mep volume 8 april 2013 issue

8/12/2019 MEP Volume 8 April 2013 Issue

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HVAC

UPDATEO

NPAGE12

MIDDLE EASTNEWS UPDATE |03

BIG PICTURE |07

COMMENT |14

ANALYSIS |16

PRODUCTS |52

THE LAST WORD |56An ITP Business Publication |April 2011 Vol. 6 Issue ssential information for mechanical, electrical, plumbing and HVAC professionals An ITP Business Publication |April 2013 Vol. 8 Issue 04

BREAKINGHabtoor Leighton Specons ThrasosThrasyvoulouon why his companyis looking ahead to new markets

NEW GROUND

INTO THE

UNKNOWNThe mystery of the KuwaitiMEP market and themen in its midst

KUWAIT FOCUS

COMMISSION MAN

Paul Kirby

of Commtechonhis companysrace to the top

PIPEWORK

Future PipeIndustries

and itsprogressiveAbu Dhabi

facility

This year will see

our efforts in 2012

to move into other

countries materialising,

particularly in Iraq and

Saudi Arabia.

Thrasos Thrasyvoulou

ALSO: ENGINEERING GENIUS - A NEW WAY OF WORKING


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www.constructionweekonline.com April 2013|MEP Middle East 1

APRIL 2013VOLUME 8 ISSUE 04

CONTENTS

03 NEWS

Drake and Scull lands $83.5mmixed-use contract in Doha

08 NEWS UPDATEMEDC to invest $431.2m inMuscat grid and substations

14 COMMENT

Dr. Ozan Koseoglu on how BIM can transform the MENA region

16 ANALYSISWhat will Dubais 2014 greenbuilding regulations mean?

52 PRODUCT FOCUS

Check out the latest MEPrelated products in the market

56 THE LAST WORD

Kirk Rosenbaum of KEOConsultants on fire safety

COMMISSION MAN

Commtechs Paul Kirby on why he thinks

his company will soon be number one.

ENGINEERING GENIUS

Lee Hall from Atkins analyses the effectsof the trend towards design and build.

INTO THE UNKNOWNMEP Middle Eastunravels the mysteriesof the Kuwaiti MEP market.

20

28

26

BIG INTERVIEWThrasos Thrasyvoulou tellsMEP Middle East that his company is ready for anassault on new markets across the Gulf.

SITE VISITMEP Middle Eastvisits Future Pipe Industries manufacturing facility in Abu Dhabi to

discover what lies ahead for the pipe producer.

20

42

36

32


4/60

EDITORS NOTE

2MEP Middle East |April 2013

The cost of

undercuttingI

n my discussions with MEP contrac-

tors recently, a recurring theme has

been their difficulty in securing pro-

jects due to the unrealistic pricing strate-

gies of some of their competitors. While

competition is healthy for any industry

driving innovation, encouraging crea-

tive business strategies and improving

standards there is a point where it can

become an insanely destructive force.

From what I can gather, the MEP industry may have reachedthis point. Reports of contracts being awarded at less than most

bidders costs have become depressingly common and have left

many scratching thier heads as to how the winning contractors

hope to make a profit from these projects. Some have exhausted

all avenues in their determination to find out how these figures

might add up, but have had to reach the infuriating conclusion

that it cannot be done without making a loss. Which begs the

question, what are these undercutting contractors up to? What

magic formula have they uncovered that has escaped some of

the best estimation minds in the industry?

In this issues Big Interview, Thrasos Thrasyvoulou, man-

aging director of Habtoor Leighton Specon, decries the un-

dercutting trend which has beset the industry in recent times,

asking what is the point of running a business if not to make aprofit. Those making these reckless decisions to bid at such low

prices are inevitably risking the security of their own businesses

and those who work for them. But they are also damaging the

wider industry, depriving reputable contractors the oppor tunity

to deliver quality jobs at a reasonable price, and damaging the

reputation of the MEP industry as a whole.

