{' '} {' '}
Limited time offer
SAVE % on your upgrade.

Page 1

Official Media Partner


Saudi Arabia set for strong economic growth Saudi Arabia’s formidable mineral resources will form the platform for a period of strong economic growth in 2012-17. According to a recent report from the Samba Financial Group, real GDP growth will average 5 percent in 2012- 17, with the rate of real non-oil growth also averaging 5 percent. manageable, with a good deal of domestic remain a source of price pressure, but efforts to expand the housing stock should help to 5.5 percent per annum. The report said public spending would remain the engine of economic growth. Overall hydrocarbon earnings are expected to stabilise at around $285 billion. Add in nonoil revenues and total government revenue is expected to hold at around $300 billion a year during the period 2012- 17. With very little debt to service or pay down the main call on government revenue is wages and salaries, which tends to absorb 25-40 percent. The public sector is still the “employer of strong population growth rate and a brisk spending on wages and salaries will likely increase by around 6.5 percent a year during the forecast period. Spending on supplies and services should increase at a similar rate, while subsidy spending-which encompasses domestic fuels and certain foodstuffs-will grow at a brisk pace given the rate of domestic consumption of fuel. Overall current spending is therefore likely to grow at an annual average rate of around 3.5 percent.

Despite increasing recurrent spending demands there remains room to sustain large capital spending while still keeping the Capital spending will form the basis of opportunities for private business. These in turn will be guided by the country’s Ninth Development Plan (NDP), which is worth $385 billion (some 67 percent higher than the previous plan) and runs from 2010-14. The NDP, which is prepared by the Ministry of Economy and Planning (MEP), is a general framework for capital spending, and actual capital spending (in terms of the amounts and direction) may well differ from the plan as circumstances change. The MEP has traditionally played a low key role in economic policy and development, but following the appointment of the former SAMA governor, Muhammad Al-Jasser, as Minister in December 2011, it is expected to take a more vigorous and proactive approach.

Education The biggest single spending allocation is with the demographic challenge outlined and is aimed at improving all levels of education, with the overall goal of making school leavers and graduates more likely to secure jobs in the private sector, although it is notable that its share of spending between the two plans declined. Health is another major area of spending. Its share of spending was increased in recognition of the Kingdom’s pressing health issues, stemming largely from population growth and the increasing prevalence of “lifestyle” diseases, the Samba report said. Economic resources, which are dominated by utilities, see their allocations more than doubled and their share of spending rise to provide enough power and water for a country where demand is increasing by around 8-10 percent a year. Saudi Electricity Co. (SEC) says it is committed to spending $60 billion over the next ten years.

Transport also sees a near doubling of its allocation. Road building continues apace, and will remain a cornerstone of transport policy in the Kingdom, however, rail and ports are also moving up the agenda. Municipal and Housing services has often been overlooked, but this is likely to become pressure on municipal services. Second, housing has taken on much greater importance recently. As such, more than the $26.8 billion committed will likely be allocated as the government bids to expand affordable housing. Both housing and municipal services offer good scope for private participation. Comparing the Eighth and Ninth plans provides some shifts of emphasis. It appears that certain regions of the country have lagged the overall development progress witnessed in the traditional commercial heartlands of Riyadh, Jeddah and the Eastern Province. Jazan Economic City and Prince Abdul-Aziz Bin Mousaed Economic City in Hail represent attempts to steer more investment to underdeveloped areas of the country.


Fostering a “knowledge based economy” is given greater prominence in the NDP than in the eighth development plan. This is an important element of hydrocarbons-based economies that have

promote “strategic alliances between private national companies and technically advanced international companies” in order to foster technology transfer. In addition, the authorities are prepared to use “soft loans” to encourage the use of modern technologies, especially in the export sector, while simultaneously discouraging the use of unskilled foreign labour. The authorities are especially keen to make a stronger link between education and business by establishing research and development centres that can serve the needs of business. The NDP provides grants for strategic research centres to the tune of $240 million a year, and also speaks of providing an annual $80 million to government agencies and $53

ICT ICT is an important adjunct of the effort to deepen and widen the knowledge-based economy, and has strong potential growth prospects. The Ministry of Economy expects

A further broad priority is the effort to diversify the economy. This has been a the context of “maximizing the return on competitive advantages”. Saudi Arabia’s comparative advantage of course lies in hydrocarbons (it has at least 90 years’ worth of oil reserves) and it makes sense to exploit this by creating greater value-added.

Petrochemicals right and also opens the door to a variety of industrial products-and jobs-through the petrochemicals product chain, the Samba report said. The key to this is the use of naphtha, from which can be derived a much larger variety of “building blocks” than ethane, which has been the feedstock of choice for the Kingdom’s producers, but which is in short supply. A vertically integrated approach is also being adopted in the aluminium sector where there are plans to harness the country’s bauxite reserves by constructing what will become the world’s largest aluminium complex at Ras Al-Khair.

The $10.8 billion project, which is a joint venture between Maaden and Alcoa, is designed to attract a large number of conversion industries to cluster around the site. The report said authorities are also looking to boost the non-oil export sector more broadly in a bid to enhance diversity, reduce vulnerability to external shocks and create a platform for more sustainable and predicable growth. Evidence suggests that economies based on a single commodity will successfully create a robust quantity and variety of exports and worldwide purchasers for them. group of second-tier non-oil exports that have shown growth rates of between 8 percent and 25 percent during 2004-07. The government believes that these industries are ripe for additional help in terms of offering information on demand in export markets, organising export promotions, providing competitor information, technical

4.4 percent a year, while demand for mobile services is expected to climb by 5.6 percent a year, with the penetration rate reaching about 194 percent by 2014. Broadband demand is forecast to grow even more briskly, by about 10 percent, with the number of subscribers climbing from 2 million to 3.25 million by 2014 (total penetration will reach 11.4 percent, while residential coverage will reach 47.4 percent). The Saudi government wants to narrow the “digital divide” between the regions. To do this, it has established the Universal Service Fund, which aims to provide full coverage in areas where the market does not provide ICT services. Saudi Arabia also plans to extend broadband networks to all schools, universities, hospitals, government agencies and civil society institutions. Beyond this, it wants to expand “e-government” services and envisages a “shared role” for the private sector in this. Despite the prominence given to ICT and the allocations to ICT under the 9th Plan amount to a comparatively meagre $239 million, with a far larger amount of $2.3 billion given over to developing the Saudi postal service.

key markets. liberalisation of the ICT sector and the large role envisaged for the private sector, both domestic and foreign, the Samba report said.


