construction week issue 300
DESCRIPTION
Construction Week - Issue 300 - ITP BusinessTRANSCRIPT
SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
ConstructionWEEK NEWS, ANALYSIS, PROJECTS,
TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST
DECEMBER 12–18, 2009 [300]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM
INSIDENEWS‘No recovery in 2010’, says CEO of Drake & Scull InternationalPAGE 9
PROJECT UPDATEAramco to build centre for knowledge and culture in DhahranPAGE 26
FORMWORKFormwork companies look for some upsides in the downturnPAGE 30
CITY FOCUSThe latest news, projects and tenders from Abu Dhabi, UAEPAGE 46
projects andfrom Abu DPAGE 46TOGETHER”
“WE’RE IN THIS
DUBAI RULER’S NEPHEW ON RESTRUCTURING, SPECULATION AND TRANSPARENCY
Al Fajer Properties CEO HH Sheikh Maktoum Hasher Maktoum Al Maktoum
EXCLUSIVE
CONTENTS
17 FACE TO FACECW talks to two people responsible for boosting their company’s business in the Middle East.
19 EVENTSIndustry dates for your diary.
22 EXCLUSIVE INTERVIEWCW sits down with HH Sheikh Maktoum Hasher Maktoum Al Maktoum to chat about Dubai World’s restructuring and other pressing issue.
25 LEGALIn the second of a two part series, James 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 CONTRACTORS FACE BANKRUPTCY THREATThe construction industry in Dubai has no chance of recovery in 2010 the CEO of Drake & Scull International, has said.
11 BAHRAIN AIRPORT TO TENDER DESIGN IN Q1The design contract for two new terminals at Bahrain International Airport will go to tender within the fi rst quarter of 2010.
12 NEWS IN BRIEFHighlights of the week.
15 NEWS IN PICSTopical images with the latest news.
FEATURES26 PROJECT OVERVIEWA look at the King Abdulaziz Centre for Knowledge and Culture – a project of destined to become Saudi Arabia’s preeminent cultural institution.
30 SPECIAL REPORTCW discovers how the formwork sector is using the economic downturn to its advantage.
DIRECTORY38 SHOWCASE40 TENDERS41 PROJECTS 42 SPECIALIST SERVICES
BACK46 CITY UPDATEThe latest news and projects from Abu Dhabi, UAE.
48 DIALOGUESukad CEO Mounir Ajam talks about the importance of training professionals in project management.
DECEMBER 12-18, 2009 | ISSUE 300
1DECEMBER 12–18, 2009 CONSTRUCTION WEEK
11
30
48
26
15
17
CONSTRUCTION WEEK DECEMBER 12–18, 20092
FEATURESMEP
LEVERAGING CHANGEMEP meets Drake and Scull International’s Charles Lever, and fi nds out more about how the company has grown and what the future holds
Design
THE CASE FOR PROCUREMENTGeoff van Wijk makes the case for hospitality procurement, and the special role it plays for hotel owners, designers and operators.
Dubai isn’t the only part of the world that is managing debt payments, despite the recent coverage about debt restructuring at Dubai World. We look at the top 10 countries (including Spain, France and the Netherlands) with external debts - the total public and private debt owed to non-residents, repayable in foreign currency, goods, or services. Find out where the UAE sits in relation to some of the largest debts in the world, such as that run up by the United Kingdom. The list might just surprise you…For more images visit www.ConstructionWeekOnline.com
IN PICTURES: TOP 10 COUNTRIES WITH EXTERNAL DEBTS
ONLINEwww.ConstructionWEEKonline.com
MOST POPULARDUBAI WORLD TO RESTRUCTURE US $26 BILLION OF DEBTFILIPINO CONSTRUCTION PROS EARN LESS THAN AVERAGESUPPLIERS REACT TO NEW OWNERSHIP LAWSAECOM TO MANAGE CAPITAL DISTRICT INFRASTRUCTURE
TO VOTE IN THIS WEEK’S SPOT POLL GO TOwww.ConstructionWEEKonline.com
HAVE YOUR SAYWHAT DO YOU THINK 2010 WILL HOLD FOR THE INDUSTRY?What are you looking forward to in terms of projects – and what are you worried about?
JOBS OF THE WEEKSupply Chain Manager Middle East, Damman, Saudi ArabiaSenior Quantity Surveyor, Dubai, United Arab EmiratesSenior Landscape Architect, Dubai, United Arab Emirates
ONLINE POLLARE YOU CONCERNED BY RISING MATERIALS PRICES?
62.3%No, we’ve budgeted for them and it’s a sign of increasing numbers of projects
30.7%Not sure - we need to wait and see what happens over the next few months
7%Yes - it’s making it very expensive for us to complete projects
PMV
DEALER ‘BEST KSA FIRM TO WORK FOR’Personel Zahid Tractor, Saudi Arabia’s Caterpillar dealer has won a ‘best company to work for’ award, after a poll in a national newspaper.
MEP
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CONSTRUCTION WEEK DECEMBER 12–18, 20094
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.
I know - if you don’t like it, go home and see what you earn there. The simple fact is that for every Indian or Filipino who knocks a job back, there are 100 more who will accept it at the lower wage. Make complaints to your own government, because let’s face it, you wouldn’t be in the GCC if there was work in your own country.DAVID
Is it really a question of skin colour? As an HR manager for a leading construction fi rm, I do need to point out that often we fi nd the certifi cates we get from applicants outside of ‘the West’ are not worth the paper they’re printed on. The sad fact is that qualifi cations from the West are regarded (with good reason) as being worth more than other qualifi cations – regardless of the skin colour of the person who has them.JULIE
It isn’t skin, accent, or language. It’s all about country of origin and the resulting pay expectations. If you don’t like the pay offer, don’t take it.MARLOW
RE: SUPPLIERS REACT TO NEW COMPANY OWNERSHIP LAWS I welcome the new plans to allow ownership without having a local sponsor. But we cannot compare this with a free zone. Visa and labour card expenses (new and renewal) are a big hurdle for small companies to overcome. Also, to boost the economy we must ensure the skilled and low-income people stay here to contribute more to the nation. JIPSON GOMEZ
RE: MEDIATION LETS PARTIES SOLVE THEIR OWN DISPUTESOne has to question why employers, when using the 1999 edition of FIDIC,
We have a lot of skilled workers who are earning thrice as much as Filipino and Indian engineers, just because the colour of their skin is different, but we all know that in terms of ability, capacity and qualifi cation we could go head-to-head with them. Such a pity we live in this unfair world, and nobody is doing anything [about it].JUAN DELA CRUZ
generally chose not to include the provision for the election of Dispute Adjudication Boards to whom disputes may be referred for a speedy and economical decision. Is this because they consider the board’s fees (usually a fraction of one percent of the contract value) to be an unnecessary expense, or is it because they have no intention of settling disputes amicably?ANDY HEWITT
RE: BIG 5 2009 ‘BEYOND ALL EXPEC-TATIONS’Two major deals do not make an event a huge success. I think you would fi nd that if a broader number of exhibitors were surveyed, most visitors were there simply to gauge the feeling in the industry under such trying times. I applaud this year’s exhibitors for continuing to support the exhibition, but you could not help but feel a sense of unease among many of them, regarding the state of the current environment.SHANE
RE: JORDANIAN GOV-ERNMENT DENIES PAYMENT PROBLEMS$165 million? Is that it? These Jordanian contractors don’t know how lucky they are. They should try working in the GCC if they want to see what a real delayed bill looks like. Although I would also say that probably a Gulf-generated bill is more likely to be paid in the long run.TARQUIN
RE: FILIPINO CONSTRUCTION PRO-FESSIONALS EARN LESS THAN THE GCC AVERAGEThis is very true and it has been happening. It’s a matter of skin colour and not a matter of compe-tence in doing the job. A lot of Filipinos are coming here, backed up with experience, yet young Brits who are ‘fresh out of the box’, who are only backed up with UK certifi cates and do not know what to do with the tasks laid on their desks, are paid more.
JESSICA
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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9DECEMBER 12–18, 2009 CONSTRUCTION WEEK
The construction industry in Dubai has no chance of recovery in 2010, Khaldoun Tabari, vice chairman and CEO of Dubai-based engineering contractor Drake & Scull International, has said.
Speaking at the Arabian Business Confer-ence 2009, he added that for construction companies solely operating in the emirate, there were big problems.
“If you are 100% in Dubai with nothing outside you are dead,” he said. “What does it mean if you are dead? If you are a con-struction company and you pay 10,000 or 20,000 people, and you do not get any work because there’s an abundant supply of build-ings, you are going to be bankrupt.”
