construction week

ANALYSIS IS ‘SUSTAINABLE’ A DIRTY WORD IN SAUDI CONSTRUCTION?

Numbers manArabtec’s CFO on size and diversity

Page 30

Skeleton skyline Risks involved in restarting a buildPage 26

New moneyKAFD is Riyadh’s

emerging market Page 36

JUNE 12–18, 2010 • ISSUE 325NEWS • ANALYSIS • INTELLIGENCE • PROJECTS • CONTRACTS • TENDERS

CONSTRUCTIONWEEKONLINE.COMAN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY

NET GAINSExclusive guide to the World Cup stadiums

South Africa spent $2 billion building

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JULY 5-11, 2010 CONSTRUCTION WEEK 1

COMMENT

JUNE 12-18, 2010 • ISSUE 325

42As the 2012 FIFA World Cup kicks off in South Africa, CW

takes a look at the major construction projects that

have made it possible

CONTENTS

10 ONLINE16 EDITOR'S LETTER18 GUEST COLUMN56 FOREMAN

4 AL GHARBIA CITYProposals for the brand new city west

of Abu Dhabi will be called in Q4.

8 ARABTEC SEES 25% FALL IN VALUE IN 2010 A year of tumult for the contracting giant still has backing from analysts.

12 ABU DHABI'S CAPITAL GATE BEATS LEANING TOWER OF PISA Guinness World Record for Abu Dhabi's Capital Gate as it's named World's Furthest Leaning Tower.

42 UP FOR THE CUP South Africa has sunk billions in to the 2010 World Cup. We take a look at the stadiums they've constructed.

REGULARS

24 WAITING ON THE SIDELINES Sustainability has entered discussions in the Saudi Arabian construction market. But will it catch on? Ben Roberts investigates.

ANALYSIS

INTELLIGENCE

FINANCE

ON SITE

36 FINANCIAL DETAILSKAFD is a clear highlight of the many projects in Saudi Arabia. Ben Roberts has been to the Kingdom to chart its progress so far.

30 RISING FROM THE ASHESArabtec's CFO Ziad Makhzoumi talks exclusively to CW about a diffi cult 2009-2010 and the company's plans for expansion.

FACE TO FACE

STADIUMS

ROUND UP

26 HAUNTED BY GHOST BUILDINGSAs the rest of the GCC looks towards new projects, Dubai considers the pros and cons of resurrecting its skeleton structures.

ANALYSIS

JULJULJULULLY 5Y 5Y 5Y 55555555555555-1--11-11-11-11-111--11-- , 2, 2, 2, 2 2, 2 22201001001001010010010010 CONCONCONCONCONCONCONCONONO STRSTRSTRSTRSTRSTRSTRSTRSTTRUCTUCTUCTUCTUCTUCTUCTUCTCTUCTCTIONIONIONIONIONIONIONIONIONON W WE WE WEWE WE WE W WEW EKEKEKEEK 11111

oumiut eon.

2 CONSTRUCTION WEEK JUNE 12-18, 2010

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ConstructionWEEK NEWS, ANALYSIS, PROJECTS,

TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST

MAY 15-21, 2010 [321]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL ISSUE

PLUS:

AL GHARBIA

FOCUSpage 36

50 COMPANIES CHANGING THE FACE OF GCC AIRPORTS50 COMPANIES CHANGING THE FACE OF GCC AIRPORTSAIRPORT A-Z

CITY FOCUSJUBAILpage 52

INSIDENEWSSmall companies need big company attitudes to issues of safetyPAGE 9

COMMENTSaeed Alabbar on the benefi ts of concurrent engineering in sustainable designPAGE 18

ANALYSISWhat Abu Dhabi’s new HSE regulations mean for contractors PAGE 24

SITE VISITPre-cast and post tensioning works the Saudi Binladin wayPAGE 35




MAY 22-28, 2010 [322]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL PROGRESS REPORT

SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGE THE FACE OF THE INDUSTRY. CAN THEY SUCCEED?

Saeedbenefi ts engineer

SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGEECONOMY OF SCALE ble design

8sustainabPAGE 18

PRODUCT FOCUSHEATING SYSTEMSpage 48

INSIDENEWSQatar has signed $576m of contracts for public works projectsPAGE 9

COMMENTAlan Millin asks: are your suppliers off-loading out-of-date products?PAGE 18

SHOWCASEThe Abu Dhabi Investment Council’s green headquarters PAGE 46

SECTOR FOCUSGCC power and water utilities are still playing catch-up with demandPAGE 50




MAY 24- JUNE 4, 2010 [323]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL ISSUE

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GAME CHANGERS

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Developers and designers will be invited to submit proposals at the end of the summer, for individual plots in a brand

new city west of Abu Dhabi. The 27km2 project, plans for which were

unveiled by design fi rm RNL, will include a new harbour, marina and hundreds of units of housing in the Al Gharbia desert.

RNL's architects and engineers have drawn up the framework for the Abu Dhabi Urban Planning Council (UPC), which plans to boost the population of Al Gharbia by four or fi ve times its present number.

Patrick McKelvey, senior principal at RNL, said Al Gharbia was set to become a new industrial hub in the Western Region.

“It has become a focal point for planned expansion, and this is one of the fi rst steps of the 2030 plan, to put together these framework plans which will guide future developments,” he said. “There is a lot going on out there.”

Al Gharbia is already home to some 16,000 workers and their families employed at the nearby ADNOC oil company headquarters.

The centre of the city and the waterfront is designed to be pedestrian friendly, in line with the Abu Dhabi and Al Gharbia 2030 plans, while transport links to residential areas are paramount for the expansion plans. The waterfront will include a marina and ferry facilities to the nearby tourist islands of Delma and Si Bani Yas. — Story by Orlando Crowcroft

Tenders of note Proposals for new Al Gharbia city will be called for at the end of summer

Al Gharbia city, west of Abu Dhabi, will be fi ve times larger than present and have a pedestrian friendly city centre, marina and superior transport links.

INTELLIGENCE

JUNE 12-18, 2010 CONSTRUCTION WEEK 5

INTELLIGENCE

TOP TENDERS

Housing complex, Phase 2 BuildingsCountry: Saudi ArabiaCloses: Jul 31, 2010Category: Residential BuildingIssuer: Saline Water Conversion Corporation

Housing Complex in Different Areas of Saudi Arabia - Phase 2Country: Saudi ArabiaCloses: Jul 31, 2010 Category: Buildings Issuer: Saline Water Conversion Corporation

Construction of New Ahmadi Hospital & Residential BuildingCountry: KuwaitCloses: Jul 27, 2010Category: IndustryIssuer: Kuwait Oil Company

Refurbishment of Several Pumping Stations - Phase 8Country: QatarCloses: Jul 27, 2010 Category: Power & Water Issuer: Public Works Authority

Construction of Royal Commission Public Housing - Phase 4 BuildingsCountry: Saudi ArabiaCloses: Jul 25, 2010Category: Residential developmentIssuer: Royal Commission for Jubail & Yanbu

Supervision Consultancy Services for an IWPP in SalalahCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Oman Power &Water Procurement Company

Upgrading of Khuwair South SubstationCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Muscat Electricity Distribution Co. (SAOC)

EPC for Upgrading Water Supply System at Kumzar PlantCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Rural Areas Eletricity Company S.A.O.C

Bridge and Intersections in Yanbu Industrial CityCountry: Saudi ArabiaCloses: Jul 13, 2010Category: InfrastructureIssuer: RCJY

The tender for road works linking Ras Al Zawr Minerals Industrial City and Jubail Industrial City in Saudi Arabia closes on July 7. The scope of work for the project starts with the provision of detailed engineering design, and also covers the procurement and provision of all plant, equipment, materials, labour, supervision and tools. All commissioning, supporting documentation, plus technical and professional services for the complete delivery of the roads will also need to be provided. The roads will link Jubail Industrial City with the Khursaniya area, the Al-Fureai area and fi nally to the Ras Al Zawr Minerals Industrial City. The scope of work also includes the construction of several bridges along the way. A tender fee of 33,500 SAR ($8,932) applies.

Arabtec Holding’s subsid-iary Target Engineering Construction has won three contracts in Abu Dhabi.

The company announced that it signed deals with GS Engineering & Construc-tion and Abu Dhabi Refi n-ery worth AED747 million ($203.5 million). It is the

The Oman Power & Water Procurement Company has put out a call for proposals covering supervision consultancy services for its independent water and power project (IWPP) in Salalah.

Located at Wilayat Mirbat, in Dhofar, southern Oman, the IWPP consists of a power and water desalination plant with a power generation and water desalination capacities of 445 MW and 15 million gallons a day respectively.

The privately fi nanced project is expected to be operational in 2012. A consortium made up of SembCorp Utilities and Oman Investment Corporation SAOC was awarded the project in October 2009.

The tender for supervision consultancy services closes on July 19 and a tender fee of 100 Omani riyals ($259) applies.

Jubail link road tender to close July 7

Target Engineering lands three contracts in Abu Dhabi

Oman IWPP wants consultancy services

latest round of contracts to come from Abu Dhabi state fi rms as the expenditure on infrastructure.

The two contracts with GS are for work at the ex-pansion of a refi nery at the industrial site of Ruwais, while the Abu Dhabi Oil Refi nery, also known as

Takreer, aims to more than double capacity to transform 400,000 barrels of crude daily into products such as gasoline.

At the beginning of March it was reported that Takreer, had signed contracts valued at US $9.6bn for work to ex-pand the Ruwais plant.

It is a welcome winfor Arabtec, which for the last month has fi elded market specula-tion of a possible $1.74 billion takeover from investment group Aaber Investments. The biggest construction company in the UAEreported a 17% drop in net profi ts for the fi rst quarter of 2010 compared to the same period in the previous year. — Ben Roberts.

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For upto the minute tenders log in to constructionweekonline.com


INTELLIGENCE

King Abdullah International Gardens (KAIG), the impressive SAR750.1 million botanical project set in Saudi Arabia’s Central Region, is to tender for main contractors this summer.

A spokesperson for Omrania & Associates (O&A), the Riyadh-based architecture and engineering consultants reviewing the design, said the process would start in the next few months. O&A is providing site management and construction supervision for the project.

KAIG is a joint venture between leading British consultancies Barton Willmore and Buro Happold. It was commissioned by the City of Riyadh as a gift to King Abdullah of Saudi Arabia to celebrate his accession to the throne.

Earlier this year the project won the 2010 Cityscape Award for Real Estate in the Middle East & North Africa region in the ‘Best Sustainable Development’ category.

Jotun Paints has won a contract to supply paint to Saudi Arabia’s King Abdullah Financial District, in Riyadh.

Jotun Saudia’s managing director Kjell Gündersen said: “The King Abdullah Financial District project stands to be one of our biggest achievements in terms of decorative projects we have undertaken in Riyadh till date, and we are very excited to complete this enormous task using our specially-formulated paints and coatings.”

Alongside main contractor Hill International and project consultants Omrania & Associates and Gensler & Associates, Jotun will be working on a total built-up area of 1.6 million m2.

The project requires Jotun to paint the new three million square metre fi nancial centre, and is scheduled for completion in 2013 as part of the Kingdom’s overall economic diversifi cation program. It's also one of Jotun's biggest contracts to date.

Tenders for the construction of the ambitious King Abdullah International Gardens are expected this summer.

MATERIALS PRICE CHECK

$820Aluminium

per metric tonne

$3.81Cement

per bag (50kg)

$721.45Red Meranti

per tonne

$98Ready Mix

per m3

$4.36Glassper m2

$32.67FF plywood

per sheet

$748.67BeechWood

per CBM

$3.27Al Profiles

per kg

$10.88Steel Props

per piece

$14.97Scfld Planks

per piece

$72.15MDF

per CBM

TOP TENDERS

Installation of Package Sewage Treatment Plant at DaqumCountry: Oman Closes: Jul 12, 2010Category: InfrastructureIssuer: Ministry of Regional Municipalities & Water Resource

Construction of 24 Classrooms Al Ahnaf Bin Qais Country: OmanCloses: Jul 12, 2010Category: Educational facilitiesIssuer: Ministry of Education

Dev of General Cargo and Liquid Terminal at Port of SalalahCountry: OmanCloses: Jul 12, 2010 Category: Marine Issuer: Ministry of Transport and Communication

Sabah Al Salem Campus Country: KuwaitCloses: Jul 11, 2010Category: Educational facilitiesIssuer: Kuwait University

Construction of 6 KindergartensCountry: KuwaitCloses: Jul 6, 2010Category: Educational facilitiesIssuer: Ministry of Social Affairs

Duqm HotelCountry: OmanCloses: Jul 5, 2010Category: Recreational facilitiesIssuer: Oman Tourism Development

Construction of Telephone Exchange BuildingsCountry: OmanCloses: Jul 5, 2010Category: BuildingsIssuer: Oman Telecommunications Company

Operation and maintenance of Yanbu medical centreCountry: Saudi ArabiaCloses: Jun 27, 2010Category: IndustryIssuer: RCJY

For upto the minute tenders log in to constructionweekonline.com

Tender about to bloom in Saudi gardens project

Jotun wins key Saudi economic city contract


Expert Views

Analysts this week have been torn by the Ras Al Khaimah-based cement fi rm, with the majority de-ciding it is a stock worth selling.

It’s been a tough market for materials suppliers in the UAE and Oman, and particular for cement fi rms, which have seen production costs rise just as order sizes and prices have gone the other way.

With its share price down just over a fi fth since the start of the year – currently at AED1.34 – it saw a rise of 3.50% this week, but still some market –watchers downgraded their forecast.

Hans Zayed at Credit Suisse be-lieved the stock would underper-

form and gave a target of AED1.23 per share and a one-year return of 34.31%.

