable is being wound correctly. The AC3 system is comprised of a computer, and the crane itself is rigged with sensors ,which can determine things like the hook height, and the position of things like the position of the jib and counter jib of all the other cranes on site. As the cranes slew, an alarm is sounded if the booms get too close 46 CONSTRUCTION WEEK AUGUST 14–27, 2010
together. If no action is taken by the operator of one or both of the cranes, then the brake will be automatically applied. There is another module available which will sound the alarms if the hook height drops below a certain point over the ‘no hoisting’ areas. This, understandably is to prevent members of the public from getting bonked on the head by a crane hook. Of course, hi-tech cranes are always useful on a job site, but they do not build the whole structure of course. On the Sofitel site, a number of smaller mobile cranes belonging to subcontractors are also in use to sling items around. The heavy excavators have moved out, but there are still a couple backhoe loaders for lighter trenching and loading jobs. Apart from that, the site is alive with the hustle and bustle of a busy construction site – which itself is nice to see in the current financial climate. Whatever the season, the site is in a good
spot, so hopefully the collision-proof cranes will continue until the structure is finished. With crane safety still a serious concern around the region, it is hoped that similar safety systems will find their way on to other sites in the region soon.
Crane anti-collision systems There are dozens of anti collision systems on the market, and different experts will give you different opinions on different types. Shata M , a safety consultant, and a member of the UAE’s crane safety forum suggested that the AGS system mentioned in the article is the best all round kit. Other types are available, but he points out that 'not all systems are compatible with every tower crane’. He advised checking the systems carefully and seeking independent advice before committing.
ares
SURVEY TECHNOLOGY
Stake out Survey technology: what’s the latest? Elizabeth Broomhall talks to the Middle East’s technoteams to find out what’s on the market, and how it can help contractors save time and money
E
veryone knows that surveying is a crucial process on any and all construction sites. Everyone knows that for a project to be completed in the most efficient way, surveyors need to be the first on-site and the last ones to leave. Less obvious, is the equipment available to survey professionals, which, according to industry experts, could save a substantial amount of time and money. Importantly, it seems that far from the days of strings and tape measures, today’s surveyors have the option to rely on advanced GPS rovers, robotic total stations, infrared beams and machine control systems. As well as increasing efficiency and improving the quality of construction, apparently these systems also help to drive production and boost worker safety.
Users of Topcon technology include: • Arabtec • Wade Adams • Saif Bin Dariwish • Al Kharafi
48 CONSTRUCTION WEEK AUGUST JUNE 26-JULY 14–27,2,2010 2010
This being the case, one has to wonder why the Middle East is continuing to fall behind its global competitors when it comes to technology take up. “We are slightly behind, but we’re catching up quickly,” says global survey technology supplier Topcon’s representative Mick Hales. “Previously and currently, local contractors have had in their minds that these are labour-saving tools and this is not the area they focus on for improving the bottom line. Actually, these are material- and time-saving tools as well.” Trimble, another major manufacturer with a Middle East presence, has provided survey technology to several high profile projects in the region, including the Dubai Pearl, the Formula One racing track and the Paris-Sorbonne University in Abu Dhabi. Agreeing with Hales, regional manager for the construction sector Andrew Caldwell, suggests that the problem is not so much about companies ignoring technology, but about their failing to adopt the latest versions. “Survey technology is like any other technology. It changes over the years just like mobile phones and computers, where every year you have a new product that’s more efficient, faster and has a bigger memory. In the Middle East, it
Positioned within a complex road network, the Dubai Pearl required advanced survey technology for its survey work.