The UAE’s real estate and construction sectors have been badly hit by the down-
FRONT
DUBAI CONTRACTORS FACE BANKRUPTCY THREATBy Andrew White
DRAKE & SCULL INTERNATIONAL CEO SAYS NO CHANCE OF DUBAI CONSTRUCTION INDUSTRY RECOVERY IN 2010.
turn. A recent report suggests they have seen the biggest declines in the Middle East region. Some 566 projects have been shelved or cancelled in the country – the majority of which are in Dubai – according to the research house Proleads.
Tabari added that Dubai real estate opera-tors were likely to face further diffi culties over the coming months.
“We had hundreds of real estate develop-ers, but these are not going to exist anymore, that’s a simple fact,” he said.
“There’s going to be consolidation or they’re going to go out of business, because they’re not going to make their payments. We’re going to see less and less developers in this business; it will be an orderly exit.”
Listed on the Dubai Financial Market, DSI operates in engineering, procurement and construction (EPC), and civil contracting in addition to the development of design and build engineering expertise in infra-structure, water and power (IWP).
Tabari also revealed that the company was looking to buy two companies in Saudi Arabia, at a combined value of up to $400m, during the fi rst quarter 2010. He has already said that two planned acquisitions in Kuwait and Qatar will cost $40m to $55m.
In November, DSI bought 82% of a water treatment company from Bilfi nger Berger AG, Germany’s second-biggest builder, to tap growing regional demand. DSI acquired the majority stake in Passavant-Roediger for $39m.
Bahrain Airport to tender design in Q1 2010 11Highlights 12News in pictures 15Face to face 17Economic hardship claims 21
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11DECEMBER 12–18, 2009 CONSTRUCTION WEEK
FRONT
A Dubai fund designed to help
state-linked fi rms has given
Nakheel
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to help it meet its obligations
Dubai Metro has picked
up an award for Transport Project of the
Year at the
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BUILD SAFE UAE CUTS MEMBERSBy James Boley
Eight construction fi rms have been cut from the membership list at Build Safe UAE.
Speaking to CW, BSU group administrator Elias McGrath said two of the members had been removed as a result of restructuring at their companies, while six had their memberships axed for failing to comply with BSU key performance indicators.
“It has been extremely tough and challenging this year to keep health, safety and welfare a topic of the highest importance across all corporate agendas,” said McGrath.
The six non-compliant fi rms are: Al Masaood Bergum, ALCAN International Network (Gulf), China State Construction Engineering Corp, Hyder Consulting, TAS Middle East and Al Ryum.
Hyder Consulting construction manager Paul Callear said that his fi rm’s non-compliance had been caused by an administrative error and that he anticipated Hyder would return to the BSU member list within the next week.
The design contract for two new terminals at Bahrain International Airport will go to tender within the fi rst quarter of 2010 according to Bahrain Airport Company (BAC) CEO Dr Osama Al Ali.
“It should be within the fi rst few weeks of the new year, but certainly within the fi rst quarter,” he told CW today.
He added that they plan to invite contractors to bid for the fi rst construction contract within the fi rst half of 2010.
The new terminals are part of a $4.7 billion (BD 1.8 million) expansion of the airport, which also includes new aprons, separate piers, a people mover system, car parking, road works and infrastructure.
There will also be an adjacent ‘airport city’ with hotels, conference centres, retail and recreational facilities.
Al Ali said BAC is currently evaluating bids from around 10 companies, including WS Atkins and Naco, for the contract for utilities and land utilisation planning – a ‘signifi cant contract’, which should be awarded early next year.
The fi rst phase of the expansion will increase the airport’s annual passen-
BAHRAIN AIRPORT TO TENDER DESIGN IN Q1By Benjamin Millington
ger capacity from seven million people to 12 million when it is commissioned in 2012.
The long-term plan for Bahrain airport will see capacity rise to 28 million by 2030, a vision which will be completed over fi ve phases. Phase two is to start in 2012 with completion set for 2015.
In 2008 the airport had a volume of 9.2 million passengers.
In May consultancy fi rm Hill Interna-tional was awarded a $36.5 million con-tract to manage the project over an eight year term.
DR OSAMA AL ALI, CEO OF THE BAHRAIN AIRPORT COMPANY.
FRONT
HIGHLIGHTS
GCC
TRANSPORT SPEND TOPS US $147 BILLIONRegional investment in developing road, rail and public transport systems now tops US $147 billion (AED340 billion), according to IIR, organisers of the Gulf Traffi c Exhibition. Completion of the Dubai Metro in September this year has sparked interest in a pan-Gulf railway, and metro systems in other cities. Saudi Arabia has already begun work on four different railway projects, including the Landbridge.
Bahrain
TOWER AT PODIUM LEVELTashyeed Properties has announced that construction on its Sukoon Tower project in Manama, Bahrain, has
reached the podium level. The project has now reached the seventh fl oor, with the core wall area reaching the 10th fl oor.
UAE
TUSCAN STRUCTURE COMPLETED BY DAMACDeveloper Damac has announced it has completed the structure of its Tuscan Residences project at Jumeirah Village South. It is the sixth project completed structurally this year by Damac – and the third of its projects at the development.
UAE
PMG DELIVERS TOWERSProject Management Group (PMG) has handed over phase one of the US $300 million (AED1.1 billion)
Jumeirah Business Centre Towers to developer Al Fajer. PMG claims that its management of the project has saved the client around $16 million. PMG efforts included retendering the project’s nominated subcontracts, which trimmed the fi nal cost for each tower.
Jordan
JORDAN DENIES PAYMENT PROBLEMSContractors in Jordan are accusing the country’s government of failing to pay outstanding bills, according to a local newspaper. Jordan Construction Contractors Association president, Dirar Sarayreh, said the government’s outstanding bill was around US $165 million (JOD117 million). Economic
adviser to the prime minister Mohammad Rawashdeh, said the government owed the construction contracting sector only $38 million, of which $28 million was paid before Eid Al Adha.
Egypt
OCI JV WINS US $393M PIPELINE CONTRACTEgypt’s biggest listed builder Orascom Construction Industries (OCI) has won a US $393 million (AED2 billion) contract to build piping and other infrastructure, for a water treatment plant near Cairo. Under the contract, OCI and its JV partner Hassan Allam Sons will build an intake, booster station and pipelines for the 6th October City Water Treatment Plant.
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15DECEMBER 12–18, 2009 CONSTRUCTION WEEK
FRONT> For more pictures log on to www.ConstructionWEEKonline.com
LEFT: Memon Investments has awarded four contracts for the development of Champions Towers II and III. The company announced that Anwar Al Aqsa, a MEP contractor, will manage the electrical, fi re alarm, plumbing and fi re fi ghting installments for the two towers. The installation of elevators for CT II and III has been awarded to ETA Melco, whilst shoring, initial excavation and foundation work has been undertaken by Stromek Emirates Foundation. In addition, Hi Tech Electro Mechanical Contracting Establishment has also been awarded the contract to install York air conditioning units for the CT II project. Construction of the two towers is running on schedule. Six out of 14 fl oors and fi ve out of 16 fl oors have been completed for CT II and CT II respectively.
LEFT MIDDLE : Dubai Municipality will form a team to improve building licensing procedures. The body’s director general Hussain Nasser Lootah issued an administrative decision, which aims to provide quality services to its customers and reduce some of the steps required to issue a building permit. The team is entrusted to make recommendations on appropriate standardisation of procedures and the date of implementation.
BELOW LEFT: Dar for Trading and Construction (DETAC) has picked up the contract for Park Avenue, Cairo-Alex Desert Road from developer Damac. The mixed-use project will see DETAC deliver 723 retail units, 454 offi ces and parking for 3,000 cars, within 18 months. The development is situated in Sheikh Zayed City near to downtown Cairo (pictured).
BELOW RIGHT: Dubai’s recent US $26 billion (AED95.5 million) debt restructuring announcement will not affect the emirate’s real estate market, a leading property developer said. “It will have no signifi cance because restructuring is a normal word,” Abdul Majeed Ismail Al Fahim, chairman of Dubai Pearl, told Arabian Business. Al Fahim said he had restructured payments for the project’s end-users amid the downturn.
NEWS IN PICS
17DECEMBER 12–18, 2009 CONSTRUCTION WEEK
FACE-TO-FACE
NICK HERONNolte Küchen, export director
COLIN SHAWBalmoral, exports sales director
The Middle East, which for Nolte, now includes all the GCC
countries, is extremely important. When I consider where Nolte
was fi ve years ago, in terms of both coverage and turnover, to
where we are today, I can only be excited about our success. The
Middle East also gives us brand awareness in the Asian markets.
HOW IMPORTANT IS BUSINESS IN THE MIDDLE EAST TO YOUR COMPANY?
WHAT ARE THE CURRENT CHALLENGES YOU ARE FACING IN THE MARKET?
WHAT NEW TECHNOLOGIES ARE YOU INTRODUCING TO THE MARKET?
HAS THE DOWNTURN RESULTED IN ANY POSITIVE OUTCOMES?
WHAT ARE YOUR GOALS FOR 2010?