Al Mal Securities came to a similar conclusion, though gave a higher target of AED1.83. But Hassan Anan, analyst at National Investor believed the stock was undervalued, and the team at Abu Dhabi-based Prime Securities went further, calling it a strong buy and giving a bullish target of AED3.97.

Union Cement Company's profi t in 2009 was AED56.5 million.All fi nancial obligations have been duly met as per the contractual terms and conditions, according to the company.

THE VERDICTSELL: A glimmer of resurgence this week is not enough for stock watchdogs, and the steep decline this year will be tough to shake off

Union Cement Company PSCUnion Cement Company was one of the biggest risers this week, but is it a stock worth holding onto?

Arabtec sees 25% fall in value in 2010Construction giant Arabtec has seen its shares crash 25% in the fi rst half of this year, following the collapse of takeover negotiations with Aabar Investments. Last Monday’s share price of AED1.97 is not far from the 52-week low of AED1.56.

But analysts still have faith, with eight ‘buys’ and fi ve ‘holds’ among 16 top regional analysts. Eight appears to be its lucky number this year – the number of projects it has won in the re-gion that, combined, have been valued at AED3.55 billion.

Last week its subsidiary Target En-gineering Construction Company won three contracts in Abu Dhabi worth AED747 million: two with GS Engi-neering & Construction Co for work at the expansion of a refi nery at the indus-trial site of Ruwais; one with the Abu Dhabi Oil Refi nery Co.

STOCK MARKETS

Arabtec's Target Engineering won three contracts in Abu Dhabi this month.

FINANCE

Two year price analysisTough half for the construction giant's shares

Share price in USD2009

Share price in USD2010

Jun Jul Aug Sep Oct Nov Sep

2.00

2.50

3.00

3.50

4.00

Jan31 Feb23 Mar31 Apr29 May312.002.20

2.402.60

2.80



FINANCE

TOP RISERSFujairah Building +5.98Saudi Vitrified +5.51Southern Provincial +4.25Specialities Gro +4.24Gulf Cement Company +4.21Combined Group +3.61Union Cement Company +3.5Yamaha Cement Company +2.65Ras Al Khaimah Cement Co +2.11Qatar National +1.98

TOP FALLERSConstruction Materials -6.67Arabtec Holdings -6.73Al Anwar Ceramic -7.09Hilal Cement Co -7.27Kuwait Company For P -8.82Arkan Building Materials -9.37Abu Dhabi National Co -10.34Sharjah Cement Co -11.22Galfar Engineering Co -12.95National Industries Co -13.58National Marine Dredging Co -13.92

SECTOR INDICES Banking -0.82 0.09% Insurance -10.88 .36%Fin & Inv -19.91 -1.08Real Est & Constr +30.59 1.12% Transportation +2.11 0.47%Utilities +7.21 +1.14%Materials 0.00 0.00% Consumer Staples 0.00 0.00% Telecoms 0.00 0.00%

Update

Galfar shares Yamamah Cement shares

Omani fi rm Galfar last week secured three road projects in India through the use of special purpose vehicles (SPV) with a consortium of Indian investors.

Galfar will take a 26% stake in the SPVs – limited liability entities.

The Indore-Ujjain Road Project was awarded to the consortium of Galfar, SREI and Varaha by Madhya Pradesh Road Transport Corporation. The SPV - Mahakaleswar Tollways Pvt Ltd - sees Galfar Engineering & Contracting (India) Pvt Ltd, a Galfar subsidiary, contracted for INR.1380 million (OR11.26 million) for half the project.

Other deals are for the Ghaziabad-Aligarh Expressway and the 6-Laning of Chandikole-Jagatpur-Bhubaneshwar Road project.

Saudi Arabian cement companies have shown an even split in stock market gains and losses for the last 12 months.

Of the eight listed companies, four have recorded overall gains in share price, with Yamamah Cement Company leading the pack, up just over a fi fth in value since June 2009.

But just as many companies saw notable losses in their stock value. Tabuk Cement Company saw a similar size loss to Yamamah’s gain, down 20.96% since last summer, following by Yanbu Cement Company at almost 18%. But the biggest loser was Arabian Cement Company, which suffered a stock market value decline of 28.66%.

Galfar ventures into Indian roads via SPVs

Four up, four down for Saudi cement

PROJECT TITLE STATUS VALUE / VALUE RANGE (US$)

REHABILITATION OF PAVEMENT AND TILES FOR COMMUNITY HAIIS ENTRANCES Under construction 1,500,000

ALGERIAN EMBASSY Under construction 4,000,000

CONSTRUCTION OF SUBSTATION (42) IN YANBU Under construction 8,000,000

COMMUNITY SANITARY SEWER MAINS EXPANSION AT YANBU Under construction 15,000,000

CONSTRUCTION OF EDUCATIONAL FACILITIES AT JALMUDAH DISTRICT Under construction 21,000,000

CONSTRUCTION OF AL-ANDALOS SUBSTATION & BANI AL-NAJAR SUBSTATION IN JEDDAH Under construction 31,000,000

DEVELOPMENT OF AL BUJIRI QUARTERS AT ARRIYADH Under construction 33,000,000

CONSTRUCTION OF FOUR NEW 115/13.8-KV SUBSTATIONS Under construction 72,000,000

EXPANSION OF PRINCE MOHAMMED BIN ABDULAZIZ AIRPORT IN MADINA Tender 1,500,000,000

EXPANSION OF GRAND MOSQUE Under construction 11,000,000,000

10 latest project updates

(Data accurate as of close 6 June 2010)

0.380

0.420

0.500

0.460

0.540

6/5 12/5 18/5 24/5 30/5 J J A S O N D J F M A M

42.00

38.00

46.00

50.00

54.00

2009 2010



MOST POPULAR

1Enormous sinkhole swallows building in Guatemala

2 In Pictures: Guatemala hit by volcano and fl oods

3 World Record: Capital Gate beats Leaning Tower

4 The Middle East's fi ve best green buildings

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SPOT POLLWhich of the following do you think is the best example of green design in the Middle East?

Mall of the Emirates extension workSinkhole swallows building

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9.9%75.2%King Abdullah Univ. of Science and Tech. (KAUST) Saudi Arabia

6.9%King Hussein Mosque, Jordan

4.0%Waagner Biro Labour Camp, UAE

7.1%Charles Hostler Student Centre, Lebanon

IN PICTURES

LATEST FEATURES

With 10,000m2 of extra fl oor space and 40 more stores, the MoE extension opens on September 1.

An enormous sinkhole swallowed a three-storey clothing factory and left one man missing last week after tropical storm Agatha lashed Guatemala's capital city. Packing sustained winds of 65 kph (40 mph), the storm threatened the Pacifi c coasts of southern Mexico, Guatemala and El Salvador, killing at least 180 people and leaving enough rain (36cm/14inch) to cause major landslides and fl ash fl oods. Though geologists said that the circular shape of the sinkhole suggested a subterranean cave collapse, the exact cause of the gaping crater remains a mystery. Three years ago, another sinkhole killed three people and consumed several homes just three kilometres away. Only days before last weekend's storm, a powerful eruption at the southern Pacaya volcano killed one person and forced Guatemala's international airport to close. A state of emergency was called by the nation's leaders.

SHAKY GROUND: Tvhe 200ft sinkhole took down a clothing factory and forced 3000 Guatemala residents from their homes.

ONLINE

InterviewEmaar's Mohammed Alabbar on delivering the two world’s most eagerly awaited projects

ProjectsOn the road again - Abu Dhabi crushing plant is set for a recycling revolution

AnalysisFacilitating sustainability - what's holding the UAE back?

For breaking news, analysis, interviews, tenders and projects, log on to constructionweekonline.com

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HOW TO BE GREEN AND PROFITABLE

MEDIA PARTNERS

The Building Sustainability into the Middle East conference is the ideal platform for you to learn, discuss and network with the leading companies and individuals

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For contractors, developers, sustainability consultants and engineers, this conference is an opportunity to be part of the solution and make a difference –

from the construction phase to the behaviour of tenants in buildings.

To sponsor the 3rd Building Sustainability into the Middle East Conference contactJason Bowman, tel: +971 4 210 8351, email: [email protected]

September 27th & 28th 2010

ENDORSERSPLATINUM SPONSOR SILVER SPONSOR


Market divided over short-term future of machineryTop level experts and suppliers are divided over to the future health of the machinery industry, despite an increase in the number of projectsgoing ahead.

Signs of stability, including fi nished projects and a regular fl ow of payments, will drive ongoing need for vehicles and other motorised equipment, a highly competitive market area, some say.

Humaid Salem, general manager of the UAE Contractor’s Association said: “As major developers start to repay contractors, they will be able to repay their sub-contractors and suppliers, giving a major boost to the industry as a whole. This will lead to more growth in the sector, and create a renewed demand for construction machinery as new projects get underway.”

Several million-dirham projects began last month, including the Water Garden City in Bahrain (AED24.24billion), Musheireb in Doha, Qatar (AED1,579 million), and the Al Ain Convention

Centre District (AED3.5b). Government sponsored infrastructure projects have also bolstered the supply chain, with AED44 billion from the UAE govern-ment earmarked for infrastructure, and AED11.7 billion allocated by the Saudi Arabia for 6,400 km of roads alone.

But some machinery providers are yet to see the upturn. Ninan George, general manager of heavy machinery merchant Al Wasit, said: “This year is actually less than expected. 2008 was a bad year along with 2009 and 2010 has not met expectation.” He added that this changes the forecast for the company for the rest of the year.

A source at the high technical com-mittee – an association for engineers that help resolve construction industry issues – also doubted the optimism. “Major developers may be paying contracts but not yet that I can see yet, especially as now we are entering the current period and the market is notso good.”

In Quotes

PMV MARKET

ROUND UP

“Capital Gate is a landmark for Abu Dhabi and with this recognition the tower takes its place among the world's

great buildings,”SHEIKH SULTAN BIN TAHNOON AL NAHYAN, ADNEC's chairman on news that Capital Gate had earned Guinness

World Records honours, pipping Pisa.

“Only 20% of the project's costs are directly related to Olympic venues and related infrastructure, while 80% is for infrastructure of the region,” VLADIMIR PUTIN, on claims that outlays for the 2014 Olympics have jumped.

“LEED and other certifi cations are fi ne but they must have a grassroots understanding of what will work here.”KHALED AWAD, founder of Grenea and one of the minds behind the zero-carbon Masdar city.

sing

”nder of

he minds bon

80% is for tructureregion,”PUTIN,

that r

JUNE 12–18, 2010 CONSTRUCTION WEEK 13

ROUND UP

12 3

4 5

Workers living in Abu Dha-bi will soon feel the benefi t of 14,000 Sanyo air-con-ditioners that Al-Futtaim Engineering will supply to Al Razeen Labour City in Al Wathba, Abu Dhabi General Services Company (Musanada). Abu Dhabi is a key regional focus for the company, according to Al-Futtaim Engineering MD Dawood Bin Ozair.“It is growing in a big way. We have not been asadversely affected as other companies have been, and are still grow-ing,” he said.

Saudi Arabia dedicates a tenth of its oil production capacity (877,000 barrels per day) to the production of electricity and plans to almost triple that amount by 2032, a senior offi cial has said. Abdullah al Shehri, governor of the Electricity and Cogenera-tion Regulatory Authority, said 320 million barrels of crude are used to gener-ate power every year and that plans to raise power capacity to 121,000 mega-watts by 2032, would triple the amount of oil used annually.

Manlift Power has donated a generator to the Al Man-zil Centre for Challenged Individuals in Sharjah to help it cope with power outages in the emirate as summer approaches. The Al Manzil Centre provides a professional care-giving and learning environment for individuals with special needs. When Manlift employees heard how the children’s schedules had been disrupted by regular power cuts, they swiftly deployed a 200 kVA Ingersoll-Rand generator to the school.

Promat has supplied 20,000m2 of Promatect-250 mineral-bound fi re-protection board to a new hypermarket project being built in Qatar. The hypermarket is located in the new Mall of Al Khor, which is owned by the heir of Sheikh Ahmed Jassim Al Thani.

Locals in Bahrain are still unable to get on the housing ladder due to 'unrealistically high' prices, a mortgage summit in Manama was told. Speakers at the GCC Mortgage Summit 2010 in Bahrain also said that prices on the island would have to fall further before banks could afford to start issuing mortgages to local buyers. Khalid Hamad, executive director of banking supervision at the Central Bank of Bahrain, said that while the economic situation in the region was good, since 2005 real estate prices have become infl ated and bubbles have formed.

Around the GCC

1. BAHRAIN

House prices “still too high”

2. SAUDI ARABIA

Saudi power to triple crude use

3. ABU DHABI

Air-con units for labour camp

5. SHARJAH

Manlift keeps kids cool

4. QATAR

Promat lands Lulu contract

“In Egypt, we sincerely believe that infrastructure is a crucial component of a successful modern economy,” OSAMA SALEH, chairman of the General Authority for Investment (GAFI) on where the Egyptian government intends directing funds over the coming years.

y,” ,

e Generalvestment e the nment


Capital Gate, the Abu Dhabi of-fi ce and hotel development set for completion by the end of

2010, has been certifi ed as the World's Furthest Leaning Manmade Tower by Guinness World Records.

The project, owned and developed in the UAE capital by Abu Dhabi National Exhibitions Company (AD-NEC), has been built to lean 18 degrees westwards – more than four times that of the world famous Leaning Tower of Pisa. It has earned the Guinness rec-ognition after rigorous evaluation by the Awards committee since January

In Numbers

ROUND UP

Percentage growth of the UAE economy this year, according to ministry.

Percentage rise in net profi ts for RAK Ceramics last year compared to 2008.

