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SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication | Licensed by Dubai Media City

WEEK

CONSTRUCTIONWEEKONLINE.COM

MARCH 20–26, 2010 [313]

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

KUWA CITY F IT OC page 3 0

US

INSIDE NEWS

Dewa announces new green building guidelines PAGE 7

COMMENT

Philip Adams explains why coordination is the name of the game PAGE 15

SOFTWARE

Experts discuss the need to steer clear of outdated software PAGE 20

DIALOGUE

Mohamed El Mikawi chats about the Cairo Festival City in Egypt PAGE 32

CW VISITS ONE OF THE TALLEST TOWERS IN DUBAI MARINA


CONTENTS MARCH 20-26, 2010 | ISSUE 313 7

15

FEATURES 16 SITE VISIT An update of how the Dubai Marina’s Ocean Heights project is progressing.

20 SPECIAL REPORT Experts explain what benfits construction software can bring to your business and your projects.

20

9

30

REGULARS

DIRECTORY .

2 ONLINE 4 MAIL

FRONT 7 DEWA UNVEILS NEW SET OF GREEN BUILDING GUIDELINES Green building regulations stage II are designed to reduce the consumption of water and energy in new developments.

9 BCC PICKS UP AL GHADEER CONTRACT Emaar has awarded Building Construction Company the main contract to build a residential cluster in Saudi Arabia.

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26 TENDERS 27 PROJECTS 28 SPECIALIST SERVICES

BACK 10 NEWS IN BRIEF

30 CITY UPDATE

Highlights of the week.

The latest news and projects from Kuwait City.

13 EVENTS Industry dates for your diary.

15 COMMENT Philip Adams explains how the word ‘coordinate’ does not include managing and how the main contractor does not have any power over other contractors.

32 DIALOGUE Mohamed El Mikawi, managing director for Al Futtaim Real Estate in Egypt gives an update of how his company’s flagship development is progressing and discusses the benefits of doing business in Cairo. MARCH 20–26, 2010 CONSTRUCTION WEEK

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ONLINE

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DEWA UNVEILS NEW SET OF GREEN BUILDING GUIDELINES AL MAABAR: MARSA ZAYED WORK TO START IN Q3 DEWA SIGNS POWER, WATER CONTRACTS WORTH MILLIONS BUILD SAFE CHAIRMAN REACTS TO TRENCHING FATALITY

HAVE YOUR SAY INJURIES/DEATHS ON SITE

Should contractors be made liable for injuries and deaths onsite?

JOBS OF THE WEEK Marketing Manager, Manama, Bahrain Financial Director, Dubai, UAE Team Assistant, Doha, Qatar

IN PICTURES: SAUDI PMV SHOW 2010 The Saudi PMV Show, held at Jeddah Gate on March 7 to 9, has rapidly become the leading construction equipment event in Saudi Arabia. This year, the show also included a two day conference which ran alongside the event. More than 1000 items of equipment were on display for the duration of the show, which included live demonstrations from Bobcat, JCB and Caterpillar to a packed audience of machinery aficionados. To read more visit www.ConstructionWeekOnline.com

FEATURES Special Report

SITTING ON TOP OF THE BAY The complex U-Bora towers continue to rise from the ground.

BUILDING TENSION Why post-tensioning could make your life easier

Business

FM

JEDDAH CITY PROFILE Updates on the development of the port and opportunities available.

GOOD PLUMBER HARDER TO FIND THAN ODOURLESS CAMEL Is there a gap in the market for good plumbers?

CONSTRUCTION WEEK MARCH 20-26, 2010

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38.1% 23.8% 23.8% 14.3% Tough.

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MAIL RE: BUILD SAFE CHAIRMAN REACTS TO TRENCHING FATALITY The UAE Government must initiate [the implementation of ] HSE plans and procedures. As usual, some certified companies are only interested in obtaining a safety certificate. After that, certain companies are not interested in implementing and maintaining the HSE system. In order to avoid this problem, the organisation must ensure that their internal audit is conducted properly. Government personnel must inspect all the projects at least once a month and evaluate the performance of supervisors. REGHUVARAN NAIR

GTCC SIGNS CONTRACTS TO BUILD PROJECTS FOR DAMAC I have a few properties at lakeside and this development has been delayed for two years. We are going to request the money back. ALAN PALAO

DEWA UNVEILS NEW SET OF GREEN BUILDING GUIDELINES I have been in Dubai for many years and found that, unfortunately, local people, who don’t pay water bills, are consuming a lot of water. Also, Dubai has to be more realistic in site selection and stop disturbing the environment by building offshore projects. AHMAD Whilst Saeed Mohammed Al Tayer and DEWA should

be applauded for the new, pressure should also be put on existing property owners via energy saving measures. Six years ago, I was involved in such measures, whereby the capital expenditure was recouped in less than 15 months. [The result was] energy savings of between 30% and 35% a month, while also extending the life span of the chillers, due to reduced load factors. STUART THOMAS

RE: JEDDAH NEEDS ONE MILLION HOUSING UNITS Five million units over the next 10 years seems an obnoxious and outrageous number. Who, how and where did these statistics come from? Kindly include information with specific references of credible authority. AHSAN JABBAR DEWA is to be congratulated for taking this momentous step to make Dubai a leading green city. Collaboration between public and private organisations is necessary to mitigate the effects of climate change affecting us all. Together we can and will make a difference. THOM BOHLEN

SIXCO-SAMSUNG WIN ABU DHABI CLINIC JOB Well done Six Construct and Samsung. We need more clinics and hospitals to be built in the UAE and you are the right companies to do it. I wish you all the very best. SAM

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

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CONSTRUCTION WEEK MARCH 20–26, 2010

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FRONT

>US $3.5 billion committed to fix Sharjah drainage

9 10

>Highlights >News in pics

13

>Comment

15

>Site Visit: Ocean Heights at Dubai Marina

16

DEWA MANAGING DIRECTOR & CEO SAEED MOHAMMED AL TAYER SAID THE CODES MUST BE IMPLEMENTED IN THE DESIGN OF NEW BUILDINGS.

DEWA UNVEILS NEW SET OF GREEN BUILDING GUIDELINES By CW Staff

Dubai Electricity & Water Authority (Dewa), last week, unveiled Green Building Regulations Stage II, a new set of guidelines to be implemented in the construction of all new buildings in Dubai. The guidelines, developed along with Dubai Municipality, are designed to reduce the consumption of water and energy in new buildings across the emirate. They will cover such factors as site selection, energy and water usage, material selection, indoor air quality and waste management. “The authority plans to issue the green building power and water regulations in April 2010, for ensuring the efficient use of electricity, water and renewable energy in Dubai, within the green buildings frame-

work,” said Saeed Mohammed Al Tayer, managing director and CEO of Dewa. “In the initial stage, all new buildings will be required to comply with the codes and regulations and incorporate them in their construction designs.” “Dubai will be the first city in the Middle East that officially applies the green buildings standards on its residential and commercial buildings.” According to Al Tayer, energy usage will be reduced by up to 40% in each building when the codes are put into practice. The regulations only apply to new buildings within the emirate. Dewa has also recently awarded six new contracts (see box), contractors for which will have to follow the new guidelines.