is about getting firms to move up that level of technological advancement.” The good news, he says, is that following the economic crisis, things are starting to change. “Companies have realised that to be competitive they have to move with technology. We’ve been working with a lot of large companies on projects for some time, but recently, we’ve started to get through to the subcontractors.” So how does the latest surveying technology help firms improve the efficiency of their projects? “Survey equipment consists of a combination of technologies merged into what we typically see on construction sites today,” says Hales, referencing what is probably the biggest development in the construction survey world: GPS. Unlike other systems, GPS technology relies on satellites, allowing firms to carry out a large amount of survey work at faster speeds. Much more advanced than navigational GPS systems, those used in construction involve a surveyor clutching a handheld receiver or ‘rover’, receiving signals from both the satellites themselves and from a base station (an additional receiver positioned over what’s known as a
SURVEY TECHNOLOGY
control point). These signals allow the surveyor to effectively ‘stake out’ the project for the contractors according to the original design, which itself can be viewed on the surveyor’s handheld controller. “GPS tends to be used for staking out road designs, long-range survey work and to pick out the original ground levels (OGLs),” explains Caldwell. “The main advantage of GPS is that you can do work five times quicker and can cover much larger areas than you could using other technology.” Hales agrees: “Real time GPS rovers can take point readings on the move giving XYZ coordinates at many times per minute. Some contractors use a four-wheeler to blanket the area with thousands of points in a few hours.” The only downside, Caldwell says, is the level of accuracy – a GPS system only producing points within 8mm of the original design. Which brings us to total stations, or at least the latest technology behind them. Used for finer positioning and higher accuracy building, total stations are basically a theodolite with a distance metre. “Total stations are used for construction inside buildings, where a difference of 8mm is just not good enough,” says Caldwell. “If you’re building a lift-shaft for example,
you can’t have an 8mm variance, as the lift will get stuck half way up.” In terms of development, total stations are similar to GPS systems. Though they have been available in the market for as long as ten years, only recently has the technology advanced significantly. Today, not only can companies save a significant amount of manpower by using ‘robotic’ total stations in the place of mechanical, but more importantly, they can remove the chance of human error by introducing and integrating total stations with building information modeling (BIM) software. “The latest survey technology inevitably involves a combination of hardware and software,” says Caldwell. “Basically it allows you to extract the points from the original 3D, virtual design on the computer, input them onto a controller, take that controller to the field and connect it to a total station, which then shoots the points as laid out in the design and removes the opportunity for human error. In the past, someone would design the building, print out the paper plans and take them to the site, where they would go back 50 years and start pulling out tape measures.” But while the benefits related to improved efficiency are relatively obvious, those related to safety seem more obscure. “If a survey crew is spending less time under the hot sun or deep in an excavation, then surely less injuries are going to occur,” says Hales, a strong advocate of the view that new opportunities for safety are one of the key advantages of today’s survey systems. Caldwell meanwhile, suggests safety can be improved through specific technology, namely that referred to as ‘direct reflex technoloy’. “Previously, total stations worked by shooting a light beam to a prism on the building, which would reflect back and give you your point,” he explains. “This new technology, which relies on infrared beams that reflect off most and even black surfaces to a certain extent, means you no longer need a prism to shoot to, and thus you don’t need to put someone on top of a building carrying a prism to get accurate measurements. It’s much quicker as well.” With safety being such a massive Middle East priority at the moment, this may
suggest that construction is driving the development of technology. “No, technology has definitely led construction,” argues Caldwell. “It’s not the industry demanding this new technology, but companies like us looking at ways to improve construction processes through technology, particularly when it comes to things like machine control systems, which are really changing the way construction is executed.” Simply put, these latest survey systems are placed on top of machines used to move heavy earth, with a view to automating the machine’s hydraulics and controlling the blade, so all the operator has to do is drive. Which leads to the inevitable question: is remotely controlled and robotic technology the future for construction? “Probably,” says Caldwell. “In some parts of the industry, like in the mines, almost all machinery is remotely controlled. But when this will happen, I really don’t know.” Certainly, in the Middle East, there may be some way to go yet.
What about costs? High costs are a concern for any contractor, especially as companies continue to battle with late payments and a shortage of cashflow. Here’s what the experts have to say: Trimble: “Survey technology is like any other technology, people use it because it helps them become more efficient and saves them money. So yes, there is capital investment for the equipment, but it is more than paid off during the lifecycle of one job. Depending on the size of a project, it can actually make contractors money.” Topcon: “In some cases a project will only take advantage of the bare minimum required to finish the job, and any new technology might not be an advantage. However, all contractors should consult an expert during the tender process to see if any of this new technology could make a major impact. It sounds expensive when you first hear the price, but it usually has a payback value many times the original cost.”
JUNE AUGUST 26-JULY 14–27, 2, 2010 CONSTRUCTION WEEK 49
PROJECT UPDATE ON SITE CW reviews a collection of its most recent site and plant visits to keep you up to date with project progress
WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email: stuart.matthews@itp.com
SOWWAH ISLAND Location Abu Dhabi Visited June 2010
ELITE TOWERS Location Dubai Visited July 2010
5.1m
kg of steel used so far in zone four
DUBAI LAGOON Location Dubai Visited June 2010
50 CONSTRUCTION WEEK AUGUST 14-27, 2010
Sowwah Island, in Abu Dhabi, is being developed by Mubadala to be the new central business district of the UAE's capital. Sowwah Square is the most advanced of the island's developments so far and will be home to a new stock exchange as well as four business towers. Right next door is the Cleveland Clinic, along with the near by Rosewood Hotel . Work on a Four Seasons hotel is expected to start soon.