Kuwait market potential An insight into the latest business developments in Kuwait Kuwait has a population estimated at 3.6 million, although almost 70% of these are non-nationals. GDP per capita is estimated at around $55,000 and Kuwait ranks 47th in the UNDP Human Development Index. Crude oil and gas production account for about half of GDP, 95% of export revenues, and 84% of government revenue. Kuwait’s oil reserves are estimated at 8% of global reserves, among the largest in the world, and to remain productive for at least 70 years at or around current production levels. Kuwait is ranked 18th in global natural gas reserves. Under its Vision 2035 and the Kuwait Development Plan 2010-14, it aims to led economy with world-class infrastructure attracting business and investment. Kuwait centre while maintaining its social identity and advancing human development. The economy is highly dependent on international trade: the ratio of merchandise

and services trade (exports and imports) to GDP averaged 86.6% during 2007-09. In 2010, Kuwait ranked 29th among world merchandise exporters and 45th among importers (considering the countries of the EU together and excluding intra-EU trade). In services trade, Kuwait ranked 38th among exporters and 32nd among importers. Manufactured goods make up the bulk - around 80% - of Kuwait’s merchandise imports, with the composition of imports and comprising in particular automotive telecommunication equipment, and inputs for the construction industry. Kuwait imports practically all of its food and other agricultural needs, which account for around 16.5% of the value of merchandise imports. Under the Foreign Investment Law, foreign investors have been allowed to own up to 100% of business since 2001. Nonetheless, obtaining approval has reportedly been a

lengthy procedure. In addition, the law does not apply to certain economic activities and foreign portfolio investment through the Kuwait Stock Exchange may not exceed 49% in any listed company. Action is being taken to attract more FDI and a privatisation law passed in mid-May 2010 sets out a process of transferring ownership to the private sector (through build-operatetransfer (BOT) schemes) by identifying suitable partners from home and abroad and issuing shares through initial public offerings, while maintaining a public share ownership (in principle 24%) through the Kuwait Investment Authority (KIA). The Kuwait Chamber of Commerce and Industry (KCCI) has said that the Government is taking important steps to improve the business environment and has welcomed the new laws on privatisation and BOT. Goods imported are subject only to customs tariffs, since Kuwait does not impose VAT, excise duties or any other internal tax or charge on either domestically produced or imported products. Kuwait started applying the GCC common external tariff in 2003. Kuwait applies the GCC common laws on customs procedures and valuation. It requires documents to be authenticated, and charges consular fees on commercial imports. A “general” import licence is required for all imports from all sources, and special permission from competent authorities prohibits certain imports for security, health,


a golf course, housing units, a marine park, four marinas, and entertainment facilities in an environment-friendly atmosphere. Client: Partnership Technical Bureau.

Opera House Estimated value: T.B.A. Details: The project is to design and build a high-end opera house with a capacity of 2000 seats. Client: Ministry of Public Works.

Airport Hotel Details: The project is to design and build a new airport, hotel inside the airport area. Client: Partnership Technical Bureau.

Grand Zoo Details: The project is to build a zoo with a ‘safari’ type of design (1.400.000 m2). Client: Partnership Technical Bureau.

Boubiyan Development Project safety, or religious reasons, or to meet the requirements of international conventions.

Kuwait has however opened some services subsectors to foreign investors, including

Export procedures are simple, and any natural persons or companies (including foreign) may export in Kuwait. Some goods are prohibited from exportation, while other are restricted and require a licence from the competent authority. Kuwait applies no export taxes, charges or levies.

telephone services and professional services.

In 2010, government procurement accounted for about 12% of GDP. Kuwait’s procurement regime allows for a price preference of 10% for local products and 5% for GCC products. Persons who wish to submit tenders must be either Kuwaiti suppliers, or foreign suppliers with a Kuwaiti partner or agent. that win government contracts above certain thresholds to make an investment that will add value to the Kuwaiti economy. The law now allows foreign investment in the electricity and water sectors through publicprivate partnership whereby independent water and power projects (IWPP) will be established. Under the IWPPs, private companies may generate electricity and water and sell to the Ministry, which will then be sold to consumers. Foreign investors are allowed up to 26% ownership of these projects. The service sector is the largest non-oil component of the economy, accounting for about half of GDP and over 80% of total employment. The sector remains dominated by several state-owned enterprises, and telephony, there are state monopolies.

Kuwait is a net importer of agricultural products, and food security is mainly promoted through relatively low applied Most Favoured Nation (MFN) tariffs (3.2%), while private companies are being encouraged to invest in farm projects abroad. Kuwait is pursuing a Development Plan for the years 2010-2014 which involves the participation of the private sector, mainly through BOT schemes, and has a projected public expenditure of $108-130 billion (KD3137bn). New projects offering opportunities for contractors, suppliers, design innovators, architects and building consultancies:

Silk City – Madinat Al Hareer Estimated value: 20M KD ($77bn). Duration of the project: 2012-2023. Details: To be located at the northern edge of Kuwait, near the Iraqi border, on its completion in 2030, the city will house a population of 700,000 and is likely to provide 450,000 employment opportunities when completed in 2030. It will be a major new business hub spanning 250 km². Client: Kuwait Ministry of Public Work. Project website: www.madinat-al-hareer.com

Failaka Island Development Estimated value: 120M KD. Details: A worldclass tourist resort with 20 hotels, chalets,

Estimated value: 120M KD. Details: Development of nature reserves, major sea port, tourist resorts, hotels and a residential area along the coastline. Client: Partnership Technical Bureau.

National Rail Network and Metro Estimated value: 750 M KD. Details: The Kuwait Metropolitan Rapid Transit calls for construction of a 171 Km Kuwait Metro. The Metro will be built across the inner city of Kuwait and will include 4 lines. Client: Ministry of Public Work.

Jaber Al-Ahmad Al-Sabah Bridge Details: the Jaber Al-Ahmad expressway will link the new Silk City and the satellite cities to be built in the northern area of Kuwait city. eight groups, each comprising three to four contractors.