DEWA SIGNS CONTRACTS Dewa has signed six new contracts to improve Dubai’s infrastructure network. 1. AAB Industries won an AED250 million contract to supply, install, test and commission three 132/11 KV substations. 2. Areva T&D won an AED1 billion job for the same in DIP, Jebel Ali, Mutina & Kifaf. 3. Ducab will supply 800km worth of 11 KV XLPE power cables for AED260 million. 4. Ghantoot Gulf Contracting won an AED820 million pipelines contract. 5. M/S Saudi Modern (Riyadh cables) won an AED300 substations contract. 6. Siemens won an AED470 million substations contract at Mamzar Beach.

MARCH 20-26, 2010 CONSTRUCTION WEEK

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FRONT BUILD SAFE UAE CHAIRMAN SAYS ‘NO EXCUSE’ FOR TRENCHING FATALITY By Greg Whitaker

AL GHADEER VILLAGE IS THE SECOND RESIDENTIAL CLUSTER AT AL KHOBAR LAKES IN SAUDI ARABIA.

BCC PICKS UP AL GHADEER CONTRACT IN SAUDI By Conrad Egbert Emaar Middle East, a subsidiary of global property developer Emaar Properties, has awarded Building Construction Company (BCC), the main contract for the first phase of Al Ghadeer Village – the second residential cluster in Al Khobar Lakes. Emaar Middle East’s other Saudi developments include Jeddah Gate, Emaar Residences at the Fairmont Makkah and Al Khobar Lakes. According to the company, site grading work is in progress, and construction of the villas will begin shortly. Al Ghadeer Village is located on the northeast side of the project, and is spread over an area of over 217,910m². It will feature

232 residential units in sizes ranging from 275m² to 500m². Al Ghadeer also features green spaces of over 8500m², and the community is anchored by a 14,000m² lake and a mosque. Emaar Middle East regional CEO Dia Malaeb said: “The progress achieved by Emaar Middle East projects in Saudi Arabia highlight’s its focus on project completion and hand over. Emaar is driving growth in the Kingdom through partnerships with renowned contractors and consultants.” Al Khobar Lakes, a multi-billion dollar project by Emaar Middle East, is a luxury lakefront development set on 2.6 million m² featuring 80,000m² of water bodies.

A recent incident which left a labourer dead has prompted safety watchdog Build Safe UAE (BSU) to issue an alert highlighting the causes of what it views as a ‘horrendous accident’. The accident happened on March 8 in Ras Al Khaimah when the shoring wall of a 3m-deep excavation collapsed, burying a worker under tonnes of sand, rocks and other debris. Police were alerted, but the 43year-old victim, Jol Ahmed, was pronounced dead at the scene. Grahame McCaig, chairman BSU said: “There is no excuse for allowing people to enter and work under the conditions that were evident from the photograph of the accident scene. I would hope that the RAK authorities are undertaking a full investigation of the circumstances surrounding the incident and will act accordingly.” He also said that the company involved “must be held accountable.”

KLEINDIENST REVIEWS BIDS FOR JOBS ON THE WORLD By Sarah Blackman Kleindienst Group, the developer of The Heart of Europe on The World islands, is reviewing the submissions of prequalified contractors who have bid for the infrastructure and civil work contracts for Germany Island and the newly launched Monte Carlo Island. The company told ConstructionWeekOnline.com that it is looking to award the contracts to a construction firm with particular expertise in the delivery of offshore projects and beach front hospitality venues. The work is scheduled to begin in the third quarter of this year. “Our tender process for the award of the infrastructure and civil work contracts has been completed,” said

Josef Kleindienst, chief executive officer of the Kleindienst Group. “Our intention is that the infrastructure and civil work contract will be awarded to one contractor for both Germany and Monte Carlo island to ensure proper distribution of services to the islands.” Foundation Construction Group Limited is already carrying out the geotechnical works including vibrocompaction of the soil at both islands. Kleindienst is also negotiating with four fit-out experts, one of which will oversee luxurious finishes at the Monte Carlo development.

MARCH 20–26, 2010 CONSTRUCTION WEEK

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FRONT HIGHLIGHTS Health & Safety

OMRAN CLOCKS 6.6 MILLION MAN HOURS WITHOUT LTI Omran has completed 6.6 million man hours without lost time injuries at the Muscat-based site that will host the second Asian Beach Games. So far, 1821 labourers have worked 640 days in safe conditions. The news follows the announcement that 64% of the work at the project has finished. The project, which broke ground in June last year, will feature sporting facilities, an athlete’s village, a four-star hotel, a 400-berth marina and a man-made lagoon for the game’s water-based events. Contracts

US $3.5BN SOUGHT TO FIX SHARJAH DRAINAGE A US $3.5 billion (AED13 billion) strategy to fix drainage systems in Sharjah could soon be approved, according to Sharjah Municipality officials. The move follows the death of three men in two separate incidents in Sharjah

NEWS IN NUMBERS

No. The position of Massachusetts Institute of Technology in a list of top 10 engineering universities named by UK-based QS in its annual survey. 10

when they were electrocuted while standing in floodwater. Sharjah officials aim to have the improved sewage and drainage network in place within three years, Salim al Owais, the head of the department of municipalities and agriculture, told UAE daily The National. Business

HONEYWELL FORMS LIBYA JOINT VENTURE Honeywell has formed a Libyan company, Honeywell Libya Technical Engineering Joint Stock Company, together with its joint venture partner Rida Technical Services. The new company, to be known as Honeywell Libya JV, will provide process automation technology and services to local organisations. Contracts

RWI BAGS SAADIYAT ISLAND CONTRACT Rubber World Industries (RWI) has won an AED600,000 insulation contract for the Manarat

US $492 million The sum for which the main contractor on the CityCenter project in Las Vegas plans to sue the project’s owners, MGM Mirage and Dubai World.

CONSTRUCTION WEEK MARCH 20–26, 2010

Al Saadiyat building in Abu Dhabi. Literally translated as ‘a place that provides enlightenment’, Manarat Al Saadiyat encompasses four major art galleries. It opened its first phase to the public in November 2009. Environment

EMPOWER WANTS COMPULSORY DC IN GCC District cooling provider Empower has called on GCC countries to make district cooling services mandatory in new real estate projects in order to save energy and conserve natural resources, following Dubai’s successful example. Empower CEO Ahmad Bin Shafar said the residential sector has achieved operational savings of 40% to 45% compared with conventional air-con technologies. Projects

MARSA ZAYED WORK TO START IN Q3 Work on Al Maabar’s Marsa Zayed project in Aqaba will

start in the third quarter, according to Yousif Al Nowais, managing director of Al Maabar. Work on the development, which has a reported budget of around US $10 billion, will begin with infrastructure work on approximately 300,000 m² of land, which will be followed by development of a 35-story mixed-use tower, around 130 townhouses and the Sheikh Zayed Mosque. Projects

SUNSET HILLS CLAIMS WORK IS ON TRACK Sunset Hills, one of the components of the Al Areen master project in Bahrain, is on track, with 80% of construction work completed, according to its developer. Al Areen is a US $1.3 billion development spread over an area of 2 million m². It includes residential units, a hotel and a water park. The Formula One track, equestrian facilities and a wildlife park are nearby. Sunset Hills is one of two housing projects within Al Areen.