The Middle East market is very important to Balmoral’s future
plans. When other areas of the world are affected by a downturn,
the Middle East, in general terms, remains relatively unaffected.
Over the past 10 years Balmoral has become a respected provider
of water storage tanks in the region.
Business. We have the best collection of partners in all our
markets. All contribute to creating and servicing the business in
their specifi c markets. We simply need now for the markets to
recover where Nolte is now in prime position to be awarded many
contracts to supply projects with our products.
Our main challenge is competing with low-end Far Eastern imports.
These products cannot compete with ours in terms of quality, as
they are not manufactured to recognised international standards.
In the current fi nancially-driven market, clients should recognise
the long-term value of installing top quality products.
In 2008 we launched a revolutionary new kitchen design concept
‘Matrix 150’, which is based on a very simple and easy to
understand logic: all widths, heights and even depths are multiples
of 150 mm. The result is a variety of attractive, functional kitchens
with harmonious proportions in all dimensions.
Balmoral has invested heavily in a new electronic estimating
system for its GRP sectional water tanks. This means that
quotes are on clients’ desks in less than 24 hours. This is a much
welcomed development in a market, where the design and capacity
of a tank can change many times during the project lifecycle.
Nolte is performing very well in our home territory of Germany,
where today we still have the second largest [market] share.
However, the downturn in global markets has put a new emphasis
on our brand and today, while many other manufacturers at best
keep their hands in their pockets (and who can blame them), we
continue to invest in product innovation and market support.
Service has always been the top priority at Balmoral. A good
example of this is the recent collaboration between our client and
our technical team whereby we made three trips to Dubai to assist
in the fi nal design and tank layout in a major project. One of the key
advantages of dealing with Balmoral is that clients receive highly
personalised service direct from the manufacturer.
Our company as a whole would like to increase its market share in
all our invested markets. This would give the company a real boost.
Our main goal for 2010 is to establish local representation in the Gulf,
to carry out day-to-day business on our behalf. These representatives
will not simply be agents, but companies with technical knowledge
and the ability to install our products. We are looking to increase our
market share as a result of these appointments.
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19DECEMBER 12–18, 2009 CONSTRUCTION WEEK
EVENTSEvent: 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: DubaiPhone: +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 6127
Email: [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
Events: FM Expo 2010Date: May 18-20, 2010Venue: Dubai International Exhibition CentreWebsite: www.eventseye.com
Events: Saudi Aircon 2010Date: May 23-26, 2010Venue: Riyadh Exhibition CentrePhone: +966 1 454 1448 Website: www.eventseye.com
Event: 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
At 40,000m², the 3rd annual Saudi PMV Show is the largest exhibition of heavy machinery and vehicles ever assembled in the kingdom. �
Event focusSAUDI PMV SHOW
DATE: MARCH, 2010LOCATION: KING ABDULLAH ECONOMIC CITY, SAUDI ARABIAPHONE: +971 4 435 6127EMAIL: [email protected] WEBSITE: WWW.SAUDIPMVSHOW.COM
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 2JAMES BREMEN, IN THE SECOND 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
Set out below are examples of the doctrine of economic hardship as it applies under the civil codes of some Middle Eastern jurisdictions.
Egypt, UAE and QatarIn the civil law jurisdictions of the Middle East, given their common origin, the articles embodying the doctrine have similar word-ing. Article 147 of the Egyptian Civil Code, states: “The contract makes the law of the parties. It can be revoked or altered only by mutual consent of the parties or for reasons provided for by the law.
“When, however, as a result of exceptional and unpredictable events of a general character, the performance of the contractual obligation, without becoming impossible, becomes exces-sively onerous in such a way as to threaten the debtor with exorbitant loss, the judge may, according to the circumstances, and after taking into consideration the interests of both parties, reduce to reasonable limits, the obligation that has become excessive.”
This article, and its equivalents in the UAE (article 249 of the UAE Civil Code) and Qatar (article 171 of the Qatar Civil Code), cannot be excluded under the contract.
Previous cases suggest Egyptian court practice is to apportion the ‘abnormal’ loss equally between the parties, although there is no prescribed formula. It is likely this approach will be refl ected in other Middle East jurisdictions.
Key elements of economic hardshipWith respect to the civil law jurisdictions of the Middle East, a number of key elements can be identifi ed. These include: the event in question be exceptional and unforeseeable; the event be of a general or public character; the contract be long term, which makes the performance of the obligation exhausting; the event has occurred after signature of
the contract (and during its performance); the event makes continued performance of the contract unduly onerous for one of the contracting parties, so as to threaten that party with a grave loss.
How does economic hardship apply?In the context of construction projects, the doctrine can apply in a number of scenarios. Infrastructure and energy projects usually take years to complete and carry substantial risks, which make them particularly vulnerable to changing conditions.
While the legal framework for claims due to economic hardship is clearly in place, a contractor may have diffi culty in succeeding with such a claim.
Firstly, it must be remembered that the con-tract is the law of the parties. A party will not be granted relief simply for entering into a bad bargain.
Secondly, although the economic circum-stances over the period 2004 - 2007 were exceptional, they may not have been unfore-seeable. Contractors were well aware of the infl ating costs of construction, or the poten-tial for costs to infl ate, during and before the economic boom and this may prove fatal to many claims. Where these claims succeed, developers may argue that the doctrine ought to also apply to them, with the result that a contractor’s claim could be reduced imme-diately by 50%.
But, where a decision or act of government distorts the market in favour of a particular sector, thereby exacerbating the loss for the contractor, that public event may be regarded as unforeseeable. Where the developer is a government entity this may also deprive the government entity of the opportunity to raise the defence of economic hardship.
A clearer picture will develop over the coming year as more claims for economic hardship are likely to be tested.
“WHILE THE LEGAL FRAMEWORK FOR
CLAIMS DUE TO ECONOMIC HARDSHIP IS CLEARLY IN PLACE,
A CONTRACTOR MAY HAVE DIFFICULTY IN
SUCCEEDING WITH SUCH A CLAIM”
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.
21DECEMBER 12–18, 2009 CONSTRUCTION WEEK
CONSTRUCTION WEEK DECEMBER 12–18, 200922
EXCLUSIVE INTERVIEWHH SHEIKH MAKTOUM HASHER MAKTOUM AL MAKTOUM
“IN SITUATIONS WHERE THERE IS A DISLOCATION
IN THE MARKET, THAT’S WHERE PEOPLE MAKE AND
LOSE A LOT OF MONEY”
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23DECEMBER 12–18, 2009 CONSTRUCTION WEEK
> For more people interviews log on to www.ConstructionWEEKonline.com
HH Sheikh Maktoum Hasher Maktoum Al Maktoum comes across as a very unassuming man. Especially, considering he is the nephew of UAE vice president, and prime minister and ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum. He is also the CEO of Al Fajer Properties, which is based in Dubai.
Even his closing comments at the Arabian Business conference last week prompted a resounding ovation from delegates. “The reality is we’re in this together, if we all benefit from it, we all benefit; if we all lose, we all lose; we come from the desert and we’ll go back to the desert,” he said, reflecting the thoughts of a man who has not forgotten his roots, despite having been educated in the US and is able to speak seven languages.
Since his appointment in early 2008 as CEO of Al Fajer Properties, Sheikh Mak-toum charted out an aggressive manage-rial and financial restructuring strategy, which resulted in strengthening the bal-ance sheet of the company by US $871 million (AED3.2 billion).
The restructuring made it possible for Al Fajer Properties to operate as a sol-vent successful company, weathering one of the worst financial crises in the last 100 years.
After restructuring, the company was able to focus on delivering its existing projects and operations successfully.
Sheikh Maktoum is also among those who feel that the world has overreacted
to the Dubai World request for delayed payments. But the announcement has cer-tainly dented confidence levels in Dubai of local and world markets.
“[The impact on construc-tion] depends on whether those companies had to get paid by Dubai World or not,” he explains. “The results speak for themselves, from construction companies listed and the market impact on them.
“As far as the restructuring is concerned, it could have affected the market tempo-rarily. No one knows what the outcome of the restructuring will be or what the plan is. I’m sure people are looking over the balance sheets of Dubai World now and are deciding how to restructure the best way possible and all stakeholders are being talked to, but you can’t pre-dict a situation until it unfolds. You can speculate, but it’s purely speculation. In situations where there is a dislocation in the market, that’s where people make and lose a lot of money. You could be right, you could be wrong.”
And Sheikh Maktoum couldn’t be more correct. Speculation was, for most part, the basis on which the world markets reacted. But should governments try and keep speculation to the minimum? And
if so, isn’t transparency the best tool to achieve that?
“Information is not always available,” says Sheikh Maktoum. “In the US, you just had someone arrested for insider trading. So speculation always hap-pens – people always try to get as much infor-mation as possible to reduce speculation and that’s when the market
adjusts. You had Dow Jones drop recently. That’s also based on speculation. It’s also the free hand of the market. That’s how the world goes round. Investment specu-lation is normal.
