construction week issue 299

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

ConstructionWEEK NEWS, ANALYSIS, PROJECTS,

TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST

DECEMBER 5–11, 2009 [299]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM

INSIDENEWSDubai World shakes global markets with deal sought on debtsPAGE 9

SITE VISITCW speaks to CEO Bob Vincent about Bahrain Bay’s futurePAGE 18

CONCRETEThe future of precast concrete in the Middle EastPAGE 24

CITY FOCUSThe latest news, projects and tenders from Riyadh, KSAPAGE 38DIARIES

ARABTEC

A WALK DOWN MEMORY LANE WITH THE REGION’S LARGEST LISTED CONTRACTOR

Arabtec CEO Thomas Barry

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CONTENTS

13 FACE TO FACEBathroomware suppliers talk about technologies that are being introduced into new construction projects.

14 COMMENTSudhanshu Kumar talks about a new environmental monitoring and database management system, which will help limit the damage of land reclamation.

15 LEGALJames Bremen compares the civil law concept of economic hardships in different jurisdictions and how they may apply in those respective areas.

REGULARS2 ONLINE4 MAIL

FRONT9 DEAL SOUGHT ON DUBAI WORLD DEBTSA look back on last week’s events, which saw Dubai World asking creditors of its two fl agship companies for a standstill on debts worth billions of dollars.

10 BRITS STILL BUOYANT ABOUT GULF BUSINESSBritish construction companies and suppliers have claimed that they remain confi dent about business opportunities in the Gulf.

11 NEWS IN BRIEFHighlights of the week.

12 EVENTSIndustry dates for your diary.

FEATURES16 EXCLUSIVE INTERVIEWArabtec CEO Thomas Barry talks to CW about his experience working in the construction industry.

18 SITE VISITCW takes a look at what progress has been made on Bahrain Bay.

24 SPECIAL REPORTHow can the use of precast concrete help you win future work?

DIRECTORY30 SHOWCASE32 TENDERS33 PROJECTS 34 SPECIALIST SERVICES

BACK38 CITY UPDATEThe latest news and projects from Riyadh, Saudi Arabia.

48 DIALOGUEChristoph Hörmann talks about the current most attractive places to do business in the Gulf and how his company is progressing in the region.

DECEMBER 5-11, 2009 | ISSUE 299

1DECEMBER 5–11, 2009 CONSTRUCTION WEEK

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CONSTRUCTION WEEK DECEMBER 5–11, 20092

FEATURESDesign

PUBLIC ARTLondon’s Duggan Morris Architects has won an international contest to design a £250,000 (US $401,700) canalside pavilion to the north of Liverpool in the UK.

PMV

HAVE MACHINE BOSSES GOT THE WIND UP THEM?Greg Whitaker wonders what’s going on with all the boardroom shuffl ing

November 23-26 saw The Big 5, the region’s largest construction trade show, descend on Dubai. Construction Week – the show’s offi cial daily – was at Dubai International Exhibition Centre every day to bring you all the news on new products, deals and industry opinion. The packed-out show encompassed all the halls at DIEC, including the three new halls that recently opened. In case you didn’t get a chance to visit, or to see it all, we take a photo tour of the most important event in the Middle East’s construction calendar.For more images visit www.ConstructionWeekOnline.com

IN PICTURES: BIG 5: IN PICTURES

ONLINEwww.ConstructionWEEKonline.com

MOST POPULARBRIGHT FUTURES FOR QATAR AND ABU DHABIALESSA SIGNS US $200MN JV WITH HUNTAIRDUBAI WORLD RESTRUCTURING: INTERNATIONAL REACTIONKEY POINTS WHILE ENTERING INTO A JOINT VENTURE

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

HAVE YOUR SAYHOW HAS THE DUBAI WORLD RESTRUCTURING AFFECTED YOUR COMPANY?What is your business doing to reassure clients?

JOBS OF THE WEEKSupply Chain Manager Middle East, Damman, Saudi ArabiaSenior Quantity Surveyor, Dubai, United Arab EmiratesSenior Landscape Architect, Dubai, United Arab Emirates

ONLINE POLLWHAT DO YOU THINK ABOUT THE ANNOUNCEMENT THAT DUBAI WORLD WILL ASK FOR A DEBT STANDSTILL UNTIL MAY?

57.1%It’s worrying; we’ll have to wait and see what happens next

28.6%It’s not great news but Dubai World and Nakheel have a lot of support

14.3%It’s just a request; there’s no real cause for concern

Design

WONDERWALLSWith today’s designs dictating a preference for bold statements in terms of coverings and artwork, it’s no time to be a wallfl ower.

Facilities Management

HEAD FOR HEIGHTSThe Gulf’s skylines

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MIDDLE EAST

ME Head Offi ceP.O. Box 5801, Sharjah, UAETel: +971 6 553 4173Fax: +971 6 553 4327

DubaiTel: +971 4 341 7477Fax: +971 4 341 7599Email: [email protected]

Abu DhabiTel: +971 2 550 2383Fax: +971 2 550 2384Email: [email protected]

BahrainTel: +973 1782 5368Fax: +973 1782 6145Email: [email protected]

KuwaitTel: +965 484 5161/ 484 9545Fax: +965 484 6414Email: [email protected]

QatarTel: +974 467 5925Fax: +974 465 3282Email: [email protected]

OmanTel: +968 2461 3571Fax: +968 2461 3573Email: [email protected]

LebanonTel: +961 545 0214Fax: +961 595 5387Email: [email protected]

Saudi ArabiaTel: +973 17558726 Ex 351Fax: +973 17558727Email: [email protected]

SyriaTel (mob): +963933676570Tel (offi ce): +963113313729Email: [email protected]

Other ME RegionsTel: +971 6 555 0788Fax: +971 6 555 0805Email: [email protected]

For general enquiries email:[email protected]

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MAIL

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. 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 fact that there are big changes being made at the managerial level is good as it means something will get done. Whether or not these changes have been made remains to be seen.ASHOK

We all knew this was coming, but I don’t think anyone has been prepared for the upset this has caused. Asking for an extension on fi nance agreements is one thing, but this has been a bit of a shock given the reassurances we’ve all heard over the last year. This is Dubai World’s chance to prove it has the ability to take on massive projects and clear its debts. If not…let’s just hope it doesn’t come to that.DOUG

paid, but I believe this is a problem that is not limited to the Middle East. I hope the region will continue to be a good place for foreign companies to come over and do business. I urge the authorities to clamp down hard on defaulters.RHIAN

RE: RERA TO ‘NAME AND SHAME’ DEVEL-OPERS My husband and I invested in Vue De Lac in 2005, but the project has not yet been completed. We went to Al Attar offi ce many times, but its personnel told us that the project would start in a month, as well as other lies. We live in Iran, and each time we go to Dubai ,we have to expand our budget. We don’t know who is responsible for responding to us or to whom we complain. SHAHRZAD

RE: BIG 5: MIDDLE EAST NOT KEEPING GREEN PROMISESThere is some talk about being green, but it is only so the region appears to be responsible and therefore on some kind of similar level to developed areas of the world, where people need and want to think responsibly. In Dubai, where I live, there needs to be a top-down cultural change where they have a metro that runs off generators, a population of 4x4 drivers, and an attitude of ‘don’t worry about the mess, someone else will clear

This could have a very big trickle down effect. We already know many contractors are having payment issues in the UAE at the moment (Japanese in particular) and if these bills are not getting paid, the effects will be widespread. My company is having cashfl ow problems and staff are not being paid, which means people who live in Japan, who have never even heard of Dubai, are suffering as a result. I hope the problem can be fi xed to everyone’s satisfaction.KOJI

RE: BRITS BUOYANT ABOUT GULF BIZ OPSThere is a lot of talk in Britain at the moment about whether contractors are going to get

up’. This needs to change to make the region a better place in years to come. NICK

RE: DEFAULTERS TO BE PROSECUTEDI suggest the Ministry introduces some measures to make sure that the clients are paying their contractors, and sub-contractors their outstanding bills on time, as per the contract or purchase order issued. JIPSON GOMEZ

RE: LEED GOLD FOR SUMMERTOWN HQIt’s great to hear news such as this. I hope other countries in the region do the same.REDDA

RE: DEVELOPER REACTS TO READER COMPLAINTSI bought in the hope of letting the property out and although I have a tenant, he has said he will be moving because of the amount of issues at the Crescent and the extortionate charges for parking. I was assured by Damac’s representative in London, on more than one occasion, that there would be free parking available, but if you wanted an allocated space (that was just yours) you could purchase one at an extortionate rate. I remember Damac having a promotional offer that included a free Mercedes if you purchased a fl at. What’s the point if there is nowhere to park it?JATINDER

RE: DUBAI WORLD RESTRUCTURING: INTERNATIONAL REACTIONThe signs have been there for a while. Now all the world knows that Dubai is in a bit of a problem. Global investors were already afraid of moving into Dubai. With Dubai World’s announcement, it has made things even worse. Dubai’s property boom was based on a speculative future whereas in reality the end users were never there.

ASIF

The opinions expressed in this section are of particular individuals and are in no way a refl ection of the publisher’s views.

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PUBLISHED BY AND © 2009 ITP BUSINESS PUBLISHING, A DIVISION OF THE ITP PUBLISHING GROUP LTD,REGISTERED IN THE BRITISH VIRGIN ISLANDS COMPANY NUMBER 1402846

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FOREWORD

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

“THERE ARE VARIOUS WAYS OF RAISING CAPITAL AND STILL A FEW COMPANIES, WHICH IF MADE PUBLIC, COULD RAISE THE MONEY”

CONRAD EGBERT [email protected]

It’s often diffi cult to focus on the real issue. But the media-bashing that Dubai got over the past few weeks is a little sad and based on negative speculation. It’s upsetting to see journalists, who have never set foot in Dubai, jump the gun and rip into the emirate’s governments and rulers just to grab front page space.

The real reason to complain, if there was one, is the horrid timing of the announcement, which was made only hours before the country shut down for the Eid Al Adha holidays, without any sort of explanation or statement.

Obviously, this ‘angle’ went unreported, as it wouldn’t have grabbed as much attention as sensational graphics depicting a collapsed Burj Al Arab being washed away to sea.

The world media is so busy bashing Dubai over Dubai World’s request for a freeze on debt payments, that the situation has left a serious void for useful information.