June 1 The new bidding deadline for Saudi Aramco and US-based The amount by ConocoPhillips’ which energy usage solids handling will be reduced in unit at their Yanbu each building when refinery joint venture.

40%

the new green guidelines are applied, according to Dewa.


FRONT

> For more pictures log on to www.ConstructionWEEKonline.com

NEWS IN PICS

A picture taken last week shows ongoing but slow construction work at the Shyama Prasad Mukherjee Swimming Stadium in New Delhi, India. With seven months to go until the start of the Commonwealth Games in the capital, the partially completed main stadium is a messy building site and the swimming complex a pile of rubble. The XIX Commonwealth Games 2010 are scheduled to be held between October 3-14, 2010.

PRAKASH SINGH/ GETTY IMAGES

CLOCKWISE FROM ABOVE: Mirdif City Centre was formally opened last week with Peter Walichnowski, CEO of Majid Al Futtaim Properties – the developer of the mall — saying that this was “one of the best and most completed malls in the region upon opening.” Alec was the main contractor on the AED3 billion project and was appointed in August 2007. With a total constructed area of 578 000m2, Mirdif City Centre features 430 retail outlets.

The Saudi PMV Show, held at Jeddah Gate last week, has rapidly become the leading construction equipment event in Saudi Arabia. This year, a two day conference was held alongside the show. Pearl Dubai chairman Abdul Majed Al Fahim has said that the developer is seeking to attract international investment, with particular interest from the Far East, for its US $4 billion Dubai Pearl development, while also considering a future funding strategy for phase two of the development, according to reports. Designed by German architect Peter Schweger, the project which will house residential apartments as well as arts and leisure centres, is due for delivery in 2013 and will be completed in two phases. The first phase of building will cost $2.5 billion, funded by equity, promoters’ loans and concluded pre-sales, the developer said.

MARCH 20–26, 2010 CONSTRUCTION WEEK

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

Coordination - the magic wand PHILIP ADAMS EXPLAINS HOW THE WORD ‘COORDINATE’ DOES NOT INCLUDE MANAGING AND HOW THE MAIN CONTRACTOR DOES NOT HAVE ANY POWER OVER OTHER CONTRACTORS

In a previous article I referred to the term ‘coordination’ and given recent experiences, I thought it would be useful to expand on the subject a bit more. I have come to the conclusion that this word is considered by some to be an ancient mystical symbol infused with magical qualities. When faced with problems on site one only has to utter this word and ‘poof’ they miraculously disappear! The problem seems to stem from a basic misunderstanding of what the term means compared to an obligation to ‘manage’ and more importantly how this relates to the contractors obligations with respect to ‘other contractors’ and third parties. As previously recommended it is a good tip to begin with the basic dictionary definition of the terms namely, ‘coordinate’ = to place or arrange in proper order, and ‘manage’ = to exert control over. Clause 4.6 of the Fidic Plant and Design Build Contract (Yellow Book) states that the Contractor ‘shall allow appropriate opportunities’ for carrying out work to the employers’ personnel, employers’ contractors and public authorities. The contractor shall be responsible for his construction activities on the site, and shall ‘coordinate his own activities with those of other contractors’ to the extent (if any) specified in the employers’ requirements. It is important to note that clause 4.6 obliges the contractor to ‘allow opportunities’ and to ‘coordinate’; it does not oblige the contractor to ‘manage’ these other contractors and public authorities. Therefore, if the other contractors or public authorities are late in carrying out their works then in the absence of an express obligation ‘to manage’, the contractor has no responsibility to ‘exert control’ over them to ensure they carry out their obligations.

Furthermore, the contract is binding between only two parties, namely the employer and contractor. It cannot be enforceable against ‘other contractors’ and therefore, the contractor has no recourse against them or power or authority over them. Consequently, the contractor has no control over any of their acts or omissions and any attempt to make the contractor liable for such acts or omissions would be beyond the scope of the powers granted by the contract. Hence why under Fidic a contractor is entitled to a time extension for completion, due to any delay caused by the employers personnel or the employers other contractors (clause 8.4(e)), and public authorities (clause 8.5); provided he has diligently followed the authorities procedures. Finally, the above can cause considerable problems when a contractor is attempting to gain approval or consent to his programme (eg. Fidic clause 8.3).Where works by ‘other contractors’ are delayed and no extension of time has been granted, it is virtually impossible to gain approval of the contractors programme especially if the engineer blames the contractor due to his alleged ‘failure to coordinate’ his works with those of ‘other contractors’. In such circumstances the only solution is to revise the time for completion, but this rarely happens and consequently the programme remains unapproved and confusion reigns supreme when the parties attempt to administer the extension of time provisions. In conclusion, coordinate does not mean manage and the contractor has no power or authority over ‘other contractors’. The employer retains the risk of acts and omissions by ‘other contractors’ and no amount of waving of the coordination wand will change that!

“I HAVE COME TO THE CONCLUSION THAT THIS WORD IS CONSIDERED BY SOME TO BE AN ANCIENT MYSTICAL SYMBOL INFUSED WITH MAGICAL QUALITIES. WHEN FACED WITH PROBLEMS ON SITE ONE ONLY HAS TO UTTER THIS WORD AND ‘POOF’ THEY MIRACULOUSLY DISAPPEAR!”

Philip Adams his an associate director at Systech in Dubai. He has provided commercial, contractual and dispute resolution advice on projects ranging from high specification offices, data centres and long distance fibre optic networks to major civil engineering projects, multi-storey offices and hotels. He is a member of the Royal Institution of Chartered Surveyors and a fellow at the Chartered Institute of Arbitrators. The opinions expressed in this column are of the author and not of the publisher.

MARCH 20–26, 2010 CONSTRUCTION WEEK

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CW VISITS DUBAI MARINA’S OCEAN HEIGHTS TO FIND OUT WHAT TASKS DAMAC AND ITS CONTRACTORS HAVE TO TICK OFF THEIR TO-DO LIST, BEFORE THEIR Q4 DEADLINE By Sarah Blackman; Photos by Efraim Evidor

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CONSTRUCTION WEEK MARCH 20–26, 2010


W

e all know that it takes more than just bricks and mortar to construct a building that will shelter its occupants, especially in the GCC market, where every contractor is striving to create a work of art. Construction is about planning, intricate design ideas, and complicated structural work. But, what happens when all the columns have been poured and the slabs are in place? What’s going on when structural engineers have downed tools and the concrete has dried? For Damac Properties, its Ocean Heights project in Dubai Marina may have been topped off, but the work is not over yet. So, what process are the contractors currently going through, which will eventually lead them to announce the building’s completion?