Kuwait International Airport Expansion Estimated value: 150M KD. Details: The project calls for design and construction of infrastructure work for the Kuwait International Airport, including approach roads leading to the airport, runway and aircraft hangars. Contractor: Alghanim International General Trading and Contracting Company. Sources: Report on Kuwait published by the WTO Secretariat, 2012;


New Arbitration Law in Saudi Arabia – a major development for commerce in the Kingdom By Abdulaziz Al-Bosaily and Ben Cowling, Clyde & Co The new Arbitration Law – approved on 17 April 2012 – is a significant step forward in the development in the law in the Kingdom and has wide-ranging implications for businesses (both local and international) trading in the domestic market. In particular, the new Law removes many of the negative aspects of the previous Arbitration Law such that businesses can have much greater confidence in arbitration as an effective means of dispute resolution. For various reasons, dispute resolution under commercial contracts in Saudi Arabia is three options when drafting dispute resolution clauses in their commercial contracts: Refer disputes to the local courts (including the Board of Grievances); Refer disputes to domestic arbitration (previously under the 1983 Arbitration Law, no w to be subject to the new Arbitr ation Law); or If the transaction has particular features, refer disputes to international arbitration (now also to be subject to the new Arbitr ation Law if the parties elect). The best option for each business depends upon the circumstances of the relevant transaction. That said, prior to the new Arbitration Law, domestic arbitration was arising under the 1983 Arbitration Law. To best explain the impact of the new Law, it is useful to summarise the key features of the 1983 Arbitration Law: Parties were at liberty to refer disputes to arbitration, including prior to particular disput es arising. That said, Government bodies were not permitted to refer disputes to arbitration without sion. Arbitrators were required to be experienced and of good conduct and reputation and full legal capacity (which under the impl ementing regulations for the 1983 Law meant that arbitr ators had t o be mal e and of the Islamic faith).

the arbitr ation agreement with the court or other body originall y competent to hear the disput e. This court or other body would then supervise the conduct of the arbitr ation, including appointing the arbitr al tribunal where the parties failed to agree the identity of the arbitr ator(s) and hearing applications to replace an arbitrator. Arbitral awards were required to be is sued within 90 days, unless another period f or determination had been agreed by the parties in the arbitr ation agreement or the supervising court or the arbitr al tribunal itself extended the time f or the award to be issued. Upon the r elevant period of time expiring, either party was entitl ed to commence a separ ate proceeding in the supervising court, thereby avoiding the effect of the arbitr ation agreement. Upon the arbitral award being issued, it needed t court to be enforceable. Before ratifying any arbitr al award, the supervising court would hear any objection raised by any party and also asc ertain that there was nothing in the awar d that prevented its enforcement under Shari’ah law. There was no prohibition on the supervising court re-considering the merits of the dispute in the c ourse of the enforcement process, which meant that ther risk that the c ourt would impose its own decision on the disput e notwithstanding the decision of the a rbitral tribunal. The new Arbitration Law entirely replaces the 1983 Arbitration Law. The law will come into effect 30 days after it has been published in yet. Areas of substantive change between the old and the new Laws include the following: The new Law makes clear that invalidity or termination of a contract does not render an arbitration agreement invalid as long as the arbitration agreement is independently valid. While this legal principle is common in many other jurisdictions, it had not been

may agree to refer matters to arbitration by incorporating standard form conditions into their agreements (e.g. FIDIC contracts) and by referring to the rules issued by arbitration institutions from time to time (e.g. ICC). In addition to the existing requirements for arbitrators set out in the 1983 Law, the new Law requires that sole arbitrators or chairmen of panels of multiple arbitrators be holders of at least a university degree in Shari’ah science. The new Law sets out a helpful procedure for the selection of arbitrators where parties cannot agree the constitution of the arbitral tribunal. In particular, where there are multiple arbitrators, the new Law provides that each party nominate an arbitrator and that the two selected arbitrators can then choose the third arbitrator (failing which the court will appoint the third arbitrator). This procedure overcomes a common obstacle, which would otherwise require the intervention of the supervising court. Arbitrators have a positive obligation to keep parties informed of circumstances that may

for challenges to the arbitral tribunal to be including time limits for complaining parties to lodge objections in the relevant court. This removes the ability of parties to object to the enforcement of arbitral awards on the basis of such grounds when they have not been raised previously within the time limit. The new Law allows the arbitral tribunal to ask a relevant authority for help in the arbitration process, such as summoning a witness or expert and ordering the production given that arbitral tribunals do not themselves have the power to make orders against parties outside of the arbitration agreement. Where the parties have not agreed that particular arbitration rules apply (e.g. ICC), the new Law sets out a detailed arbitration procedure that applies by default. Such procedure includes many features familiar to users of international rules of arbitration (such as pleadings, witness statements, expert reports and hearings).


AL SALMAN PROJECTS

W.L.L.

Building Construction Solutions

t

Construction and Underground Mining are regional markets. That is why our global presence is based on a decentralized corporate structure. Such local presence, combined with know-how that is available around the world, is the strength of the DSI network. In the Kingdom of Bahrain, we have our respected partners Al Salman Projects W.L.L., with whom we have achieved milestones under the guidance of Mr. Mustafa Al Salman. Tel : 00973 17260017 Fax : 00973 17260018 P.O. Box : 10902 Manama, Kingdom of Bahrain Email : salmanprojects@batelco.com.bh


MARASSI BOULEVARD MARASSI RESIDENCES

MARASSI SHORES RESIDENCES

MARASSI GALLERIA

THE ADDRESS MARASSI AL BAHRAIN

10

20

away from your entry to the Kingdom, the Bahrain International Airport.

of a short drive away to the heart of the Kingdom’s capital, Manama.

MINUTES

MINUTES

VIDA

MARASSI AL BAHRAIN


PERFECTLY LOCATED IN A VIBRANT COMMUNITY DEVELOPMENT DETAILS Marassi Al Bahrain offers two kilometers of pristine beaches and a lushly landscaped promenade, extensive park areas, and a 45-metre wide boulevard with residential apartments, as well as world-class retail, leisure and entertainment facilities. Upon its completion, the 875,000 m2 project will be home to 11,000+ residents.