There’s no doubt that world markets were temporarily shaken up – bank stocks tumbled, oil prices were hit, the dollar was lifted and gold hit a record high of nearly US $1200. The Abu Dhabi stock market also suffered its biggest ever one-day fall after the Eid holiday. But all of this was based on speculation.

When the markets opened last week and the UAE central bank said it would honour Dubai banks’ debts, the crowds seemed to have dispersed pretty quickly.

Dubai World was made aware of the repercussions of its request before it made it, but it did anyway. There’s obviously a bigger plan that most of us are unaware of – which calls for transparency, but again, that’s a separate issue.

The Dubai government has made it clear that Dubai World is an entity on its own and is not part of the government. It’s not guaranteeing Dubai World’s debt, is another indication of the bigger plan ahead.

The next few weeks will paint a clearer picture of the situation and the Dubai government might give us a better insight into how it plans to pay off its debts. There are various ways of raising capital and still a few companies left, which if made public, could raise that money - just a positive, speculative thought.

WHAT NEXT? LET’S FOCUS ON THE REAL ISSUE

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Last week, Dubai World announced that it would be asking creditors of two of its fl agship companies for a standstill on billions of dollars of debt as a fi rst step towards restructuring the state-run Dubai World group.

In its statement, the government said: “Dubai World intends to ask all providers of fi nancing to Dubai World and Nakheel to ‘standstill’ and extend maturities until at least 30 May 2010.”

Nakheel, developer of the iconic palm-shaped residential islands, has a US $3.5 billion (AED12.8 billion) Islamic bond maturing on December 14 and debt worth $980 million due on May 13, 2010. Limitless, another Dubai World developer, has a $1.2 billion bond maturing next March 31.

Analysts claimed that fi nancial support from neighbouring Abu Dhabi was expected to continue, but Dubai would likely have to abandon its economic model that focused heavily on real estate investment and the infl ux of foreign capital.

“It’s shocking because for the past few months the news coming out has given investors comfort that Dubai would most probably be able to meet its debt obligations,

FRONT

DEAL SOUGHT ON DUBAI WORLD DEBTSBy CW Staff

DP WORLD – DUBAI WORLD’S THRIVING PORT MANAGEMENT COMPANY – WILL NOT BE PART OF THE REFINANCING NEGOTIATIONS.

and that Nakheel’s commitments would be met,” Sico Investment Bank head of asset man-agement Shakeel Sarwar told Bloomberg.

“Abu Dhabi has been supportive of Dubai, but it appears this support is not enough for Dubai to meet its obligations on time.”

The cost of insuring Dubai government debt against default with fi ve-year credit default swaps soared, jumping over 100 basis points to 420.6 from a close of 318 a day earlier. Nakheel’s Islamic bond prices fell more than 20 points to 87.

The problem was intensifi ed by the Eid public holidays, which meant no expla-nation or clarifi cation was available from Dubai authorities or Dubai World, leaving international press free to speculate as to the depth of the trouble that Dubai faced.

“The market had expected a repayment of the $3.5 billion sukuk and spreads had nar-rowed,” said Gulf Research Centre econom-ics programme manager Eckhart Woertz, speaking to Bloomberg.

“The standstill request comes as a sur-prise, especially after additional fi nance from Abu Dhabi has been raised.”

Dubai’s economy was hit hard as the global credit crunch over the past year ended a

six-year boom in the region and sent the emirate’s once-fl ourishing property sector into decline.

Last weekend, the ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Mak-toum, reshuffl ed the board of the Investment Corporation of Dubai, which manages his wealth, and changed the chief of the Dubai International Financial Centre.

The reshuffl e, which removed boom-era leaders from key positions, was widely seen as a shift towards more conservative stew-ardship of Dubai’s resources.

Following Eid, however, Dubai World clarifi ed that it was in talks to restructure $26 billion of debt, with developers Lim-itless and Nakheel’s liabilities under dis-cussion, but that Infi nity World Holding, Istithmar World and Ports and Free Zone World would be excluded from the nego-tiations because those companies “are on a stable fi nancial footing.”

The statement read: “Initial discussions have commenced with the banks of Dubai World and are proceeding on a constructive basis. It is envisaged the restructuring process will be carried out in an equitable way for the overall benefi t of all stakeholders.”

>Brits still buoyant about Gulf construction 10>News in brief 11>Face to Face 13>Comment 14>Legal 15

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British construction companies and suppliers have claimed that they remain confi dent about business opportunities in the Gulf and are looking forward to working in the region in the future.

This follows a report by UK trade body the Association for Consultancy and Engineering revealing that UK contractors are currently owed US $330 million in unpaid bills in the UAE. However, product suppliers said that, for the most part, cash is still coming in and that debt is a global problem affecting all markets.

“The Gulf is still a great opportunity for us. We’re not worried about payment issues and we’re actively looking to move into the region,” said Aspen Pumps export sales director Bernard Leach.

Many UK fi rms admit they are fi nding Dubai to be a less lucrative market than in previous years but the wider GCC remains promising.

“We’ve been doing business in the region for ten years, and of course, the recession has had an impact, but this

BRITS STILL BUOYANT ABOUT GULF BUSINESSBy James Boley

is still a key market for us,” said Balmoral group public relations manager Steve Gibb. “Abu Dhabi and Saudi Arabia are still busy markets for us.”

Gibb added that his company had not suffered any payment issues from the region but that, in any case, unpaid bills were a problem faced by suppliers wherever they were operating.

SPE International CEO and group chairman Tony Mansfi eld echoed Gibbs’ sentiments.

“As a whole, the general Middle East market is okay. Dubai is a good centralised point from which to do business,” he commented, adding that his company had just signed deals to supply equipment to fi rms in Saudi Arabia.

Some contractors, however, reported problems with late payment. “We haven’t had any problems with bad debt at the moment, although we have had some slow payers. We’re still getting paid though,” said Flowfl ex general manager Peter Burt.

“There are fewer business opportunities here than there used to, but we’re still confi dent.”

ABU DHABI IS THE FOCUS OF INCREASING BRIT ATTENTION.

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FRONT


FRONT

Detac has won the contract to

deliver 723 retail units, 454 offi ces

and parking for 3000 cars

within 18 months for Damac’s

Egyptian Park Avenue

mixed-use project

RAK’s Al Hamra Mall will be

100%operational by Q1

2010

Rubber World Industries is on course to achieve its goal of 25%

production increase by 2010, with

the company now producing 1800

containers a year, up from 1200 a year in

2008

HIGHLIGHTS

UAE

GROUNDBREAKING DUCABSheikh Hamed bin Zayed Al Nahyan last week broke ground on Ducab’s new high voltage factory – the company’s sixth facility – which will manufacture cables in the 66kV to 400kV range. The factory is the fi rst dedicated high-voltage facility in the region and will have a manufacturing capability of 30,000 tonnes of cable per year.

UAE/Saudi Arabia

ARAB FORKLIFT EXPANSIONThe manufacturer of the Arab world’s fi rst forklift, Gulf Automobile Industry Corporation, plans massive regional expansion, as it intends to relocate from its 14,000m2 factory in Abu Dhabi to a 3 million m² facility in KSA. “We are forecasting sales of US $13.6 million for 2010; the move to a larger manufacturing plant is necessary to meet the demand for products, and while it make sense to be in KSA, our biggest market, the UAE

continues to offer us strong sales potential”, said chairman Nasser Hamad Al Hajeri. “We will employ a further 800 members of staff to operate from the new factory, and by 2020 we estimate that we will employ 11,000 people.”

Saudi Arabia

HVAC CONTRACT TO BE AWARDEDKSA’s Jabal Omar Development Company has invited suppliers to bid for the HVAC contract for the northern part of its US $2.7 billion (SR10 billion) fl agship development. “The contract is expected to be awarded in 2010 and we are currently going through the design process,” said Mahidine Aït, area sales manager for district cooling company Ciat Middle East, which is hoping to be awarded the contract to supply 15,000 air conditioning units to the project.

Kuwait

RHINO BAGS CONTRACTRhino Doors has been awarded the contract to supply products to Central

Bank of Kuwait HQ as part of a US $1.6 million (KD456,000) security package. “Work has started on site and we will be trained in how to install our doors into the project in January 2010,” said Rhino Door production director Iori Davies. “From then onwards manufacturing of the doors will begin.”

Kuwait

FOSTER + PARTNERS GETS TERMINAL DESIGNA US $66.7 million (KD18.9 million) contract to design Kuwait’s new airport passenger terminal has been awarded to Foster + Partners, said the Ministry of Public Works. The new $747 million terminal will have an annual capacity of 13 million passengers, taking the airport’s total capacity to 20 million. The terminal is expected to be completed by November 2010.

UAE

JCB SIGNS US $100,000 PMV DEALJCB Power Products has signed a US $100,000 deal with UAE equipment hire

company Al Mutawa General Transport to provide nine JCB LT9 lighting towers – a new product that provides temporary, portable lighting solutions for construction projects. “It’s a good start and we hope this will be a platform leading to signifi cant sales across the region over the next 12 months as the market recovers,” said JCB’s export sales manager for the Middle East, Faizal Hamze.

Bahrain

MOTT MACDONALD TO OVERSEE ISLAND INFRASTRUCTUREThe developer of Dilmunia Health Island, has appointed Mott MacDonald to design infrastructure for the project. “We’re thrilled to be awarded a role on this exciting project by Ithmaar Development Company. It’s an endorsement of what we hope will be a productive on-going relationship backed by our local knowledge of Bahrain and engineering design and management skills,” said Mott MacDonald’s Bahrain director Alan Worley.