The height in metres of the Mecca Royal Clock Building when it is completed. 3.220.2662

2010, when the exterior of the 160 m, 35-storey tower was completed.

The project's fl oor plates are stacked vertically up to the 12th storey after which, they are staggered over each other by between 300mm to 1,400mm giving rise to the tower's dramatic lean.

The lean, of course, puts immense pressure on the core of the building, which uses vertical post-tensioning to resist the stress. The core has been built with vertical pre-cambering and contains more than 15,000 m3 of concrete reinforced with 10,000 tons of steel.

Capital Gate’s shell is comprised of a super-strong exo-skeleton called a ‘diagrid’ that provides a clear, unob-structed fl oor plate, using far less steel than a conventional structural frame. The external diagrid has more than 720 members with some of the heavi-est weighing 16.5 tons.

Capital Gate was designed by inter-national architecture fi rm RMJM and the Mace Group is project managing the construction. Enabling work began in September 2007 and completion is expected at the end of this year. — By Carlin Gerbich

Capital Gate beats Leaning Tower

FOR THE RECORD: The Capital Gate leans further than the 837 year-old Pisa tower, at 18 degrees, and is the brainchild of RMJM.

WORLD RECORD

JULY 12-18, 2010 CONSTRUCTION WEEK 15

ROUND UP

Abu Dhabi hits Target with three contracts

RAK Ceramics to tile Dubai airport expansion

Arabtec Holding’s subsidiary Target Engi-neering Construction Co this week won three contracts in Abu Dhabi to continue

the fl ow of projects and tenders coming from the biggest emirate.

The company announced that it signed deals with GS Engineering & Construction Co and Abu Dhabi Refi nery Co worth AED 747 million. It is the latest round of contracts to come from Abu Dhabi state fi rms, as the extensive expenditure on infrastructure continues.

The two contracts with GS are for work at the expansion of a refi nery at the industrial site of Ruwais, while the Abu Dhabi Oil Refi nery Co., also known as Takreer, aims to more than double capacity to transform 400,000 barrels of crude daily into gasoline and other products.

At the beginning of March it was reported that Takreer, had signed contracts valued at US $9.6 billion for work to expand the Ruwais plant.

RAK Ceramics, the world's largest ceramics manufacturer, is to supply tiles to the new facilities at Dubai International Airport as

part of Phase Two of the venue’s expansion.The ceramics conglomerate, which posted net

profi ts of AED261.9m in 2009, up 20.2% on the previous year, is to supply 100,000m2 of tiles in various dimensions to be used in tunnels,bathrooms and fl oors throughout the terminal.

The Phase II Expansion Project, which willinclude a terminal for the expanding Emirates Airlines Airbus A380 fl eet and a new airfi eld, aims to accommodate the growing airport traffi c, which is expected to cater for over 70 million passengers and 3.5 million tonnes of cargo annually.

Total value, in billions of Saudi riyals, of the King Abdullah Financial District.4.4

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COMMENT

IS EGYPT THE NEW PLACE TO BE? CONTRACTORS and developers with interests in the country are trying to convince us that the answer is yes. They might be right.

Let’s start with some numbers. According to the World Bank there are some 81,527,172 people living in the country, that’s 40 odd million more than in all of the GCC countries put together, which combine to reach 36.7 million.

With organic population growth of more than a million people each year, there’s a natural rise in demand for completed builds.

Development is occurring on the outskirts of the crowded capital. Cairo Festival City, being developed by Al Futtaim Real Estate, is due for completion in 2015. A school and some commercial space already exists and the fi rst phase of residential work got under way last year.

Al Futtaim is also behind a Mall of the Emirates clone, to be built in the country. Although not a replica of the mall in Dubai, current plans for the Egyptian version include a ski slope. Contractors are going through pre-qualifi cation now.

Emaar is also after a slice of the action, with Emaar Misr working on three ongoing projects: Uptown Cairo, Marassi and Mivida. The fi rst homes in Marassi and Uptown Cairo are expected to be handed over this year, and in Mivida in 2012.

According to Hazem Ashry, general manager for Emaar Misr the ‘dynamism’ in the property sector has attracted several GCC contractors to tender aggressively. Egypt is clearly seen as less of a ‘closed shop’ than the lucrative Saudi Arabian and Kuwaiti markets, and is a country with some genuinely tough competition in the sector.

The Egyptian government is backing private enterprise with infrastructure development. It is keen to attract foreign investment to these endeavours, with Osama Saleh, chairman of the Government Authority for Investment (GAFI) stating the scale of the issue very simply.

“In total, there are 47 projects in the public utilities and infrastructure sectors in Egypt worth $25 billion, which provide ample scope for foreign investors to come and share their expertise and knowledge,” he said.

With the government behind development and looking for foreign investment, a relatively competitive construction market, and steady demand, the outlook would appear rosy.

However, there are challenges. Egypt’s per capita GDP lags way behind the world average and even further behind that of Gulf countries. That said, it has been going in the right direction. It rose sharply from a miserable $1041 in 2004 to $1990 in 2008 – the latest available fi gures from the World Bank.

The country is battling to boost this fi gure, diversifying its commercial interests into areas such as outsourcing, where it is gaining ground on the world’s outsourcing giant, India.

That giant population fi gure also translates into a massive natural resource. Egypt is a graduate factory, producing enough university-qualifi ed human resources to completely repopulate Bahrain every two years.

Plenty of construction professionals in the Gulf originate from Egypt. If construction opportunities in Egypt continue to improve, they may soon fi nd themselves heading home.

Is Egypt the next big thing?A large population and a competitive market may make Egypt a prime target for construction contractors

Egypt is a graduate factory, producing enough university-qualifi ed human resources to completely repopulate Bahrain every two years.

STUART MATTHEWS

Egypt’s per capita GDP was a modest $1990 in 2008 – according to the World Bank.

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COMMENT

ORLANDO CROWCROFT

Is Leed ‘bogus’?Orlando Crowcroft asks if famous architect Frank Gehry is right to turn his ire on Leed rankings

FRANK GEHRY IS NOT THE FIRST person to criticise the Leed rank-ing system, and he is unlikely to be the last.

But the Pritzker prize-winning architect’s comments have caused quite a stir on the internet, with some leaping to the defense of the 81-year-old, who has penned designs for some of the world's most famous and recognisable buildings. However, plenty more are criticising him for undermining the grand mission of green design at a crucial time.

Both views, of course, rely on a misunderstanding of what Gehry said, a state of affairs not unusual in online debates. Yes, he did say that a lot of Leed rankings “are given for bogus stuff” and he did sarcastically dismiss the idea of designing a LEED-rated building – but, ask yourself, did he come out against sustainable design in the same way that all those wackos dismiss global warming? Of course not.

This was clarifi ed later in an interview with Business Week which, naturally, got far less attention than his initial comments in Chicago. Gehry told the magazine that what he objected to was the “fetishization” of green design, and the fact that very little of what gets done serves any purpose other than to create a good vibe for publicity hungry companies.

Gehry is arguably right on both accounts. It has been well publicised that Leed affords credit to buildings for dubious environmental ‘initiatives’ such as bicycle racks, and Leed rankings often allow developers to get bigger and bolder projects passed by planning councils.

Architecture critic Frank Bernstein, writing in defense of Gehry this month, cited Las Vegas City Center casino as one such example. The 18-million ft2 complex – which includes 5,000 hotel rooms, casinos, restaurants and retail outlets – achieved a Leed gold rating. “Is City Center a net gain to the environment?” Bernstein asked. “No, it represents a huge net loss to the environment. And yet Leed gave it the cover of sustainability.”

This cover, Bernstein argues, is preventing a debate about the real environmental costs of buildings in the modern age. This debate should focus on whether buildings like City Center should have been built at all, not how many solar panels or bike racks it uses. Leed cannot stop wasteful projects from being built, nor does it attempt to.

It also remains true that for all the talk about saving the world, sustainability sells, and canny developers know how much a Leed rating is worth to the new generation of conscientious property investors. You cannot blame the skeptics out there for thinking public relations departments and

the bottom line are the real winners when a Leed project is rolled out.

But what is crucial here is the recognition that green design, and its recent boom, is still young, and green ranking systems are not perfect. At this early stage green washing and off-the-peg ways to boost Leed ratings are inevitable, but as those who buy properties – as well as the governments that approve developments – learn more, these immediate and sometimes bogus benefi ts will fade.

You only have to look as far as Abu Dhabi for evidence of this. The emirate’s Estidama guidelines go far further than Leed ever has, and a few bike racks and token PV solar panels are unlikely to wash with the Urban Planning Council (UPC). Meanwhile, projects such as the King Abdullah Science and Technology (KAUST) in Jeddah show that Saudi Arabia too is raising the bar of sustainability in the region.

As for Gehry, far from criticising him for his challenges to Leed, the proponents of green design should be welcoming them. Constructive criticism from architects of his stature will only serve to hone the guidelines, and draw attention to their fl aws. Blind acceptance, after all, has rarely been a positive way to move forward.

Orlando Crowcroft is the editor of Middle East Architect.

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COMMENT

ILHAM KADRI

Sustainable by designIlham Kadri believes sustainability needs to become part of the construction industry’s DNA

WHEN THE BURJ KHALIFA opened with a dazzling fi reworks display earlier this year, the tower was

hailed as a marvel of modern engineering, which it certainly is. However, it is also an excellent example of sustainability at work.

From the facilities management system that increases effi ciencies and the practices and technology to extend the tower’s lifespan, to the use of condensation to irrigate its 11-hectare garden and solar panels to heat water, the Burj Khalifa comes with a ‘sustainability inside’ tag.

‘Sustainability’ and ‘sustainable development’ are not new concepts that have just become fashionable. In 1987 a document called ‘Our Common Future’ or the Brundtland Report was published by the United Nations World Commission on Environment and Development (WCED) and defi ned ‘sustainable development’ as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

How does this apply to construction? Simply put, it means a greater emphasis on designing and constructing structures that are environmentally and economically effi cient, while serving a social purpose.

The early view of sustainability in the building industry was about ensuring that the construction process paid credence to

the three pillars of conservation – renew, re-use and recycle.

Today, effective sustainable construction has evolved well beyond making more with less. Now, the focus is shifting towards buildings that incorporate sustainable elements in their design. This means that in addition to housing people, businesses, serving as landmarks and enhancing the landscape aesthetically, new buildings are becoming conduits for long-term energy conservation, with lower carbon footprints.

Through specialised construction technology, the ability to maximise renewable energy sources is being built into the hardware and construction of new properties. One example is the Dow Powerhouse Solar Shingle, which integrates photovoltaic cells into roofi ng materials. New building designs now incorporate solutions that aim to boost effi ciency, such as increased natural lighting and specialised insulation.

Increased legislation for sustainable practices shows how governments are taking the subject very seriously. Countries in the West and the US already have extensive regulations in place. In the UAE, the Emirates Green Building Council has launched sustainability assessment criteria based on the US Green Building Council's Leadership in Energy and Environmental Design (Leed) rating system.

The volume of energy consumption in the Middle East certainly is a cause for concern.

For instance, it is estimated that the UAE ranks fi fth in the world for per capita energy consumption, making it particularly important for energy saving measures to be built into all new construction projects.

And regional governments are developing new local standards. Under the directives of High Highness Sheikh Mohammed, Dubai Municipality is already working towards ensuring that all new buildings fulfi ll a set of green standards, which are under defi nition and will certainly make an impact on the emirate’s carbon footprint.

Another sign of how important the region is taking energy conservation is the increase in demand for Exterior Insulation Finishing Systems (EIFS), which can reduce energy consumption by almost 40%.

Sustainability is no longer simply about installing solar panels on a roof. It is about integrating a sustainable approach and acknowledging that there are economic, energy and environmental advantages to adopting a sustainable design model.

Sustainability needs to be ‘inside’ everything we do and should become a part of our DNA.

Dr. Ilham Kadri is general manager for the Middle East and Africa of the Dow Advanced Materials Division.


LETTERS

rating without scoring any for Indoor Air Quality, I would strongly suggest that before condemning the system as whole on the basis of a single "factoid", readers take the trouble to download the Leed requirements from the USGBC website. Indoor Environmental Quality is not only taken very seriously but has its own section, in which control of hazardous chemicals (eg VOCs) from fi nishes and furnishings, and building air purging on completion to remove ac-cumulated contaminants all score points. There are also Leed points to be gained for increased and monitoring delivery of outdoor air - that is: making sure there is suffi cient ventilation.

I have reservations about aspects of Leed – particularly those that encourage points-chasing rather than actual benefi t. However, while it is acknowledged that Leed is not perfect - that as currently constituted it does not address some specifi c needs of the Middle East so that local states are developing their own rating systems, and that non-Leed buildings may in some instances be "greener" - it is still a pretty good starting point for building better buildings.TONY MARSHALLSAY, VIA EMAIL

Re: Leed buildings are 'unhealthy', says reportThanks to Dr Peter and team for giving this important and utmost useful information. This is really an eye opener and will help many to take care of indoor living. JOSE, VIA EMAIL

To submit a letter, write to [email protected] or by post: Construction Week, PO Box 500024, Dubai, UAE. Please provide your full name and address. Letters may be edited for space and style. Submission constitutes permission to use. You can also log in to www.ConstructionWeekOnline.com to join the conversation.