‫ﺗﻔﺎﺻﻴﻞ‬ ‫اﻟﻤﺸﺮوع‬ ،‫ﺳﻴﻮﻓﺮ ﻣﺸﺮوع ﻣﺮاﺳﻲ اﻟﺒﺤﺮﻳﻦ‬ 875،000 ‫اﻟﺬي ﻳﻘﺎم ﻋﻠﻰ ﻣﺴﺎﺣﺔ‬ ‫ ﺷﻮاﻃﺊ ﺑﺤﺮﻳﺔ ﺗﻤﺘﺪ‬،‫ﻣﺘﺮ ﻣﺮﺑﻊ‬ 2 ‫ﺑﻄﻮل‬ ‫ﻟﻤﺘﻨﺰﻫﺎت ذات ﻣﺴﺎﺣﺎت ﺧﻀﺮاء‬ ‫ ﻣﺘﺮ ﻳﺰﺧﺮ ﺑﻤﺘﺎﺟﺮ ﺗﺠﺰﺋﺔ‬45 ‫ﺑﻄﻮل‬ ،‫ﻣﺘﻨﻮﻋﺔ وﺷﻘﻖ ﺳﻜﻨﻴﺔ ﻓﺎﺧﺮة‬ ‫ ﻋﻨﺪ اﻻﻧﺘﻬﺎء‬.‫وﻣﺮاﻓﻖ اﻟﺘﺮﻓﻴﻪ‬ ‫ ﺳﻴﻜﻮن ﻣﺮاﺳﻲ‬،‫ﻣﻦ اﻟﻤﺸﺮوع‬ .‫ ﻧﺴﻤﺔ‬11،000 ‫اﻟﺒﺤﺮﻳﻦ ﻣﻮﻃﻨﺎ ﻟـ‬


Boolean is an IT and Business Solutions provider, owned by Gallure Ideas & Insights W.L.L., with stakes in various ICT Organizations across India, Bahrain and the UAE. Through strong alliances with global giants such as Microsoft, SAP, and KCI, we offer specialized solutions including ECM, ERP, CRM, BI, Mobility, Asset Management, Cloud servicing, and more. . We are focused on delivering solutions to: • Enable small to large organizations leverage unstructured business content • Enhance business process productivity through quick-to-deploy and easy to use integrated solutions • Increase Return On Investment (ROI) • Enable control and management in addition to nurture the business environment • Offer flexible delivery options including on-site, partner-site, off-site or any combination of resources


THE DIGITAL REVOLUTION

IS UPON US! BUT WHAT ABOUT THE HUMANS? ADRIANA HAS BEEN DOING RESEARCH IN AUSTRALIA AND YEARS RESULTING IN A NUMBER OF APPLIED OUTCOMES AS WELL AS ACADEMIC AND INDUSTRY PUBLICATIONS. HER MOST RECENT BOOKS ARE: INTEGRATING INFORMATION IN BUILT ENVIRONMENTS: FROM CONCEPT TO PRACTICE AND DELIVERING VALUE WITH BIM: A IS A COMMISSION COORDINATOR OF AN INTERNATIONAL TASK GROUP ON INFORMATION

INTEGRATION IN CONSTRUCTION AT THE SUSTAINABLE BUILT ENVIRONMENT NATIONAL HEADQUARTERED AT CURTIN TEACHES AT THE UNIVERSITY OF NEW SOUTH WALES AND UNIVERSITY OF TECHNOLOGY SYDNEY AS WELL AS CARRY OUT RESEARCH INTO URBAN RESILIENCE POLICY, INCLUDING THE USE OF INFORMATION SYSTEMS TO IMPROVE


In Australia, and globally, we are facing challenges due to economic unpredictability, changing climate and technological advances. In 2013, the Australian Department of Industry identified lifting productivity and economic growth as one of our most important challenges. Internationally, governments around the world have also tried to increase the the built environment industry by embracing new digital technologies and integrating information across organisations and software platforms. In Australia this is being done, among other ways, under the banners of smarter cities, digital engineering and building information modelling (BIM).

These approaches have been heralded to represent a paradigm shift in how we plan, deliver and manage built assets that will bring a bounty of returns. These benefits have been and continue to be widely researched and showcased across the world, leading to government and private actors setting ambitious goals for implementation. The UK Government for example mandated BIM starting 2016 and has developed a vision for a “digital Britain”. Like them, many other governments and state departments have also moved to lead by example. In Australia, the Transport and Infrastructure Council published their Digital Engineering Principles and has a task group working on developing them more comprehensibly. At the state have already pledged to implement BIM across major infrastructure projects or are currently considering it. The digital revolution that has been coming seems to be almost upon us. Should we fear it or embrace it with opened arms and no qualms?

THE DIGITAL VS THE HUMAN While I am an enthusiastic advocate for information integration, our research at the Sustainable Built Environment National Research Centre (SBEnrc) has shown that the answer is not that simple. BIM for example is not a single software package that you just “plug and play”. This means that for an implementation strategy to be most successful it should be framed by clarity around what specific benefits are expected and a clear understanding of potential hurdles and basic requirements such as standards, skills, information management protocols, etc. More broadly speaking, a more integrated digital built environment has the potential to transform our lives and the world we reside in. As rightly pointed out in Digital Britain though, this transformation will require addressing both digital and human factors simultaneously. What does this mean? The digital factors are basically information and technology,

which in the near future will include things like real-time remote sensing and monitoring of assets and network performance, automated control systems, 3D printing and smart factory automation, open data and internet services. The “human” factors, though, are as important if we are to successfully transition into this brave new world. These include things like the cultural change required to work within more integrated project environments as well as finding a balance between business elements such as systems and strategies with social issues that include management style. Australia’s brief National Digital Engineering Policy Principles mention the potential value of these new approaches. for money, productivity and innovation are balanced against more processoriented goals such as standards and protocol harmonisation across government organisations and life-cycle practice across industry and government, capability building and the collection and active incorporation of lessons learned. International research also exemplifies these contrasting aspects of a more digitally integrated built environment. A French research published earlier this year , presented two studies of large asset managers who sought to improve the energy performance of their portfolio through the use of more integrated information management approaches. The first case included the use of a centralised control station for the renovation, operations and maintenance of 18 high schools. This approach provided the operator, administrator and occupants * “Digital Engineering may be defined as the convergence of emerging technologies such as Building Information Modelling (BIM), Geographic Information Systems (GIS) and related systems to derive better business, project and asset management outcomes” (Australian Government, 2016, National Digital Engineering Policy Principles).