NEWS IN NUMBERS

Irish-based Kingspan is

hoping to achieve a US $20m annual turnover from the Gulf by 2012. Last year, the company, operational in 56 countries, won a

$1.6m contract to supply wall panels to Dubai Metro


EVENTSEvent: Building Sustainability Conference, DubaiOverview: This conference places sustainability at the heart of the commercial business case where the efforts and resources engaged offer the highest returns.Date: April, 2010Location: DubaiPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: FM Awards 2010Overview: The Facilities Management Middle East Awards ceremony aims to help raise the profi le of the industry and recognise and reward those who have made signifi cant contributions to its development.Date: May, 2010Location: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Construction Week KSA Conference 2010Overview: This one-day exclusive forum will gather top leaders from property developers and contractors alongside leading professionals from fi nancial houses and law fi rms to discuss vital aspects of construction and real estate.Date: JuneLocation: RiyadhPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: Middle East Architect Awards 2010Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. Date: SeptemberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Building Sustainability Conference, Abu Dhabi 2010Overview: Delegates from the world of construction are invited to a one day event to discuss the vital aspects of building sustainability.Date: OctoberLocation: Abu DhabiPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: Construction Week Awards 2010Overview: In its 6th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Date: NovemberLocation: Dubai

Phone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate.Date: NovemberLocation: DubaiPhone: +971 4 435 6127Email: [email protected]: www.itp.net/events

Event: CID Awards 2010Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers. Date: NovemberLocation: DubaiPhone: +971 4 435 6133Email: [email protected]: www.itp.net/events

Event: Home and Life Style 2010Date: MarchVenue: Oman International Exhibition CentreWebsite: www.eventseye.com

Events: DWRW 2010Overview: A trade show for doors, windows, roofs and walls, as well as cladding products, machinery and accessories.Date: March 8-10Venue: Expo Centre SharjahWebsite: www.eventseye.com

Events: Saudi International Windows, Doors, Shutters, and Solar Exhibition 2010.Date: March 11-14Venue: Riyadh Exhibition CentreWebsite: www.eventseye.com

Event: Saudi Building and Interiors Exhibition and SymposiumDate: April 4-7Venue: Jeddah International Exhibition and Convention Centre

Events: Buildex Syria 2010Date: May 12-16Venue: Damascus International FairgroundWebsite: www.eventseye.com

Event: Libya Build 2010Date: May 16-20Venue: Tripoli International FairWebsite: www.eventseye.com

Event: Index 2010Overview: Index is the Middle East’s largest contemporary interiors trade show.Date: TBCVenue: TBCPhone: +971 4 438 0355

Event: Saudi PMV Show Overview: At 40,000m², the 3rd annual Saudi PMV Show is the largest exhibition of heavy machinery

and vehicles ever assembled in the kingdom.

Date: March, 2010Location: King Abdullah Economic City, Saudi ArabiaPhone: +971 4 435 6127Email: [email protected]: www.saudipmvshow.com

The MEP Awards 2009 provides a platform for the mechanical, electrical plumbing sector in the UAE to recognise its achievements and to acknowledge the latest innovations, technology and processes that have adhered to best-practice standards. The awards also highlight excellence in MEP design and installation. Award categories include project manager of the year, engineer of the year, MEP contractor of the year, technician of the year, most sustainable design of the year and best overall MEP project of the year, among others. �

Event focusMEP AWARDS 2009

DATE: 9 DECEMBERVENUE: THE WESTIN, DUBAIPHONE: +971 4 435 6133EMAIL: [email protected]: WWW.CONSTRUCTIONWEEKONLINE.COM/MEPAWARDS


FACE-TO-FACE

NUNO MORAISSenda, export manager

ABDALLAH SABBAGHCondor, CEO

We specialise in stainless steel bathrooms, which is a niche market.

I think the preference for this material is growing because it is

long-lasting and it is resistant to vandalism. The initial investment

is higher than other materials but customers do get a return on this

investment in the long-run.

WHAT ARE THE LATEST TRENDS IN BATHROOM AND SANITARYWARE?

WHAT NEW TECHNOLOGIES ARE BEING INTRODUCED IN THIS SECTOR?

WHICH PROJECTS ARE YOU CURRENTLY SUPPLYING YOUR PRODUCTS TO?

DO YOUR PRODUCTS HAVE ENVIRONMENTAL ADVANTAGES?

WHAT DO YOU HOPE TO ACHIEVE NEXT YEAR?

We have products that are made to measure and we are able to

implement hotel logos or other designs into our sanitary products.

Developers and contractors are generally asking for custom-made

products at the moment.

Stainless steel sanitaryware is generally seen as a commercial

product but we don’t see it like this. We believe it can also be used

at home. Therefore we are producing a new coating, which will

make it look more domestic. We also provide other fi nishes for

stainless steel, such as highly-polished and satin.

We provide a sensor in some of our products, which can be used to

turn on water jets rather than the traditional push button. We also

offer very small jets so 200 jets can be implemented into one bath

tub, for example. The jets have different power options also. This

technology is popular in hotels at the moment. Our systems are

also quieter than traditional systems and have less vibration.

We are involved in a project in Saudi Arabia and are supplying to a

distributor. We also hope to be awarded the contract to supply our

products to a hospital in Oman.

We make some products especially for the Middle East, but at the

moment we are not working on any projects here. In Europe we are

supplying to fi ve-star hotels.

We are working on producing waterless products. We already have

a water-free urinal and we are testing a system, which combines

a toilet and basin in the same piece. The water you use to wash

your hands will then be disposed into the toilet, which is then used

to fl ush the toilet. Also, stainless steel is a material that can be

recycled and it is lighter than ceramics so more of our products

can be put into one container and transported from place to place,

which in-turn saves on energy.

The consumption of water is generally high when it comes to

bathroom products but the fl ow of the pump can be adjusted on

our products so that water is saved. For example, 200 litres per

minute can be pumped out instead of 250 litres. We also have a

product called Aurealis, which is a hot tub with stainless steel jets.

These jets come complete with heaters and ozone disinfectors so

you can use the tub for a few days without having to refi ll it.

Despite what has been said about the so-called crisis, we don’t

have a reason to complain because we are still growing. We are

not, however, growing at the rate we used to, but hope to see

some improvement next year. Schools, airports and hospitals still

demand stainless steel sanitarywear.

The fi nancial crisis has given us an opportunity to concentrate on

developing new technologies, so we will be supplying these to a lot

of projects in 2010.

INTERIOR TALK

BATHROOMWARE SUPPLIERS TALK ABOUT TECHNOLOGIES THAT ARE BEING INTRODUCED INTO NEW CONSTRUCTION PROJECTS


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

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

The Data Input and Net Access (Diana) system is an online environmental monitoring and database management tool designed specifi cally for dredging and reclamation projects, fulfi lling the reporting requirements of environmental regulators in Bahrain. It is increasing the understanding and control of operation in this fi eld of work, allowing for better monitoring, regulation and decision making.

The centralised database of Diana stores all environmental information relating to a project. Keeping this information in electronic format on a centralised database has a great deal of advantages, keeping data organised and making processing both simpler and faster. At present, Diana holds data relating to total suspended solids, marine ecology, meteorology and sea state. All of this data allows for a central, coherent data store with a user friendly function to turn data easily into ‘usable’ information by transforming data into graphs, reporting, maps and tables as well as exports for other software.

The compliance verifi cation system on Diana automatically verifi es all data against compliance limits when it is entered. The system handles multiple compliance levels including warning and breach and is unique to each variable and location. Email alerts are automatically sent to the appropriate recipient according to the type of breach. A variety of compliance reports can then be produced and alerts sent to the desig-nated recipients.

A further advantage is that Diana func-tions as a totally automated system for data processing, backup, email alerts, scheduled reports, monitoring schedules and man-agement. Once monitoring schedules are created, users can see what data has been received as well as when data is due to be collected and when data is outstanding. The system can also proactively send reminders and warnings to users according to data status and settings.

The records held on Diana can be accessed remotely on any computer using the internet with data being virtually available in real time. In addition, by eliminating the need for paper, it provides a green solution to the problem of record keeping.

Diana is the fi rst system of its kind in the Gulf to provide automated updates and analysis of total suspended solids data and has helped to collect the most detailed set of baseline data that has ever been compiled in Bahrain.

The successful implementation of the sys-tem on the Diyar Al Muharraq project led to its use on further Scott Wilson projects in the Gulf, including the Darari develop-ment and Water Garden City.

Saving both time and money, it is setting new environmental standards for construc-tion projects in the Middle East and was short listed in the Innovation Award of the Year category of British Expertise Inter-national Awards 2009/10.

Monitoring suspended solidsSUDHANSHU KUMAR OF SCOTT WILSON BAHRAIN TALKS ABOUT A NEW ENVIRONMENTAL MONITORING AND DATABASE MANAGEMENT SYSTEM, WHICH WILL HELP LIMIT THE DAMAGE OF DREDGING AND LAND RECLAMATION

Sudhanshu Kumar is the mastermind and the core programmer of the Diana project. Currently employed with Scott Wilson Bahrain as an environmental specialist, he is an Air Quality expert and has a PhD in air pollution meteorology and dispersion modelling. Besides his expertise in mathematical modelling, he is fond of computer programming and believes that the routine database management should be automated, freeing time for in-depth analysis of data.

“ONCE MONITORING SCHEDULES ARE CREATED, USERS CAN SEE WHAT DATA HAS BEEN RECEIVED, AS WELL AS WHEN DATA IS DUE TO BE COLLECTED AND WHEN DATA IS OUTSTANDING”

The important compliance set by

the authorities for the dredging and

reclamation projects in the kingdom

of Bahrain is the monitoring of total

suspended solids (TSS).

Total suspended solids are extremely

small solids suspended in water, which do

not settle by gravity. TSS are measured on

a water sample and are particles, which

will not pass through a very fi ne fi lter (0.45

micron). The fi lter is pre-weighed prior

to passing of the water and then post-

weighed. The difference in the two weights

is the TSS concentration (in mg/L).

A high presence of TSS in the water

column can be detrimental to existing

marine life and processes such as

dredging and reclamation are monitored

to prevent high limits being left unchecked.

SUSPENDED SOLIDS

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

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

Economic Hardship Claims: Contractor’s sword or developer’s shield – Part 1JAMES BREMEN, IN THE FIRST OF A TWO PART SERIES, COMPARES THE CIVIL LAW CONCEPT OF ECONOMIC HARDSHIPS IN DIFFERENT JURISDICTIONS AND HOW THEY MAY APPLY IN THOSE RESPECTIVE AREAS

The Middle East experienced an unprecedented boom between 2004 and 2007, which resulted in a huge number of construction projects being undertaken in a short space of time. As many of these projects near completion, times have changed. Boom followed by potential bust is a lethal combination resulting in contractors looking to recover, as much as possible, out of their existing and completed projects.