RE: Leed rankings ’bogus’: Frank Gehry

Re: Sharjah: where rubber meets the roadUsed tires have been under-used for decades. This project is commendable and I hope using this material will become the norm rather than the excep-tion as it is simply superior to the one used in America, for example. California has hills of tires burning away, wasting a great resource because they're stuck in construction practices of the 50s. Congratulations on the great work in the UAE.SONIA, VIA EMAIL

Re: World Record: Capital Gate beats Leaning TowerIt is unique, but as opposed to Pisa, it has a vertical shaft and horizontal slabs. To my eyes it looks more leaning in the computer-generated perspective than in reality. With a vertical shaft that is almost touching the leaning envelope from the inside, I would be interested to see how functional the plans are and how effi ciently the spaces are utilised.AHMAD, VIA EMAIL

Please stop this nonsense. Are we still saying Leed is useless/arbitrary/bogus because of the bike rack credit? That argument is so 1996. Leed started from a few people in a room with an idea and grew into a global standard that has transformed the construction market. Even with the room for improvement, what else can you say has done that? The whole point was to change the market. It has done that and now GBCI has gone through an in-depth internal LCA, refocusing the credits in the 2009 versions. After working on dozens of Leed projects, I can say it does save money, it does improve the profession of design, which was once riddled with extravagant formalistic indulgences. (abridged)JOURDAN YOUNIS, OGER INTERNATIONAL

Re: Manlift donates generator to Sharjah centreGreat thing done by Manlift. Some other companies also need to come forward like this to help. It’s not fi nancially sound to keep a genset on hire during the summer for when the power gets disturbed.SASIMENON, VIA EMAIL

Re: Leed buildings are 'unhealthy', says reportWhile it may theoretically be possible to achieve the number of Leed points for a platinum

24 CONSTRUCTION WEEK JUNE 12–18, 2010

ANALYSIS

Waiting on the sidelinesSustainability has entered discussions in the Saudi Arabian construction market. But will it catch on? Ben Roberts reports

THE KINGDOM OF SAUDI ARABIA, the biggest and most infl uen-tial economy and construction market in the Middle East, is new to the sustainable agenda.

Its insular market has seen little of the recent discussion in the Gulf and it is yet to become a competitive edge for the major developers, contractors and suppliers. For the country, which possesses around a fi fth of the world’s known oil reserves, tradition-

al forms of power must seem a reasonable sustainable option.

A globally political discussion point – witness the targets for reducing CO2 emissions earlier this decade and world forums such in Davos, Switzerland – sustainability has had at least a theoretical presence in project-based building initiatives in other parts of the Gulf for the last few years. Reusable building materials and tools that are locally sourced, and

harnessing solar and wind power, are just two areas for development.

Developers that have offi ces across the Middle East say the idea has now entered the Saudi vocabulary – but only very recently. “I think that the sustainability idea is new and I don’t see many building projects that are being built in this way,” says Diyaa Ayoub, market intelligence analyst at Jones Lang LaSalle in Riyadh, Saudi Arabia’s capital. “In general, if you

The site for King Abdullah University of Science and Technology, on the shore of the Red Sea at Thuwal, at an early stage. It is just one of the Kingdom's forward-looking recent projects.


ANALYSIS

were to see each individual building on King Fahad Road [in Riyadh], I don’t think they have it in their minds to be sustainable.”

The factors that will infl uence whether or not the ecologically-minded methods and end-products in construction will catch on in the Kingdom are numerous.

The fi rst is defi nition. There is little clear legislation regarding the adoption or monitoring of sustainable practices. Certifi cation systems have been met with greatly varied levels of understanding. Where Abu Dhabi’s Urban Planning Council is pushing for the Estidama system to be mandatory as it supervises the regeneration of its capital district, others have little idea of what it might entail, or of its older cousin, Leed. Often such measures need to be spelled out by the developers. Assad Jaber, project executive at Turner Construction International, who attended the Construction Week: Building Sustainability conference in Riyadh earlier this month, says: “There is no commitment if it is not regulated by the government and specifi ed by the owners.”

The second factor is cost. Industry consultants have told CW that switching to creating ‘green’ buildings and methods – reducing energy consumption, for example – can be as high as three-times that of traditional methods. “Owners have to look at the feasibility of producing a different product than what they are producing now and if it is worthwhile. [If there is] an added value to their investment they will specify green without regulation from the government,” adds Jaber.

A question of perception, particularly around procurement, is also an issue. “The problem in Saudi market is that most of projects fi nishing materials are imported from outside, not from the local material,” comments Hany Khalifa, a senior architect at Saudconsult. “This is due to the fact that the client believes that imported goods have higher quality and lower maintenance costs. Moreover, suppliers and manufacturers in Saudi Arabia still believe that it’s cheaper to import the materials, than for them to be extracted and manufactured.”

The third issue, linked to cost, is the lack of clear incentives for companies. Khaled

Awad, founder of Grenea and one of the minds behind the zero-carbon Masdar City, is adamant that there is no clear business case for sustainability, meaning that few companies will see beyond the cost issue. At this month's Construction Week: Building Sustainability conference, he said: “You must show how all stakeholders can benefi t and come onto one platform. How can we monetise this – if you can’t make money, how will it happen?”

Samer Arafa, group executive vice president at Al Arrab Contracting, says that he has seen “increased awareness” to be friendly to the environment, but the subject is far from routine when planning projects. In particular, he highlighted the current cheap energy prices as a further disincentive to switch to other sources of power. “Unless there is a real benefi t in terms of tax subsidy or some tax credit scheme, then there won’t be a business case.

“You have to keep in mind that compared to Europe – which has between 500 and 600 million people – Saudi Arabia has a similar size but far fewer people, so there is a lot of land space. So there is no pressure on resources yet… it is still safe, there is no need to be extra good to the environment.”

He added that government legislation would be key to driving the agenda, a view Hany Khalifa agrees with. “Legislation is necessary to make sustainability an integral part of the Saudi market. Let’s take value engineering as an example: it is widely used by consultants in Saudi Arabia as it is a must for any government project.”

As ever, the rest of the Middle East will keep a close eye on the changes in the Saudi market. It is a country of potentially great infl uence on the ethos of sustainability in the Gulf and is yet to make up its mind.

For upto the minute analysis log in to constructionweekonline.com

“There is no commitment if it is not regulated by the government and specifi ed by the owners.”

Leed is a complete framework for assessing building per-formance and meeting sustain-ability goals. It offers project certifi cation, professional accreditation, training and practical resources, as well as workshops.

Projects applying for Leed status must show achieve-ment of all the prerequisites and a minimum number of points to attain the Leed ratings: Certifi ed (26 to 32 points); silver (33 to 38 points) gold (39 to 51 points); and platinum (52+ points).

Leed in brief

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ANALYSIS

Haunted by ghost buildingsAs the GCC looks to push forward with new developments, contractors working in Dubai need to consider the pros and cons of reviving skeleton structures. Elizabeth Broomhall reports

NTERING INTO A NEW ERA OF economic stabilisation, the GCC construction sector is optimistic about a wave of developments set to move its regional markets

forward. From Abu Dhabi to Saudi Arabia, developers, contractors and consultants are preparing for a successful, albeit gradual upturn.

On the contrary, in Dubai, attention is turning to those projects that were cancelled or delayed during the downturn.Seeking new revenue streams and more work, developers and contractors from across the GCC are looking to the skeleton

structures or 'ghost buildings' that populate the Dubai skyline with a view to resurrect-ing old projects and improving their profi ts.

However, it is yet to be seen whether these ghost sites, with their degrading structures and rusty scaffolding, will yield any commercial value for contractors when balanced against a high number of risks. Indeed, without any realistic analysis of the possibilities, companies could be stepping into a fi nancial and legal danger zone as the economic viability and regulatory risks of these projects remains diffi cult to quantify.

Structurally speaking, ghost buildings present a variety of diffi culties that could

Developers and contractors from across the GCC are turning to ghost structures to increase profi ts.

later transpire into signifi cant legal and fi nancial problems, whether they jeopardise the adequate provision and observance of health and safety policies, or the overall commercial success of a project.

“The main problem with stalled buildings is structural deterioration,” says Meinhardt MENA principal structural engineer, Tanmay Biswas. In his view, the level of degradation of a ghost building depends on the stage at which construction was stalled, the quality of early building work, the duration of exposure to degradation triggers and the extent to which the building is protected from external forces.


ANALYSIS

“As we live in an aggressive environment,” he adds, “the deterioration is fast and deep-rooted. As an example, an incomplete structure will have lots of exposed and unprotected rebar or structural steel work which is likely to have started rusting. Depending on the duration of exposure, airborne salts may also have caused deterioration of the concrete, or ‘concrete cancer’.”

And, as is often the case with ghost buildings, if the developers and contractors decide to change the use of the building, this is only likely to exacerbate risks, the old design structure being unable to support the new use.

As regards the knock-on effects of a high level of degradation, the fi rst problem arising for contractors will be the high repair costs. Should the de-watering have been turned off at a site during the ‘silent’ period for example, the costs of reviving the fl ooded structure could easily be prohibitively expensive.

A second concern revolves around health and safety. According to Biswas, where a site has been deserted for a long period, shoring failure or falling cladding is likely to compromise contractors’ health and safety policies and leave them liable for workplace injuries or deaths.

But perhaps the biggest problem for a new contractor resurrecting a degraded, partially constructed building, is associated with its partial or total collapse. In this case, the new contractor and architect will be held strictly liable, with no burden on the previous contractor.

According to Mark Fraser, a partner at Taylor Wessing UAE, not only are there limited obligations on original contractors to ensure structures are fi t for purpose and of satisfactory quality, but in the case of ghost buildings, the original contractor and architect are unlikely to be held liable for its collapse because an incomplete building has never in fact, been handed over.

“Under local laws,” he explains, “[the original] contractor is obliged only to complete his work in accordance with the conditions of his contract. Local law does not recognise ‘fi tness for purpose’ and ‘satisfactory quality’. Likewise, a designer is obliged to exercise ‘care that a reasonable man would exercise’, however, that standard of care is independent of the achievement of the original objective.”

Meanwhile, article 880 of the civil code holds the new contractor solely responsible for the structure. “Article 880 states that a contractor and architect are jointly liable for ten years from the date of hand-over for

For upto the minute analysis log in to constructionweekonline.com

How many cancelled or delayed projects were there?By September 2008, industry experts announced that 150 projects across the GCC had been cancelled or put on hold, valued at a massive $48.4bn. These included at least 88 projects in the UAE, 54 in Saudi Arabia and 15 in Kuwait.

Saudi Arabia22%Qatar14%Kuwait14%Oman13%Bahrain12%United Arab Emirates25%

CGG

Cou

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es

Percentage of projects on hold

0 5 10 15 20 25

Source: Research conducted by ProLeads.


the total or partial collapse of a building. In the context of ghost buildings, the original contractor and designer may not be liable if the building is not complete because it has not been handed over. Instead, the new contractor and architect will have decennial liability because it is they who will see the project through to completion.”

Similarly, where the structure does not collapse but reveals some sort of structural defect, new contractors face the risk of being held jointly liable alongside original contractors. “In a situation where the original team working on the ghost structure has achieved sectional completion, (i.e. delivered part of the works) and the structural integrity of the building is defective,” says Fraser, “depending on the nature of the defect, the old and new teams have strict liability, and could both be sued.”

Faced with this prospect, contractors and design professionals are put in an extremely precarious situation when it comes to resurrecting ghost buildings, and their only chance of walking free in these cases arises from professional indemnity insurance cover, though even this, has its loopholes.

“Professional indemnity insurance will not cover a professional who is held strictly liable for a structural defect under

ANALYSIS

Article 880 of the civil code makes the new contractor liable for the partial or total collapse of a ghost structure.

• DO thoroughly assess the current condition of the structure before restarting construction.

• DO employ a competent consultant who has extensive experience dealing with latent defects, to carry out a site investigation.

• DO take an interest in what insurance policies are in place and the amount of cover to protect your balance sheet and avoid unnecessary costs.

• DO take a practical approach to completing projects, by working with developers and allocating risk to the party best placed to deal with it.

• DON’T rule out the possibility of taking an equity stake in the project to ensure payment on completion.

• DON’T forget to think about the long term viability of a project, and the value of its location and use in the future.

• DON’T assume a property has to retain its original intent and purpose, but ensure the design structure can support its new use.

• DON’T rush into a resurrection project without looking into ownership – work with the bank and get hold of the title deeds to discover any previous claim.

Skeleton structures:Dos and Don’ts

article 880 of the civil code, unless the defect occurred because they breached the standard of care,” explains Wayne Snow Senior Vice President of Marsh Insco. “In this sense, PI insurance may mitigate the strict liability, provided the professional is found to have been negligent and held legally liable [i.e. directly responsible] for the defect.”

Further amplifying the problem is the fact that often, even if they commission a full site investigation, contractors and designers may be unable to prepare for latent defects, otherwise known as 'inbuilt defects' that go undetected by site inspectors, revealing themselves at a later date.

With these risks in mind, industry experts are asking developers and contractors to remain cautious when deciding to resurrect ghost or skeleton buildings in the fi rst place.

“Should the contract not be commercially viable, both developer and contractor may end up incurring losses,” says Fergal Harris, Director of Commercial Real Estate at Standard Chartered Bank in the region. Not only does he stress the need to consider the costs of restarting a project, including total costs to complete construction, fi nancial, legal and due diligence costs, but in addition, he emphasises the importance of looking at


ANALYSIS

timeframes for construction, and how this may further increase the costs and affect the fi nancial viability of the project.

“If you are re-engaging in a project, then it is critical to consider time to acquire and complete, time to identify an opportunity and get it to a point where it’s good to go," he said.

“It is important to note that what may be a good location today may not be a good location when you’ve fi nished constructing, bearing in mind it could take up to two years to re-engage and a further two years to get the project to a stage where it’s fi t for purpose. It is very important to think about what the building is going to be when it grows up and where it is going to be.”

Other considerations, he says, include ownership of the building – which can be determined from the title deeds – as well as how the project is going to be marketed.