Of course, main contractors are not blameless in all of this

either. They have encouraged this price war and have benefitted

from it on those occasions when undercutting MEP contractors

have surprisingly managed to struggle their way to delivery,

even if the standard of material and MEP engineering on such

projects have a damaging question mark over them. Other pro-

jects have seen undercutting MEP contractors run into trouble,

requiring the assistance of those they undercut initially.Thankfully, as Thrasyvoulou reveals in his interview, many

main contractors seem to have realised the danger of squeezing

sub-contractors to danger point. It can only be hoped that those

MEP contractors more inclined towards quality and realism are

rewarded for their values in future.

Cathal [email protected]

or views on this issue, please [email protected]. For subscriptionsand more information, visitwww.itp.com/subscription. More storiesat www.

constructionweekonline.com

If youhave any

comment

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www.constructionweekonline.com

NEWS UPDATE

April 2013|MEP Middle East3

CONTRACT

Drake & Scull Qatarhas landed an $83.5mdeal for the design,supply and installa-tion of MEP works for

a mixed-use projectin Doha.The company said

that the works coversubstructure and su-perstructure workson a project contain-ing three superblockshousing various struc-tures including residen-tial buildings, schools,ultilities, offices andretail buildings.

Drake & Scull Qa-

tars area general man-ager Karem Akawisaid: The develop-ment serves as one ofour flagship projectsin Qatar that stronglydemonstrates thefull spectrum of ourservice portfolio.

Our integrated EPC

The news of the Qatarwin was followed by con-tract awards for Drake& Scull International(DSI) worth $100.5mfor the construction ofthree projects in Saudi

Arabia and the UnitedArab Emirates.

The contracts include

$78m worth of workawarded by Al Rajhi Bankto construct the bankscash centre, operationscentre and a data cen-tre facility in Riyadh. Afurther contract worth$22m was secured forthe construction of a gov-ernment utility project in

Abu Dhabi.Commenting on the

award Saleh Muradweij,executive director ofDrake & Scull Construc-tion, said: These proj-ects are indicative of thefavourable market condi-tions and the aggressivepace of development be-

Dubai-based contractor announces contract win which will see company execute design,supply and installation of MEP works as group wins in KSA and UAE promise further work

Karem Akawi, Qatar general manager, Drake & Scull lauded the win.

ing undertaken acrossthe public and privatesectors in two of ourmain growth markets.DSIs broad expertisein general contract-ing and our deep un-derstanding of theregional constructionlandscape will allow us

to deliver on time ournew contracts with AlRajhi Bank in KSA andthe utility project in

Abu Dhabi.He added that DSI is

well suited to executedata centre projectsgiven their experiencein electrical systems.

Drake & Scull secures $83.5mQatar deal for mixed-use project

366.7%:

2012increa

sein

netloss

FAIR SHAREPROFIT AND PAYOUT

ARABIAN PIPES COMPANY LAST 12 MONTHS TRADING Source: Bloomberg

ARABIAN PIPES COMPANY:

2012 results

$181.3M:2012 turnover

247.3%:2012 rise in

turnover

-$5.5M:2012 net loss

solutions and particularlythe MEP and the Water& Power are vital factorsthat will strengthen ourpresence in Qatar, which

we expect to develop intoa long-term market on par

with other regional pow-erhouse markets such asKSA and the UAE.

The development serves as

one of our flagship projects in Qatar

that strongly demonstrates the full

spectrum of our service portfolio.Karem Akawi, Qatar general manager, Drake & Scull


6/60

NEWS UPDATE

4 MEP Middle East |April 2013 www.constructionweekonline.com

Wasim Haider, general manager, Al-Futtaim Engineering BPD. Tawar Mall will include over 100 retail shops and a Cineplex.

CONTRACT

CONTRACT

Al -Futtaim Engineering has signed multi -mil lion dir-ham contracts with two UAE hotels for the supply of

various sanitary ware and plumbing products .The contract wil l see Al-Futtaims Building Prod-

ucts Division (BPD) provide the Waldorf Astoria Hotelon Dubais Palm Jumeriah and Abu Dhabis SouthernSun Hotel clients with TOTO sanitary ware, faucetsand accessories.