Many construction contracts in the Middle East have been drafted on a lump-sum basis, making it diffi cult for contractors to raise claims for additional money under the terms of the contract. In these circumstances, a number of contracts are instead, seeking to raise extra-contractual claims at law under the civil law concept of economic hardship. A claim for economic hardship may entitle a party, which would not otherwise have a legal/contractual claim, to raise a claim in the courts or arbitration on the basis that unforeseeable events have rendered the contract economically unsustainable.

Where the boom in construction led to considerable shortages of key construc-tion materials and a huge rise in the cost of labour over a short period, it is hardly surprising that contractors who agreed lump sum contracts with no escalation provisions are actively looking for other basis, which to recover these additional costs from the developer. These claims are not, however, an easy panacea for contractors in fi nan-cial diffi culty and there are a number of important hurdles to overcome in order to succeed in a claim of this type.

This article outlines the doctrine of economic hardship and its application in various civil law jurisdictions, particularly the Middle East, and it considers the extent to which it might apply in conditions where a change in economic circumstances exposes a party

under a fi xed price contract to substantial loss. It is important to note that whilst the majority of these claims may be brought by contractors, in certain circumstances the remedy can also be used by develop-ers who suffer increased project costs as a consequence of price escalation.

The Doctrine of Economic HardshipThe doctrine of economic hardship developed under French civil law and is generally understood to apply, where an extraordinary and unforeseeable event of a general or public nature renders performance of a contract by one of the parties excessively onerous. In those circumstances, a party may be relieved from its contractual obligations.

The doctrine is similar to another, bet-ter known as, French civil law concept, ‘force majeure’, which allows a party to escape liability for failing to perform the contract as a result of human acts or acts of nature. Whilst common law jurisdictions have adopted the concept of force majeure, English law has not recognised the doctrine of economic hardship. Why? Because the doctrine goes against the principle of the sanctity of the parties bargain on which the law of contract is based, where under Eng-lish law, in the absence of an express term, a party can only terminate on the grounds of frustration or impossibility.

The civil law countries of the Middle East have based their civil codes on the Egyptian civil code, which itself is based on French law. Thus the modern civil codes of many Arab countries are a blend of both Islamic Shari’ah, with its strong emphasis on justice and fairness, and the French law, where relief may be given for unforeseeable events. As a result, rules refl ecting the doctrine of economic hardship can be found in many of these countries’ civil codes.

“THE DOCTRINE IS SIMILAR TO ANOTHER,

BETTER KNOWN AS, FRENCH CIVIL LAW

CONCEPT, WHICH ALLOWS A PARTY TO

ESCAPE LIABILITY FOR FAILING TO PERFORM

THE CONTRACT AS A RESULT OF HUMAN

ACTS OR ACTS OF NATURE”

James Bremen is a partner in King & Spalding’s London

office and a member of the Global Transactions Practice

Group. Bremen has practised exclusively in construction

law for more than a decade. He has significant experience

in project development and dispute resolution both in the

UK and internationally.



EXCLUSIVE INTERVIEWTHOMAS BARRY

Ten minutes into our chat and it became quite clear that the Irishman sitting in front of me had led quite a full life. Barry, who looks like he’d be in his mid-50s was one of those wild, adventurous sorts.

“Yes, 1976 is when I came here,” he said look-ing out of his offi ce window in Al Quoz.

“Dubai at that time had oil and they were going to use a lot of their oil money to estab-lish and build the infrastructure for the city and I mean, ports, airports, roads, hospitals, schools etc. So we knew there was going to be a lot of construction activity here.”

Some of the big-gest names in UK construction were already in the Mid-dle East including Costain and Taylor Woodrow who in a joint venture worked on the Dubai Dry Docks.

Due to the lack of any notable local construction companies in the region, the thought of not establishing one was simply mad.

Four friends including Riad Kamal, Colin Weekley, Peter Bruce and Barry himself, all of whom worked at UK-based Sir Rob-ert McAlpine at that time, decided to get together and start up Arabtec.

Barry recounts: “I worked for Sir Robert McAlpine in the UK at that time and Riad

Kamal, Arabtec chairman, also worked for the same company. Riad’s idea was to start a construction company locally. He had the means and the backing to put it together and he asked three of us to join him and that was when Arabtec was formed. It was formed in 1975 and then I came out in ‘76. All of us worked for McAlpine; Colin went back to McAlpine shortly after, while Peter left but stayed on and started up his own interior design company here.”

With Barry now having been with the company for over 30 years, it’s quite safe

to assume that he’s a stayer. He agrees, but with a fl ash of regret.

“Dubai was different then. It was really an adventure for one to come out here then, as you felt like a pioneer in a new country – things weren’t easy. Getting around was even diffi cult. My fi rst car was a non-air-conditioned one. It wasn’t funny then. It was very

hot and there were all sorts of other diffi -culties. The Intercontinental Hotel by the creek had only just opened and we used to go down there to get Western-type food, because everywhere else you couldn’t get it. Even when our families moved here a few years after us, there were lots of things you couldn’t get here. You’d hear that certain meats or sugar or something, had come into a certain supermarket, and we’d all

go running down there to buy ourselves some; it’s true,” he exclaimed to counter any disbelieving looks.

“We didn’t have IT then, we didn’t have stock markets, banks were pretty rough at that time. All these parts of life that we’re so used to now, didn’t exist here. There were no ATM machines; there were no faxes, no mobile phones; it was a totally different way of life.

Entertainment was all home type – home dinner parties, gatherings on the beaches when it was far less developed; roads to Abu Dhabi were tracks – there was no tar road then – we would use four-wheel drives, but it could take you as long as a day and a half to get there,” he continued.

From mapping his way along the coast to Abu Dhabi in 1976 to now schmoozing at the Madinat Jumeirah, Barry says he’s come a long way.

“The contrast is beyond anyone’s imagi-nation as you can well appreciate,” he says looking out his Al Quoz offi ce window.

“Dubai, at that time, stopped where they were building the trade centre. Beyond that in this direction (Abu Dhabi bound) there was nothing – it was just desert; lots of nice beaches, which are all now built up, but there was nothing.

The pace of construction overwhelmed even Barry, who is not a local from these parts, so what effect would such changes have on natives in the region? Barry appears to understand this.

“THERE WAS NO TAR ROAD THEN. WE

WOULD USE FOUR WHEEL DRIVES, BUT IT

COULD TAKE YOU AS LONG AS A DAY AND A HALF TO GET THERE

(ABU DHABI)”

THE WILD WILD MIDDLE EAST

BACK IN THE DAY, WHEN DUBAI’S DESERTS WEREN’T A WELL-KEPT SECRET, CAMELS WERE A COMMON SITE AND TALK OF ERECTING SKYSCRAPERS FROM THE SAND WOULD HAVE

RISKED YOUR EXPULSION FROM THE ARAB STATE, FOUR PIONEERS FOUND THEMSELVES CHARGED WITH THE TASK OF FORMING, WHAT IS NOW THE REGION’S LARGEST LISTED

CONSTRUCTION COMPANY – ARABTEC. COMPANY CEO THOMAS BARRY REVISITS THOSE YEARS.

By Conrad Egbert


> For more people interviews log on to www.ConstructionWEEKonline.com

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“I suppose a lot of it must have happened too fast for them,” he says.

“If they were Bedouins living in the des-ert, who were used to getting around using camels for that mat-ter, the developments, when they happened here, must have been pretty fast for them and it must have been a big culture shock. “Just like coming here was a culture shock for me too, because at that time I’d never worked out of Ire-land and the UK, and we were used to western civilisation and western ways and when we came out here, it was totally different. But I think it took a certain type of person who would actually come out here and work in areas like this – I mean you had to be a bit of an adventurer or a pioneer.”

But not anymore. Now you’re coming out to a modern city, with almost every facility including roads, hotels, schools and hospitals. In fact, construction in the region reached such a grand scale that it now boasts the tallest skyscraper in the world, embroidered man-made islands and an indoor ski slope. But did it all go too fast? Barry is divided.

“You could say that about many parts of the world, but don’t forget that technology develops at a very fast pace these days and likewise Dubai grew with that huge pace and

it absorbed all the technol-ogy. It became, because of its weather, a tourist destination. I can’t say that it grew any faster than any other places like China. Dubai was unique in the kind of innovations that prevailed through HH Sheikh Rashid bin Saeed Al Maktoum and then through his son Sheikh Mohammed bin Rashid. They were lib-eral minded, adventurous in

their concept of how the country should be developed and what it should offer to the world. They were unique in many projects they developed, fi rsts in the world for many of them. I think, it has stood Dubai in good stead. Everyone knows Dubai now, whether it’s through its sporting achievements, iconic buildings or innovative approach to everything it does. When you look back at what they’ve accomplished and what they’ve done, it’s huge.”

But, just when green shoots of recovery seemed to be sprouting from the sands, Dubai World’s request for an extension on its loan repayment sent tremours through-out world markets.

So is there still light at the end of the tun-nel? Barry thinks so.

“I do believe Dubai will recover once they’ve sorted out their present fi nancial issues, whether it be the government or quasi government entities – they have responsi-bilities to complete and pay for a number of projects and once that’s achieved and they’re on a much stronger footing, I think they will defi nitely carry on developments, which will be vital for Dubai’s future and it’s reputation in the world. But I think it will be gradual. There will be no big explo-sion of construction again.

But what exactly does “recovery” mean? Barry explains.

“I think they’d have a far more structured approach to what they do and why they do it. Projects will, I think be thought out in far more detail – like if they’re needed or there’s a demand for it, do a proper risk analysis of them to see if its viable and I suppose projects will have to be attractive and more innovative. Hopefully, projects like the Jebel Ali Palm and Dubailand will go ahead. If they want to attract tourism here, they’ve got to have the attractions, which are beyond just sunshine and beaches. I think they need more to it. There are projects on the table that have not commenced and I think in time they will be, but it will never see the kind of construction activity that it saw in the recent past.” �

“THERE ARE PROJECTS ON THE TABLE AND I THINK IN TIME THEY

WILL COMMENCE, BUT IT (REGION) WILL NEVER SEE THE KIND

OF CONSTRUCTION ACTIVITY THAT IT SAW IN THE RECENT PAST”


There is no doubt that 2009 has been tough for developers across the region and while some have vanished and others drastically under-delivered

on promises, Bahrain Bay is keen to tell the world it has weathered the worst of the storm.