with access to energy usage and equipment performance data almost in real-time. This eventually led to achieving ambitious energy saving targets and improving coordination of tasks. The second case was a social housing company who digitised its housing stock to improve their strategic asset management using BIM (they manage 32,836 dwellings servicing some 65,000 tenants across France). They wanted to “promote information sharing, monitoring and transfer and to integrate 3D modelling with facility management and operations processes”. Taking advantage of the size of their stock, the cost of digitising this information came down to less than $50 (€32) per dwelling. This company reported immediate benefits such as more accurate tenders for restoration of facades, time and financial savings by contractors, more reliable information and better informed strategic asset management decisions. Despite both studies reporting benefits resultant from their respective approaches, the study concluded that turning digital data into actionable information requires being aware of the specific context of each project. The approaches used in the two cases can be defined as socio-technical. This means that

THEIR SUCCESS DEPENDS ON THE INTERACTION BETWEEN PEOPLE AND DIGITAL SYSTEMS. These types of approaches have a strong organisational impact on procurement and management processes. These studies speak of how leveraging more integrated information systems

presents both technical and human challenges. In the social housing case, the main issue was related to the lack of interoperability between software packages used at renovation and operational stages. In the high school case, however, the main barrier to realising benefits was human. The high turnover in the managing company led to a continual loss of knowledge and expertise which was accompanied by the administrator and occupants not having the skills to interpret the information they were given. All of this initially limited the energy saving they were able to achieve from the renovation and more integrated system. This study also concluded that the benefits of new approaches such as BIM have to be evaluated over the long term because of the time that takes to develop the rights skills and integrating the new processes into business as usual. However, until now a significant fraction of what is published about more integrated information systems focuses on technical aspects of creating and managing digital information. The “people” aspects are often not as thoroughly investigated and developed. But, “people are information integrators, independently of the physical information carriers” . In Australia, the Sydney Opera House has recently started implementing its BIM4FM interface. Here, key lessons from the implementation journey have include highly social aspects Their BIM interface aims to be “an open solution, robust yet adaptable, able to link to multiple information sources and to become the single source of truth for all information queries” . This meant to them that “to succeed, everyone had to be taken through the journey to increase ownership and ensure that the final outcome was relevant and useful”. It also meant that many people without necessarily having a BIM background would need to use the interface in an

everyday basis. One of the ways they have dealt with this is by having an information systems support group. “These are the super users: highly capable and BIM experienced team members who form a special task force of sorts to start the project and help less experienced users”. Other lessons learnt included the importance of having and encouraging a culture of engagement across all organisational levels, and developing and nurturing a new set of skills beyond technical expertise.

WHAT ABOUT SMES? Cultural barriers in the form negative attitudes towards skills development have historically been one of the greatest Enterprises (SMEs) in the building sector. In the UK in 2013, 23% and 15% of respondents to a survey by the Royal Institution of Chartered Surveyors (RICS) identified culture and lack of collaboration respectively as barriers to implementing BIM. These have since been reduced in the case of BIM and other information integration approaches through the use of on-the-job and/or more informal training where the direct link between cost and benefit is more visible. In contrast, a survey carried out in Australia in 2016 showed that while 42% of SMEs here have adopted basic levels of BIM, the majority is still on the fence due to uncertainty about potential returns . SMEs also tend to find adapting to the changes of particular clients This is often due to the financial cost

* In Bougrain, F (2017) Turning energy data into actionable information: The case of energy performance contracting, in A.X. Sanchez, Integrating Information in Built Environments: From Concept to Practice, London: Routledge.


* Meistad, et al. (2017) Stakeholder perspectives and information exchange in AEC projects, in A.X. Sanchez, Hampson, K.D. and in Built Environments: From Concept to Practice, London: Routledge. * Linning, C. et al. (2016) Tips with Hindsight, in A.X. Sanchez, Hampson, K.D. and Vaux, S. (Eds) Delivering Value with BIM: A Whole-oflife Approach”, London: Routledge.

* Hosseini, R et al. (2016) BIM adoption within Australian Small and Medium-sized model, Construction Economics and Building, 16(3): 71-86 * McGraw-Hill Construction (2012) “The business value of BIM for infrastructure: Addressing America’s infrastructure challenges with collaboration and technology SmartMarket report”, Bedford, MA: McGrawHill Construction.

packages and upskilling their workforce. However, a survey carried out in the US in 2012 found that, due to their shorter duration, small projects present more opportunities to introduce the use of BIM and the smaller size of organisations is advantageous in driving higher levels of implementation. This survey showed that 67% of all BIM users reported a positive return on investment for BIM use in infrastructure projects. A similar survey in Australia in 2014 across designers and contractors, reported that 70% for buildings and 94% for infrastructure reported moderately to very positive returns on investment with only 25% of all surveyed having more than 5 years of experience.

IN SUMMARY Integrating information strategies for

decision-making requires processes that ensure that the data gathered matches the question that needs answering rather than just gathering data for “data’s sake”.

TECHNICAL SOLUTIONS SUCH AS BIM AND ADVANCED ICT GENERALLY MUST THEREFORE BE WITH STRATEGIES AND APPROPRIATE LEADERSHIP TO OVERCOME PROCESS AND CULTURAL BARRIERS.

Value management and communication are a key part of this journey, especially for SMEs and risk-adverse organisations. While there is some advancement in this area for BIM with tools such as BIMValue, the BIM Dictionary and the BIM Toolkit, this issue of technical versus human aspects is but one of the many complexities, challenges and opportunities found in the growing and broader field of information integration. There is still much work remaining to capture and leverage the lessons encountered on the path to a more integrated built environment industry.


EFFECTIVELY MANAGED, SHARED AND COMMUNICATED? With infrastructure projects increasing in size and complexity, teams increasing to match, and a growth in the number of varying disciplines working together, means the amount of data being generated, shared, tracked is growing exponentially. How can these mega projects be better managed? Additionally, how can all the digital data the answer lies in the increased use of technology

THE ‘ISSUE’ OF COST The biggest argument at the moment against this is cost. The implementation and ongoing management of technology is a costly exercise. Yet we forget that to start up a sizeable project, companies have already factored in the cost of technology. For example, the use of specialist programs for disciplines are now their common tools. These programs are inherently the authors for a number of inputs in BIM, however we still seem to isolate this standard practice, classify it as ‘technology’ and associate it with a higher price tag. Taking what we are already using and maximising the outputs from the data that is being generated is what the industry is still learning. While there is a cost associated with the purchase of an additional number of specialist programs and time required to train personnel in new ways to optimise the use of their outputs, the cost of not doing a job right and getting it built in time, far outweighs the cost of adding these additional specialist programs to our tool set. It costs more to fix things at the end. It costs more when you past your practical completion date and need to pay daily liquidated damages for failure to meet practical completion. The argument of cost is null and void in comparison to

the amount of money that can be lost if a project is not savvy enough to get on board at the beginning of the entire process, and endorse a smarter way to build.