Wasim Haider, general manager of Al -Futt aim En-gineerings BPD, said: These prestigious contractsdemonstrate strong confidence in Al-Futtaim Engi-neerings reputation for quality products and excellent

project management capabilities. Our expertise, yearsof experience and support from our principals, willenable our project teams to meet the highest levels ofdelivery standards.

Headquartered in Dubai, Al-Futtaim EngineeringsBPD has delivered hospitality projects such as thePark Hyatt Hotel, Dusit Thani, Eastern Mangrovesand Crowne Plaza in Abu Dhabi, and Intercontinen-tal Hotel, Radisson Royal, Conrad Hotel, Novotel andPullman Hotel in Dubai amongst others.

The Saudi Electricit y Company (SEC) has signed three deals worth $263m forprojects to improve the power grid in a number of major Saudi cities.The first of the deals is a 29-month contract worth $59.74m to establish a sub-

station and a series of transmission lines and underground cables in Madinah.The second deal is a $141m contract to build a 380kv network of cables within

the city of Makkah. According to Saudi Electr icity Companys CEO, the dealwill strengthen cable links in the holy cit y and is estimated to take 23 monthsto complete.The third contract to install underground 380kv cables in Jeddah is worth

$71.5m and is expected to take 29 months to complete.

SEC revealed that all of the contracts were awarded to Saudi companies.

CONTRACT

Arabian MEP Contracting has won a contract for theMEP works on the Tawar Mall project in Dohas Du-hail area. The contract was awarded directly by theclient for an undisclosed sum.

With a tota l built up area of 241,50 0m, Tawar Mallwill be comprised of three basement floors, a groundfloor and three aboveground floors.

Arabian MEP Contract ings scope of work involvesproviding MEP building services which includes a6,250 TR (tonnes of refrigeration) capacity HVAC(heating, ventilation, and air-conditioning) water-cooled centrifugal chiller system, plumbing, drainage,

firefighting, electrical and ELV (extra-low voltage)systems including a car parking management system.

Commenting on the award, Vasanth Kumar, CEO ofArabian MEP Contracting, said: We are del ighted towin this prestig ious Tawar Mall contract which adds toour large port folio of mall projects.

Tawar Mall will include an entertainment area andin the basement levels, hundreds of retail shops in theground and first floor levels, and a 12-screen Cineplex,large food court and 80-room hotel in the upper floors.

SEC awards $263m worth of contracts

Al-Futtaim inks twoUAE hotel supply deals

Arabian MEP winsdeal for Tawar Mall

COPPER

NICKEL

STEEL

METALS PRICES

Source: London MetalExchange Prices per tonne

$7,55018 March

$8,21615 February

$20518 March

$26515 February

$16,55018 March

$18,23015 February


7/60

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NEWS UPDATE


AL RAHBA HOSPITAL IN ABU DHABI ISSUES TENDER FOR MEP MAINTENANCE

MEP firms are being invited totemder for a three-year contract totaintain electro-mechanical servicesat Al Rahba Hospital in Abu Dhabi.Firms interested in bidding

for the contract can collect ten-der documents from the hospi-tals purchasing section between8.00am-2pm daily.

Companies looking for more infor-mation can contact the hospital on02 506 4035.Al Rahba Hospital opened in 2003and has been managed by health-care group John Hopkins Interna-tional since 2008.The facility is licensed for 163beds, but currently operates 116

beds and has recently expanded itsneo-natal intensive care unit.Located on the Sheikh Maktoum

Bin Rashid Road in the northernpart of the UAEs capital city, thehospital is managed by John Hop-kins International under patron-age of SEHA & Health Authority of

Abu Dhabi.

PROJECT

Work on Abu Dhabis $1.6bn ClevelandClinic project has been delayed by aroundfour months.