“Also, I think people keep forgetting that we’ve [UAE] only been in existence for 38 years. We’ve achieved a lot in this time and I’m sure we’ll achieve more. Things will improve going forward.”
When Dubai World publicly requested a delay in payments last month, many analysts and media suggested that the move could bring about another global financial catastrophe, comparing it to the likes of the first signs of the financial crisis in the US last year. Some thought this was a little ridiculous, given how old Dubai is. But Sheikh Maktoum sees it as a positive sign.
“It’s good we’re being compared to New York and to the highest levels out there. As a nation we are trying to reach that level
“YOU DON’T KNOW HOW THE SITUATION UNFOLDED,
WHO KNEW WHAT WHEN; YOU CAN ONLY LOOK AT IT IN TWENTY-TWENTY
HINDSIGHT”
ROYAL INSIGHTHH SHEIKH MAKTOUM HASHER MAKTOUM AL MAKTOUM EARNED A STRONG REPUTATION LAST YEAR FOR HIS RESTRUCTURING STRATEGY THAT RESULTED IN STRENGTHENING THE BALANCE SHEET OF HIS COMPANY, AL FAJER PROPERTIES. SO LAST MONDAY, CW SAT DOWN WITH HIM TO CHAT ABOUT DUBAI WORLD’S RESTRUCTURING AND OTHER PRESSING ISSUES
By Conrad Egbert
CONSTRUCTION WEEK DECEMBER 12–18, 200924
EXCLUSIVE INTERVIEW
and if we’re being compared to such, it means people club us in the same category. I think it’s great. Who would you like to be compared to – that’s the question. We are being compared with the highest levels of transparency,” he says.
A strong, and even harsh comparison maybe, but Sheikh Maktoum says it drives the country to be even better. It’s harsh sometimes but he says he appreci-ates “constructive criticism” as it “always leads to an improvement.”
Speaking in con-structive terms, when Dubai World made its announcement ahead of the Eid Al Adha holidays, it was considered a folly and an irresponsible move. Sheikh Maktoum agrees.
“That bit is correct, but if you have to restructure, you have to restructure. You can never judge a man until you walk a mile in his shoes. You don’t know how the situation unfolded, who knew what when; you can only look at it in twenty-twenty hindsight. There’s the possibility that people didn’t think it would have such a big impact, then there’s the pos-sibility that they knew it, but got their dates wrong; most of the media reports
were all speculation that didn’t serve a purpose. If you’re going to speculate on something, speculate on the future.
“For example, if they restructured the debt in a certain way, what would hap-pen, if they did it another way, what then would happen? As I said, the announcement was not handled in the best way; every one agrees on it and acknowledges it, but
the truth is that even if they announced it after Eid, they’d still get the same reaction. And also historically, Dubai has never made very complex statements, but you learn and you improve.”
According to Sheikh Maktoum, trans-parency will come into the market as time unfolds. He sees many of the recent occurrences in the country as firsts for Dubai, so some credit must be given to companies like Dubai World.
“To restructure a company, a regular company, it takes about 18 months. So before someone restructures something, you have to have the full knowledge of everything that has happened. I’m not saying, it will take 18 months from now as Dubai World has been restructuring for a while, but implementing a restruc-
ture on that magnitude takes time and the restructuring doesn’t stop until you actually stop.”
So, looking forward, is a merger between Nakheel and Limitless a possibility? He says he doesn’t know, but offers a good insight into what could happen.
“In reality, how things consolidate and how things unfold, really depends on the balance sheets of the different entities. You look at the balance sheets individually and judge if it is a good idea to merge, or not, or if there’s the possibility of a con-solidation in some way. To make a call like that is extremely hard. It might even be a good idea to just let one company go. Put all the bad assets in it and let it go. The US did with Lehman.”
There has also been talk within some circles about Dubai raising capital through an initial public offering. But Sheikh Mak-toum didn’t appear too convinced.
“The IPO market is still very challenging and when you go on a road show to do an IPO, you open your books. You have a plan, you have a strategy. Entities now are looking at the plan and how to han-dle it, because the panic subsided and people said ‘lets open the books and see what’s happening.’” �
For complete Q&A with Sheikh Maktoum log onto
www.ConstructionWEEKonline.com
“ENTITIES NOW ARE LOOKING AT THE PLAN AND HOW TO HANDLE
IT, BECAUSE THE PANIC SUBSIDED AND PEOPLE SAID ‘LETS OPEN THE BOOKS AND
SEE WHAT’S HAPPENING”
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CONSTRUCTION WEEK DECEMBER 12–18, 200926
Situated near Dhahran on the eastern coast of Saudi Arabia, the King Abdulaziz Centre for Knowledge and Culture is a project rela-tively small in size, but big on innovation, ambition
and unique design.The centre is estimated to cost around US
$400 million (SR 1.4 billion) and is being developed by Saudi Aramco as part of the oil giant’s 75th anniversary celebrations.
Aramco says the purpose of the centre is to promote the development of knowledge and culture in the Kingdom by offering an array of exhibits, events and learning tools that engage and educate students, adults and scholars.
Covering a total of 70,000m2 it will include a library of 200,000 books, a 930 seat audi-torium, a 315 seat cinema, a 1500m2 hall, a
museum, a learning centre, a children’s dis-covery zone, a 4,000m2 multifunctional plaza and supporting administration areas.
The main construction tender for the project was opened at the beginning of the year with four fi rms prequalifi ed; Saudi Binladin Group, Saudi Oger, Athens-based Consolidated Contractors Company (CCC) and Turkey’s Baytur Construction & Con-tracting Company.
By the middle of the year Aramco retendered the contract and included more contractors in the bidding process such as Dubai’s Gulf Technical Construction Company (GTCC).The bids are currently being evaluated and main construction is due to start in Q2 2010 and fi nish in 2013.
DESIGNOne of the most striking features of the cen-tre is without doubt its unique pebble-like
THE KING ABDULAZIZ CENTRE FOR KNOWLEDGE AND CULTURE IS A PROJECT OF INSPIRING ARCHITECTURE DESTINED TO BECOME SAUDI ARABIA’S PREEMINENT CULTURAL INSTITUTION
By Benjamin Millington
2010CONSTRUCTION START
DATE IS Q1
INSPIRING CULTURE
THE PLAZA WILL FUNCTION AS A LARGE FOYER AND CHANNEL VISITORS TO THE VARIOUS CULTURAL ELEMENTS OF THE CENTRE.
shapes, which were designed by Norwegian architects Snohetta with engineering by Buro Happold.
Snohetta’s project manager Astrid Renata Van Veen says they wanted to come up with a one-off piece of architecture to refl ect the centre’s cultural purpose.
“It’s important that a cultural building has its own expression and doesn’t lend images
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27DECEMBER 12–18, 2009 CONSTRUCTION WEEK
from any other known cultural buildings around the world,” she says.
“The client had very clear aspirations for a never-before-seen-building. The idea of the pebbles came into play because the project has a lot of different functions and we thought each of these should get their own outlook. These individual items are then composed together in one frozen moment.”
There are fi ve main pebble shaped struc-tures which are arranged to visually and physically support each other, she added. One of the most visually interesting elements is the ‘keystone’ which is the only pebble suspended above ground level.
Wedged between the tower and another pebble, the keystone is a key element in the geometry of the pebble composition. The function of the keystone will be as a public ‘dialog, discussion and contempla-tive space’ linked to the library.
350KILOMETRES OF STAINLESS
STEEL TUBING WILL BE USED FOR THE EXTERNAL FAÇADE
“THE CLIENT HAD VERY CLEAR ASPIRATIONS FOR A NEVER-BEFORE-
SEEN-BUILDING”
Underneath the tower, linking all of the pebbles is the 4,000m2 plaza at grade level. The space will function as a large foyer and channel visitors to the various cultural elements.
Van Veen says one advantage to designing the project was that many of the centre’s different elements, such as the theatre, cinema, library, exhibition space, museum et cetera do not require large amounts of natural light.
“That is one of the reasons why we chose introverted shapes like pebbles,” she says.
“There are quite a lot of introverted functions in this project which means we didn’t have to worry about windows and conventional function – it allowed us play around a lot more with the shapes and design.
THE GREAT HALL WILL COVER 1500M2 AND BE A VENUE FOR MAJOR EXHIBITIONS AND RECEPTIONS.
ITS INNER SKIN CONSISTS OF DOUBLE CURVED, PERFORATED METAL PANELS.
THE TOWER’S METAL SKIN WILL CONTINUE INTO ALL THREE BELOW GRADE LEVELS.
The tower itself will be 86m high with 17 fl oors and three below-grade levels. The various levels will include plant rooms, the learning centre and restaurants and lounge areas.