THEN In August 2007 – two months after the US $175.6 million (AED645 million) main contract was awarded to Arabtec – construction of the Ocean Heights tower began. And, using the design plans from Hong Kong-based architectural design firm Aedas, and expert advice from Meinhardt, a structural consultant from Singapore, the main contractor was able to create a distinctive silhouette. “The design of Ocean Heights is achieved by twisting the floor plate at every level to create the curved elevation,” says Damac vice president for projects Mike Wickham. As it rises, the tower’s floor plates reduce in size, allowing the rotation to become even more pronounced. “The structure is supported with vertical core walls and shear walls, with post tension slabs twisting on each floor to follow the curved nature of the building. Free ends of slabs are supported with composite structural columns, which incline and twist along with the floor plate.” The curved ocean-view tower contains 77 residential floors with 608 units, ranging from one bedroom apartments to whole-floor penthouses, and there are four podium and three basement floors for car parking. At the peak of construction, there were 30 contractors and 2000 people on site working towards the completion of structural work, and on December 23, 2009 – 23 days ahead of schedule – the building was topped off at 310m and 84 floors. The early finish was down to good teamwork, communication and working closely to coordinate with both the lead consultant (ECG) and Arabtec, according to Wickham. But, the completion DSI OPERATIONS MANAGER NIZAR BARAKA.

OCEAN HEIGHTS’ FAST FACTS • At the peak of construction there was 2000 staff on site • There is enough electric cabling and wiring in the building to stretch from Dubai to Kuwait City • 50,000 metres of water pipes have been installed – enough to circle an Olympic sized running track 125 times • Foundations required removal of 50,000 m3 of earth

of structural works has been no easy task: “Ocean Heights is a ‘megastructure’ by any international definition – not just in Dubai. Every day presents new and varied design and construction challenges, including environmental problems, such as 50 degree heat in the summer and occasional strong coastal winds, or logistical issues associated with transporting men, materials and equipment up and down through a 310m structure,” he says. Damac also faced the challenge of implementing seismic provisions – a must in high rise structures. “A key issue was the study of solutions for the anticipated building movement of a super high-rise building. Mitigation methods [were introduced], including designing the facade against wind loads, weather and noise resistance for such a super tall structure.” And, with so many people working on site, the client and its team had to be doubly committed to on site safety. So far, over 9 million man hours have been worked on the project and there have been six LTIs during that time, equating to a lost time frequency rate of 0.6. “Damac takes safety seriously and holds weekly inspections at all of its sites. The HSE team from the company works with contractors to promote best practice and to ensure that safety is embedded into every day working practices. There have been no MARCH 20-26, 2010 CONSTRUCTION WEEK

17


30

CONTRACTORS WERE ON SITE AT THE PEAK OF CONSTRUCTION

INTERIOR FIT OUTS ARE NOW 60% COMPLETE.

OCEAN HEIGHTS WAS TOPPED OFF IN DECEMBER 2009 AND MEP WORKS ARE NOW PROGRESSING.

fatalities during the construction of Ocean Heights” insists Wickham.

NOW Completion of structural work is always an exciting time for a construction company, but the work that remains is just as time consuming and important. Currently, Alumco is installing the façade to the project. This consists of 20,000 m² of unitised curtain wall, 14,500 m² 4mm composite panel with insulation, 27,000 m² stick curtain wall sliding doors and swing doors and 5300 m² 3mm thick aluminium cover sheet. Curtain walling is now 90% complete and interior fit outs are also progressing at fast pace, with 60% of the building’s apartments and common areas now finished. Further, MEP works – arguably one of the biggest jobs on site – is on track to 18

CONSTRUCTION WEEK MARCH 18–26, 2010

be completed early, as Drake and Scull International operations manager Nizar Baraka explains. “DSI have completed the backbone HVAC systems, including plant-room areas for chilled water and supply and extract air. We have recently started commissioning on the air and water side and this is two months ahead of schedule,” he says. “The fact that final finishes related to these systems (including the final connection to fan coil units for the water part, and grill installation for the air part) have reached up to level 71, allows for commissioning of all completed floors to commence.” DSI was awarded the $33.76 million MEP contract in the third quarter of 2007. Another mechanical aspect to the project is the fire fighting system, which is currently being tested to ensure a smooth commissioning phase. The final fixing, including

hose reels and sprinkler heads, has reached level 67. In terms of electrical engineering, final fixes such as light installations have also reached level 67 and DSI has already commenced the testing on these works. “With the electrical works you can break it into two main areas, which include the finishes – civil works and plastering and then we come in afterwards with the final fixtures – installing light fittings and accessories, which make it look like a usable item,” Drake and Scull project manager Berend Jager. “We are also eight floors, or two months, ahead of schedule with the in-floor ceiling clearance works.” The main power supply is fed from the Dubai Electricity and Water Authority (DEWA) network to the dedicated substation on the ground floor and there are 14 transformers rated 1500KVA each in the substation. One back-up generator of 1500KVA is provided for maintaining essential power supply in case of a main power supply failure. The final termination between major equipment, such as chillers, fresh air han-


PROJECT DATA Client: Damac Properties Consultant: Engineering Consultants Group Main contractor: Arabtec Architect: Aedas MEP: Drake and Scull Structural consultant: Meinhardt Façade: Alumco Structural steel: Systems Engineering Post tensioning: CCL - Darvish Haddad Elevators: Al Futtaim Engineering M&E consulting engineer: Ian Benham and Associates Contract period: 36 months Completion date: 7th August, 2010

dling units and pumps is currently being finalised, with the exception of the roof cooling towers. DSI is also one month ahead of the programme in completing its plant room areas. Not forgetting public health engineering, Ocean Heights’ drainage system has been installed and tested up to level 76 and the system completion, excluding sanitary-ware installation, is expected to be delivered at the beginning of next month.

“WE ARE NOW TWO MONTHS AHEAD OF SCHEDULE WITH THE IN-FLOOR CEILING CLEARANCE WORKS” “Sanitary-ware installation has now reached level 65 and is being completed on a cycle of two floors per week. DSI is aiming to complete this final fix activity by the end of April,” adds Baraka. “Water supply systems have reached level 76, including the plant-room areas related to tank and transfer pump installation.

Again, the plant-room areas are a month ahead of schedule.”