IT IS NOT HOW GOOD THE TOOL IS BUT HOW GOOD YOU USE THE TOOL

MANAGE TECH WITH TECH The goal is to have a collaborated 3d model for all disciplines. However ensuring that this model is coordinated between all disciplines, that required updates are carried out and clear communication between teams occurs, appears to be a task in itself. Nowadays quick interdisciplinary checks can be carried out between design models. These checks highlight areas that need review. For example if the structural model doesn’t follow the architectural model then the structural team will need to update their model. Similarly, if the building services model clashes with the structural model then the building services team will need to adjust their model to ensure that their design does not clash with the structural design. Although these checks are easy to carry out, what has become apparent is that constant follow up checks are required from parties external to the design team to ensure that the models are on track. It is in this 3D review space that you notice

which discipline has not informed another discipline of a change and which discipline hasn’t carried out the tasks required. It has become easier to identify this due to the pace of change from 2D drawing reviews to 3D model reviews. Previously when a 2D drawing was completed, issued and submitted, it had its QA process in place. This process has not yet matured yet in the 3D space. Not all reviewers have the basic skills to review the design in 3D, even to undertake a task as simple as ensuring the modellers have properly completed the tasks they were assigned to complete. This is where it is important to be able to have the skill set to review data in the environment in which it is created. Now it is no longer a quick look over a 2D drawing there is a need to ensure that the 3D model which the modellers are updating is true and accurate. A 2D drawing is simply an output of the 3D model. If the 3D model is not correct then the 2D drawing will also be incorrect. With this new way of working contractors


are now able to clearly see what the designers are doing. Not solely at the key design delivery dates of Final Design or Issued For Construction (IFC) when you are issued with a stack of pdfs to review, contractors now have the ability to review the design before it is submitted. Contractors can now see if the designers are working collaboratively or in their silos. The reason we are now able to do this is through technology.

TECH & CULTURAL CHANGE/TRAINING The issue doesn’t lie in cost, the argument for cost is an easy excuse for those who are unaware of the benefits that the right technology, the right training and the right personnel can bring to a project. The issue is bigger than cost, it is changing the traditional mindset of the wider construction populous to adopt and work with something new and more group it is to those who are stuck in their ways because they are familiar with a process. Which begs the question if the process is flawed, does a flawed process not warrant change. Hand in hand with change is a need for training, a clear commitment in direction from the project hierarchy, continuous support, monitoring and adjustment until the change becomes the norm. Herein lies the biggest hurdle, on large infrastructure projects that are accompanied by large teams filtering this message through, changing the traditional way of thinking can is maturing, this way of working and thinking is spreading. As people move from project to project and see new and better ways of working, they are taking their experience with them and gradually working more productively with technology is becoming their new norm.

BENEFITS OF USING TECH The majority of projects are now working in 3d, modelling in 3d, collaborating in 3d, coordinating in 3d. The question needs to be asked of how can the 3d models that are already being used be refined and fed into the wider BIM workflows, into 4D, 5D, 6D and 7D. Simply put, how can all the data, which is being generated be put in the right form so there is faster and easier dataflow and communication between teams and stakeholders? If these processes and workflows are set up and implemented right from the start, with the right tech and personnel, projects will inadvertently save money and time as data is able to be processed and communicated much


At Bahrain International Exhibition & Convention Centre, Kingdom of Bahrain Under the Patronage of H.E. Mr. Zayed R. Alzayani Minister of Industry and Commerce Kingdom of Bahrain

Attention NRIs and PIOs Realize Your Own Property Dreams

WIN an iPad EVERY HOUR

accross the India with leading 60+ exhibitors at the biggest India property show in Bahrain. Event supported by Credai Kerala, India and organised by Gallure -Ideas & Insights, Bahrain.

Event organised by:

Exclusive Prospect Document

Terms & Conditions Apply

*


THE FLOW OF DIGITISED INFORMATION AND THE TRANSFORMATION OF CONSTRUCTION CONTRACTORS – HOW HANSEN YUNCKEN ARE LEVERAGING DATA AS AN ENTERPRISE ASSET OVER THE PAST TWO DECADES, THE CONSTRUCTION INDUSTRY HAS BENEFITED FROM THE RAPID INCREASES IN COMPUTING POWER THAT WERE ANTICIPATED MORE THAN FIFTY YEARS AGO AND GAVE RISE TO THE CONCEPT OF MOORE’S LAW. WITH THE CONCOMITANT REDUCTIONS IN THE SIZE OF COMPUTING DEVICES AND INCREASES IN THE MULTIFUNCTIONALITY OF IT, THIS DEVELOPMENT HAS PROVIDED MUCH-NEEDED FUEL TO DRIVE INNOVATION IN CONSTRUCTION WITH THE POTENTIAL TO CHANGE FUNDAMENTALLY BOTH BUSINESS MODELS AND ENTRENCHED CULTURES

JULIE JUPP ASSOCIATE PROFESSOR

DIGITAL DESIGN AND CONSTRUCTION SCHOOL OF BUILT ENVIRONMENT FACULTY OF DESIGN ARCHITECTURE AND BUILT ENVIRONMENT


The use of digital building data is transformative for all construction industry professionals, and above all for the main contractor. The digitization of building information is reshaping the roles and responsibilities of many of Australia’s top Tier 1 and 2 contractors, including their relationship to project stakeholders up- and down- stream of delivery who plan, design, operate, and maintain buildings and infrastructure. The flow of digitised information, through the use of building information modelling (BIM), the Internet of Things (IoT), machine learning, and smart infrastructure, has the potential to enable greater levels of integration across both the project and corporate activities of construction firms, which have long been considered separately. Whether related to the building product, its management processes or the contractor’s business strategy, digital information is no longer collected, analysed and made available through a contractor’s single mainframe computer; it is now available in a highly distributed manner. For tech-savvy construction contractors, data collection either occurs automatically via the IoT – including embedded sensors and small consumer devices such as smartphones – or in a semi-automated way via standardised workflows and structured process roadmaps. Storage of this data is distributed in the cloud across multiple virtual data stores. Increasingly, analysis algorithms are employed by contractors so as to enable 24/7 real-time monitoring and decision support using a virtually unlimited number of central processing units. Analytical sophistication ranges from simple comparisons to the use of complex models involving many relationships and elements of data.