A STEAM WATER FEATURE NEXT TO THE TOWER AND BELOW THE “KEYSTONE” PEBBLE.
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CONSTRUCTION WEEK DECEMBER 12–18, 200928
“The tower is probably the only place where these rules of conventional func-tion applied.”
While the design and the shape and the project may be unique, Van Veen says con-struction will be relatively conventional for the most part.
The tower will be built using a concrete core containing lifts, stairs, shafts and MEP while the other pebbles will use steel struc-tures. The walls for all pebbles will be con-structed using insulated wall systems, which will be faceted to follow the curves of the pebble’s unique external facade.
THE FAÇADE This bespoke external façade is made from stainless steel tubes and is the secret to the distinctive smooth metallic look of the proj-ect. The tubes are 76.1mm in diameter and will be wrapped around the pebbles with a constant 9mm gap in between.
“Imagine wrapping a piece of string around a ball – that’s the concept,” says Snohetta architect Peter French.
“There is about 350km of pipe in total. Each pipe starts at an open-ing and keeps on going until it meets another pipe and then they turn away from each other. The pattern itself is self-generating.”
French says the tubes will be pre-bent to follow the shape of the pebble using infor-mation extracted from a highly accurate computer model.
Where there are windows in the buildings, he says the steel tubes will be squashed thin to allow for a clear line of sight.
“The squashed pipes will be similar to louvers, in that you will be able to direct them to various points in order to control the view,” says French.
“They are also a terrifi c shading element for the windows.”
Aside from the aesthetic benefi ts, the stainless steel façade will also serve a very important
function as a ventilated solar shield against the harsh Saudi Arabian sun.
French explains that the metallic surface will defl ect a ‘substantial amount’ of solar gain and any built up heat will be naturally fl ushed out due to a 300mm cavity between the steel tubing façade and the inner facet-ted wall of the pebble.
The result of such a façade will be to drastically lower the air conditioning require-ments of the buildings and thus the electricity con-sumption – a contributing factor in achieving a LEED rating for the project.
French says Aramco is aiming for a LEED gold environmental rating which will be achieved by implementing environmentally friendly design and construction techniques, effi cient energy use and optimum building performance. �
PROJECT SNAPSHOT• The project is developed by Saudi
Aramco and designed by Snohetta
• Main construction is due to start in Q2
2010 and fi nish in 2013
• The total site covers 70,000m2
• Project includes a library, auditorium,
cinema, hall, museum, learning centre,
children’s discovery zone and plaza
• The central tower will be 86m high with
17 fl oors and three below-grade levels.
• The façade of stainless steel tubing
will act as a ventilated solar shield to
substantially reduce the heat load on
the building
• The centre is striving for a LEED gold
environmental rating2013CONSTRUCTION IS EXPECTED
TO FINISH IN
“IMAGINE WRAPPING A PIECE OF STRING AROUND A BALL –
THAT’S THE CONCEPT”
A MOCK UP OF THE STAINLESS STEEL TUBE EXTERNAL FAÇADE.THE TUBES WILL BE SQUASHED THIN AT
WINDOWS TO ALLOW FOR EXTERNAL VIEWS.
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CONSTRUCTION WEEK DECEMBER 12–18, 200930
Make no m i s t a k e - the con-struction industry is t r o u b l e d b y t h e
recent reports that state-run Dubai World will delay payments on a large propor-tion of its debt, worth US $80 billion (AED293.8 billion).
Just when there were whispers of recov-ery in 2010, contractors, developers and suppliers are now thinking they may have spoken too soon. So, how will formwork fi rms handle this situation and has their confi dence been knocked?
CAUSE FOR CONCERNThe fi rst wave of the downturn caused demand of formwork systems to dip slightly as projects were put on hold or cancelled.
FORMING THE FUTURECONSTRUCTION WEEK DISCOVERS HOW THE FORMWORK SECTOR IS USING THE ECONOMIC DOWNTURN TO ITS ADVANTAGEBy Sarah Blackman
Now, suppliers fear that the latest news from Dubai World, whose subsidiary is con-struction giant Nakheel, may be a sign of things to come.
“We do worry, as many developers have not signalled very clearly that they are, in fact, not backed-up by the government and therefore creditors and contractors are basi-cally on their own. This lack of transparency is scary, as one might wonder if there are more debt bombs lurking and the degree of their extent,” says Ulma general manager Andreas Gathmann.
“The debt that has been built so far needs to be repaid sometime and the message we are getting is that Abu Dhabi is not willing to underwrite all of it, only on a case-by-case basis. The perception is that when things start to go wrong, everybody is running for cover and the ones left outside may have to ride the storm by themselves. I do hope that this perception is unfounded.”
Manufacturer of formwork and scaffolding systems Peri also has fears for the future.
“There is a lack of money in the market, which will mean less business for us. Demand is very unlikely to increase in 2010,” says Peri managing director Hans Joachim Rau.
Some contractors and developers affected by the fi nancial storm are choosing to ride it out by delaying payments to formwork com-panies, as well as other subcontractors.
“The payment problem persists in Dubai and we, like others, are suffering with con-tractors taking a long time to honour their agreements,” states RJR Engineering man-aging director Roger Ratcliffe.
“Down the line, everybody is using the non-payment excuse, whether valid or not.”
Gathmann agrees: “We have a couple of contractors who are not paying with the excuse that they are not getting paid themselves. This is not our problem, as our contract is with the contractor and not with the developer.”
THE AVAILABLE SIZES OF ULMA’S PANEL SYSTEMS CAN BE
DESIGNED TO FIT ANY STRUCTURE.
> For more special reports visit www.ConstructionWEEKonline.com
In the meantime, formwork companies like Ulma are insisting on small but regu-lar payments. Some are adhering to strict payments either with cash before delivery or in the case of rental, bank guarantees covering the amount of material on site, to ensure on-time payments.
“Of course, most of our clients are long-term partners, where trust has been built over the years but even with those, payment clearance is taking more time than usual,” adds Gathmann.
Michel Tannous managing director of Sten Gulf, a company specialised in the development and application of formwork, adds: “In some cases there are problems and we have had to be selective when choosing our clients.”
Despite this situation, contractors and sup-pliers alike are making the best of what they have. It is clear that construction companies are tightening their belts and they need to save money right now and not likely to be convinced by the long-term benefi ts building materials or equipment could bring.
So what can formwork suppliers offer that will save money, but still ensure high standards of a completed building?
FINDING A SOLUTIONCurrently, the most desirable formwork technology from the perspective on the contractor is a speedy and versatile system that can reduce labour costs.
Now, it looks as though formwork fi rms are working to meet this need.
“As a new formwork company, which sup-plies products to the GCC, our motto is very simple – we wish to offer simplicity, speed and satisfaction,” explains Sewvac Middle East technical director Vic Warden.
Aluma claims to be the market leader when it comes to offering a formwork system, ALUMA SYSTEMS AREA MANAGER DANIEL TAYLOR.
“DOWN THE LINE, EVERYBODY IS USING THE NON-PAYMENT EXCUSE, WHETHER VALID OR NOT.”
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33DECEMBER 12–18, 2009 CONSTRUCTION WEEK
which is fast and reduces the number of labourers needed on site.
“At our new Zayed University project, we are utilising an Aluma Super-Table, which measures 14m in length, is 7m-wide and 4.7m-high. This 100m2 table will be lowered onto wheels and lifted by crane to the next fl oor in just 20 minutes under the super-vision of six workers,” insists Aluma area manager Daniel Taylor. “No other system can even come close to stripping, moving and re-erecting this volume of shoring in this time span, using so few laborers.”
In the case of Ulma´s CC-4 system, early striking of the concrete can be achieved safely and its lightweight panel system can be assembled by hand.
For vertical structures a heavy duty panel system, with a durable non-wood forming surface is the formwork of choice, accord-ing to Gathmann.
“The availability of sizes of these panel systems can be designed to fi t any structure and the addition of a durable non-wood forming surface saves time as it does not need changing. Our products Orma and
FORMWORK FIRMS AND THEIR PROJECTS
DOKADoka has offered services to its customers
since its launch in 1958. The company
identifi es each customer’s and project’s
needs to provide an appropriate solution.
Major milestones in Doka’s history include
work the Burj Dubai, for which the company
produced a self-climbing system, Xclimb
60, for the wing-walled structure core of the
building. Other projects include the Dancing
Towers, located in Qatar’s West Bay Lagoon
Plaza in Doha and the Jaber Al Ahmed
International Stadium in Kuwait.