Last week, the master developer held a press conference and site tour for the region’s media to deliver three key mes-sages: infrastructure for the project is being delivered on target; all third party develop-ers are still onboard; and several will start construction in 2010.

The US $2.5 billion (BD943 million) proj-ect is located off the north eastern coast of Manama, occupying prime real estate beside the upcoming Bahrain Financial Harbour and in front of the iconic World Trade Centre.

BAHRAIN BAYLOOKING FORWARD

With a population of around 13,000 and more than 40 buildings and towers designed by leading architecture fi rms, Bahrain Bay is expected to not only become an iconic development, but will help change the perception and function of Manama, as well as the coun-try itself.

In mid-2008 the development was hurtling along at the breakneck speed considered

normal during the peak of the construction boom. The 430,000m² of land reclama-tion had been completed, infrastructure

work had started and the project’s three anchor developments had begun construc-tion on site.

By the end of 2009 it was expected that these projects, and

several others, would be well into construc-tion, but only one has remained relatively

BAHRAIN BAY’S CEO BOB VINCENT SAYS DESPITE A TOUGH YEAR, THE US $2.5 BILLION MEGA PROJECT HAS DELIVERED ON ITS INFRASTRUCTURE REQUIREMENTS AND GREATER MOMENTUM IS FORECAST FOR 2010

By Benjamin Millington

“BAHRAIN BAY HAS NOT FALLEN BEHIND WHAT

WOULD BE CONSIDERED A REALISTIC DEVELOPMENT

PROGRAMME”

THOSE INVOLVED IN BAHRAIN BAY:

INVESTORS Arcapita Bank with a Bahrain investment consortium

MASTER PLAN DESIGN Skidmore, Owings & Merrill

ADDITIONAL CONSULTANTS Mace, Atkins

CONTRACTORS AMA, Dalkia, Nass Murray & Roberts JV, Mandl Construction, Alkomed

RECLAMATION Boskalis


65%OF BAHRAIN BAY’S

LAND HAS BEEN SOLD

2007 and is expected to be fi nished by the end of 2010.

For the public regularly passing by this prominent project, the visual progress of Bahrain Bay in 2009 has been somewhat of a letdown following the hype and momen-tum of 2008. But CEO Bob Vincent is keen to set the record straight.

“Everything we expected to deliver, we have,” he says.

“We began 2009 knowing it would be tough, but we have still had a successful year and we believe that has put us in a very good position for 2010.

on track while the remainder went back to the drawing board to redesign according to new market expectations.

Two of the anchor developments have both suffered signifi cant delays. Raffl es City Bahrain completed its substructure in mid-2009 before delaying the tender for main construction, while the Four Seasons Hotel stopped work onsite after piling.

The one exception is the $150 million headquarters for the Arcapita Bank, the third anchor development. The headquarters covers 49,000m² and will offer 18,000m² of offi ce space. Construction started in March

BAHRAIN BAY CEO BOB VINCENT IS STILL POSITIVE. THE MIXED-USE PROJECT HAS MANAGED TO MAINTAIN ITS FULL TEAM OF 16 THIRD PARTY DEVELOPERS.

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“That could be a factor of luck, but it is also a factor of good management.”

Overall Vincent says the econom-ic downturn has probably set Bah-rain Bay back by between six to 12 months, but he is quick to point out that the expectations set in 2007 were prob-ably too high.

“The thing you have to keep in mind is that you can’t consider 2007 or 2008 as

a normal construction and development cycle; it was the peak of a boom period,”

he says. “So while there has

been slippage from the expectations of 2007, Bahrain Bay has not fallen behind what would be considered a realistic and normal

development programme. “It’s a very big project and it’s not uncom-

mon for a project of this size to be developed over two or even three economic cycles.”

Despite the slowdown, Vincent says Bahrain Bay has still delivered all civil infrastructure works as required, a total investment of $250 million. Currently, around 70% of work is fi nished and all main contracts, including roads, bridges, utilities and services, will be completed by mid next year.

He says the second highlight of 2009 is that Bahrain Bay has managed to maintain its full team of 16 third party developers, who are all moving forward with their project programmes in a positive mindset.

“Because of the tough economic condi-tions we have been required to show some

BAHRAIN BAY DEPUTY CEO ABDULLA AL DOSERI.

“WE DO NOT ALLOW LAND SPECULATION, LAND

FLIPPING AND THERE ARE PENALTIES FOR NOT

PROCEEDING”

BAHRAIN BAYS MOST ADVANCED PROJECTS

THIRD PARTY DEVELOPERTHIRD PARTY DEVELOPER ORIGINORIGIN PROJECT DETAILSPROJECT DETAILS PROJECT STATUSPROJECT STATUS

ARCAPITA BANK Bahrain Bank headquarters offering 18,000m² of offi ce space Under construction, completion expected end of 2010

FOUR SEASONS HOTELS Hotel tower In redesign process, piling complete, aiming for construction start in Q2 2010

CAPITALAND – RAFFLES CITY BAHRAIN Singapore 450,000m² residential project with three towers up to 42 storeys Substructure complete, in redesign of product mix, aiming to start main tender process in fi rst half 2010

GUIDANCE FINANCIAL GROUP France Shariah compliant hotel Exchanged title, expected to go to building permit stage in Q1 2010, construction start within 2010

DAMAC GROUP UAE 40-storey residential tower Exchanged title, detailed design due in Q1 2010, construction start within 2010

COOPERATION INVESTMENT HOUSE Bahrain Commercial offi ce, 47-storey spiraling tower Started piling onsite and considering two stage construction programme

AL BARAKA BANKING GROUP Bahrain Nine story duplex, commercial offi ce/headquarters In advanced design

SALHIA REAL ESTATE Kuwait Mixed use offi ce/retail, 33-storey circular tower In advanced design

KHALEEJ CAPITA Bahrain/Qatar Mixed-use 60 storey tower In advanced design

THE ECONOMIC DOWNTURN HAS SET THE DEVELOPMENT OF THE BAY BACK BY AROUND SIX TO 12 MONTHS,

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fl exibility in those economic programmes, which we have done,” he says.

“We have extended their performance schedules in terms of submissions for documentation and we have shown fl exi-bility in their land pay-ment schedules.

“This will allow them to adapt to the additional economic pressures they’ve been placed under. That has been a cooperative process which has

allowed Bahrain Bay to maintain its repu-tation and continue uninhibited.”

Looking forward, Vincent says he expects three, possibly six, more developers to be active on site by the middle of next year – two of which have already exchanged land titles. In addi-tion, he says Four Seasons and Raffl es City will reinvigorate

their construction efforts.The Four Seasons, which was signifi cantly

scaled back during its redesign, will start

the fi nal tender process for main construc-tion by the end of Q1 2010 and construction within the fi rst half of the year.

Meanwhile, Raffl es City is currently rede-signing its retail and sky villa components. They are hoping to start the tender process by the end of Q2 2010.

The fact that all third party developers are moving forward in a “positive mindset” can be attributed to Bahrain Bay’s cooperative approach, but also its stringent developer criteria, says Vincent.

“As a land developer, we have implemented commercial guidelines to protect our inter-ests, as well as third party developers who have committed to the project,” he says.

“We do not allow land speculation, land fl ipping and there are penalties for not pro-ceeding. These factors will help ensure the long-term success of Bahrain Bay.”

Up until now 65% of Bahrain Bay’s land has been sold, the remaining 35% is expected to sell by the end of 2011 or early 2012 because of three main factors.

“It is high quality land, but the market for that land needs to be reinvigorated and that could take 12 to 24 months,” he says.

“Also signifi cant proportion of the land is tied up in two large precincts, not as individual plots. The process of design-ing, approving and getting that to market takes much longer.

“The third factor is value adding. We want to add as much value to that land as possible, which will happen as the devel-opment progresses and more projects are built out.”

Overall Vincent says it could be anywhere between fi ve to ten years before the entire project is built out. �

THE ARCAPITA BANK HEADQUARTERS COVERS 49,000M² AND WILL OFFER 18,000M² OF OFFICE SPACE.

BAHRAIN BAY INFRASTRUCTURE IS PROGRESSING ON SCHEDULE, ACCORDING TO THE MASTER DEVELOPER.

“WE WANT TO ADD AS MUCH VALUE

TO THAT LAND AS POSSIBLE”

$2.5THE BAHRAIN BAY PROJECT

IS WORTH

BILLION


PREPARED FOR

ACTIONHOW CAN THE USE OF PRECAST CONCRETE

HELP YOU WIN FUTURE WORK? CONSTRUCTION WEEK INVESTIGATES THE BENEFITS AND

CHALLENGES OF THE PRODUCT AND ASKS: WHAT IS THE FUTURE OF PRECAST IN THE MIDDLE EAST?

By Alison Luke

As 2010 approaches, many fi rms are re-evaluating their working methods in order to maxi-mise their effi ciency prior to any potential

upturn in the construction sector. Value engineering is thus becoming a common phrase, with off-site prefabrication one of the key factors being considered for this process.

Off-site prefabrication can be applied to many elements of a building. And, while a wide variety of materials and products can be used in the process, one of the most successful is concrete. So what is the uptake of precast concrete products in the Middle East and how is the material being used?

“Precast concrete was introduced to this part of the world more than ten years ago and has rapidly grown in popularity,” reports Dubai Precast general manager Matti Mik-kola. The use of precast concrete products peaked in 2007-08, as did the construction sector in general, however its rise in use was not simply down to a stronger construction market. “Along with a rapid increase in the construction sector, the precast business

managed to gain an increasing market share from the conventional structural systems,” reports Mikkola.

PRECAST CONCRETE IN USEThere is a vast range of applications for precast concrete within the construction industry, many of which are installed for a project’s operational purposes. “Sanitary and storm sewers, box culverts, catch basins, pump/lift stations, septic tanks, exterior grease interceptors, water storage tanks, wet wells, electrical and communication vaults and many other products all play a pivotal role in maintaining a clean, healthy, produc-tive environment. The main components of these systems typically consist of precast concrete,” explains Xtramix International Precast’s precast operations manager Dr Tomasz Ciesielski.