NEXT All evidence shows that Ocean Heights may well be completed ahead of the August 7, 2010 deadline, which is good news for investors, but also means that contractors will be able to use the time to identify imperfections. As DSI has commenced the commissioning phase early for all MEP activities, there could be a ‘project float’ on the original project schedule. “This float can be utilised to resolve unforeseen complications that might become apparent during this critical phase in the development of the project,” says Baraka. But, once the development fully operational, how long will it last? According to Wickham, Ocean Heights is not a ‘green’ building, but Damac and its main contractors implemented sustainable solutions where possible. “The building was designed and planned before the Middle East’s environmental targets became more focused,”

explains Wickham. “However, the whole building has been designed to minimise its environmental impact, from the façade and glazing solutions employed, to the MEP systems used to control the internal living conditions. Sourcing sustainable materials has been a priority.” 

BEREND JAGER, PROJECT MANAGER ON THE OCEAN HEIGHTS JOB.


E C E N A G H N C A A CH G N ON I K

TA

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ON TI CTS C U E an T R R O J ckm S N P la C O I T S rah B S a E D S AG A N By T S N S VA I N E D S A U OR A B J A TO E MNG H T RI RS N B E OV C A SC ARE I D W C WO F T S

CONSTRUCTION WEEK MARCH 20–26, 2010


C

hange isn’t easy and it isn’t always welcome. Moving from site to site and adapting to a new team or environment takes some getting used to. But, after a week or so of adjustment, the benefits of change can often make initial worries and concerns seem unnecessary. The same can be said for taking on new technologies, such as construction software. Staff must be trained to use the new system, which can take time, and letting go of traditional models can feel like a real hassle. However, the returns gained from amending how you manage your project through construction software are said to outweigh these challenges. “Construction companies are generally lagging behind other verticals in the adoption of technology to solve their business problems,” says Causeway Middle East CEO Paul Madeira. “We believe that in order to overcome the challenges of change companies should select and implement software that is logical, easy to use and makes people’s lives easier so they become a keen adopter and promoter for this much required change.” Causeway’s cost and financial management solutions aim to help organisations minimise risk, control cost and increase profits. Abdel Muneer, marketing management for Tekla, a supplier and manufacturer of building information modeling software (BIM) also believes that using construction software isn’t as difficult as it sounds and that construction companies just need to have a little patience. “Sometimes our offering is too broad for people to handle – we have 11 applications so these need to be introduced slowly so that the contractor can maximise the software’s use and get the most benefits out of it,” he says. “We work closely with the customer and advice them on what applications are vital and then they can choose to add further applications if they wish.” Sounds convincing, but what’s wrong with using conventional systems to manage a development? And, how can construction software improve business?

OUT WITH THE OLD According to experts, programmes like Excel are just not a good enough tool to track project progress.

“Developers can’t really know what they are spending with a normal accounting system,” said Buildsmart managing director Peter Cheney. “With construction software we can get an accurate view of what people are spending and what they have left to spend.” Construction Computer Software (CCS) provides solutions to the construction industry through two software product offerings; Candy and Buildsmart. Candy consists of modules for estimating, planning forecasting, cash flow, on site valuations and earned value management, while Buildsmart is a web-based construction orientated accounting and costing business solution, comprising procurement, accounting and wages modules. “Developers and contractors can track changes in the project and make sure that their budget takes into account these variables. If you beat what you are allowed to spend then you can maximise profits,” adds Cheney. Muneer adds to this argument by saying that using traditional systems can leave a project wide open for errors, which, in turn, wastes times and money. “It’s out of date. You are going to make mistakes with Excel because you cannot visualise what you’re doing like you can with BIM. You’ll get the job done, but you won’t see the benefits like you can with our software,” he says. “We illuminate a lot of the rework because you can track what is happening on site.”

VISUALISING PROGRESS Tekla Structures enables the creation and management of detailed 3D structural models regardless of material or structural complexity.

CONSTRUCTION SOFTWARE PROS AND CONS PROS Reduces risk Cuts costs Saves paper Reduces errors Allows you to track changes You can visually monitor progress CONS Can take time to implement Staff must be trained to use the system

MARCH 20–26, 2010 CONSTRUCTION WEEK

21


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Its models can be used to cover the entire building process from conceptual design to fabrication, erection and construction management. One application that you get with Tekla Structures is ‘steel detailing’. This allows users to create detailed 3D models of any steel material and then generate corresponding fabrication and erection information, which can be easily shared by all of the project participants. A contractor or structural engineer can create and modify grids with this function, create detailed steel connections and erection sequences.

MONEY MATTERS So construction software can cut out risk, it allows all workers involved in a development to monitor changes and track progress and, as the number of errors is reduced, using software can lead to increased efficiency. Madeira seconds this argument and goes one step further by suggesting that using spreadsheets may be “sabotaging contractors’ and developers’ profits.” “The continued use of spreadsheets to manage mission critical business functions is an unacceptable risk for the new world we live in,” he says. “Tailored and packaged based software holds out the promise of a better

controlled and trusted environment. The use of spreadsheets to perform complex business functions exposes a business to a number of risks and although excel is the biggest competitor to construction software the advantages of moving away from them are well proven.” Causeway’s design, cost, financial supply chain and enterprise content management solutions allow users to save money throughout the tendering process – from the beginning stages of planning to bid leading and the final accounts being produced. “Savings in time and money can be gained in automating the entire estimating process

TOP CONSTRUCTION SOFTWARE COMPANIES TO KNOW ACONEX Aconex provides a web-based system for managing project information such as drawings, documents, tenders and correspondence. To help prevent disputes and delays, the system maintains a complete audit trail of who did what and when, allowing contractors and project managers to track key deliverables and identify bottlenecks before they impact schedules. More than 500 projects in the Gulf region and 6000 worldwide, are using Aconex, including developments such as Dubai Sports City and The Lagoons in Dubai, Yas Island and Al Raha Beach in Abu Dhabi. www.aconex.com CAUSEWAY Causeway’s design, cost, financial supply chain and enterprise content management solutions cater to the needs of the construction industry. Its cost management and financial management systems help organisations minimise risk, control cost and increase profits. Causeway’s enterprise content management solutions help companies gain better control over information relating to projects, departments and entire organisations. The company’s supply chain management solutions help construction firms control costs throughout the tendering process. www.causeway.com CMCS CMCS offers PPMIS, a portfolio and project management solution that helps companies keep track of project progress. The system centralises all project information, including schedules, costs and

documents, so that information is readily available when needed by the user. Among those expected to benefit from the system are: developers and owners, financial partners, project management firms, surveyors, consultants, contractors and suppliers. www.cmcs.ae CONSTRUCTION COMPUTER SOFTWARE (CCS) Candy Construction Estimating and Project Control system is a software application for the cost management and planning of all construction projects. The system integrates all functions and stages of the construction process, from estimating through to tender award and ultimately, final account. Candy is entirely focused on and designed for construction. Developed over 30 years through an interactive and consultative process with the industry, Candy manages the numerous links between all functions and all the people in construction in a systemic way. www.ccsgulf.com TEKLA Tekla Structures is building information modeling software that enables the creation and management of detailed 3D structural models, regardless of complexity. Tekla models can be used to cover the entire building process from conceptual design to fabrication, erection and construction management. Tekla Structures can be used to interface with other existing applications, or on its own as a platform to develop a customisable internal solution. Its open platform supports interoperability and standardisation. www.tekla.com/ae

MARCH 20–26, 2010 CONSTRUCTION WEEK

23


to provide a faster and more accurate bid delivery,” adds Madeira. “The majority of Causeway employees are people with a construction background and therefore we can offer customers not only software solutions but consultants with actual practical domain expertise.” Cost is often something that deters businesses from investing in new technologies, especially during a financial downturn, like the one we are experiencing now. But, it seems that construction companies are actually turning to software systems in times of crisis. “During boom times margins are important but, they are not that important. If a project is to turn bad it would be immediately financed by another one. In bad times it is a PETER CHENEY, MANAGING DIRECTOR OF BUILDSMART.