PERIPeri was founded in Germany in 1969
and is now one of the top 50 companies
ULMAUlma is one of the top three developers,
manufacturers and providers of
formwork, shoring and scaffolding
systems in the world. Founded in 1961,
the company is headquartered in Spain
and belongs to one of the biggest
Spanish industrial groups – Mondragón
Corporación Cooperativa. Among others,
Ulma is currently involved in the Sports
Complex in Dubai, a high rise tower that
forms part of the Abu Dhabi Financial
Centre, a five-star hotel at Palm Jumeirah
in Dubai, several buildings at Princess
Noura University in Riyadh, Saudi Arabia,
and a high-rise tower at the Jabal Omar
complex in Mekkah, Saudi Arabia.
in the European country. In 1997, Peri LLC
was formed to expand its services of the
representative offi ce, which was established
in Dubai in 1994. In 2006 a new branch was
established in Abu Dhabi. The company is
currently working on infrastructure projects
in Dubai and Abu Dhabi.
GERMAN FORMWORK TECHNOLOGYGerman Formwork Technology (GFT) was
established just last year but is already a
leader in supplying formwork and scaffolding
systems. GFT provides customers with
technical consultancy, operational support
solutions and repair and maintenance
solutions.
ULMA GENERAL MANAGER ANDREAS GATHMANN.
ALUMA IS CURRENTLY SUPPLYING ITS FORMWORK SYSTEMS TO SEVERAL PROJECTS IN ABU DHABI, INCLUDING AL MUNEERA AT AL RAHA BEACH.
“PEOPLE WANT BETTER HIGHWAYS, BRIDGES, HOSPITALS, UNIVERSITIES AND ALSO BETTER HOUSING, TO REFLECT A BETTER QUALITY OF LIFE.”
Superior, Fast and SafeHighest Quality Formwork Engineering - Made in Spain
35DECEMBER 12–18, 2009 CONSTRUCTION WEEK
LGR (especially designed for columns) fi t these parameters.”
RJR also supplies a system that can be moved along a bridge without dismantling; its fea-tures enabling quick and easy assembly.
“Due to the unique features of system to some extent we have a niche market given the right project design features and also we are looking globally so our activities are not confi ned to this region,” explains Ratcliffe.
ALWAYS ROOM FOR FORMWORKIt is true – business isn’t booming like it once was in the construction industry, but
economic crisis, but we are not concerned. There is suffi cient upcoming work in the Middle East outside of Dubai to ensure the growth of our business during 2010 and 2011,” observes Taylor.
Ulma also agrees that Middle East markets outside Dubai are the key areas to focus on. The company is currently supplying its self-climbing formwork system to several buildings at Princess Noura University in Riyadh and a high-rise tower in Mekkah at the Jabal Omar complex in Saudi Arabia.
“Running projects and the ones we have already earmarked for 2010 will keep us busy in the UAE and I have higher hopes for the Saudi Arabian and Qatari markets as we are getting seriously involved there,” explains Gathmann.
“Saudi Arabia is keen to modernise at a great speed and therefore projects like huge university campuses, whole economic and industrial cities and infrastructure require vast quantities of construction materials, including formwork.”
Sewvac is also exploring the benefi ts of going global and is busy in Southern India, with a very large housing project and sev-eral infrastructure projects.
Whatever the economy throws at it, the construction industry fi nds a way to carry on. And, if the formwork sector continues along this path, the effects of the fi nancial crisis may be easier to bear than fi rst thought. �
according to formwork fi rms, demand is still very high in the Middle East.
Despite the burst bubble in the real estate market, there will always be a need for infrastructure, which is good news for formwork companies.
“Many governments of Middle Eastern countries want to channel the extra revenue due to oil, gas and natural resources towards improving basic infrastructure and raising their sophistication level to the benefi t of its inhabitants,” stresses Gathmann.
“People want better highways, bridges, hospitals, universities and also better housing, to refl ect a better quality of life. Hence, there will be a continuing demand for formwork across all construction segments.”
Warden also remains positive about the future of the sector: “We believe that infra-structure work cannot stop so the construc-tion industry, in certain areas of the Middle East, will improve. And, some areas will level out due to fi nancial payments, which will have to be paid back.”
Several formwork fi rms are also explor-ing wider activity in the Middle East and internationally, where the demand for formwork is higher.
In particular, Saudi Arabia, Abu Dhabi and Qatar are attracting construction com-panies from across the globe.
“It’s no secret that the Dubai construction industry was hit very hard by the world
PERI SUPPLIED ITS FORMWORK SYSTEMS TO LATIFA TOWER ON SHEIKH ZAYED ROAD, DUBAI.
FORMWORK FIRMS AND THEIR PROJECTS (continued)
ISCHEBECK TITANFounded in Germany in 1881, Ischebeck
Titan has become a leading provider
of falsework, formwork and provide
safety and ground engineering products.
Ischbeck systems can be bought all over
the world and all are supported by local
representative who can provide advice
on how each product can be suited to a
particular project your client is developing.
ALUMA SYSTEMS MIDDLE EASTAluma Systems Middle East rents and
sells a portfolio of fast-track aluminium
formwork systems that are designed to
reduce fl oor cycles and labour needs. The
RMD KWIKFORMRMD Kwikform is the equipment services
division of Interserve, the services,
maintenance and building group. It provides
formwork and shoring solutions to the
global construction industry and operates
from 48 branches in 16 countries around
the world. The fi rm has offi ces located
throughout the Middle East including the
UAE, Qatar, Bahrain, Lemanon, Oman and
Kuwait. It has also provided services for
several projects in the region including
Dubai Mall, Arabian Ranches Interchange
and Yas Island Bridge. RMD Kwikform offers
a range of products including shoring,
access scaffolding, propping and decking.
company is currently supplying its systems to
several project in Abu Dhabi including Zayed
University, Al Muneera at Al Raha Beach and
The City of Lights on Al Reem Island.
STENGULFStenGulf is a company specialised in
development and application of formwork
used in civil engineering industry. It is capable
of providing the construction units with
services, covering engineering technical
consultation, conceptual design as well as
production, distribution, renting and on-site
technical direction. The company is currently
working on Tameer Towers in Abu Dhabi and
King Abdulla Financial City in Saudi Arabia.
www.ConstructionWEEKonline.com/directory
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DIRECTORY
DECEMBER 12–18, 2009 CONSTRUCTION WEEK 37
38 SHOWCASE40 TENDERS41 PROJECTS
SPECIALIST SERVICES42 Building materials43 Construction chemicals/concrete44 Education & training/fl ooring45 Recruitment/steel
CITY UPDATE46 Abu Dhabi, UAE
SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE
TOP RIGHT: Saadiyat Island recently played host to
Sheikh Sultan bin Tahnoon Al Nahyan, chairman of
TDIC, Pritzker Prize-winner Jean Nouvel, support staff
from Ateliers Jean Nouvel, directors from Buro Happold
and Agence France-Museums and climate engineers
TransSolar at the future site of Louvre Abu Dhabi. The
Louvre Abu Dhabi was designed as a complex of pavilions,
plazas, alleyways and canals, evoking the image of a city
fl oating on the sea.
BOTTOM RIGHT: The collection of distinguished offi cials,
architects and engineers including Jean Nouvel (pictured),
who also designed the Institut du Monde Arabe in Paris,
were on site to conduct lighting tests to determine the
precise way in which beams of light will fi lter through
the building’s signature perforated aluminium dome.
The dome is 180 metres in diameter – perforated with
interlaced patterns, allowing a diffused light to fi lter
through into the space.
BELOW: A six-metre prototype of the dome has been
installed on Saadiyat Island for the purpose of testing
the play of light and shadow on the site – the ‘rain of
light’ concept – prior to fabrication of the fi nal structure.
According to designers on for the project, the museum
will not be affected by the rare rainy day in Abu Dhabi. To
ensure that people won’t get wet in the walking spaces
between the galleries, there will be a transparent fi lm
between the layers of the dome to ensure that it does not
rain in these areas. There will also be a drainage system
hidden at the edge of the dome.
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CONSTRUCTION WEEK DECEMBER 12–18, 200938
�SHOWCASEITP IMAGESFOR IMAGES WITHIN THESE PAGES PLEASE EMAIL [email protected]
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THE LOUVRE, ABU DHABIPhotos by Efraim Evidor/ITP Images
In 2007 French National Assembly approved the building of the Louvre Abu Dhabi under a 30-year
cultural agreement between the UAE and France. The 24,000m2 branch of the famous Parisian
museum is expected to open in 2012, as part of Saadiyat Island’s Cultural District project.
RIGHT AND BELOW: The dome represents a web of
interlaced aluminium panels, tubes and bars, which
is fi ve and a half metres deep. To achieve the design
intent, engineers began with overlapping rectilinear
patterns or, essentially, the structural version of a
tartan cloth. We then began to remove the non-critical
patterns to achieve the correct fi ltering of light. Each
layer has been mathematically matched up with those
above and below it to achieve an exact size and shape
for each dapple of light.