“Before engaging in a new project, it is important to consider getting paid for the highest and best use, a focus that is often missed,” he says. Specifi cally, he suggests that a building need not always be resurrected for its original intent and purpose, but instead what might have been originally designed as a residential building could be more valuable as a school, hospital or offi ce block.

“It is also crucial to pitch the property to the market at the level at which it actually is. So a Grade B building needs to be pitched as a Grade B building. Tarting it up and selling it as a Grade A building isn’t going to work and certainly it is not going to fl y in terms of rents or sales prices.”

But above all he encourages contractors to be realistic, and potentially consider taking a stake in the property should they fi nd it to be a good investment, as this will ensure they get paid. “When engaging in the resurrection of projects, ask yourself: Are they really ever going to be fi nished? Is there any commercial sense in fi nishing these projects? It is very important in this market because there is so much oversupply, of residential buildings in particular, and not every ghost building has the highest and best use purpose beyond what it is at the moment.”

“It is very important to think about what the building is going to be when it grows up and where it is going to be.”


FACE TO FACE

RISING FROM THE

ASHESHe is the CFO of the biggest construction

fi rm in the UAE, and he has an answer for everything. Ziad Makhzoumi, CFO of Arabtec, talks to Construction Week about Nakheel payments, the Aabar

deal, the BBC Panorama scandal and the company’s plans for expansion

By Elizabeth Broomhall


FACE TO FACE

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FACE TO FACE


FACE TO FACE

payment. From an accounting point of view, you have to assume that you are going to re-ceive less.”

Preparing for the worst, incidentally, is one of the things that Makhzoumi is good at. While remaining optimistic, he is open-minded about the market turning at any time, and thus, he was only slightly surprised to be awarded two new projects in Dubai worth a massive combined total of AED 1.3 billion in the fi rst quarter of 2010 alone.

“The problem,” he explains, “is that the market is continually changing, and

there are so many shocks to the system that you cannot predict it. We’re still going through a phase of adjustment now. It is dif-fi cult to predict on a quarterly basis what else can go wrong, what new projects will come up and start.”

Indeed, one thing that Arabtec could not have prepared for was the scandal broken by the BBC’s Panorama programme last April, about the poor living conditions at one of its labour camps. Having secretly fi lmed workers at their accommodation, the BBC claimed the camps were fi lthy and overcrowded. Though Arabtec offi cials hit back at the documentary’s accusations, the question remains: has it affected the fi rm’s reputation?

“I don’t think it has to be honest. The BBC, in my view, raised an issue that should have been addressed in a different way. It was presented from a very biased point of view, in Hollywood style, it was not neces-sarily factual, but circumstantial. And after the BBC programme we did bring in other media who saw for themselves that most of the claims were exaggerated.”

Makhzoumi explains how late payments from developers are more likely to affect a company's liquidity than its profi tability.

IT WOULD BE FAIR TO SAY THAT 2009-2010 was a tough year for Arabtec. Dubai’s construction industry bore the brunt of the worldwide recession and contrac-tors across the board were left to

grapple with a dramatic decline in new busi-ness and cancelled projects. But this was just the beginning for Arabtec. Dragged into a scandal about the state of its labour camps and forced to make provisions due to non-payments from struggling developer Na-kheel, the fi rm faced a number of additional and unexpected hurdles.

“Towards the end of 2008 was when the whole market started changing,” Ziad Makhzoumi, Arabtec’s Chief Financial Offi -cer explains. “There was a lot of uncertainty about what was going to happen to lots of projects that were technically awarded to the contractors in general, but were either suspended, cancelled or re-tendered in some cases.

“And you know, in construction, you’re not taking on a four-week project, you’re taking on a three or four-year project, and there is usually a lag time of about two quar-ters between signing a contract and seeing the revenue on your balance sheet.” That said, Ziad Makhzoumi remains extremely confi dent and positive about the future. In fact, with his sights set on a number of new markets and ventures, there is no room for pessimism, and his Q1 fi gures are the ideal starting point.

“If you compare our fi rst quarter [fi nan-cial results] of 2009 with the fi rst quarter of 2010,” he says, “the net profi ts in 2010 were down 17%, but the net margin went up from 8.634% to 8.675%. That’s because we are operating in new markets. If you compare the last quarter of 2009 with the fi rst quar-ter of 2010, the results improved from a loss of AED 16.8 million to a profi t of AED 134.5 million for the two consecutive quarters.”

So how did Q4 2009 compare with Q1 of 2010? “We did not make a loss in Q1 of 2010, but we showed a loss in Q4 2009. When we fi nalised our accounts we thought it was very important and prudent that we take provisions when it came to certain projects, due to rumors we were hearing in the mar-ket that certain developers were expecting a discount on receivables, or to re-schedule a

17%1.3billion

The company’s net profi ts were down 17% in Q1 of 2010, but the net margin increased from 8.634% to 8.675%.

AED value of Dubai projects awarded to Arabtec in the fi rst quarter of 2010.


FACE TO FACE

The camp in question has since been closed down, and according to Makhzoumi, his company continues to do its best to en-sure that any issues within labour camps are dealt with as quickly as possible.

ON TRACK Evidently, he is not one to dwell on the past, and is more eager to discuss Arabtec’s plans to get back on track with old projects and collect outstanding payments. Collection is a key focus for the year ahead, and follows a particularly challenging year in which the company witnessed a cycle of slow down on collections, as developers struggled to keep up with regular payments.

Particularly newsworthy has been the on-going quest for payment between Arabtec and Nakheel. After months of speculation over how the cash-strapped property devel-oper was going to pay back its AED 91 billion debt, followed by proposals to pay its trade creditors 60% in Islamic bonds and 40% in cash, the developer has only recently an-nounced plans to pay Arabtec before the end of June.

“We have signed an agreement with Na-kheel that confi rms it will pay us before the end of June and I have no reason to doubt that that will happen,” says Makhzoumi.

Evidently, the impact of late payments on cashfl ow has caused the most problems for Arabtec during the recession. As well as threatening its plans for expansion, a lack of liquidity has increased the need for the com-pany, along with most other contractors, to borrow money. “Profi tability is not necessar-ily infl uenced by collection, it’s more likely to affect your liquidity,” Makhzoumi explains. “A year and a half ago, we had much more money in the bank. Sometimes we need to borrow money and sometimes we don’t, it depends on the projects. Then there’s the cost of fi nance – if you’re not borrowing, you don’t have to pay interest charges.”

But liquidity issues are not going to stop Arabtec from growing, and the CFO is ada-mant that late payments have not affected Arabtec’s relationships with its developers. On the contrary, he believes it is essential to work together during rocky economic times and that Arabtec’s relationship with Nakheel

The Infi nity Tower in Dubai (left) and the Okhta Social Business Centre in Russia (right) are two of Arabtec's ongoing projects.

particularly is a good one. “We have a good relationship with Nakheel, we haven’t had a bad relationship with anybody.”

It is with this forward thinking approach that Arabtec hopes to resume work on Na-kheel's Al Furjan project in the near future, the company never having actually left the site, and payment prospects looking up.

“With Al Furjan you have to be aware that there are different stages. We have been paid for some of the work we have done. There were delays in payments, but it was never a major issue per se, as everybody was going through a cycle of slow down on collections. In the future we hope to do some more work for them.”

Unfortunately, the Meydan project, is ac-cording to Makhzoumi, "a different issue." Arabtec worked on the project as part of a 50/50 JV with Malaysia’s WCT before the contract was cancelled, reportedly due to WCT's failure to abide by the time schedule for the completion. Makhzoumi declined to comment on the issue, except to say that Ar-abtec was “going through the proper chan-nels” to resolve the dispute.

Of course, restarting stalled projects is just one of the fi rm’s objectives for the year ahead, the other, perhaps a more important one, is to expand into new markets. Initial-ly a UAE-based fi rm, Arabtec is currently growing its portfolio of projects in Jordan, Russia, Saudi Arabia, Qatar, Syria and Pales-tine, and has bid for work in Algeria, Angola, Egypt, Libya, Lebanon, Turkmenistan and Azerbaijan, where executives believe they can expand and add value.

It was with a view to such expansion that Arabtec tried for a merger with Aabar. Then, out of the blue, Arabtec’s plans to sell a massive 70% stake to the Abu Dhabi-based investment fi rm were suddenly called off. Everybody wants to know why.

“The BBC in my view raised an issue that should have been addressed in a different way.”


FACE TO FACE

12 ASSOCIATED COMPANIES OFFERING DIFFERENT SKILLS AND EXPERTISE • 1975 ARABTEC

Arabtec was asked to build 46 towers in 30 months for The Princess Noura University for women in KSA, worth AED1.5 bn.

F

infrastructure projects coming from the gov-ernment. This will continue to be the case in these oil and gas producing countries where the government is the owner of that revenue and the spender of that money.” He adds: “And, as long as the funding is there and the project is important and not cancelled or suspended, there is no reason why the client will not pay.”

In summary, he states that each of these markets has two attractive features: “One is that they need a lot of work to be done, and possibly more [than anticipated] if they want to open up for tourism, but most of all, they have the revenue to fund those projects.”

Having already won a number of contracts in such areas, including part of the Princess Noura University in KSA, worth AED 1.5 bil-

lion, plus a further two projects in Qatar in the fi rst quarter, it would seem that Arabtec is progressing well with its growth strategy. However, in areas where it has only recently bid for work, such as Libya, Algeria and Turkmenistan, competition with equally-ambitious contractors from America, France and the UK will be tough.

“Our subsidiary company Target Engi-neering is well known for its capabilities in oil and gas and infrastructure work, and we also have Arabtec Engineering Services which does a lot of preparation work. So while we’re publicly known for developing iconic buildings, the range of services we provide is beyond building big towers.”

Also important, he adds, is the ability to understand these new markets, each of

“I do not want to talk about Aabar,” Makh-zoumi replies, “except to say that both par-ties have reviewed the situation and have agreed that the deal proposed is not the right solution at the moment.”

But in turn, this only begs the question: how does Arabtec intend to fi nance its ex-pansion? “Money wasn’t the only reason for wanting to join up with Aabar,” he explains. “The relationship would have been strategic, with a fi nancial element. It would’ve opened up new market and partnership opportuni-ties, and besides,” he goes on, “if you get your cycle right and you get your suppliers to give you some credit time, in theory, you need very little cash to start major projects.”

Or at least, this is the case when it comes to government-backed, infrastructure projects in developing areas, which have attracted the attention of developers and contractors.

“There is a misconception that construc-tion is purely high rise buildings and hotels. It is not,” says Makhzoumi. “There are lots of projects coming up that are not just residen-tial or building a tower.”

Saudi Arabia in particular, requires a mas-sive US $ 2.4 trillion-worth of infrastructure work according to reports. From roads, air-ports and desalination plants, to hospitals, schools and universities, the country is in-vesting in a huge quantity of projects to cater for its fast-growing population.

Undeniably, for Arabtec, it is this huge demand for infrastructure projects which makes the oil and gas producing countries so attractive. This, alongside the fact that proj-ects are characterised by a shorter life cycle, strong government backing and plenty of available funding.

“Governments have to spend on build-ing infrastructure,” says Makhzoumi, “so in theory, the bigger chunk of development is

“We have a good relationship with Nakheel, we haven’t had a bad relationship with anybody.”


FACE TO FACE

FOUNDED • 60,000 STAFF • 25 LANGUAGES SPOKEN ACROSS THE WORKFORCE

MAKHZOUMI: Engineering Arabtec’s growth strategy

Recently listed by the Wall Street Journal as among the top 20 infl u-ential, non-royal decision-makers in the UAE, Ziad Makhzoumi is now a key driving force in Arabtec’s ambitious growth strategy, helping to inspire a progressive yet realistic vision for its expansion. On top of being a fi nance expert, he has a track record of holding a variety senior executive positions in Europe, North America and the Middle East.

His fi rst role in the UAE was in fact in 1981 with Booz & Co, followed by assignments in Saudi Arabia and Europe. He later became the chief fi nancial offi cer of a private holding company with operations in North America, Europe and the MENA region, and before joining Arabtec in just 2008 was involved in strategic consultancy, private equity buyouts and restructuring in similar regions.

As a strategist and restructur-ing specialist, with expertise in the real estate, technology, fi nancial services, engineering, manufactur-ing and the consultancy sectors, Ziad Makhzoumi was also the founder and chairman of the City of London Investment Group - a UK-based billion dollar fund, that invested in a large number of high-profi le emerg-ing markets.

As a well-known public speaker on various business subjects, just last year, Ziad Makhzoumi was voted by his peers as The Revolutionary CFO of the Year. He was additionally awarded the Investor Relations Personality of the Year by over 200 Fund Managers and Investment Advisors, an event sponsored by the Middle East Investor Relations Society. He holds a Bachelor of Science (BA Honours) in Electronics and Electrical Engineering, and a Master of Business Arts (MBA) in Banking and International Finance, from Manchester Business School in the UK.

which has different requirements, be it cul-ture, language, the nationality of workers or the things you are not permitted to do. “There are lots of good companies in Europe and America,” Makhzoumi says, “the ques-tion is: who can go over there and deliver and be patient enough to understand the sys-tem. There are lots of logistic considerations when you enter a new market. Staff need to be capable, they need to speak the language. We employ over 60,000 people who among them speak 20-25 different languages.”

And of course, he says, there is also the possibility that a government throwing tens of billions of dollars worth of work at con-tractors will not want to give it all to one company. Proof that Ziad Makhzoumi never misses a trick.

For upto the minute indepthanalysis log in to constructionweekonline.com

Market watchArabtec share price performance

Following the announcement of a raft of new orders, Arabtec shares rose slightly last week, up by 1% to AED1.97. But there’s some way to go before reaching the one year peak on AED 3.78, seen last October. So far this year the shares are trading at 27% down, pretty much in line with similar falls across the sector. That said, most analysts are positive on the future price.