24

CONSTRUCTION WEEK MARCH 13–19, 2010

different situation because now [developers] are not pulling in projects one after the other so the projects they do have are becoming critical and in turn margins become critical,” says Cheney. Muneer agrees: “People actually turned to construction software during the crisis because it helps them save on construction costs and saves them time. It helps improve efficiency and reduce waste.”

WASTE NOT WANT NOT Of course, construction waste is one of the biggest contributors to carbon emissions, but building a project also involves paper work, and a lot of it. And, with new environmental regulations coming into the Middle East is also leading construction companies to think of new ways to save energy, through any means necessary. Fortunately, construction software can help to reduce the need for the endless print outs. “Causeway is committed to find ways to reduce carbon footprint and develop technology that can assist organisations become more efficient whilst also having environmental benefits,” says Madeira. “Recently awarded ‘E-Commerce Product

PAUL MADEIRA, CEO OF CAUSEWAY MIDDLE EAST.

of the Year’ in the UK, Causeway Tradex combines data exchange and process controls that allow companies to exchange trading documents, such as invoices and orders, without the need for paper.” So now that we know the be the benefits construction software can bring to businesses and their projects, is there really any excuse to keep using old school spreadsheets? “Adding in collaborative capabilities will give those supply chains that take advantage of technology a competitive advantage. We all appreciate the old methods are broken, so shame on us if we do not correct them,” Madeira responds. 

FEBRUARY 20–26, JANUARY 9–15, 2010 2010 CONSTRUCTION CONSTRUCTION WEEK WEEK

27 25


www.ConstructionWEEKonline.com/directory

§§§§ DIRECTORY

DIRECTORY TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE 26 TENDERS 27 PROJECTS SPECIALIST SERVICES 28 Design software 29 Construction manufacturers/steel CITY UPDATE 30 Kuwait City, Kuwait

To advertise please call Jason Bowman +971 4 210 8351, or email jason.bowman@itp.com

MARCH 20–26, 2010 CONSTRUCTION WEEK

25


TENDERS §

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

Tender focus

GENERAL AUTHORITY OF CIVIL AVIATION

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

Saudi Arabia’s General Authority of Civil Aviation (GACA) is responsible for the development of air transport through constructing, managing, provisioning and operating airports and the air navigation infrastructure, and maintenance of systems. Last week, it was revealed that the government body is set to float tenders worth US $4.5 billion (SR17 billion) in two months’ time to build a new airport in the holy city of Madinah and a commercial centre near Jeddah airport. Four prequalified consortia including Australia’s Lend Lease Corporation, Saudi Oger and Saudi Real Estate Company (Akaria), as well as US developer Hines, are expected to submit bids for the commercial centre before the end of May and the contract is scheduled to be awarded by August. Bids for the Madinah airport will be accepted in October with contracts to be awarded in December. 

BAHRAIN Issuer: Ministry of Works Tender No: SPdh/097/10 Description: Construction of a theatre comprising a 1000-seat auditorium. Closes: April 21 Fees: BD50 Contact: www.tenderboard.gov.bh

SAUDI ARABIA IS TAKING BIDS FOR AIRPORT WORKS.

Fees: KD1000 Contact: Central Tenders Committee – Ministry of Education Description: Construction of Jaber Ahmed Al Jaber Al Sabah Bridge in Kuwait. Closes: June 8 Fees: KD5000 Contact: Central Tenders Committee – Ministry of Public Works OMAN

EGYPT Issuer: Egyptian Electricity Transmission Company Description: Implementation of two overhead power transmission lines. Closes: April 27 Fees: EP10,966 Bond: EP7,677,320 Contact: 5 Sixth October Street, El Mounib, Giza KUWAIT Issuer: Central Tenders Committee Tender No: MEW/2010/2011 Description: Street lighting maintenance works for roads in Kuwait City. Closes: March 21 Fees: KD500 Contact: Central Tenders Committee, Ministry of Electricity and Water Issuer: Central Tenders Committee Tender No: MEW/37/2008/2009 Description: Construction of five potable water pipelines. Closes: March 23 Fees: KD4000 Contact: www.ctc.gov.kw Issuer: Central Tenders Committee Tender No: PF/1/2009/2010 Description: Construction of several schools in Kuwait City. Closes: March 23

26

CONSTRUCTION WEEK MARCH 20–26, 2010

Issuer: Ministry of Transport and Communication Tender No: 42/2010 Description: Construction of a track road. Closes: March 22 Fees: OR175 Contact: www.tenderboard.gov.om Issuer: Ministry of Transport and Communication Tender No: 40/2010 Description: Design and construction of Muqniyat and Miskin Link Roads. Closes: March 22 Fees: OR1000 Contact: www.tenderboard.gov.om Issuer: Mazoon Electricity Company Tender No: 38/2010 Description: Construction of a primary substation for Adam Airport. Closes: March 22 Fees: OR373 Contact: www.tenderboard.gov.om

> For more tenders check online at www.ConstructionWEEKonline.com/tenders SAUDI ARABIA Issuer: Ministry of Transport Tender No: MOT-Makkah-9 Description: Construction of Makkah Ring Road- phase 2. Closes: March 20 Contact: www.mot.gov.s Issuer: Ministry of Transport Tender No: MOT-Madinah-11 Description: Construction of 3rd Ring Road in Madinah – phase 4. Closes: March 24 Contact: www.mot.gov.sa Issuer: Ministry of Transport Tender No: MOT-TAB-7 Description: Construction of Tabouk-Sharma dual carriage road in Tabouk province. Closes: March 27 Contact: www.mot.gov.sa UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0366/2009 Description: Supply, installation, commissioning and training of a low voltage current transformer testing unit. Closes: March 24 Fees: AED200 Contact: https://e-services.dewa.gov.ae

QATAR Issuer: Public Works Authority Tender No: PWA/GTC/045/09-10 Description: Reconstruction of the Najma Road extension. Closes: April 20 Fees: QR7000 Contact: Contract Department, Public Works Authority

ONE TO WATCH Issuer: SCADIA Description: Construction of Abu Dhabi’s International Airport’s midfield terminal building. Closes: Unknown Contact: www.scadia.com


¦PROJECTS

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

§ PROJECTS

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

Project focus

JUBAIL IWPP An Independent Water and Power Plant (IWPP) is currently under going construction in Jubail Industrial City. The plant will comprise four blocks and will be based on combined cycle generation gas turbines, which will supply process steam to the desalination plant. Jubail IWPP will produce 2745MW of power and 800,000m3 of desalinated water per day to Jubail Industrial City and the Eastern Province of Saudi Arabia. The Seuz consortium – a joint venture between Suez Energy International and Acwa Power Projects was awarded the main construction contract in 2006. Work started in early 2007 and is expected to be completed this year.  PROJECT TITLE

THE JUBAIL IWPP WILL PRODUCE 2745MW.