39DECEMBER 12–18, 2009 CONSTRUCTION WEEK
CONSTRUCTION WEEK DECEMBER 12–18, 200940
�TENDERSFREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRYTO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO [email protected]
To in
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TEN
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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 train washing systems in Cairo.Closes: January 24Fees: EP5000Bond: EP200,000Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo
OMAN
Issuer: Ministry of Transport and CommunicationTender No: 319/2009Description: Housing development for Civil Aviation Affairs at Seeb – phase 1.Closes: December 14Fees: OR1500Contact: www.tenderboard.gov.om
Issuer: Ministry of Transport and CommunicationTender No: 322/2009Description: Construction of an administration building for Ministry of Transport and Communication.Closes: December 14Fees: OR600Contact: www.tenderboard.gov.om
Issuer: Ministry of EducationTender No: 313/2009Description: Construction of 20 classrooms in a boy’s basic
education school in Al Khrayis, Wilayat Al Seeb.Closes: December 21Fees: OR330Contact: www.tenderboard.gov.om
Issuer: Ministry of Health Tender No: 312/2009Description: Construction of a health centre in Al Ajaiz.Closes: December 21Fees: OR500Contact: www.tenderboard.gov.om
Issuer: Public Authority for Electricity and WaterTender No: 324/2009Description: Construction of chlorination unit in Al Khoud Reservoir.Closes: December 28Fees: OR200Contact: 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/GTC/053/09-10Description: Construction, completion and maintenance for modifi cations and additions to existing schools around Doha.Closes: December 22Fees: QR2000Contact: Contract department, Public Works Authority
Issuer: Public Works AuthorityTender No: PWA/GTC/056/09-10Description: Civil works in Ain-Khalid area.Closes: December 29Fees: QR4000Contact: Contract department, Public Works Authority
Issuer: Public Works AuthorityTender No: PWA/GTC/051/09-10Description: Construction, completion and maintenance of administration offi ces and car parking for the Supreme Council of Justice.Closes: January 5Fees: QR1500Contact: Contract department, Public Works Authority
SAUDI ARABIA
Issuer: Royal Commission for Jubail and YanbuTender No: PIC A-1019Description: Procurement, construction, testing and commissioning of a bridge and intersections to connect the highway with the industrial and community areas at Yanbu Industrial City.Closes: December 14Contact: Director, Purchasing and Contracting Department, PO Box 30031
Issuer: Ministry of TransportDescription: Construction of Bisha dual carriageway in Makkah.Closes: December 21Contact: www.mot.gov.s
UAE
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
Issuer: Dubai Electricity and Water AuthorityTender No: CNE/0114/2008(R)Description: Construction of water intake channel (onshore and offshore sections), and an outfall system.Closes: January 25Contact: The Chairman, Board of Directors, Dubai Electricity and Water Authority.
The Royal Commission for Jubail and Yanbu – a government entity – was established to develop two cities; Jubail on the east coast of Saudi Arabia and Yanbu on the west coast. Currently, the company is overseeing a massive expansion of Jubail, which includes new residential areas, a university, a rail network and a new industrial zone dubbed Jubail Two.
This month, the commission has several tenders open for bidding. Contracts will be awarded for the expansion of the Multi Event Centre and the rehabilitation of an airport runway, both in Jubail Industrial City, plus the construction of two mosques at Yanbu Industrial City. �
Tender focus
ROYAL COMMISSION FOR JUBAIL AND YANBU
NEW TENDERS FOR WORK AT SAUDI INDUSTRIAL CITIES ARE DUE SOON.
> For more tenders check online at www.ConstructionWEEKonline.com/tenders
� PR
OJECTS To
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�PROJECTSA BAHRAIN DATABASE - BUILDING PROJECTS FOCUSTO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO [email protected]
Villamar Towers is the fi rst development by Kuwait’s Gulf Holding Company (GHC) and is destined to become one of the most iconic structures in Bahrain. Construction commenced in November 2007 and project completion is penciled in for mid 2010.
Al Hamad Construction was awarded the main construction contract in 2007. The US $650 million (BD245 million) development will be on its own island
located within Bahrain’s Financial Harbour. Villamar’s three towers will vary in height, the tallest being 54 storeys and around 220m-high.
Each tower will have hidden park-ing levels in the centre, shops and restaurants around the base, three
storeys of apartments in the middle and 18 luxury villas on the top. The buildings will feature a trademark twist. �
Project focus
VILLAMAR TOWERS
VILLAMAR TOWERS WILL SIT ON THEIR OWN ISLAND IN BAHRAIN.
PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR
VALUE(US$MN)
STATUS
BAHRAIN33-STOREY RESIDENTIAL BUILDING AT SEEF Mr. Mustafa Ahmed Nasser Syrconsult Consulting
EngineersNot Appointed 31 - 100 bidding underway for the
main contract
CEBARCO TOWER AT UMM AL HASSAN Mr. Khaled Abdulrahim Modern Architects Cebarco 16 project under construction
MALL AT A'ALI Al Namal Group United Engineering Al Namal Construction 2.5 - 15 project under construction
RIFFA VIEWS - THE OASIS ESTATE Riffa Views Mohamed Salahuddin Consult-ing Engineering
Poullaides Construction/Terna Contracting
31 - 100 project under construction
AL MATROOK TOWER Mr. Faisal Ali Al Matrook Mohamed Salahuddin Consult-ing Engineering
Charilaos Apostilides (Chapo) 19 project under construction
5-STAR HOTEL & MULTI-STOREY APARTMENT AT BAHRAIN INVESTMENT WHARF
V.K Universal Property Manage-ment Co.
Future Engineering Consultants Al Namal Construction 31 - 100 project under construction
SHOPPING MALL IN HIDD V.K Universal Property Manage-ment Co.
Global Engineering Bureau Al Namal Construction 40 project under construction
KING HAMAD GENERAL HOSPITAL IN MUHARRAQ Ministry of Health Ismail Khonji Assoc./Australian Design Group
AA Nass/Burhan International Construction
135 project under construction
DIYAR AL MUHARRAQ Diyar Al Muharraq/Kuwait Finance House
Scott Wilson Not Appointed 3,200 project under design
DURRAT MARINA Al Khaleej Dev't. Co./Durrat Khaliji
W.S. Atkins Not Appointed 130 project under design
DIPLOMAT COMMERCIAL OFFICE TOWERS National Hotels Company Mohamed Salahuddin Consult-ing Engg. Bureau
Chase Perdana Berhad 70 project under construction
WATER GARDEN CITY Albilad Real Estate HOK/Scott Wilson Not Appointed 7,000 project under design
VILLA COMPOUND AT AL AREEN Al Khaleeji Commercial Bank Modern Architects AAA Homes 6 project under construction
BAHRAIN NATIONAL THEATRE Ministry of Works & Housing W.S. Atkins/Architecture Studio (France)
Not Appointed 58 project under design
NURANA NS Holdings Co./Manara Developments
Davenport Campbell Not Appointed 1,000 project under design
WORKSHOP & ACCOMMODATION IN TUBLI Skyline Trading Corporation Aref Sadiq Design Consultants Skyline Trading 2.5 - 15 project under construction
30 STOREY RESIDENTIAL BUILDING IN JUFFAIR Tashyeed Properties Company Syrconsult Consulting Engineers
Not Appointed 16 - 30 project under design
AL REEF SHOPPING CENTER Ministry of Works & Housing Aref Sadiq Design Consultants Not Appointed 27 project under design
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
CONSTRUCTION WEEK DECEMBER 12–18, 200942
�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6473, OR EMAIL [email protected]
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BUILDING MATERIALS
Headquartered in Dusseldorf, Germany, ThyssenKrupp Elevator is one of the leading elevator companies in the world and represented at over 800 locations in more than 60 countries. The fi rm employs 43,000 employees worldwide. Its capabilities include passenger and freight elevators, escalators and moving walks, stair and platform lifts, passenger boarding bridges, as well as a quality service for all products.
ThyssenKrupp Elevator UAE set up independently in Dubai in 2005 as a subsidiary of ThyssenKrupp Elevator AG after winning the largest contract in the history of the elevator industry – more than 800 elevators, escalators, moving walkways and passenger boarding bridges for Dubai International Airport’s Emirates Terminal 3.
In recent years, the company has won contracts in the Gulf including the New Doha International Airport and QIPCO’s Tornado Tower in Qatar. ThyssenKrupp Eleva-tor also supplies the Twin elevator system, which has two cabins in one shaft functioning independently, thereby saving on construction costs and increasing the level of saleable space in a building.
Another technology offered by the company is the desti-nation selection control in which all calls are distributed considering the shortest time to the destination. Thys-senKrupp Elevator UAE has branch offi ces in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. �
Supplier focus
THYSSENKRUP ELEVATORMANUFACTURER OF ELEVATORS
THYSSENKRUP’S TWIN ELEVATOR SYSTEM BEING USED IN GERMANY.