The joint venture partnership buildingthe hospital was initially due to hand overthe hospital in March following a three-

year construction period, but will not nowcomplete the work until July.The hospital is being built under a

$1.4bn contract by partners Six Construct(which owns 60% of the joint venture)and South Korean firm Samsung C&T(40%) - the same team which built DubaisBurj Khalifa.

In a filing to the South Korean stockmarket, Samsung said that its contracthad been varied from an initial period of36 months to 40 months, and that insteadof completing it by March 3 it will now behanded over to the client , Abu Dhabi Gov-

ernment-owned Mubadala DevelopmentCompany, on July 2.

The huge new facility at Al Maryah Is-land (formerly Sowwah Island) was initial-ly meant to accept new patients from June.Once complete, the building will be thelargest structural steel building in theUAE, weighing in at more than 30,000tonnes. The project has been developedfor Mubadala by Aldar Properties and hasbeen designed by Aedas, with Henning-son, Durham and Richardson serving asproject architects.

ClevelandClinic to bedelayed by upto four months

Qatar Solar Technologies

powers Passivhaus projectSOLAR POWER

Qatar Solar Technologies (QSTec) has presented Barwawit h the first of 136 solar modules that will be used to powerQatars Passivhaus-Baytna project.

When installed, the SolarWorld-QSTec photovoltaic mono-crystalline silicon panels will provide all of Passivhaus electric -ity requirements, with excess power being exported back intoKahramaas power grid.

Dr Khalid K. Al Hajri, QSTec chairman and CEO,said: QSTec aims to bring solar into the mainstream of Qa-

tars energy mix. Solar is recognised as Qatars primary renew-able energy technology and an essential part of our sustainableenergy future.

Barwas Passivhaus-Baytna project will demonstrate that,by using solar and environmental technologies, you can buildquality homes and buildings, complete with all the latest mod-ern conveniences, while substantially reducing our carbonfootprint and protecting the environment for future genera-tions, he added.

The QSTec-supplied high-efficiency panels have an installedpower of 34 kilowatt peak and will produce around 58,000kilowatt hours of electricity per year. Using this solar powersystem to supply Barwas Passivhaus will help avoid approxi-mately 35 metric tons of CO emissions per year.

The Passivhaus-Baytna project will have two identical 225mvillas built side-by-side in Barwa City to compare the energyuse and environmental footprint of each dwelling.

A regular villa is being constructed to a one-star GlobalSustainability Assessment System (GSAS) standard while thePassivhaus villa, with all the comforts of a modern home, willconsume 50% less energy and water, resulting in a halving ofof its carbon footprint. The villas will be ready for occupationlater this year.

QSTec and its partners are leading the way in providinghigh quality solar solutions to Qatar and the region and weare proud to be a part of this ground-breaking project, Dr AlHajri added.

Barwa receives first of 136 solar modules set to power eco-villa

The project will have 136 solar modules.

QSTec aims

to bring solar into

the mainstream

of Qatars energy

mix. Solar is

recognised asQatars primary

renewable energy

technology and

an essential part

of our sustainable

energy future.


9/60


NEWS UPDATE

April 2013|MEP Middle East 7

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The Burj Al Salam project has one of the most exclusive addresses in Dubai.Situated just opposite the citys World Trade Centre at Number One Sheikh ZayedRoad, the project will be home to a 477-room hotel, offices and 180 servicedapartments. The development comprises three towers linked at the base by alarge podium and boasts four basement levels, a ground floor, mezzanine, 54upper floors, two mechanical floors, and a 14-storey car park at its rear.

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10/60

NEWS UPDATE


Contractors [areventuring] into

Oman, with littleknowledge of theresponsibility oftraining and em-ployingnationalyouth.

SURESH VIRMANI,Head of BahwanEngineer-ing Group[BEC]

ga

.

MANI,wan

The technical com-plexities of con-

necting embeddedgeneration schemesto distribution net-works are every-where.