In addition, precast concrete can be used to provide larger structural components

“PRECAST CONCRETE WAS INTRODUCED TO THIS PART OF THE WORLD MORE THAN TEN YEARS AGO AND HAS RAPIDLY GROWN IN POPULARITY” DUBAI PRECAST GENERAL MANAGER MATTI MIKKOLA.

such as walls, frames and fl oors. The basic concept remains the same: at a factory loca-tion in advance of being needed on a proj-ect, concrete is poured into shaped casts to form individual components. These are then transported to the construction site when required and connected together to form the fi nal structure. One very visible, large-scale use of precast concrete cur-rently underway is the Dubai Metro project; however it is also being used extensively in the region for many other less promi-nent projects.

> For more special reports visit www.ConstructionWEEKonline.com

“A large majority of projects done with precast are housing projects; these com-prise of many types of low-rise buildings, including labour accommodation, hostels and housing projects,” reports Mikkola. “The repetitive nature of these projects makes precasting them a wise decision as it reduces the amount of manpower required; the components are produced in a factory where the effi ciency is higher and only a small amount of labour is required for the installation at site,” Mikkola explains.

The second largest sector for precast use is commercial buildings, including offi ces and shopping malls. “Some precast prod-ucts are very effi cient for [providing] long spans such as those required in shopping malls and car parks,” explains Mikkola. “The architect is able to provide large open spaces, which are the requirement in mod-ern malls,” he adds.

“Architectural precast concrete provides architects with an exciting medium when designing facades for a wide range of build-ings, from healthcare facilities to shopping

PRECAST CONCRETE CAN BE USED FOR A VARIETY OF APPLICATIONS.

malls, commercial offi ce buildings to sports stadiums,” adds Ahmad E’Wida, quality assurance/quality control manager and precast operations manager’s assistant, Xtramix International Precast. “Precast concrete frames involve an entire struc-ture being fabricated off-site. In addition, structural components can be supplied for incorporation into a structure on-site,” adds E’Wida. Such precast building frames can be used to simultaneously achieve both struc-

tural and decorative design requirements as it is possible to achieve a variety of concrete mixes and fi nishes under factory conditions.

Precast walls are suitable for central cores and lift shafts in addition to internal and exter-nal building walls. Mainly used for domestic properties, pre-cast walls can be load-bearing or partition only, depending on the client needs. “Precast walls offer the advantages

of speed of construction, smooth surface fi nishing, acoustic insulation and fi re resis-tance,” explains E’Wida.

Floors can be totally or partially precast according to project requirements. E’Wida explains: “Partially precast fl oors are com-posed of a precast part and a cast in-situ part; both parts work together at the fi nal stage to achieve the composite structural capacity.” With fully precast fl oors, a series of parts are cast at the factory then con-

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nected on site, with the longitudinal joints grouted; in some cases a further structural topping screed is cast in-situ.

BENEFITS AND CHALLENGESSo should you use precast components for your next project? There are a number of advantages and disadvantages to consider when making the decision whether to use precast and if you do so, to what extent.

“The advantages [of using precast concrete] are higher [fi nal build] quality due to the factory production environment; higher effi ciency; lower manpower requirement on site; and defi nitely faster construction speed,” states Mikkola.

In addition, a number of construction site issues can be addressed. “The potential for accidents is reduced; programmes are not affected by weather or labour availability; and it addresses on-site skill shortages,” explains E’Wida. “Buildability of the structure is improved and a potential early closing of the building envelope means that follow-on trades can begin work earlier, reducing the overall build programme,” he adds.

The high quality fi nish possible in pre-cast concrete products also means that such components can be left exposed in the fi nal building or covered with little or no additional on-site preparation needed. “Because precast concrete products typically

are produced in a controlled environment, they exhibit high quality and uniformity. Variables affecting quality typically found on a job site, such as temperature, humidity, materials quality and craftsmanship, are nearly eliminated in a plant environment,” stresses Ciesielski.

The relatively better strength and dura-bility of precast to poured in-situ concrete should also be considered. “The strength of precast concrete gradually increases over time, whereas other materials can deteriorate, experience creep and stress relaxation, lose strength and/or defl ect. The load-carrying capacity of precast concrete is derived from its own structural qualities and does not rely on the strength or qual-ity of the surrounding backfi ll materials,” Ciesielski explains.

There are also some less positive points that should be considered when determining the potential benefi ts of precast concrete for a project. “The system building is less

“BECAUSE PRECAST CONCRETE PRODUCTS TYPICALLY ARE PRODUCED IN A CONTROLLED ENVIRONMENT, THEY EXHIBIT HIGH QUALITY”

XTRAMIX INTERNATIONAL PRECAST’S PRECAST OPERATIONS MANAGER TOMASZ CIESIELSKI.

XTRAMIX INTERNATIONAL PRECAST QA/QC MANAGER AHMAD E’WIDA.

“PRECAST CONCRETE FRAMES INVOLVE AN ENTIRE STRUCTURE BEING FABRICATED OFF-SITE”

XTRAMIX LIGHT TRANSMITTING CONCRETE.

PRECAST CONCRETE: THE BENEFITS• Durability: the fi nal product is produced

according to client specifi cations for

durability and products can last more

than 100 years.

• Assured quality: the concrete is precast in

factory-controlled conditions, removing

any external conditions on site that may

affect its fi nal quality.

• Reduced labour is required on site.

• Faster on site construction times can

be achieved as the products are simply

slotted into position after delivery.

• The strength of precast concrete has

been proven to gradually increase

with time.

• The load-carrying capacity of precast

concrete is derived from its own structural

qualities and does not rely on the strength

or quality of surrounding backfi ll materials.

• The precast products can be ordered in

advance to ensure availability at the time

needed on a project and can be produced

at times when materials prices are

most competitive.

fl exible in its design concept than purpose-mode structures; plus structural connec-tion between the precast concrete units can present both design and contractual problems,” warns E’Wida.

“Each project is different,” reminds Mik-kola. “For some types of buildings, precast is always the cheaper solution; for exam-ple, with long-span parking buildings the structure will be cheaper, much faster to build and the fi nal quality is very high,” he adds.

SUSTAINABLE CONSTRUCTIONOne of the primary considerations with any product or material currently being applied to Middle East construction proj-ects is its sustainability or contribution to ‘green’ building. Precast concrete meets these demands in several ways.

Firstly, precast concrete products have been shown to have a service life of more


than 100 years, with the potential for the precast elements to be dismantled follow-ing the lifetime of a building and reused for future applications. “This needs to be con-sidered in the design from day one, however we think that one day that will be a major consideration,” predicts Mikkola.

In addition, the product can be used to contribute to reducing operational energy use in a building. E’Wida explains: “Archi-tecturally-fi nished precast structures can be left exposed to exploit the concrete’s high thermal capacity in a building’s green energy management system.”

THE FUTURE OF PRECAST CONCRETE?What is the future for precast concrete use in the Middle East? Will buildings be designed to enable its use and maximise long-term value engineering or will the economic downturn see a fall in demand for the forseeable future?

In order to truly maximise the benefi ts of the product, traditional design and con-struction methods may need to be reviewed.

“If the full advantages of precast concrete are to be realised, the structure should be conceived according to its specifi c design philosophy,” stresses E’Wida. “Often the buildability of a project is not considered in the initial stage; the architect has a free hand. During the last few years especially, the building’s external shape and design has been the main criterion for the archi-tect and the developer,” explains Mikkola. “Buildability, especially using precast com-ponents, would require quite a bit more initial consideration than is often locally done,” adds Mikkola.

“Designers should from the very outset of the project consider the possibilities, restrictions and advantages of precast con-crete, its detailing, manufacturer, transport, erection and serviceability stages before completing a design in precast concrete,” adds E’Wida. “Most design briefs can be fulfi lled without too much modifi cation to the original concept,” he stresses.

The current economic climate is acting against the uptake of the product reports Mikkola: “The precast industry is faced with an additional problem in this [current economic] scenario,” reports Mikkola. “All contractors have a large surplus of workers and in order to keep these workers, some are willing to choose less effi cient work methods to complete the projects. Time is seldom an issue anymore and won’t be for the near future. Currently there is a huge volume of precast capacity in the market; much beyond what will be needed in the next one to two years,” he adds.

However, in the long-term the use of pre-cast concrete is sure to feature more promi-nently in the market. “Pre-fabrication has a great potential to respond to new market demands,” stresses E’Wida. “The possible solution lies not only within the classical advantages related to working conditions, technology and speed of construction, but also in new developments of materials such as high performances and self-compacting concrete, green concrete buildings systems,” he concludes. �

SEALING SURFACESWith concrete one of the most popular

building materials in the Middle East,

ensuring its long life, quality surface fi nish

and suitability for ‘green’ building are

important considerations. There are now

several products available in the market

that aim to ensure these factors, including

specialist sealing products.

One such product is Ashford Formula.

A concrete sealant used worldwide for

around 60 years, the product range was

soft-launched into the region’s market

three years ago and the fi rm is currently

undertaking a continuing expansion

programme within the Middle East. “Specifi c

project types were selected as test beds in

different industries, these were monitored to

ensure regional suitability, given the at times

challenging conditions here in the Middle

East,” reports Ashford Formula director of

Curecrete Distribution Tony Hogg.

“The main benefi ts of Ashford Formula

are that your concrete fl oor is permanently

sealed, dust-proofed and hardened for the

lifetime of the concrete,” explains Hogg. In

addition, the product increases abrasion

resistance and curing; plus, it meets the

current international sustainable building

standards, being accredited to both Leed

and TUV.

Ashford Formula is used primarily for

fl oors, but can also be applied to walls used

in the tilt-up building method, where the

product is applied to the walls in a horizontal

position prior to being hoisted into place.

A high percentage of installed applications

to date has been in low-level warehouse

buildings where longevity, dust-free

environments and a clean appearance are

vital. “In this region we have seen an increase

in the use of Ashford from an architectural

perspective in offi ces, villas and hotels,”

reports Hogg.

The product can be used on all types of

concrete structure, whether precast, self-

levelling or traditional forms. “The important

thing is that [the concrete] must contain

OPC as the Ashford Formula reacts with

cement particles within the concrete to

create a chemical reaction, which in turn

leads to an initial gel stage,” explains Hogg.

“Tetrahedral shaped crystals are formed

[during this stage] locking themselves

permanently to the matrix of the concrete,

thus creating a lifelong seal, hardening the

surface of the concrete by on average 40%

and turning a naturally dusting surface into a

dust free fi nish,” adds Hogg.

Ashford currently serves the GCC from its

UAE base a wider network of distributors.