2.68

2.46

2.24

2.02

2.90AED

22 Mar 5 Apr 19 Apr 3 May 17 May 31 May

Source: DFM


ON SITE

IT IS KNOWN GLOBALLY THAT THE Kingdom of Saudi Arabia is in the pro-cess of transforming itself, with plans for its infrastructure, services and res-

idential sectors about to keep the big players busy for the next decade. Of all the volumi-nous projects spearheaded by the royal fam-ily, Riyadh’s King Abdullah Financial District (KAFD) may be the most intricate.

Situated just a short drive up from the centre of the city, the district will house the large community of professionals working within the fi nancial sector and related in-dustries, to rival the best and most attractive business venues in the world – including the Capital Market Authority and the Tadawul, Saudi Arabia’s stock exchange. The fi nished project will be split 42% to private use and 58% to public use.

The intricacy derives from the challenge of constructing 77 buildings on the site over six zones, occasionally with just a few metres of space between them. Despite a focus on housing corporations, there will also be resi-dential and retail outlets, a 152,511 m2 hotel, a centre for conventions and exhibitions, as well as buildings earmarked for the govern-ment. Today, the most developed buildings have passed phase one; their basic structure in place ready for arterial partitions. But the entire site overall, blinding white in the sun, is still fi lled with deep holes as the excava-tion continues.

The SR 4.4 billion ($1.1 billion) project will build 10 towers fi rst (PP10) and then anoth-er 30 (PP30), explains Whysal Haddad, me-chanical engineer and LEED-In-Charge at the Saudi Bin Laden Group, which is build-ing four of the fi rst 10 towers. The project is built over four distinct areas, each with its own workers and timescales. Standing be-tween two enormous excavated holes in the ground, with JCBs and trenchers little more than beetles at the bottom, he points out that there is not enough room for two lanes of ve-hicles to come in and out, between what will be skyscrapers.

“The spaces between the buildings on these pathways, as you can see, are very nar-row. It means we’ve had to be very coordi-nated when delivering materials as there is only one lane for the vehicles. It’s a chal-lenge for the construction, though Saudi Bin Laden (SBG) can deal with it.”

He adds that the soft earth of the narrow paths on which we are standing has been re-inforced by concrete to prevent a crumbling landslide into the excavated holes, which can be around 60 feet deep. Along with the regulatory safety netting, the fi rm footing in-spires full confi dence as a visitor.

“Each of the four areas has its own teams, management and designs. Sometimes the coordination is a big challenge, and of course there are restrictions in a safety sense, which is a good thing,” says Haddad, who gained

FinancialdetailsKAFD is a clear highlight of the many projects in Saudi Arabia, with LEED and market-leading excavation vehicles just the beginningBy Ben Roberts

Full speed ahead (top to bottom): excavation vehicles toil beside a pool of potable water, which is pumped out; the building landscape; a design of two buildings.

ll h-e-at


ON SITE

“The spaces between the buildings on these pathways are very narrow. It means we’ve had to be very coordinated when delivering materials. It’s a challenge for the construction though Saudi Bin Laden can deal with it.”

““The tthe bpathwnarrowe’vecoorddelivIt’s a constSauddeal w


ON SITE

APPETITE FOR CONSTRUCTIONSaudi Bin Laden Group is constructing four of the fi rst 10 towers (PP10), with the remaining six spread across its rivals, including Saudi Oger. The whole project will contain 77 buildings and will eventually include a monorail. SBG goes to great lengths to recycle as much of the materials as possible, including wood, cables and plastic. Though for some materials, such as concrete, this is not always possible, says Whysal Haddad. However, he is able to keep in close contact with his onsite LEED coordinators, as well as the developers, to maintain the site's environmental credentials.



ON SITE



ON SITE

both education and work from Jordan, his home country, and the US. “However, you can see that we have no restrictions moving between zones.”

SBG excavates holes at the bottom of these cavernous foundations for 10 metres and then injects the correct amount of con-crete to fi ll them. Haddad says if the ten me-tres encounters a cave or other underground opening, the company sends down a combi-nation of concrete and special chemicals to fi ll the space.

He explains that some of the excavated areas contain a lot of potable water. Despite the company’s drive to reuse and recycle, this water does not have a further use, and is pumped out by tubes. But for the materi-als discarded from the skeletons of towers down chutes – such as steel, wood, cables and plastic – they can be separated and sent off-site to be recycled.

Facilities for recycling concrete in this part of the country, however, still need to be provided. “This is a big dilemma for us as Ri-

yadh has not yet got the facilities to recycle. The credit system for recycling is based on weight – seeing as concrete is our big ma-terial it would be good to recycle it, but we can’t, and so the waste management for this is one of the challenges for the project.”

Despite the fact that a few different con-tractors are working on site, Haddad points out that each building – or ‘parcel’ – is clear-ly identifi ed with a sign that lists the project, the designer, the parcel number, the build-ing’s end use, and how many fl oors. Nearby is one that will be 24 fl oors. Next we see on the horizon over the excavated hole that the

sign is standing beside, building 209, one of the most advanced of the towers in devel-opment. “The fi rst phase was completed a few months ago in terms of the casting, and now it is onto the fi nishing and arterial parti-tions,” he says. “This building will generate renewable energy, with solar heaters on the roof and a photovoltaic system.”

In fact, there are clear signs that each building is slightly different and notable for certain design aspects. Adjacent to building 209 are two buildings that share the same fi rst fl oor and so appear as non-identical twins. The front section of the building on the right is slanted. “What’s unique for the building on the right is the slope. All the tow-ers will have something different.”

Zone six is the centre of the district’s utili-ties. In a single strip, ‘U-Tunnel’, currently excavated, the whole district’s hot and cold water supplies, electricity cables, chiller systems and generators are situated. Also in zone six is SBG’s batching plant, producing all concrete and ready mix.

Two towers by Saudi Bin Laden which will share the same fi rst fl oor; the slant on the right will be a distinctive element.

Gross site area 1.6 million metres2

Total fl oor space provision 3.081 million metres2

Parking spaces61,970 Offi ce space1,65 million metres2

Residential space 626,811 metres2

Hotel space 152,511 metres2

Business space 52,838 metres2

Convention and exhibition 52,550 metres2

Retail space310,912 metres2

Government and Community67,558 metres2

Attractors 159,878 metres2

Measure formeasure

"Building 209 will generate renewable energy, with solar heaters and a photovoltaic system."


ON SITEON SITE

Though all tools and equipment on site needed for general construction of SBG’s towers are owned by the company, there are a few specialist additions. In particular are the 10 muscular trenchers, which carry out some of the excavation.

Haddad explains that these machines were procured from the US and Italy, and come with their own driver. “The trenchers are the equivalent of 50 jackhammers,” he says. “I believe we were the fi rst company to bring them to Saudi Arabia, and they are operated by the company itself; certainly the machines are not that common here.”

The tour reaches the Financial Plaza, the heart of the district and home to what will be the tallest building (number 1.16), at approx-imately 385 m. It will hold fi ve towers with a maximum depth of excavation of 22 m from ground level. In the biggest excavation plot the tallest building is very much clear from the added depth of its hole.

Sustainable building – with the LEED certifi cation at its heart – is central to SBG's

task on KAFD, and Haddad explained to delegates at the Construction Week: Building Sustainability conference in Riyadh what this has entailed for the project so far.

Building PP10 is registered under LEED V2.2, for which there are a possible 69 points. Building PP30 is registered under LEED V3, for which there are a possible 110 points. Haddad explains that some elements of sustainability – based mainly around the use and reuse of utilities – will be more fea-sible than others for this project, and that the company is in constant dialogue with the developers. The project aims to use a minimum of 10% recycled content based on actual total material cost, according to Haddad’s presentation.

Information fl ows from the designers to the LEED executive, then on to the LEED coordinators working across the four zones. “I was in California just a month ago, in meetings with the developers regarding the design and the direction for the LEED requirements. We look at which would be

more of a challenge to achieve and which we can do; they send the amendments back to me for review.”

If it all goes ahead as planned, the KAFD will be a defi ning point in the Kingdom’s renaissance. There is evidence that it is the most stable economy in the Gulf, even if this does depend on the price of oil. Some indicate that there is a direct correlation be-tween oil price and construction, with the peak prices per barrel seen in the last few years producing many new projects.

Perhaps it is fi tting that this project is cen-tre around fi nance, with the aim of providing a Gulf-leading venue for business, matching the country's domination of the world's hy-drocarbon markets.

“You can tell by looking at the project overall that each spot is used wisely and there is a good use of space,” says Haddad, coming back to the proximity of the build-ings. “When you have a lot of business buildings in a small space, it’s going to be a nice view.”

The trenchers, procured from the US and Italy (above); the U-Tunnel, containing all utilities.


UP FOR THE CUP

WORLD CUP STADIUMS


THE 2010 FIFA WORLD CUP IS UPON us and, as you follow the action over the coming weeks, thousands of spectators will fl ood through the gates of South

Africa’s best and newest sports stadiums to witness the action and drama unfold.

South Africa has pulled out all the stops to host the World Cup. It’s poured more than ZAR 17.4 billion (AED 8.1 billion) into the event, including ZAR 8.4 billion (AED 3.9 billion) for the construction of fi ve brand new stadiums and the substantial upgrade of fi ve others, and ZAR 9 billion (AED 4.2 billion) into transport and supportinginfrastructure works, solely for World Cup venues. On a far wider scale, the SouthAfrican government has also spent ZAR 400 billion (AED 188 billion) on the country'sinfrastructure – from rail freight services and energy production, to communications, airports and ports of entry – to gear itself for the event. The funding has enabled archi-tects, contractors and suppliers to have each stadium completed well ahead of schedule. With the eyes of the football world now fo-cused keenly on South Africa, Construction Week takes a look at each of the venues that will be used over the coming month.

THE FIVE NEW STADIUMSGreen Point Stadium, Cape TownCape Town’s Green Point Stadium is one of the largest of the fi ve new stadia completed in time for the 2010 FIFA World Cup.

South Africa has sunk billions into hosting the 2010 FIFA World Cup, with fi ve new stadiums and signifi cant upgrades to fi ve more. CW takes a closer look at what contractors made happen

WORLD CUP STADIUMS


Built at a cost of ZAR 3.25 billion (AED 1.5 billion), the stadium was designed by proj-ect GMP Architects of Germany and two local fi rms, Louis Karol and Associates and Point Architects.

It was built by Murray & Roberts (the com-pany contracted for the fi t-out, fi nishes and MEP of Terminal 3, Concourse 2 and the car park of the Dubai International Airport, along with local partner Al Habtoor Engineering

and Takenaka of Japan) and WBHO who completed the work in just 32 months.

The stadium seats 68,000, is 55m high and has a fabric façade and a steel cable tensioned glazed roof.

The project employed approximately 10,500 people, with 13.5 million hours worked. The superstructure was completed in October 2008 and project handed over in December 2009.

Moses Mabhida Stadium, DurbanOf all new stadiums built for in time for the 2010 FIFA World Cup, Durban’s Moses Mab-hida Stadium is easily the most impressive. It replaces the Kings Park Stadium which was demolished in 2006 to make way for the new sporting complex, and includes an adjoining indoor arena, sports museum, sport institute and a new transportation station.

Stadium: Green Point StadiumCity: Cape TownScope of work: complete constructionArchitect: GMP Architects Contractor: Murray & Roberts / WBHO joint venture Started: March 2007 Completed: December 2009 Cost: ZAR3.25bn/AED1.51bnCapacity: 68,000

FAST FACTS96,000m3 - Concrete used on project4,700 tons - The weight of the roof9,000 - Glass panels in the roof5,234,000 - Total bricks used

WORLD CUP STADIUMS


STADIUM CONSTRUCTION:The bottom line

Requirements for large-scale sta-dium construction can easily attack and escalate original cost estimates. More often than not, stadium projects are open to public input and debate because they’re usually funded by using public money – either through direct government grants, local taxes or lottery funding.

The overall budget can be affected in hundreds of ways: an unexpected increase in the cost of raw materials; land procurement and legal issues surrounding that; ecological and environmental plans and execution; rising transport costs; unforeseen infrastructure works – the costs soon mount up.

Take London's 2012 Olympics bid for example. Having secured the deal ahead of Paris, the original budget of GBP2bn (AED10.6bn) has since been revised to GBP9.3bn – almost fi ve times the original cost.

That has brought the project under close scrutiny by the government and tax-payers who are still strug-gling to shake off the effects of the credit crunch that gripped the nation and hit those in fi nancially strapped areas of the country - like East London, where the Games are to be hosted - hard.

As well as unforeseen problems during the initial construction phases, incremental cost increases in materials, labour and other services have added to the overall budget demand. The original £282m budget for the Olympic stadium has almost doubled to £525m, with an additional £22m requested to com-plete structural changes to the roof. Similar issues at other Olympic sites have also added to the overall bill.

Since grasping the nettle and looking at the project closely, the British government has been able to make signifi cant savings over recent months, managing to claw back £600m since the budget was revised in 2007, and say that despite initial budget overruns, the 2012 Olympics project remains on target, with 65% of the venues completed.

WORLD CUP STADIUMS

The stadium seats 70,000 and will host fi rst and second round matches of the World Cup, as well as quarter and semi-fi nals. Seat-ing can be increased to accommodate 84,000 for larger events, like the Olympics. The 106m high, 350m long steel archway is more than decorative too: a funicular cable car takes visi-tors up to the highest point where they can get out and enjoy the panoramic views of the city and ocean.