When complete Elite Residence will be a towering 91 storeys, standing 380m high and holding a total of 697 residential units. With around 20 floors still to be cast, there is plenty left to do. The current scheduled completion date is around October 2011, and to meet this the contractors involved, Arabian Construction Company, will have to keep the pace up. Coordination between ACC and its sub contractors is seen as critical.
After a slow and troubled start, Dubai Lagoon is a project getting back on track. Three main contractors – Belhasa Contracting and engineering, Bin Sabt Building Contracting and Commodore Contracting – are working across four zones within the development. Buildings in zone one, where eight residential towers in zone one will provide 442 apartments, are due for completion around the end of 2010.
PROJECTS
RUFI TWIN TOWERS Location Dubai Visited June 2010
148
Townhouses in Al Muneera
AL MUNEERA Location Abu Dhabi Visited June 2010
The Rufi Twin Towers project involves the construction of two towers with G+18 floors, in Dubai Sports City. The towers will be joined at roof level by a distinctive sky bridge. Emirates Belbadi Contracting is the main contractor. The company has worked to make sure the project makes steady progress and has agreed a year-long extension with its client, to accommodate a slow down on the job.
Al Muneera is being developed by Aldar as part of the expansive Al Raha Beach project in Abu Dhabi. The projects is made up of two distinct areas, with an island and mainland divided by a canal. A total of 16 residential towers are under construction, along with an ofďŹ ce tower, 11 villas and 148 townhouses. Al Futtaim Carillion is the main contractor, with Drake & Scull providing MEP works.
PROJECTS
DUBAI PEARL Location Dubai Visited June 2010
KING ABDULLAH FINANCIAL DISTRICT Location Riyadh Visited June 2010
7000t Daily production capacity
CONSTRUCTION AND DEMOLITION WASTE RECYCLING PLANT IN AL DHAFRA Location Abu Dhabi Visited May 2010
BAHRA PRECAST COMPANY Location Jeddah Visited May 2010
52 CONSTRUCTION WEEK AUGUST 14-27, 2010
With four 73-storey towers planned, the Dubai Pearl project is a massive undertaking that has taken several years and some false starts, to finally get a solid start. Piling was completed in 2009 along with the raft pouring. The towers are just starting to grow, with a 600-strong work force moving from building to building, as each one progresses at a similar pace. The project is aiming for LEED Gold certification.
The King Abdullah Financial District is one of the most challenging and intricate projects currently under development in Saudi Arabia. A total of 77 buildings are expected to be built in six zones across the entire site. Saudi Bin Laden Group is building four of the first 10 towers as part of the initial construction packages. The company is targeting Leed ratings for the buildings when complete.
Concrete waste, from construction and demolition projects, now has an alternative place to go, other than straight to landfill. The recently opened recycling facility in Al Dhafra, on the outskirts of Abu Dhabi, is crushing waste concrete into aggregate for use in road building. The plant will be able to produce up to 7000 tonnes a day, using crushers, conveyors, screens and magnets to break the raw material down to size.
The Bahra Precast Company operates out of Jeddah, in the CPC Industrial Park. From this location the plant supplies a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh and the King Abdullah University for Science and Technology, as well as other mega projects within Saudi Arabia, with a variety of precast concrete products.
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APPOINTMENTS TIPS FOR JOB SEEKERS
Leave on a good note A large number of people looking for a new job are already working. For those who are leaving a firm, even if you are unhappy in your job, it is always advisable to leave on good terms. Not only will this ensure a good reference for at least your next three employers, but it is also a good way of keeping your options open in case you decide to go back. Be presentable Often job seekers make an effort to be presentable for an interview, and slack off when they begin work. It is worth remembering that every employee usually has a period of probation, and if during this period you are consistently dressed badly or inappropriately, you will not receive a good review from your employers and you may even lose your job. Remember it is important to be presentable and professional at all times. Make time If you are invited to an interview, you should try your best to fit in with the employer’s schedule. It is not easy to accommodate a number of interviewees, and thus your adaptability and availability will be received well by your potential new boss. It is also preferable to take a morning slot if you can, as this is when you will be your most productive. 54 CONSTRUCTION WEEK AUGUST 14-27, 2010
Shuffle L firm Galadari & Associates has strengthLaw e ened its Construction and Project team with tthe hire of Leonora Reisenberg (pictured) and C Charles Ingmire. Prior to joining Galadari & A Associates, Leonora ran her own company both l locally in the UAE and internationally acting for e employers, contractors and sub-contractors on b both non-contentious and contentious matters. C Charles, previously at in Olswang, London, b brings experience defending construction professionals on behalf of insurer clients. Meanwhile, Wates Construction has appointed Stephen Beechey as its Group Investment Director to oversee its existing and future involvement in project-financed and private public partner schemes. In his new role, Stephen will have responsibility for supporting business units across Wates as regards traditional private finance and PPP models of procurement. Also this month, international multidisciplinary engineering consultancy Buro Happold strengthened its Middle East team with as many as three new appointments.