DATA MINING, MACHINE LEARNING, AND ARTIFICIAL INTELLIGENCE ARE BEING USED MORE FREQUENTLY TO ANALYSE DATA AND MAKE PREDICTIONS ABOUT THE FUTURE. As a result of these rapidly evolving capabilities in computing, it is not surprising that main contractors are seeking new ways to leverage the vast amounts of data generated on projects, across programs of projects, and throughout their organisations’ functional business units. The integration systems that can create a ‘digital thread’ are now being developed and implemented, which provides a link between the building product and project with corporate and strategic level business activities. Such integration and flow of digital information thus signals an important turning point for main contractors. Enterprise-level information systems are not new, and high levels of maturity are typically found in the integration platforms that support the development and production processes of complex products in discrete manufacturing, such as the aerospace and automotive sectors. Arguably, the same levels of integration have until recent years been unfeasible in the construction sector due these industries. The new levels of data integration and information flow across temporary project stakeholders (and their

previously very separate activities) in the development and delivery processes of construction require sophisticated quality control systems and standardised digital workflows throughout project delivery and across the corporate business activities. This systems approach emphasises the importance of aligned implementation and integration across a construction contractor’s organisational network and throughout the entire project life cycle. The potential of increased integration raises new questions about the potential for delivery and corporate business improvement whilst also presenting new challenges in the longer term use and reuse of information about the built asset itself. There are questions about the collation of data to support operational decisions (at the project and program level) as well as strategic decisions (at the business and corporate level). There is also increasing potential for contractors to use data analytics to interrogate this information in new ways to improve both the building’s performance and help improve the performance of owners operating and maintaining the facility being delivered. New challenges also arise as the volume of digital data is doubling in size every two years. Building projects that were delivered through paper-based methods are now modelled across multiple dimensions and with a variety of model uses. Together with the vast amounts of project management data collected, a need to better leverage the flow of digital information is seeing a steady but deliberate change in the way contractors approach its use and reuse. of digitised information on construction contractors in Australia is nascent.


UTS RESEARCHERS IN CONJUNCTION WITH HANSEN YUNCKEN HAVE UNDERTAKEN A SERIES OF RESEARCH PROJECTS THAT SEEK TO UNDERSTAND THE OPPORTUNITIES ENABLED BY NEW INFORMATION MANAGEMENT TECHNOLOGIES. The research highlights the innovative approach taken by Hansen Yuncken to enterprise-level information management. As part of a systems innovation initiative, Hansen Yuncken’s development and nation-wide use of a bespoke integration platform, known as HYway, takes an integrated approach to the flow of digital information and its utilisation in the delivery of construction project and for business intelligence. HYway is being studied by UTS researchers as an exemplar of the rapid

innovation that is changing the way contractors do business. The research shows how HYway has transformed Hansen Yuncken’s approach to construction services and corporate decision making. UTS researchers have also focused on understanding the impacts of HYway to support the consistent application of technologies, processes and policies that enable the use of BIM. Research study findings have demonstrated HYway’s ability to support three significant functions in the daily activities of construction contractors, including (i) Real-time datadriven decision making and transparent reporting across project, program- and corporate-level functions; (ii) Use of predictive analytics for performance evaluation and business planning; and (iii) More consistent deployment of BIM. One of the key achievements of HYway surrounds the integration of data with standardised project, program, and corporate processes, which were first mapped and optimised prior to implementation. Taken together, this process-oriented approach to enterprise information management is able to drive change and consistency across the enterprise

- informing decisions in real time, harnessing project information captured at the source, utilising data derived from BIM models, and reporting across all levels of the business using sophisticated analytics and user-friendly role-specific dashboards for visualisations. By providing access to live, relevant and contextual data for the management of projects, regional programs and the business as a whole, HYway is capable of helping designers, managers, and senior executives select the best solutions and make more informed business decisions. As technology advances, HYway’s integration platform is thus playing a key role in Hansen Yuncken’s approach to delivering intelligent construction services. HYway advances the management of safety and environmental performance using proactive data-driven workflows; management of project related data pertaining to time, cost and quality performance criteria. The digitisation of buildings requires the systematic handling of large volumes of data. Structured data captured and generated via BIM applications are connected with construction management data so as to inform project performance.


BIM Aerocol is one of Bahrain’s leading manufacturers and suppliers of high quality commercial kitchen equipment and air conditioner equipment. Our modern production units and contemporary manufacturing techniques enable us to deliver high quality products at affordable prices. As a recognized kitchen equipment manufacturer, we deliver a diverse range of catering equipment for different businesses and commercial establishment in the Kingdom of Bahrain. Our diverse range of products includes cold rooms, supermarket display chillers, truck refers, blast freezers, ducting & centralized AC solutions, refrigeration etc. We also specialize in manufacture of fabricated and structural metal products, mineral products and associated machinery. With access to some of the best equipment and manufacturing units in the country, we are capable of churning out quality products at a phenomenal rate, consistently. Our skilled professionals are competently using the most up-to-date methods of operation to ensure on time delivery.

BIM Aerocol, P.O Box: 30105, Kingdom of Bahrain Tel: +973 17004030 Fax: +973 17009813 Mobile: +973 33374733 Email: info@bimaerocol.com


HYway’s flexible systems architecture allows the business to adopt innovative, best-of-breed technologies to support project and organisational functions using an agile modular approach. Its alignment with the broader business strategy at Hansen Yuncken has resulted in leaner, consistent and more transparent corporate processes. The UTS study shows that the HYway platform’s ability to inform decision making at the project coalface and in the boardroom has positive impacts on not only the triple bottom line but also on organisational change, fostering an environment that encourages innovation processes. Hansen Yuncken’s project managers use HYway’s dashboards in daily activities utilising performance graphs and risk indicators from project disciplines and sub-contractors. Automated reporting capabilities from information captured at the source process is saving days in the preparation of monthly reports. Added value lies in the elimination of ‘cleansed’ reporting (commonly prepared by project managers) and early risk identification that utilise ‘lead’ indicators in mitigation strategies. Further, site with electronic forms for all site-based Safety, Quality and Commissioning processes. Project information collected via HYway is analysed and displayed showing individual project and collective

project- or program-level performance. Business intelligence generated from tens of thousands of safety and quality checklists, issues and observations facilitate further refinement of Hansen Yuncken’s process as a continuous improvement loop. Hansen Yuncken’s administrators utilise tailored electronic dashboards, roadmaps, forms and approval processes supporting consistent procurement. The business has realised savings of approximately 2hrs of processing time for each of the 12,000+ trade packages that have been performed electronically to date. Further benefits include improved risk mitigation, transparency, automated reporting and refined process for lessons learned.

the speed and scale required to make noticeable gains in productivity. •

New ways to communicate and support decision-making. HYway provides a level of consistency in reporting that is unprecedented in construction, allowing contractors, subcontractors, and owners to have a common understanding of how the project is faring at any given time in relation to cost, time, quality, safety and environmental indicators.