RICHARD SAXON,

director of powerdistribution, ParsonsBrinckerhoff

ns

INFRASTRUCTURE

Muscats electricity network is to receive $431.2m of investment inhigh-voltage (33kV and 11kV) and low-voltage networks as well asa number of new stations, according to Eng Abdullah bin Said alBadri, CEO of Muscat Electricity Distribution Co. (MEDC).

The new stations, which will be developed in associationwith Oman Electricity Transmission Co (OETC), are part ofthe companys 2012-14 project plans and are designed to meet

increasing demand for energy in Muscat governorate.This will include meeting the needs of residential layouts forenergy, as well as enhancing existing distr ibution networks andexpanding them to include residential layouts in the wilayats ofSeeb, Amerat and Bausher.

Badri also revealed that MEDC is preparing a strategyto deal with customer complaints over meter readings anddelayed bills. He said that the company is working closely withproviders of meter-reading, billing and collection services toimprove performance.

MEDC has recently starteda self-reading service anddeveloped solutions that help thecostumer be part of the solution,

according to Badri.This requires end-users

to relay the meters readingto the company by eithercompleting a meter-readingform, by e-mail, sending SMSto the companys web portal orthrough the call centre or viasmartphone applications.

MEDC also reveals plans for new stationsin bid to meet governates rising demand

Muscat to invest

$431.2m in gridSMART GRIDS

Qatars Kahramaa has formed a high-level,six-member committee to promote theconcept of smart electricity grids in Qatar.

The commit tee has been establ ishedby Eng. Essa bin Hilal Al Kuwari, thepresident of Qatar General Electricity &

Water Corporation (K ahramaa).The aim of the new committee is to look

after the ongoing smart network project

for the electricity and water sectors, saidEng. Al Kuwari.The six-member commit tee headed by

Eng. Ali Al Ali, conservation and energyefficiency department manager, willstudy the current situation and suggestan action plan to implement transfer tosmart networks.

The commit tee wil l submit a thoroughreport perta ining to the general strategy ofKahramaa for implementing this project.

Kahramaa is developing intelligentsolutions ranging from networkmanagement to distribution, in order to

guarantee a high level of reliability infuture power and water supply.

In January Kahramma launched a smartgrid pilot project in Duhail, which will beimplemented in two phases in cooperation

with Iberdrola, a Spanish private electr icutility company. The first phase will havean installed capacity to produce 3 to 5MWof electricity and about 500m of water.Both 33 and 11kv networks will be built.

Kahramaa takesaction to promote

smart electricity

The concept ofFM is way, way

behind in Saudi,but the concept iscrucial and a goldmine of opportu-nities inthe mar-ket.

YASSER AL

SHARIF,CEO,ManafeaHolding

Co.

The reason forfires in warehous-

es is often sub-standard cable,but the savingin cheaper cableagainst thewholeproject isminimal.

ANDREW SHAW,

managingdirector,

Ducab

eaper cableinst t ee

ect isima .

SHAW,

g

s nar-

L

2013 CALENDAR

EVENTS

AWARDS

APRIL

Cityscape Abu Dhabi16-18 AprilPlace: Abu Dhabi National Exhibition Centre

MAY

Project QatarDate: 6 9 MayPlace: Doha Exhibition Centre

NOVEMBER

Big 5 DubaiDate: 25-28 NovemberPlace: Dubai World Trade Centre

MAY

Construction Week AwardsDate: Tuesday 7 MayPlace: TBA

JUNE

Facilities Management AwardsDate: Tuesday 4 JunePlace: TBA

SEPTEMBER

Construction Week Awards KuwaitDate: Tuesday 17 September

NOVEMBER

MEP AwardsDate: Wednesday 13 November

DECEMBER

Construction Week Awards KSADate: Tuesday 3 December

Construction Week AwardsDate: Wednesday 11 December


11/60

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NEWS UPDATE

10 MEP Middle East |April13 www.constructionweekonline.com

DISTRICT COOLING

Empower has recordeda net profit of $51.7m forfiscal year ended Decem-ber 2012, representing a17% increase over 2011.