Mbombela Stadium, NelspruitOf the fi ve new stadiums built for the 2010 FIFA World Cup, the Mbombela venue is the only one designed by South African archi-tects. R&L Architects, based in Cape Town, involved international consultants in the proj-ect to design a stadium that was not only the least expensive of the fi ve new stadia, but also one of the most distinctly African venues.

Stadium: Moses Mabhida StadiumCity: DurbanScope of work: complete constructionArchitect: iBhola Lethu Contractor: Group 5 / WBHO / Pandev joint ventureWork started: July 2006Completed: November 2009Cost: ZAR3.4bn/AED1.6bnCapacity: 54,000 permanent, 84,000 maximum

FAST FACTS1780 - Pre-cast seating panels2,600 tons - Steel centre arch weight46,000m2 - Size of Tefl on-coated roof


WORLD CUP STADIUMS

The black-and-white zebra seats wereinspired by the nearby Kruger Park gamereserve, as are the 18-giraffe roof supports that jut skywards on the building’s exterior.

Designers kept things simple to keep costs down: the stadium is rectangular, so does away with the complex design and construc-tion required for rounded corners of moreelaborate stadiums; while local materialsupply also kept transport costs and carbon footprint at bay. Most of the labour for the project was also provided by local workers.

Mbombela stadium, fi ttingly, takes its name from the local municipality, which translated means ‘many people together in a small space’.

INSIGHT

Soccer City, JohannesburgSoweto is soccer mad, so Johannesburg’s Soccer City is going to be a hot-bed of excitement as it hosts fi rst and fi nal matches of the 2010 FIFA World Cup this month. Originally built in 1987, the venue has undergone a ZAR1.2b major rebuild that has added 10,000 more seats, 99 more corporate boxes and an encircling roof to keep sun and rain off spectators.

The renovation work included the partial demolition of the old stadium to make way for extensions to the

main grandstand, offi ces and brand new changing rooms. The lighting and PA systems were also upgraded. The stadium design represents a calabash, or African cooking pot which, in turn, is supposed to refl ect the region’s ‘melting pot of African cultures’.

Ellis Park, JohannesburgEllis Park is one of the most historic sporting grounds in South Africa and is better known by rugby fans as the place where the Springbox beat New Zealand’s

All Blacks to lift the 1995 Rugby World Cup. The stadium is right in the heart of Johannesburg and was originally built in 1927. It underwent a major rebuild in 1982 to extend capacity to 62,000 and, in 2008, Coca-Cola handed over ZAR480m (AED226m) for naming rights to the stadium. The cheque almost covered renovations required to bring the stadium up to FIFA World Cup standards: adding state-of-the-art media facilities, team whirlpools, top-class VIP areas for dignitaries, accessibility for disabled fans,

The RenovationsNew projects have taken the lion's share of the cash set aside for the World Cup, but major work was also required on existing stadia to increase capacity, update facilities and bring them up to FIFA's standards in time for the month-long event

Stadium: Mbombela StadiumRegion: NelspruitScope of work: complete constructionArchitect: RL Architects Contractor: Basil Read / Bouygues joint venture Work started: February 2007Completed: October 2009Cost: ZAR1.05bn/AED490mCapacity: 43,589

FAST FACTS5.5m - Man-hours that went in to the construction70% - Amount of workforce involved who were local to the area

Doha fi t for 2022 World Cup Qatar has outlined plans for massive investment in transport and sporting facilities as part of its audacious bid for the 2022 World Cup. Sheikh Mohammed bin Hamad bin Khalifa Al-Thani, the chairman of the Qatar 2022 Bid Committee, handed over a 750-page dossier to FIFA in May, that revealed detailed plans to build or redevelop a total of 12 football stadiums. The solar-powered, air-conditioned facilities will be developed if the country is successful in its World Cup bid. All of them will be designed to maintain a temperature of 28 degrees even during Qatar’s scorching summer months. Doha’s Asian Games in 2006 not only highlighted the region’s ability to host a successful international sporting event, but also left a legacy of world class sporting venues for its residents to enjoy, long afterthe games ended. Qatar Khalifa International Stadium, which had undergone a major renovation to increase capacity to 50,000 (from 20,000) and add international class facilities for the event – and was part of the wider 250-hectare Sports City development.


WORLD CUP STADIUMS

Nelson Mandela Stadium, Port ElizabethThe fi rst international class football stadium to be built in the Eastern Cape province, the Nelson Mandela Bay stadium is built on the shores of Port Elizabeth’s North End Lake and cost ZAR2.1bn (AED1bn) – more than eight times its original estimate.

Part of that additional cost included un-foreseen excavation works and construction of a channel to divert the lake’s water table away from the stadium’s foundations.

The stadium's construction was handled by a consortium made up of Grinaker-LTA, Interbeton and Ibhayi JV. It was built on

the site of the old Parks Rugby Club, and the Prince Alfred Park.

The stadium is designed to withstand the region’s notorious high winds and has been nick-named the Sunfl ower, with each of the “petals” constructed from a combina-tion of aluminium and a glass-fi bre coated material (polytetrafl uethylene) over a steel superstructure.

Peter Mokaba Stadium, PolokwaneLeading South African fi rm WBHO has been involved in the construction of three of the fi ve new World Cup stadia, and the Peter

Mokaba venue in Polokwane, the northern most of the 10 host cities, is right in the heart of the soccer crazy Limpopo region.

Like the Mbombela stadium, it leansheavily on the local region for its designinspiration: the Baobab tree-inspired struc-tural elements in each corner of the stadium support the main roof truss over its 172m span, while the undulating roof surface blends in with the local surroundings. Con-struction required 20,000m3 of excavation work and 52,000m3 of concrete (excluding formwork), while 9,000 tons of rebar was also used. The stadium seats 45,000 fans and cost ZAR1.24bn/AED580m to build.

a new pitch and a top-notch audio-visual setup, including new scoreboard, to keep the fans informed during the game.

Loftus Versfeld, PretoriaOne of the oldest stadiums in South Africa, Loftus Versfeld has hosted major sporting events since 1903.

Situated in the Tshwane/Pretoria region, Loftus Versfeld has undergone perennial upgrades to keep it at the forefront of national and international sports – and the latest includes a new

media centre that was constructed in the lower level of the west stand. Venue management was also required to fi t new fl oodlights, scoreboard and a sound system to fi t in with FIFA requirements, while a roof was also fi tted to keep sun and rain off spectators.

Royal Bafokeng, RustenburgConstructed in 1999, the Royal Bafokeng stadium in Phokeng, near the platinum-rich city of Rustenburg, has been extended to cater for 42,000 fans

and to bring it up to the requirements of FIFA, the sport’s governing body. The only privately owned stadium used for this year’s World Cup, Royal Bafokeng's committee appointed South African fi rm BSP Architects to design the larger western grandstand and its cantilever roof. The lighting, PA system and scoreboard were also upgraded, as were all of the facilities, including the media centre, operations centre and parking areas. The upgrade work cost AED 216m, almost four times the original build cost.

Free State Stadium, BloemfonteinNew turnstiles, a second tier of seating, better lighting and a new sound system should make the Free State Stadium a perfect venue for fi rst and second round matches. Originally built for the 1995 Rugby World Cup, the stadium has undergone a ZAR 287.4m (AED134.8m) upgrade that includes a major structural change to the main grandstand to house 7,000 more fans, while a new roof, better facilities and new entrance have helped rejuvenate the venue.

Stadium: Nelson Mandela Bay StadiumCity: Port ElizabethWork started: January 2007Completed: June 2009Scope of work: complete constructionCost: ZAR2.1bn/AED1.6bnCapacity: 45,000 permanent, 49,000 maximum

FAST FACTS138,000m3 - Total excavated material49,000 - Total seat capacity21,000m - Total length of piling6,800 -Jobs created during construction

Stadium: Peter Mokaba StadiumCity: PolokwaneScope of work: complete constructionArchitect: Prism Architects Contractor: WBHO / Paul JV Work began: March 2007Completed: June 2010Cost: ZAR1.24bn/AED580mCapacity: 45,000

FAST FACTS23km - Electrical cabling installed2,990,000 - Bricks used60,000m3 - Plaster used in fi t-out228 tons - Weight of trusses in the steel roof


EL SEIF ENGINEERING CONTRACTING

Company is one of the top con-struction companies in Saudi Arabia. Operating since the 1950s,

when it started out in the commerce and transport sectors, the company expanded into general contracting in the 1970s.

With more than 15,000 employees, El Seif is continuing to grow, securing high-profi le project work like packages on the Princess Noura Bint Abdulrahman University for Women. Growing resources, expanding ac-tivities and increasing involvement in regional property development, mean the company’s role as an instrument in the region’s progress is becoming increasingly signifi cant.

Here CW looks at the ten biggest projects that continue to build the company's reputa-tion for delivery.

Princess Noura Bint Abdulrahman University for Women – Package 3Value: 8 billion SR ($2.1 billion)Status: Under constructionEl Seif is preparing all infrastructure works in an 8 million m2 area for Package 3 of the mas-sive university complex. The work on one of the biggest and most noteworthy projects in the region includes civil, structural, mechani-cal and electrical works for utility buildings, infrastructure, landscaping, site grading, utility tunnels, fl y over bridges, road works, solid waste management, a sewerage treat-ment plant and the laying of 750,000 metres of pipes.

Al Falah Community Development Value: 2.6 billion SR ($693 million)Status: Under constructionAl Falah is a development from Aldarthat will provide around 5,000 homes for middle-income UAE families, as part of the Abu Dhabi government's housing initiative. The town centre will include a mix of civic buildings, a 65,000m2 mall, hospital, com-mercial offi ce space, a hotel and a sports and leisure complex. El Seif is constructing 2,022 housing units, using a pre-cast concretesuperstructure and pre-cast boundary walls. The contract includes all civil, architectural and electro-mechanical works.

King Abdullah Financial District – Parcels 3.04 & 3.05 Value: 1.4 billion SR ($373 million)Status: Under construction

Among the extensive work being carried out on developing the King Abdullah Financial District, El Seif is involved in the design and construction of four offi ces and residential high-rise buildings, with a total built-up area of 179,000m2.

Parcel 3.04 is a multi-use complex withoffi ces, residential apartments and retail. The buildings are a mixed occupancy complex, which includes four basement fl oors as car parking, an offi ce tower block (31 fl oors), an apartment tower block (23 fl oors) and apolice station (two fl oors).

Parcel 3.05 is another multi-use build-ing with offi ces, residential apartments andretail outlets. This parcel's buildings are to be composed of an 18-storey tower rising from a two storey podium block. This in turn will be built upon a four-storey underground park-ing basement.

El Seif’s top 10 projectsAs one of the top contractors in Saudi Arabia, as well as one of the oldest, El Seif Engineering Contracting Company has a strong portfolio of active and complete projects. CW reviews its top ten so far

CONTRACT REVIEW

The Green Community Motor City was a US $220 million job completed by El Seif.


CONTRACT REVIEW

Kingdom Tower Value: 1.03 billion SR ($274 million)Status: CompleteEl Seif was the main contractor for the con-struction of a building that has become an instantly recognisable landmark in Riyadh, the Kingdom Tower. The tower, which rises over 300 metres, combining a 180m concrete structure and 120m steel structure, is a mixed –use development and was constructed in the early part of this decade. Designed by Ellerbe Becket, the development features twopodiums with the tower as a centrepiece.

Green Community – Dubai Motor City Value: 827 million SR ($220.5 million)Status: CompleteThe community was built to provide work-ing and living space, in a relatively traffi c-free environment. Covering 67ha of residential, leisure, retail, and commercial properties, the project includes villas, townhouses, terraced apartments and garden apartments, recre-ation centres, hotel, commercial areas, and site infrastructure works.

Design and construction of weapons facilities at PSAB – Kharj, KFdAB – Taif and KAAB – Dhahran Value: Classifi edStatus: Under constructionEl Seif has taken on a collection of works for the Kingdom’s defence forces, all beingcarried out on strategic air bases. The scope of work includes 30 buildings, open andcovered parking, power sub-stations, security fencing, roads, infrastructure and other utili-ties. The project includes an added logistical challenge of being spread over three differ-ent and distant sites; Prince Sultan Airbase in Kharj, King Fahad Airbase in Taif, and King Abdulaziz Airbase in Dhahran.

Hamad Medical City – Doha Asian Games VillageValue: 661 million SR ($176 million)Status: CompleteThe Hamad Medical City was another large project, spread over multiple buildings. El Seif had to construct 31 buildings ranging between three and nine fl oors in height and comprising 871 accommodation units, with a total built-up area of 275,000m2. Challenges

included meeting the strict and very fi nal deadlines that would allow the structures to be used as the residential zones of the Asian Games Village. The buildings also had to be capable of being repurposed to suit the end-user Hamad Medical Corporation.

Information Technology & Communication Complex – Infrastructure Package Value: 243 million SR ($64.8 million)Status: CompleteIn two and a half years Saudi Arabia’scapital Riyadh will complete its Information Technology and Communications Complex (ITCC), the Kingdom’s fi rst “smart city”. In order to attract the world’s leading infor-mation technology and communicationscompanies to a place like Saudi Arabia, you need to offer the world’s best ITC services and infrastructure - this is the concept behind the Kingdom’s new US $1.65 billion (SR6.5 bil-lion) ITCC development. El Seif was involved in the construction and maintenance of all the vital infrastructure works, including ancillary buildings and site development on an area of 490,000m2. The work comprised civil works, architectural and electro-mechanical works and other external works, including a sewage treatment plant and concrete-encased fi bre optic cable network.