3 TOP JOBS For more details visit: www.constructionweekonline.com/jobs Please apply directly to the listed consultants. Role: Project Manager – bridges Agency: KEO international Consultants
Role: Adaption Engineer Agency: First Select International
Role: Senior Inspector of Engineering Agency: Non stated
KEO International Consultants is currently seeking an experienced project manager for its infrastructure division in Abu Dhabi. The company is seeking candidates with a Bachelors Degree in Civil Engineering and a minimum of eight years experience in structures, five of which must include experience in the design of complex/non-complex structures, pre-stressed reinforced concrete, steel and retaining walls. Preference will be given to those who can demonstrate an ability to use Microsoft Excel and who are proficient in the use of STAAD-Pro, as well as those with a Masters degree in Civil Engineering and who are registered with a recognized Professional Engineering Board.
A high profile, multi-national German company based in Dubai is urgently seeking to recruit an Adaptation Engineer. Applicants should have a software engineering degree, adequate knowledge of Electronic Data Processing (EDP) and at least four years’ experience in the field of software development for social purpose machines, preferably for customers within the African and Middle East region. Must also have good communication and interpersonal skills, be fluent in English and keen to solve problems. The successful candidate will be willing to travel extensively in the MENA region, Good command of French is also advantageous.
Saudi Aramco seeks an experienced Senior Inspector of Engineering to work with the Terminal Operations Department in Saudi Arabia. Applicants should have a minimum of a BS in Mechanical Engineering and five years’ experience preferably in the oil industry. The successful candidate’s main responsibility will be to perform those duties required of a Senior Inspector of Engineering within the assigned inspection discipline and certification limitations. Among other things, one of their key duties will be to train personnel to develop their ability and understanding of codes and standards.
For directory information visit constructionweekonline.com/directory
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AUGUST14 – 27, 2010 CONSTRUCTION WEEK 55
FOREMAN
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Email: foreman@itp.com
Demolition man
A
lthough I’ve never worked on demolition sites, over the years I must have seen thousands of tonnes of construction waste get carted off. There is all sorts in there, most of it must be concrete – excess we haven’t been able to use, or floors that have been dug up, or piles put in the wrong place and so on. It never bothered me that much to be honest. Unlike some of the junk that gets chucked into the ground, concrete doesn’t leak, explode or mess up the water table. That said, it has reached the point in the UAE where builder’s rubbish far outweighs domestic stuff – and given the amount folks throw away out here, that takes some doing. That’s why I’m pleased that there are now two rubble recycling plants in the country, so we can at least turn concrete back into raw material … and start all over again.
Contract game I always get excited around this time of year, as it tends to be around late-summer, early-autumn time when a load of new contracts are announced. This year, I’ve got
my eye on the new Khalifa Bin Zayed National Stadium that Mubadala is doing. As well as having quite a sophisticated air conditioning system, everyone’s talking about how it’s going to be the biggest in the world. According to the guys, it’s only a matter of time before they announce who’s won the main contract, since they submitted their bids in May. We reckon they’ll announce it shortly after Ramadan, but then you never can tell with developers. It’s certainly going to be big money for whoever gets it. The guys say it’s worth US $1 billion. I know ACC and Zublin are in the running, and I think Samsung and a couple of others have also prequalified. May the best contractor win! Fast finance I have to admire some of the swift progress in the Capital Centre area next to the ADNEC in Abu Dhabi. I occasionally drive past on the odd errand. Quick work it seems, particularly on some of the business towers. I hear the utilities have yet to be installed, however, which probably
56 CONSTRUCTION WEEK AUGUST 14–27, 2010
Rubble to roads: mining demolition waste for raw materials could be a growing business interest in the region.
means you will have a brand new, gleaming building at completion… with no power. Still, progress will still probably outstrip that of the Business Bay in Dubai. Then, once that financial district north of Riyadh takes shape in the next few years, you’re going to have some real competition on your hands as to where the blue chip global companies call home. Hot work We’ve stepped up our vigilance over worker welfare this week, after one of our more experienced guys collapsed
through heat exhaustion. He’s okay now, but the incident shook his colleagues a bit. He’s a rock. But, it turns out, that day, he’d found his limits – and he’s since admitted to me that he’d just forgotten to keep his fluids up during the day. I’m relieved that he’s fine now, and also proud of his colleagues for doing everything right at the time: getting him in to the shade, cooling him down and getting as much fluid in to him as possible. He’s been checked out by the doctor and is back on the job after a few days rest – with his water bottle tied to his belt, everywhere he goes.
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