Its strategy for 2010 is to develop and

expand its list of distributors and approved

applicators within the region.

www.ConstructionWEEKonline.com/directory

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DIRECTORY

DECEMBER 5–11, 2009 CONSTRUCTION WEEK 29

38 SHOWCASE40 TENDERS41 PROJECTS

SPECIALIST SERVICES42 Building materials43 Construction chemicals/concrete44 Education & training/fl ooring45 Recruitment/steel

CITY UPDATE46 Riyadh, Saudi Arabia

SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

TOP LEFT: A construction labourer for Taisei

works on the DJA development. Taisei was

the main building contractor for The Galleries

– the fi rst completed project at Downtown

Jebel Ali – where contractors such as

Habtoor (landscaping), ARC and Kier Dubai

(infrastructure) and Shimizu (Sheikh Zayed

Road and Interchange 8) also operated.

RIGHT TOP AND BOTTOM: Work takes

place in the fi rst phase of Downtown Jebel Ali.

Work commenced in mid-2006 and the fi rst

buildings in The Galleries were completed

by the beginning of 2009. The whole DJA

footprint covers 2 million m² and sprawls

back 11km from Sheikh Zayed Road.

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�SHOWCASEITP IMAGESFOR IMAGES WITHIN THESE PAGES PLEASE EMAIL [email protected]

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LEFT: Chinese fi rm Zoomlion provided seven giant TC6517A cranes

for the construction of The Galleries – the cranes boast features such

as modern PCL control and 10-tonne SWL. Taisei bought the cranes

– which are modular and can be taken down and moved easily – brand

new specifi cally for the DJA project.

BELOW: Beneath the buildings, you can see the 300m-long plaza and

garden area that is a main feature of The Galleries and will have trees,

benches, water features, picnic areas and a giant permanent screen

built into an amphitheatre area. The 20,000m² area accounts for US

$32.6m of the $544m that The Galleries project cost.

DOWNTOWN JEBEL ALIPhotos by Khaled Termanini/ITP Images

Downtown Jebel Ali is a huge mixed-use master development from Dubai World

developer Limitless, which is being built to add offi ce space, residential, commercial and

leisure facilities to Dubai’s industrial Jebel Ali area. Work on the fi rst project, Limitless’

own The Galleries, is reaching completion, with several buildings already delivered.



�TENDERSFREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRYTO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO [email protected]

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BAHRAIN

Issuer: Electricity and Water AuthorityTender No: 325/2009/5310Description: The supply of an 11KV VCB switch board panel for Sheikh Khalid Al Ali Mall.Closes: December 23Fees: BD15Contact: Tender Submission Offi ce, 7th fl oor, Tender Board Offi ce at Al Moayyed Tower, Manama.

EGYPT

Issuer: Egyptian Railways Integrated Services CompanyDescription: Engineering, design, installation and commissioning of four stationary trains washing systems in Cairo.Closes: January 24Fees: EP5000Bond: EP200,000Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo

OMAN

Issuer: Ministry of HousingTender No: 301/2009Description: Construction of 32 housing units and a mosque in the Al Sharqiya region.Fees: OR500Closes: December 7Contact: www.tenderboard.gov.om

Issuer: Ministry of HealthTender No: 307/2009Description: Construction of health centre at Musanah.Closes: December 7Fees: OR375Contact: www.tenderboard.gov.om

Issuer: Oman Tourism DevelopmentTender No: 308/2009Description: Provision of consultancy services for the development of Fort Hotel.

Closes: December 7Fees: OR375Contact: www.tenderboard.gov.om

Issuer: The Public Authority for Stores and Food ReserveTender No: 302/2009Description: Consultancy services for the design and construction supervision of new warehouses at various regions in Oman.Closes: December 7Fees: OR100Contact: www.tenderboard.gov.om

Issuer: Ministry of HealthTender No: 304/2009Description: Construction of a health centre in Saham.Closes: December 14Fees: OR400Contact: www.tenderboard.gov

QATAR

Issuer Public Works AuthorityTender No: PWA/ITC/040/09-10Description: Construction of sewer manholes.Closes: December 6Fees: QR1000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/045/09-10Description: Reconstruction of the Najma Road extension.Closes: December 8Fees: QR7000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/042/09-10Description: Construction of main roads, as well as internal roads for packages one to fi ve. The project is located around 3km north of Doha.Closes: December 8 Fees: QR5000Contact: Contract Department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/049/09-10Description: Modifi cations and additions with associated services to exiting 36 schools around Doha.Closes: December 8Fees: QR2000Contact: Contract Department, Public Works Authority

SAUDI ARABIA

Issuer: Royal Commission for Jubail and YanbuTender No: PIC G-1679EDescription: All work necessary for a complete operational facility of Juma Mosques.Closes: December 5Contact: Director, Purchasing and Contracting Department, PO Box 30031, Madinat Yanbu Al Sinaiyah

Issuer: Saudi Railway OrganisationTender No: 218Description: Specifi cation for the design of new bridges for the rail line with the assessment of the existing railway bridges and concrete sleepers on the rail line in various locations between Dammam and Riyadh.Closes: December 7Contact: www.saudirailways.org

UAE

Issuer: Dubai Electricity and Water AuthorityTender No: CE/0423/2009Description: Supply, installation, testing and commissioning of 132/11KV substations.Closes: December 6Fees: AED5000Contact: www.dewa.gov.ae

Issuer: Ministry of Public WorksTender No: 2009/167/10-341104-7091-7048Description: Construction of a maternity and children’s hospital in Sharjah, UAE.Closes: December 22Fees: AED8000Contact: www.mopw.gov.ae

The Electricity and Water Authority is the agency responsible for the production and supply of power and water in Bahrain, working as an independent arm of the state. According to Bahrain’s latest water report, the kingdom has drafted a national policy for wastewater, including reuse of treated sewage effl uent. A major boost to wastewater treatment capacity will come with the development

of the Muharraq wastewater plant, which will have a 100,000m³ to 150,000m³ per day capacity.

A spokesperson for the Ministry of Works said in June that the tender for the Muharraq plant would close by October 28 this year. The contract is expected to be awarded by March or April, 2010. The government arm is looking to award the consultancy contract for a

water transmission development scheme before end-2010, which will add 165km of new pipelines. �

Tender focus

BAHRAIN ELECTRICITY AND WATER AUTHORITY

BAHRAIN HAS PUSHED FOR THE DEVELOPMENT OF IWPPS.

> For more tenders check online at www.ConstructionWEEKonline.com/tenders

� PR

OJECTS To

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is section

email d

etails to ed

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�PROJECTSA UAE DATABASE - BUILDING PROJECTS FOCUSTO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO [email protected]

The US $237 million (AED870 million) Regent Emirates Pearl Hotel, set to be completed by Q4 of 2012, will sit on a 10,000m² plot comprising four podium levels, 45 fl oors, 377 rooms and suites and 60 furnished apartments. The development will be located on the Abu Dhabi Corniche. Arabian Construction Company (ACC) and Tourism Development Investment

Company (TDIC) will form a joint venture to build the hotel, which will be 240m-high once completed.

ACC has worked on projects such as the Sheikh Zayed Grand Mosque and Capital Plaza. TDIC is a master developer of tour-ism real estate assets within Abu Dhabi. The company is charged with assisting the provision of infrastructure. �

Project focus

THE REGENT EMIRATES PEARL HOTEL

REGENT EMIRATES PEARL HOTEL IS SET TO BE COMPLETED BY 2012.

PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR

VALUE(US$MN)

STATUS

UAECITY OF LIGHTS - C10, C10A AND C11 Tamouh Investments Palm & Turner Architects China State Construction &

Engineering Corporation101 - 250 project under construction

ROYAL CITY SEASONS HOTEL IN ABU DHABI City Seasons Group James Cubitt & Partners Tae Young Contracting 101 - 250 project under construction

RITAJ MIXED-USE COMPLEX IN DIP Dubai Investments Real Estate Company

Al Jabal Consultants Robust Contracting 155 project under construction

LAYIA HOSPITALITY IN DUBAI Gulf General Investment Company

National Engineering Bureau Not Appointed 31 - 100 project under design

AL FALAH DEVELOPMENT IN ABU DHABI - 2000 VILLAS

Aldar Properties Al Torath Engineering Consultants

El Seif Engineering & Contracting Company

251 - 500 project under construction

FISHERMAN’S QUAY IN RAS AL KHAIMAH RAK Properties EDAW Not Appointed 101 - 250 project under design

UNION CO-OPERATIVE HYPERMARKET IN AL BARSHA Union Co-operative Archdome Consulting Engineers Bu Haleeba Contracting 33 project under construction

EXTENSION TO THE RULER’S COURT IN SOUK AL KABIR

Dubai Municipality Arif & Bintoak Consulting Not Appointed 22 project under design

ARJAAN HOTEL APARTMENTS IN ADNEC Bin Hamoodah Properties GA Architects & Engineers Not Appointed 31 - 100 award awaited for the construction contract

ALPS HOTEL IN RAS AL KHAIMAH Union Group of Companies UniEstate Not Appointed 101 - 250 project under design

FRANKFURT SPORTS TOWER 1 IN DSC Memon Investments Al Hatmy Design & Engineering Consultants

OST Constructional Projects 92 project under construction

THE VILLA IN DUBAILAND - PHASE 3 Dubai Properties Shadeed Engineering Al Shafar General Contracting 91 project under construction

LILIES TOWER IN EMIRATES CITY R Holdings Adnan Saffarini Abou Seif Building Contracting Company

87 project under construction

CHAMPIONS TOWER II IN DUBAI SPORTS CITY Memon Investments Adnan Saffarini Al Sarh Contracting 30 project under construction

CHAMPIONS TOWER III IN DUBAI SPORTS CITY Memon Investments Adnan Saffarini Al Sarh Contracting 40 project under construction

REFURBISHMENT OF OASIS HOSPITAL IN AL AIN Oasis Hospital Peddle Thorp Architects Not Appointed 31 - 100 project under design

SAMI BUSINESS TOWER IN BUSINESS BAY ACI Real Estate Dimensions Engineering Consultants

Saquer Engineering & Contract-ing Enterprises

31 - 100 project under construction

SANDOVAL TOWNHOUSES & RESIDENCES IN JUMEIRAH VILLAGE

Bavaria Gulf Diar Consult Al Sayegh Contracting 31 - 100 project under construction

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


�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL [email protected]

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BUILDING MATERIALS

Supplier focus

KOHLERMANUFACTURER OF POWER GENERATORS, PLUMBING PRODUCTS AND HOME INTERIORS

Founded in 1873 and headquar-tered in Wisconsin, US, Kohler is a manufacturer of kitchen and bath products, engines and power generation systems, cabi-netry, tile and home interiors, and owns a range of hospitality and golf destinations.