Project: Kingdom Hospital Value: 220 million SR ($58.6 million)Status: CompleteKingdom Hospital was built by El Seif and had to be developed to the highestinternational standards and specifi cations to meet the hospital’s stringent requirements. The scope included all construction works including medical and IT systems, furniture and fi ttings. The total fl oor area of the main hospital, accommodation and administration block is 45,000m2.

Five star hotel in Hail Value: 189 million SR ($50.4 million)Status: Under constructionEl Seif is working on a fi ve star hotel, located in Hail, which will include eight fl oors, with a total built-up area of 38,411m2. The 118 room hotel will contain 22 standard suites, 20duplex villas, fi ve living rooms, and twodiplomatic suites.

Kingdom Tower (top), packages in the King Abdullah Financial District (middle) and a fi ve star hotel (above) are part of El Seif's project portfolio.

PROJECT UPDATE

WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email: [email protected]

ON SITE CW reviews a collection of its most recent site and plant visits to keep you up to date with project progress


Central Sharjah is moving closer to a transformed road system to meet today’s traffic volume, following the latest milestone in Package 5 of the redevelopment of King Abdul Aziz Road. The latest completion of note, officially announced on 30th April, is the opening of the viaduct on the west side of Al Wahda Street. The viaduct crosses King Abdul Aziz Road at a 90 degree angle, itself a major project.

Concrete waste, from construction and demolition projects, now has an alter-native place to go, other than straight to landfill. The recently opened recycling facility in Al Dhafra, on the outskirts of Abu Dhabi, is crushing waste concrete into aggregate for use in road building. The plant will be able to produce up to 7000 tonnes a day, using crushers, con-veyors, screens and magnets to break the raw material down to size.

The Saudi Binladin Group for Industrial Precast operates out of Jeddah, a city with a whole street full of offices for the company and on the outskirts there are enormous factories and holding yards. The plant is supplying a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh and the King Abdullah University for Science and Technology.

AL WAHDA STREET

Location Sharjah

Visited May 2010

CONSTRUCTION AND DEMOLITION WASTE RECYCLING PLANT IN AL DHAFRA

LocationAbu Dhabi

VisitedMay 2010

SAUDI BINLADIN GROUP FOR INDUSTRIAL PRECAST

LocationJeddah

VisitedMay 2010

7000tDaily

production capacity

CONSTRUCTION WEEK JUNE 12–18, 2010 51

PROJECTS

Bavaria Gulf’s flagship Sandoval Gar-dens project has been an interesting mix of German and Arab expertise, and its townhouses are near to completion. The 36 townhouses are the first part of an AED260 million twin-development of the overall Sandoval Gardens. All town-houses conform to TUeV, a standard of quality that is a common benchmark, which means all construction and finishing is assessed by a third-party.

Dubai was thrown back into the limelight when the US $10 million Dubai World Cup kicked off at the new Meydan Racecourse in Nad El Sheba. The enormous 18.6 million m² project consists of four separate areas including the development’s central feature, the Racecourse with Meydan Hotel. Meydan City Corporation has announced plans to build an equestrian city in China’s Tianjin province.

In 1997, way before the construction boom really took off, Dubai Invest-ments’ management took it upon themselves to lay foundations across 24 million m2 of desert and start building a mixed-use city from scratch. In March, the developer announced the launch of the final phase of development, which is set to become a hub for logistics services spread across 500,000m2. Construction was due to start in May.

UAE-based Alec was awarded the main contract to build the US $816 million Mirdif City Centre in September 2007, with construction getting under way almost immediately. Developed by Majid Al Futtaim Properties, more than 16000 jobs were created at the peak of the design and build stage. The team behind the mall are hoping for a Leed Gold rating, to reflect the work they did to make the building sustainable.

SANDOVAL GARDENS

Location Dubai

Visited April 2010

MEYDAN

Location Dubai

Visited March 2010

DUBAI INVESTMENTS PARK

Location Dubai

Visited March 2010

MIRDIF CITY CENTRE

Location Dubai

Visited April 2010

24Million m2 of

desert is what DIP started

with


PROJECTS

Central Market was named Abu Dhabi’s safest construction site just prior to Construction Week’s visit. The project combines three super-tall towers with an Arabian Souk and covers 5.2 million m2. With more than 6000 men on site at any time, the contractor, Arabian Construction Company is proud of its safety record and the measures it takes to keep all of its workforce safe on the massive site.

Infinity Tower, located in the Dubai Marina, is set apart from its neighbours by its rotating structure and is spiraling into the sky at a fast pace. Each slab plate rotates 1.08 degrees around a fixed cylinder core. Once the tower is complete, the 73 floors will add up to a cumulative 90 degree angle. There are no pillars in the building; instead it is supported via a complex concrete column structure.

Business Bay's U-Bora towers is being built by Korean firm Bando, the project features a podium with a curved residence building, which has a roofline that sweeps from 12 levels at one end, up to 16 at the other. The build was started back in 2007, initially with Simplex acting as subcontractor. The subcontractor left site in September 2008, leaving Bando both as developer and lead contractor.

CENTRAL MARKET

Location Abu Dhabi

Visited January 2010

INFINITY TOWER

Location Dubai

Visited February 2010

U-BORA TOWERS

Location Dubai

Visited March 2010

Construction of Ocean heights tower began in August 2007. The US $175.6 million (AED645 million) main contract was awarded to Arabtec. As it rises, the tower’s floor plates reduce in size, allowing the rotation to become even more pronounced. At the peak of construction, there were 30 contractors and 2000 people on site. On December 23, 2009 – 23 days ahead of schedule – the building was topped off at 310m.

OCEAN HEIGHTS

Location Dubai

Visited March 2010

4

6000

Levels of difference in U-Bora

towers

Number of men on site at any one

time

CONSTRUCTION WEEK JUNE 12–18, 2010 53

PROJECTS

South of Shamka will comprise of 10,000 new villas, taking up no less than 17 million m2. In January it was at the ground works stage, operations have been split between Tristar Contracting and Bin Nawi Contracting. The site was using a GPS package from Topcon. This comprised a system fitted to two bull-dozers, with a base station and a ‘rover’ – another device which clamps to the side of a car for readings on the move.

The construction of Phase III of The Avenues, Kuwait’s largest shopping mall, is steadily progressing in the Al Rai district of Kuwait City. The mall has been designed by the London and Los Angeles offices of global architectural practice Gensler. Kuwait’s Mabanee is developing the project. Phase III of The Avenues will consist of more than 86,000m2 of retail space and is sched-uled for completion in early 2012.

Sahara Livings is a residential develop-ment consisting of 84 villas spread across an area of 18,116m² in Dubai Industrial City. Reem Dubai Contracting was given 548 days to complete the project after being awarded the main construction contract in February 2009 and, in December 15% of the development had been completed, with a total of 78 villas currently under construction.

Possibly the most famous building in the world and certainly the tallest, the Burj Khalifa got its official opening in the early days of 2010. Big name contractors such as Arabtec and Besix were involved in the record-breaking build, which also played on the skills of Hyder Consulting and Depa. Developer Emaar made claim to eight world records, all based around the tower’s height and accompanying features.

SOUTH OF SHAMKA

Location Abu Dhabi


THE AVENUES

Location Kuwait

Visited December 2009

SAHARA LIVINGS

Location Dubai

Visited December 2009

BURJ KHALIFA

Location Dubai


2O12Date for

finishing The Avenues

54 CONSTRUCTION WEEK JUNE 12-18 , 2010

TIPS FOR JOB SEEKERS

Research the organisation and the roleTaking time to learn as much as possible about the company’s services and products, as well as its customers and competi-tors, will give you an edge dur-ing the interview.

This knowledge is the founda-tion on which you will construct answers that demonstrate your ability to perform in the role. Being able to demonstrate this information also highlights your diligent and conscientious approach – fi ne attributes in any prospective employee.

Look the partMake sure you look the part – even if the working environment is casual you should be “suited and booted”. This will not only ensure you make a good fi rst impression, but if you know you look good you will feel more confi dent and comfortable dur-ing the interview.

Know your CVOften an interview will be based around the experience you have outlined in your CV. Ensure that you are familiar with the contents of your CV, including any gaps in employment.

You will come across badly if you are unable to refer ac-curately to the CV you submit-ted for the role, and you could give the impression that you have not provided an honest summary of your background, experience and skills.

In an unsurprising move Abdulrahman Al Zamil has been re-elected as chairman of the board of Zamil Industrial Investment Company (Zamil Industrial). The news came in a note issued to the Tadawul Stock Ex-change, in Saudi Arabia. The Dammam-based manufac-turing and fabrication giant also appointed members of its executive, audit, nomination and remuneration

committees. Consultancy Buro Happold has appointed Oliver Plunkett as its new country director for Saudi Arabia. Plunkett is replacing Phil Dalglish (pictured above), who has been moved to a role as business development director for the Middle East re-gion. Other new appontments made by the company include the naming of Robert Okpala as its new regional discipline leader for Building Environment. Martin Tillman has been appointed to lead the consultancy's transportation team in the region. Charles Collet (right) will head up Aedas’ new offi ce in Riyadh, Saudi Arabia. Aedas reports that it plans to open further offi ces in Saudi Arabia, with the next one planned for Jeddah. It anticipates relocating senior staff to Riyadh and Jeddah to work on its projects in KSA.

Shuffle

APPOINTMENTS

3 TOP JOBSFor more jobs visit constructionweekonline.com/jobs. Please apply directly to the listed consultants.

Role: Mechanical engineerAgency: Clarendon Parker ME

An engineering company based in Abu Dhabi is currently seeking a mechanical engineer to assist the projects manager with the management of new projects

The role requires strong experience in mechanical engineering, eight-plus years of experience in industrial construc-tion, such as the erection of steel structure factories, as well as strong planning skills. The ideal applicant will have experience in reviewing and supervising contractors work, including evaluating and verifying indus-trial drawings. They will also be experienced working with design consultants, reviewing challeng-ing production line design, and assessing quality and accuracy.

Role: Director of ProjectsAgency: GTS Consultants

The director of projects is the most senior of seven appoint-ments looking to be made for the direction and delivery of a di-verse and expansive portfolio of projects in realty and hospitality.

The roles are based in India and the right candidates will be delivery focused construc-tion professionals from main contractors, consultants, PMC or developers, with experience of delivering multiple projects simultaneously, with individual project values in excess of $100 million. Successful applicants will be construction graduates or equivalent, have more than 15 years of experience in high-quality hospitality, residential or commercial developments.

Role: Procurement offi cerAgency: First Select

A multinational company based is looking for a procure-ment manager for its offi ce in Bangladesh. The ideal candidate must have bachelor's degree in business or public administra-tion, or certifi cation as a certifi ed public purchasing offi cer, certi-fi ed purchasing manager. The job responsibility includes; involved in a variety of procurement activities including preparation of specifi cations, bidding process, contracts, renewal and monitor-ing of contracts. A minimum of eight years experience is required in the same fi eld, which involved supervising the procurement activities of a high volume section including experience in contract administration and writing.

munerationOliver unkett n movede East re-lude ne en

m

extstaff

For directory information visit constructionweekonline.com/directory


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This is my tenth year working in Dubai. I’ve had a ball, no two ways

about it. But yep, let’s not kid ourselves, work is drying up big time. So where next? I am seriously considering Saudi Arabia. Each day more work seems to be appearing in the Kingdom. All the talk this week on our site has been about a $200 million-plus contract for the new headquarters of Samba (formerly Saudi American Bank) about to be announced. I hear it will be built in Riyadh’s King Abdullah Financial District, to house the company’s banking operations, as well as all the usual retail, offi ces, leisure and VIP areas.

Sounds good to me – and better still, I see that Saudi Arabia has issued a midday summer ban for work outdoors starting next year, fi nally bringing the kingdom in line with other GCC countries. From the beginning of July to the end of August, from 2011, companies will be prevented from making employees work outside between the hours of 12 noon, until 3pm. All anyone has to say on the subject is that it's about time.

Born in the KSA

FOREMAN

fi rst indoor ski “mountain.” And we did all this for just $272 million. Beat that Egypt!

Safety rantPersonally, I don't go anywhere without a hard hat, but I was staring out the window of a cab, on one of those long drives down Sheikh Zayed Road, when I gagged at the sight of awful site safety.

A low rise building under construction in Al Barsha had a brace of men on top of the building's scaffold. I hope they had excellent balance, because they were sharing either end of a single, unsecured, plank and

Slippery slope: a replica of Ski Dubai could soon be under construction in Egypt. Meanwhile, the worker above is fully protected in case of a fall, just the way things should be done.

Snow jokeMy favourite time in Dubai was a four years ago when I worked on the Mall of the Emirates development. My own gang were stationed on the massive indoor ski slope project, which was no easy task – the plus side was we didn’t have to worry too much about the heat once the ice machines were switched on. It was a great experience, and one I thought could never be repeated.

Until now. Word reaches me that developers in Egypt have been so impressed not just by the Ski Dubai design and construction, but the huge fi nancial success it has had. So guess what – they are planning to do precisely the same. Details are still sketchy and I will keep you posted, but so far it appears fi nal talks are underway with a couple of big name local contractors.

I wish them well, but they will have some job replicating what we put together: Ski Dubai is a massive 85 metres wide and 80 metres high, it has fi ve slopes and 6,000 metric tones of snow – that’s the equivalent of three football pitches. One slope is 400 metres, making it the Gulf’s

neither was wearing a scrap of PPE, let alone anything as useful as a harness.

The S-wordI had a couple of pals attend last week’s Construction Week conference in Riyadh. They tell me that while it was generally positive stuff, when it comes to ‘sustainability’ in Saudi Arabia there will always be a few who, shall we say, register some mild doubt.

“Let me make it clear that I prefer not to use the ‘S’ word, as I believe that it has become severely devalued,” one delegate explained.

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