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

PROJECT STATUS

MUZAHIMIYAH POWER PLANT

Saudi Electricity Company

Fichtner

Not Appointed

NEW DAM IN HAIL

Ministry of Water & Electricity

SaudConsult

Progressive Construction Ltd

53

project under construction

202KM TRANSMISSION LINE BETWEEN QURAYYAH POWER AND THE NATIONAL GRID

Saudi Electricity Company

Hyundai Engineering & Construction Company

106

project under construction

PP9 EXTENSION - 380-KV SUBSTATION

Saudi Electricity Company

YANBU INDEPENDENT WATER & POWER PROJECT

Marafiq / Saline Water Conversion Corporation

PRINCESS NOURA BIN ABDULRAHMAN UNIVERSITY HIGH VOLTAGE SUBSTATION

Ministry of Higher Education / Ministry of Finance

110/13.8-KV AL BAIDAA SUBSTATION

Saudi Electricity Company

CONSTRUCTION OF WATER NETWORKS - CONTRACT NO. 2

Ministry of Water and Electricity

380 KV MANIFA SUBSTATION JIZAN ECONOMIC CITY - 132 KV SUBSTATION REINFORCEMENT OF SIX 132 KV SUBSTATION IN JIZAN

Saudi Electricity Company

2000 MW QURAYYAH POWER PLANT

Saudi Electricity Company

QSAI DAM AT JIZAN

Ministry of Water & Electricity

Zuhair Fayez Partners

Bin Jarallah Group

1200 MW THERMO ELECTRIC POWER PLANT IN RABIGH

Saudi Electricity Company/Acwa Power Int’l/KEPCO

Not Appointed

Alstom Power

NEW DAM IN ABHA

Ministry of Water & Electricity

Zuhair Fayez Partners

Bin Jarallah Group

PP11 POWER PLANT IN RIYADH

Saudi Electricity Company

132/380-KV SUBSTATION IN NAMERA

Saudi Electricity Company

EXPANSION OF 20 DISTRIBUTION SUBSTATIONS

Saudi Electricity Company

2400- MW RABIGH POWER PLANT - PHASE 6

SAUDI ARABIA

Siemens Mohammed A. Turki Mott Mac Donald

91 4,000

ABB Contracting Company / Al Fanar

167

project under design

project under construction project under design project under construction

Siemens

10

project under construction

Modameen Cont..Est./Ahmed Al Hurafi Co.

13

project under construction

Saudi Electricity Company

National Contracting Company

123

project under construction

South Steel Co.

ABB Contracting Company

21

project under construction

Iscosa Industries & Maintenance

65

project under construction

Arabian Bemco Contracting

778

project under construction

In House

Not Appointed

40

project under construction

2,500

project under construction

16

project under construction

2,133

award awaited for contract

162

project under construction

In House

ABB Contracting Company

Saudi Electricity Company

Fichtner GmbH & Co.

Not Appointed

115/380-KV HALF MOON SUBSTATION - PHASE 2

Saudi Electricity Company

In House

ABB Contracting Company

SHAROURAH POWER PLANT EXTENSION

Saudi Electricity Company

In House

Al Fanar Contracting

96

project under construction

JEDDAH ISLAMIC SEAPORT - SUBSTATIONS PACKAGE

Saudi Trade & Export Development Company

In House

Civil Engineering Projects Co. for Contr.

50

project under construction

ABB Contracting Company

34

project under construction

2,000

award awaited for contract

66

project under construction

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

In House

Not Appointed

950


SPECIALIST SERVICES §

¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 210 8351, OR EMAIL JASON.BOWMAN@ITP.COM

Supplier focus

ARISTON THERMO GROUP

MANUFACTURER OF HEATING AND WATER PRODUCTS

To advertise please call +971 4 210 8351 or email jason.bowman@itp.com

Established in Italy, 1930, Ariston Thermo Group offers heating and water products, which are designed to provide comfort, while consuming a minimal amount of energy. In line with its green initiatives, the company will offer solar panels, storage tanks, back-up gas boilers (if needed), expansion vessels a control unit and all components for the production of sanitary water to the Masdar City project. Ariston’s range of solar thermal solutions capture renewable energy from the sun and deliver up to 70% of hot water needs and up to 15% of heating needs. The company has supplied energy saving solutions to projects around the world, including a 7500m2 solar system for the Beijing Olympics. It has 19 production sites in 10 countries, 40 branches in 26 countries and distributes its supplies to over 150 countries. Ariston is a firm believer in collaboration with local partners as they provide the company with the insights into prevailing cultural habits, climate and housing conditions to supply the optimum degree of energy efficient comfort to any user in any environment. 

28

CONSTRUCTION WEEK MARCH 20–26, 2010

ARISTON THERMO REGIONAL MANAGER ALBERTO TORNER MARTIN


CONSTRUCTION/MANUFACTURERS

BUILDING MATERIALS

ยง SPECIALIST SERVICES

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

CONSTRUCTION/MANUFACTURERS

Full range of plaster, tiles and gypsum tools

OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae

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MARCH 13โ€“19, 2010 CONSTRUCTION WEEK

29


CITY UPDATE KUWAIT CITY, KUWAIT

Whistle

while you work CW LEARNS THAT, DESPITE THE DOWNTURN, THERE ARE PLENTY OF CONSTRUCTION JOB OPPORTUNITIES ON THE HORIZON IN KUWAIT CITY By Sarah Blackman