Kohler employs more than 31,000 associates on six continents, operates plants in 49 worldwide locations, and has dozens of sales offi ces around the globe. The company entered the power generation mar-ket in the early 1920s and today manufactures generator sets up to 2800KW, transfer switches, switchgear and accessories.

Kohler Engines is a manufacturer of air- and liquid-cooled, four-cycle gasoline engines ranging from four- to 38-horsepower, serving the, con-struction and industrial markets. The third business, Kohler Rental, provides emergency generators,

mobile lighting, temperature control and on-site and techni-cal support for the industrial and event markets.

Kohler Interiors Group began in 1986 when Baker Furniture joined the Kohler family of businesses. Over the years, the Kohler Interiors Group has grown to include Milling Road casual furniture, a division of Baker Furniture; Dapha, a custom upholsterer; McGuire high design furniture of rat-tan, woven peel, teak, bam-boo and Oriental hardwoods; Ann Sacks, a supplier of tile, stone and plumbing; and Kal-lista luxury plumbing products and collections.

The Kohler Kitchen and Bath Group supplies plumb-ing products and cabinetry to the residential, commercial and industrial markets. �

RALF BECKER, PRESIDENT FOR KOHLER COMPANY’S KITCHEN AND BATH DIVISION, EMEA.


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BUILDING MATERIALS HARD LANDSCAPING SUPPLIER

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

DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.)

SPECIALIZED DEWATERING SERVICES:• Specialized in Deepwell, Wellpoint,

Open pumping techniques

• Professional Service

• Round the clock backup

• Effective Groundwater control

P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E.Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: [email protected]

CEILINGS/PARTITIONS

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

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CITY UPDATERIYADH, SAUDI ARABIA

The last two months have seen major steps taken forward in Riyadh, the Saudi Arabia capital.

The start of October proved very bright

for the Saudi Binladin Group (SBG), as the firm picked up a massive construc-tion contract for 30 parcels of land with-in the King Abdullah Financial District (KAFD) from developer Rayadah Invest-ment Company.

The deal is worth US $3.73 billion (SR13.98 billion) and will see SBG construct the lion’s share of the development. Rayadah’s KAFD project manager Waleed Aleisa said the fast-tracked contract requires SBG to complete 27 of the 30 parcels by March 2012 and the remaining three parcels by November 2012.

“It’s an enormous challenge and Binla-din might be the only contractor in Saudi Arabia capable of producing 30 parcels in 38 months,” he said. “We didn’t want to hire more than one contractor for the job because we wanted to reduce the complex-ity of the logistics and basically Binladin is the most qualified.”

The contract includes construction of two of the tallest towers in KAFD – the 303m World Trade Centre and the 240m GCC Bank Tower – which will be among the last three parcels to be delivered.

When the contract is completed, around 70% of KAFD will be finished, with the remaining 30% to be developed accord-ing to market need.

Other firms are also getting involved in the work ongoing at KAFD. Gulf Technical Construction Company (GTCC), the civil contracting subsidiary of Drake and Scull International, is forming a joint venture with Saudi Oger to bid for construction of

HOUSING IN RIYADH REMAINS A GROWTH MARKET.

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Colossal contractsTHE LAST FEW MONTHS HAVE SEEN SOME MASSIVE CONTRACTS AWARDED IN RIYADH, WITH MORE TO COME NEXT YEAR

By James Boley


“IT’S AN ENORMOUS CHALLENGE AND BINLADIN MIGHT BE THE ONLY CONTRACTOR IN SAUDI ARABIA CAPABLE OF PRODUCING 30 PARCELS IN 38 MONTHS”

TOP PROJECTS US$Princess Noura Bint Abdul-Rahman University for Women 11.5 bnKing Abdullah Financial District 10 bnRiyadh - Al Zour Water Pipeline 2.5 bnNasmat Al Riyadh 1.6 bnOlaya Towers 250 mn

Meanwhile, development on the Riyadh Metro is now progressing. Work began at the start of November, according to the Arriyadh Development Authority, which is developing the project.

Phase one of the project will see the con-struction of a 25km route from the northern side of the ring road to the southern side, while the 14km phase two will stretch from east to west. Thirty districts are expected to be covered by the project. �

the 400m tall Capital Market Authority (CMA) tower in Riyadh.

“We were approached by Saudi Oger to form a joint venture and bring our techni-cal expertise in high rise construction to the table,” said GTCC executive director Saleh Muradweji.

The tower is being developed by CMA and will be the tallest in the KAFD project.

Housing, as ever, remains an important lynchpin in the Saudi Arabia construc-tion market, with a report from Naseba suggesting that across KSA as a whole, the real estate construction market is worth around $586 billion.

As a result, the 3 million m² Nasmat Al Riyadh development, which will contain educational facilities, commercial outlets, and 4200 housing units, took a step closer to completion with the awarding of the supervision consultancy contract. Novem-ber saw Fayez Zuhair Architectural and

SALEH MURADWEIJ EXECUTIVE DIRECTOR OF GTCC.

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SIMILAR TO THE DUBAI METRO, CONSTRUCTION WORK ON THE RIYADH METRO IS STEADILY PROGRESSING.

Engineering pick up the honours on the $1.6 billion project, with a construction contract to be awarded in 2010.

KING ABDULLAH FINANCIAL DISTRICT WILL CREATE A NEW CENTRAL POINT FOR THE CITY OF RIYADH.


DIALOGUECHRISTOPH HÖRMANN

What products and services do you offer?Hörmann has been our family for four generations. We are specialised in building products made from steel. These products are mainly used for the outer shell of a building. We produce garage doors, sectional and industrial doors, fast-acting doors, docking and loading equipment, rolling shutters, folding and sliding doors, fire-resistant doors, frames and operators. It is a three way division – we offer every door you can imagine for commercial projects, then we have the garage doors, and the third division is heavy duty doors and entry doors.

What attracted your company to come to Dubai?We have been in the Middle East for more than 20 years with a distributor and opened our own subsidiary last year. We have branches in Jebel Ali Free Zone and Jebel Ali Industrial Zone. We stock all our goods and distribute them in these locations and we also have offices there. We actually moved into the Jebel Ali Free Zone last week. The numerous expansion prospects available throughout the Middle East’s resilient property and construction markets influenced our decision to set up a permanent base in the region. This follows the establishment of other subsidiaries in key markets such as India and Greece. The global crisis has not deterred us from pushing forward with our long-term growth plans, and we feel that the Middle East in particular, offers exceptional potential within the coming months.

Do you think construction suppliers will now be deterred from coming to Dubai because of the drop in new projects going online?In general, it is important to attract more companies to come to Dubai because companies, especially family companies, need to have full ownership of their businesses. Other

Opportunity knocksChristoph Hörmann, general partner of his family-owned door manufacturing company in Germany talks about the current most attractive places to do business in the Gulf and how his company is progressing in the region

By Sarah Blackman

places in the Middle East force you to have sponsors. If implemented, new ownership laws will be very good for business in general, because it gives companies more freedom and will make the emirate even more attractive to international investors.

How is your business faring in other areas of the Gulf?Generally Dubai was always our best market, but things have changed over the last year. Everything we are losing in Dubai we are gaining in Abu Dhabi and now, of course, we are trying to generate more markets to increase our turnover. We are currently doing very well in Qatar and Saudi Arabia and these are now our most attractive markets next to the UAE. Most of our demand is coming from Saudi Arabia because a lot of new projects are being constructed there. We went to Qatar and Saudi Arabia to supply our products and survive the crisis. It is a little bit more difficult for people to do business in Dubai now.

Which Middle Eastern projects have you most recently supplied your products to?The newest project for us is the Rolex Tower on Sheikh Zayed Road, Dubai. We supplied the inside doors for this project. We have also supplied doors for the entrance of

the Dubai World Trade Centre and the folding and sectional doors for the car parking areas. Currently, we are supplying fi re-proof doors for substations in Dubai. Hörmann provides doors that comply with requirements for operation and risk for all areas. Smoke-tight sliding doors for safe escape and rescue routes are well suited for areas with high personnel frequency, where, in the case of fi re, people must be protected from the spread of life threatening fumes. For obvious reasons, electrical substations need to be protected with fi re-proof doors.

Chistoph Hörmann is a general partner

for the Hörmann Group and is responsible

for the growth and development of the

product lines for doors and loading

technology. He is also responsible for the

European market, the Middle East and the

US. An industrial engineer by profession,

he graduated from the University of

Applied Sciences in Karlsruhe, Germany.

Together with his father and brother, he

runs the company from its headquarters

in Steinhagen.

Reem Emirates Aluminum (REA) and its subsidiaries: Reem Emirates Glass (REG);Reem Emirates Metals (REM) & Reem Emirates Cladding (REC), boasts of its factory as the largest in the Middle East and GCC market, equipped with complete line of the most sophisticated equipments and state-of-the-art technology to be able to meet the ever increasing demands for architectural cladding elements.

With its unparalleled business expertise matched with a team of highly professional engineers and architects, Reem Emirates Aluminum carefully blends creativity and ingenuity to produce competitive products that meet the exacting architectural requirements of its clients such as:

Double Skin Active Walls l Conventional Curtain Walls l Unitized Curtain Walls l 3D Metal Structures l Metal CladdingSpider Walls l Sliding & Casement Windows, Doors l Shop Fronts, Doors, Windows, Balustrades l Skylights l Domes l Grilles & Clusters Rolling Shutters Special l Architectural Featured BMS l Fully Tempered/Toughened Glass l Heat Strengthened Glass l Insulated/Double

Glazed Units l Laminated Glass l Stainless Steel Architectural Metal Products

w w w. re e m a l u m . co m

“Next GenerationCurtain Wall Designers and Builders”

Tel.: +971 2 599 4200 Fax: +971 2 550 1812 P.O.Box 36863 Abu Dhabi, UAE

construction week issue 299

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