43DECEMBER 12–18, 2009 CONSTRUCTION WEEK
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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]
CONSTRUCTION/MANUFACTURERS
CONSTRUCTION CHEMICALS
CONSTRUCTION/MANUFACTURERS
Full range of plaster, tiles and gypsum tools
OTAL (LLC) Dubai, U.A.EPhone: (+971-4) 267 9646 e-mail: [email protected] website: www.otal.ae
STEEL
CONSTRUCTION WEEK DECEMBER 12–18, 200944
�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4
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LANDSCAPING
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CONTRACTORS/MANUFACTURERS
FLOORING
HVAC & PLUMBING RELATED EQUIPMENT
Albert +971 50 854 5629
Office +971 4 885 8825 Simon +971 50 854 5327
EUROPEAN STYLE CHERRY SOLID WOOD ORIGINAL PRICE
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AlomiREAL WOOD FLOORS LLC
www.alomirealwoodflooringllc.com
Alomi
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45DECEMBER 12–18, 2009 CONSTRUCTION WEEK
> For directory information visit www.ConstructionWEEKonline.com/directory> For directory information visit www.ConstructionWEEKonline.com/directory
RECRUITMENT
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STEEL
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WOOD AND TIMBER
CONSTRUCTION WEEK DECEMBER 12–18, 200946
CITY UPDATEABU DHABI, UAE
“Local companies are investing in Qatar and Abu Dhabi. Developers and contrac-tors feel comfortable starting new projects in the area because new developments are progressing at a steady pace and are not accelerating too quickly,” says Wilo MD Simon Mrad.
Along with the well-known megaprojects of Yas and Saadiyat Islands, Abu Dhabi’s
At a time where other parts of the world are reining in their construction bud-gets and suffering slowdowns, Abu Dhabi appears to
just keep on going – a fact that has not been lost on contractors across the world.
The F1 Grand Prix may have been the exciting climax to one of Abu Dhabi’s major construc-tion projects, but it also marks the beginning of the next phase, representing the steady construction fl ow in the UAE capital.
growth is also creating opportunities in the form of housing. “Depending on which esti-mate you follow, Abu Dhabi has a housing gap of anywhere between 5,000 to 40,000 homes,” says Baniyas Investment and Devel-opment Company CEO Wael Tawil.
Companies are already picking up ancillary contracts related to the need for housing. October saw Drake and Scull International (DSI) win a $108.8 million (AED400 mil-lion) MEP contract for a neighbourhood project in Abu Dhabi. The project consists of a 14-storey offi ce building, 14 apartment buildings, 148 townhouses and 11 luxury vil-las, as well as various commercial spaces.
All systems goABU DHABI IS RAPIDLY LOOKING LIKE ONE OF THE BEST CONSTRUCTION MARKETS IN THE WORLD
By James Boley
ABU DHABI IS AN INCREASINGLY ATTRACTIVE PROPOSITION FOR CONTRACTORS.
“DEVELOPERS AND CONTRACTORS FEEL COMFORTABLE STARTING NEW PROJECTS IN THE AREA BECAUSE NEW DEVELOPMENTS ARE PROGRESSING AT A STEADY PACE AND ARE NOT ACCELERATING TOO QUICKLY”
VA
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47DECEMBER 12–18, 2009 CONSTRUCTION WEEK
CURRENT PROJECTS ON YAS ISLAND MAY INFLUENCE PROJECTS ACROSS THE EMIRATE.
“HIGHER ENERGY AND WATER EFFICIENT REQUIREMENTS CAN ALSO BE ACHIEVED THROUGH THE ABU DHABI BUILDING CODES TO MEET HIGHER SUSTAINABILITY RATINGS FOR BUILDINGS” concrete to report. Housing is a big possi-
bility. We’d like to look at Ferrari branded villas in Abu Dhabi.”
However, any construction fi rm hoping to do well in Abu Dhabi will need to familiarise itself quickly with the new building codes, which come into force in 2010.
“The Abu Dhabi codes will set the frame-work for construction of buildings and will outline the health and safety regulations for the building industry in the Emirate,” explains DMA and Building Codes Higher Council chairman Rashid Mubarak Al Hajeri.
In addition to health and safety practice, the codes will also enforce Abu Dhabi’s
TOP PROJECTS US$Al Raha Beach Development 18bn Al Falah Development in Abu Dhabi 2bn Hydra Village Abu Dhabi 1.5bn Saraya District of Abu Dhabi 1bn Abu Dhabi metro undisclosed
commitment to environmentally sustain-able projects.
All buildings designed in Abu Dhabi will have to comply with minimum environ-mental standards. The building codes will require developers to conserve the use of energy and water – two major components of any sustainability programme.
“Higher energy and water effi cient require-ments can also be achieved through the Abu Dhabi building codes to meet higher sustainability ratings for buildings,” said Abu Dhabi Department of Municipal Affairs consultant for policies and regulation Ali Bukair. �
“Being awarded this contract is an excit-ing and promising start to Q4 for DSI. Our management team and workforce have been working exceptionally hard to ensure the company’s success and profi tability, and we hope to have more large-project announce-ments in the near future,” says DSI vice chairman and CEO Khaldoun Tabari.
Housing in Abu Dhabi should also not be considered as something entirely sepa-rate from the megaprojects. In Novem-ber, developer Aldar, which is currently developing Yas Island, confi rmed the pos-sibility of a tie-up with Ferrari to create branded housing.
“There is a massive possibility that Aldar will work with Ferrari on future ventures in Abu Dhabi, perhaps residential or com-mercial,” says Aldar chief commercial offi cer Mohammed Al Mubarak. “We’re still in initial talks – very early stages – and we’ll tell you more once there’s something more
DSI VICE-CHAIRMAN AND CEO KHALDOUN TABARI.
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CONSTRUCTION WEEK DECEMBER 12–18, 200948
DIALOGUEMOUNIR AJAM
What are the key skills that project managers should have?Most importantly, project managers should have interpersonal skills because they often have to deal a large group of people whom they have no authority over, so they have to be able to deliver a project through negotiation, motivation and leadership. Do you think project management skills are limited in this part of the world?Skills are limited, but this isn’t specifi c to this part of the world, it is general. This may be because 10 -15 years ago there wasn’t a single university, which offered project management programmes. Usually the people who practice project management are technical people, for example business analysts, computer programmers and engineers. These people are technically trained and then all of a sudden they are asked to manage a project, with no prior experience. This is one challenge that is faced around the world. This situation is improving and universities are starting to offer training in project management. How do you train your clients?Unfortunately a lot of the training that goes on is focused on theoretic knowledge and exams. What we believe is that project management has to be learned on the job. We offer outcome based training where people are able to learn about the concepts of project management and how to apply them into their projects. How would you defi ne best practice in project management?There is no easy way to defi ne it. The University of Texas in the US has 10 -12 well defi ned best practices in the construction industry. One of these points is constructability – basically you should ask yourself whether your design can be built effectively and effi ciently. Another is zero incidence – a best practice in safety – and scope alignment
Teaching a lessonSukad CEO Mounir Ajam talks about the importance of training professionals in project management
By Sarah Blackman
– we should look at how we can ensure that all the different equipment is aligned to the scope of the project when we embark on it, so we don’t make mistakes. Have more clients come to you during the downturn to ask for cost control advice?Unfortunately not. There is a big misunderstanding, especially in the Middle East region, about the importance of project management and education in general. I know many people who will agree with this. There isn’t enough emphasis on education per se and, usually when expatriates want to change their career they go back to their own country to invest in education. Also, a lot of people still don’t understand project management. Some people view it as a bureaucracy and they don’t see that proper project management will help them improve effi ciency, reduce costs and increase value for their project over the long-term.
Do you think that high maintenance costs, which are triggered by poor building quality, will encourage industry professionals to invest in project management courses?Hopefully. But, we are human and people repeat the same
mistakes. Obviously, in a fast-track environment, people want to produce buildings very quickly and usually the fi rst thing they sacrifi ce is safety and quality. If people want to cut costs they usually do so by cutting corners. We are fortunate that there have not been any major disasters, although there defi nitely have been incidents where buildings have collapsed, which have been caused by a lack of supervision and oversight.
When will this situation improve?It is already starting to. There is no more fast growth so people are thinking about what they are doing. Obviously, for a while I think quality and safety will still suffer because we are in a state of signifi cant cost cutting but when things pick up again people will be seriously thinking about quality.
Mounir Ajam has more than 20 years
of professional experience in the
engineering, construction, and process
industries. He is the senior partner and
co-founder of Sukad, a professional
consultancy and training service
provider that is based in Dubai, but
operating across the Middle East. He
is currently serving as Sukad CEO
and lead consultant. In addition to his
professional experience, Ajam has held
numerous volunteer leadership roles.
These include serving on the 2008 PMI
EMEA Congress Project Action Team.
Ajam is also a co-founder and the fi rst
chairman of the board for the recently
established Global Project and Process
Management Association.
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