F

or construction companies looking for work in the GCC, Kuwait is definitely worth a visit, the simple reason being that the country is set to adopt a US $100 billion (KD30 billion) plan to develop mega projects, mainly in the capital, over the next four years. The plan was authorised by the Kuwait government in Parliament in February and is set to boost the non-oil private sector economy and support the construction industry. The funding is expected to be used to develop the new Silk City business hub (Madinat Al Hareer) at an estimated cost of $77 billion, as well as the upgrade of the country’s energy grid and the construction of a 25 km container harbour. It will finance a railway and a metro system, and there will be additional spending on infrastructure. The $7 billion Kuwait Metro is currently under concept stage and invitations to bid for the main construction contract are expected to be released in 2011, with work set to start in Q3 of the same year. A consortium led by Dashti, along with members of Spain’s Ingenieria & Consultoria de Transporte, and the local Kuwait United Development Group carried out the feasibility study. The entire project

is expected to be complete by 2016. But what’s under construction right now? Well, there is the United Tower, a mixed used building, which is will stand at 60 floors once complete. “Now with the inclusion of the United Tower skyscraper, Kuwait City has indeed become home to numerous commercial and residential towers,” said United Towers Holding Company chairman and managing director Ahmad Saud Al Sumait, when he unveiled the project. “United Tower is the first building of its kind, designed to sustain the country’s economic progress,” he continued, adding that the tower would add “a specific aesthetic and architectural element to the Kuwaiti Capital.” For United Towers Holding Company, the project also marked their first venture into development and it has added the 18-storey Al Shaheed Tower and 22-storey City Tower – both office premises – to its portfolio since work began on United Tower back in 2005. The main construction work on United Tower is being carried out by Al Ahmadiah Company and the senior project director for United Real Estate Company, Ali Saleh, claims that the tower will be built “based on modern specifications and world-class smart technologies”. Originally due for completion in 2010, the schedule has been pushed back, with

“FOREIGN COMPANIES ARE LOOKING TO ACCESS THE MARKET AND THE KUWAITI COMPANIES ARE GROWING.” 30

CONSTRUCTION WEEK MARCH 20–26, 2010

THE US$950 MILLION AL HAMRA TOWER UNDERCONSTRUCTION IN KUWAIT.


TOP PROJECTS Madinat Al Hareer Kuwait Metro Al Hamra Tower Kuwait International Airport Expansion United Tower

US$

90 billion 7 billion 950 million 750 million 240 million

delivery now expected in 2011. Upon completion, the $240 million tower – spread across 98,000m2 – will feature high-tech office facilities, residential apartments on the middle storeys, and a high-end mall with luxury retail stores. Also under construction in Kuwait City is the iconic Al Hamra Tower. Al Hamra Real Estate broke ground on this project back in 2004, and according to the developer, the building is on course to be completed by

the last quarter of this year. The Skidmore, Owings and Merrill-designed tower will boast 77 storeys and reach 412m in height, making it Kuwait’s tallest building and also the tallest ‘sculpted’ tower in the world, all at a cost of $950 million. The US-based Turner Construction leads the development in terms of project management, while Al Jazeera consulting and Ahmadiah Contracting & Trading Company are working together as the main contractor. The tower will include commercial and office space, including a five-storey mall, an IMAX theatre complex and an 11-storey carpark, all spread over a footprint of 18,000 m2. So, apart from the obvious continuation of work, why should

companies do business in Kuwait City? “Kuwait’s market is emerging and there are many attractive investment opportunities in most of the industry sectors,” states Kuwait-based Aknan Global director of real estate and investments Fawaz Al Najadah. “Foreign companies are looking to access the market and the Kuwaiti companies are growing exponentially. When compared to Dubai or Doha you can obviously note that Kuwait markets are more stable in the economic crisis.” And, Bader Al Adsani, property development manager of Salhia Real Estate, the developer of Arraya Office Tower II in Kuwait, agrees: “Like every other country in the Gulf, Kuwait has been affected significantly due to the banking crises. However it has been holding up better than [other] major cities.” 

MARCH 20–26, 2010 CONSTRUCTION WEEK

31


DIALOGUE MOHAMED EL MIKAWI

Cairo construction Mohamed El Mikawi, managing director for Al Futtaim Real Estate in Egypt gives an update of how his company’s flagship development is progressing and discusses the benefits of doing business in Cairo

By Sarah Blackman

What progress has been made at Cairo Festival City so far?

We expect to complete Cairo Festival City in 2015, having already completed several sections of the development, including the American International School (AIS), which opened in October 2005, phase one of the automotive park, which now hosts the Honda showroom which opened in early 2008, as well as the Toyota showroom, which opened in January 2009. What is left to complete?

Construction of phase one of the residential villas started last year and we expect to be handing them over to the occupiers in 2012. Construction of Festival Centre started in May 2008 and will be completed towards the end of 2011, officially opening its doors in early 2012. Development of the commercial offices also started late last year, with construction of the remaining elements of Cairo Festival City scheduled to start this year. What can Cairo expect from the construction industry this year?

complex will complete the residential area, providing a more cost effective medium for those wanting a more cosmopolitan life style, closer to the retail resort. Also, the new compact villas subdivision is expected to be launched in May of this year and will cater to a wider target market. Festival Centre, the retail resort, will offer Egypt’s first indoor/outdoor experience with shopping, restaurants, cafes and entertainment all beautifully located around a stunning water setting. Premium offices, a school, automotive parks and hotels add to the experience together with an ideal location and easy access to the ring road. Why do people choose to do business in Cairo?

When you look at the housing industry it is clear that there is a huge gap between supply and demand, and Egypt’s rapidly growing population means that the demand for housing has still yet to be met. It is this large population that fuels the increased number of businesses entering the Egyptian market. The consumer market remains unsaturated as Egypt’s economy is still in its infancy and the vast workforce that Egypt has makes it an ideal location for a wide variety of businesses. With regards to the retail industry, over the past ten years the industry has been growing at an annual rate of between 5% and 15%.

There are numerous construction projects underway in Cairo at present and these projects are definitely designed to alleviate the high demand for housing in Cairo. The construction industry is slowly starting to catch up to this demand, but this is a process that will only be felt over an extended period How does Cairo compare to GCC cities such as Dubai, Abu of time. With regards to Cairo Festival City specifically, the Dhabi and Riyadh? project aims to address the housing needs of the growing There are many differences but we could say that Egypt has New Cairo population. Spanning the largest population in the Arab over 3 million m2, we hope our world and the rapidly growing BIO development will stand as the population is what is fueling the centerpiece for New Cairo. Cairo El Mikawi joined Al Futtaim Group Real Estate expansion of Egypt’s economy. Festival City, when complete, will (AFGRE) in December 2008 as Cairo Festival In comparison, GCC consumer be a community where people can City’s general manager, before being promoted to markets are far more saturated live, work, and play in one place managing director of AFGRE Group Egypt. Prior and because their populations – in theory they will never have to working for AFGRE, El Mikawi was the general are growing at a slower rate their to leave. The Mediterranean style manager of the Aga Khan Trust for Culture – Egypt. economies are also expanding Oriana villas will be luxurious and He managed the overall activities for the trust at a slower rate. If we are also to form a gated community where and was responsible for the design, construction, consider the global economic crisis families can live in a secure and finance and operations of several urban projects. He that we were faced with last year, beautifully maintained landscaped holds a PhD in Science in Engineering Management. the GCC was definitely far more environment. The apartment affected than Egypt. 32

CONSTRUCTION WEEK MARCH 20–26, 2010


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Construction Week - Issue 313  

Construction Week - Issue 313 - ITP Business

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