Unprecedented levels of performance management and business oversight. Integration across HYway’s Business Development, Procurement, Site Management, Project Management and Community modules means that issues are resolved and do not stack up because of lack of communication and accountability.

Improvements in contractual certainty. Procurement teams typically negotiate contracts, and this is almost always dense and complicated. HYway has standardised and streamlined these workflows within a dedicated Procurement module that links with historical performance data on sub-contractors. Consequently, fewer issues arise due to increased oversight. When a problem does comes up, project and senior managers alike are able to understand how to proceed using HYway’s dashboards.

Innovative connections between project and business planning. The

State-of-the-art technologies are leverage HYway’s extensibility. Using the IoT, the project commissioning phase is being supported via the use of QR codes with the condition of assets recorded via iPads in structured reporting dashboards. Data captured from codes, sensors and iPads during commissioning can then be mapped and visualised in HYway’s graphical BIM display. This is leading to HYway’s ability to monitor in real-time the location and condition of assets, mapping any discrepancy with the as-built model, further reducing the time it takes to discover and solve problems. Research undertaken in collaboration with Hansen Yuncken has demonstrated via case studies some of the key innovations enabled by the HYway platform, which have only previously been seen in discrete manufacturing sectors, including: •

New forms of data and process integration. HYway systems architecture enables decision-making and procurement processes to have

high-end preparation to day-byday programs have greater levels of connectivity. If the daily work is not finished on site, schedulers and


senior project managers need to know—and using HYway they are able to update priorities in real time. •

New forms of short-term business planning. Hansen Yuncken’s business executives are now not only able to understand what needs to happen in the next two to three months, but are also able to understand and analyse what needs to happen in the next week or two using HYway dashboards and its business intelligence reporting functions that are based on live data feeds from the project. State-of-the-art approach to risk management. HYway’s connection of data-driven processes across Business Development, Procurement, Site Management, Project Management and Community modules and their focus on lead indicators of risk means that both long-term and short-term risks get considerable consideration. This level of risk management is unprecedented

in construction since the kinds of short-term risks that crop up on the job are not able to be given as much attention due to the traditional focus on lag indicators, whereby the focus is on incident reporting. •

New capabilities in talent management. HYway enables Hansen Yuncken to find the best contractors and sub-contractors for each job. HYway’s intelligent reporting delivers a suggested direction based on the collective and real-time analysis of cost, safety, quality, environment and time data. This is a first in assisting managers with making decisions in relation to the best contractors and sub-contractors based on their previous performance.

TOGETHER THESE INNOVATIONS ARE SIGNIFICANT TO THE ADVANCEMENT OF THE CONSTRUCTION INDUSTRY AS A WHOLE. HYway’s approach to integrated enterprise information management is enabling greater and unprecedented levels of productivity gains to be realised. Hansen Yunken’s IT and innovation strategy points to a long-term orientation, where success relies on investment in the HYway infrastructure to drive their business forward over the next 50 years. As an integration platform, HYway is an exemplar of Australian-owned construction contractor innovation that will enable firms like Hansen Yuncken to compete in a global market by leveraging the flow of digital information from across the building network.


Awal Gulf Manufacturing Co. is the premier manufacturer of commercial and residential Air Conditioning units as well as Refrigeration units in the GCC and MENA region. Based in the Kingdom of Bahrain, Awal Gulf was established in 1993 as an associate of the AWALCO Group as part of their expansion plan for their Air Conditioning division, that was established in 1970 as a licensee of the US brand Friedrich. Keeping pace with our ambitious growth and expansion, Awal Gulf crossed the Middle East shores and established a back office in Chennai, India in the year 2009/2010. This center initially acted as an incubation center for Design and Development activities and also as a key back office operation center. Product development activities for the Central Air Conditioning division are carried out extensively from this center for products such as Roof Top Packaged units, Ducted Split units , Chillers and Air Handling Units (AHU). Through the years, Awal Gulf has been involved in many prestigious projects around the world and particularly in the GCC and MENA regions. Around 85% of our products are exported to over 40 countries globally.


Our Vision: To be a reliable OEM manufacturer in the region by offering high quality, energy efficient and a versatile range of products in the air conditioning and refrigeration segment. Build trust among customers and suppliers to provide flexible, sustainable and affordable supply chain base, which support various OEM brands. Make quality and customer service as our top priority focus areas while dealing with customers and products at all levels. Focus on continuous innovation through exploring new technologies and systems, developing new raw material sources and developing new designs at our in-house Design Centre. Make safety a primary responsibility for all operations and activities, which ensures that work environment is safe, comfortable and sustainable for employees and others working in the premises. To manufacture products that are safe for transportation, installation and usage by the customers. To be a part of green initiative by promoting processes and products which are environment friendly and cause minimum damage to the atmosphere. Contact Us: Phone: +973 17 738 333 Fax: +973 17 731 529 | 17 731 541 Email: info@awalgulf.com


Steel Mill Structures TECHNO-MARK Contracting W.L.L Address: P.O.Box 33689, Isa Town, Kingdom of Bahrain. Phone: +973 17662814 E-mail: mail@technomarkbh.com

Industrial Plants Residential Buildings Water Treatment Plants and Tanks Roads Pile Driving


Profile for MYVIEWS

CONSTRUCTION BAHRAIN MAGAZINE - ED 4 - December  

Construction Bahrain is the sole construction and commercial industries' magazine, focusing on the brains behind your privileges in the King...

CONSTRUCTION BAHRAIN MAGAZINE - ED 4 - December  

Construction Bahrain is the sole construction and commercial industries' magazine, focusing on the brains behind your privileges in the King...

Profile for myviews
Advertisement