The district coolingcompanys total rev-enues reached $190.9m,an increase of 5% overprevious year.

Announcing the re-sults at a press confer-ence in Dubais GrandHyatt, Ahmed Bin Shafar,CEO of Empower, said:Empower achieved anannual increase of 8% inits cooling capacity, withover 400,000 refrigera-

tion tonnes (RT) in 2012.The company boosted

its production and com-missioned new plants as

well as launching newcustomer service and callcentres in 2012. It also re-inforced its commitmenttowards the environmentby maximising the usageof treated water for dis-trict cooling, instead ofnormal water.

Bin Shafar said that

the company increasedits workforce by 9% in2012, adding: The dis-trict cooling industryachieved significantgrowth in the UAE andGCC in 2012, and GCCgovernments are nowmore determined toadopt it, thus reducingtheir dependence onconventional cooling sys-tems.

In 2012, Empower

settled loans amount-

HSSG will carry out the shoring and enabling works for Empowers new DC plant in Business Bay.

TES (Thermal EnergyStorage) requirementsof the Dubai Execu-tive Council Directiveaimed at environmentalresources, including wa-

ter, in providing districtcooling services.Upon completion, the

new plant will provide34,000 RT (Refrigera-tion Tonnes) to meet theneeds of the BusinessBay residents, business-es and offices.

Commenting on theaward, Bin Shafar said:We awarded this projectto Al Habtoor STFA SoilGroup LLC (HSSG) as

the company is handlingprojects of a similar na-ture in Business Bay. Wealways select our con-structors after due dili-gence and we have cho-sen this company for itsrecord and experience inthe UAE in this domain.

The implementationof the contract will takethree months. We aregetting ready to open thetender to appoint the pri-

mary constructor to buildthe plant, with preferencebeing given to local com-panies and those that we

worked with in the past.The new plant will

serve the needs of resi-dents and offices basedin Business Bay aroundthe area of Al KhailRoad. It will increase theproduction capacity ofEmpower by 10% once itis up and running, Bin

Shafar added.

Empower posts 2012 profit of

$51.7m as Bay deal is awardedDistrict cooling provider announces 17% increase in net profit and 5% increase in revenues from

2011 following award to HSSG for shoring and enabling works on new Business Bay DC plant

ing to $64m as per theagreed schedules whichdemonstrate the robust-ness and sustainabilityof Empowers businessmodel and effectivenessof its financial strategy,the company said ina statement.

Empower said it hasadopted a business model

that works on the strate-gy of investing in plantsand network infrastruc-ture driven by actualdemand in specific proj-ects. This has resulted insustainable growth of thecompany and avoided un-productive investments.

The company boosted its production andcommissioned new plants as well as launching new

customer service and call centres in 2012.

During the last year,Empower invested inenhancing its infrastruc-ture in a number of realestate projects, includingBusiness Bay, TECOMSite C, DHCC Phase 2and Mirdiff.

Bin Shafar revealedat the press conferencethat Empowers strategy

was to focus on the UA Emarket before expand-ing its footprint to otherregional markets. Headded: We are open totransferring our know-how and technology toother peers in the region.

We have got inquiries for

potential joint venturesin many markets and we

would like to do this atthe right time.

The results announce-ment followed the com-panys award of a contractto Al Habtoor STFA SoilGroup LLC (HSSG) forcarrying out shoring andenabling works for its

Empowers new districtcooling plant in DubaisBusiness Bay.

The new facility isthe first district coolingplant to be constructedin Dubai compliant withthe new TSE (TreatedSewage Effluent) and


13/60


NEWS UPDATE

April13|MEP Middle East11

GREEN BUILDING

DEWAs Sustainable Build-ing, which is the largestgovernment building in theworld to secure a LEEDPlatinum rating for green

buildings, has openedfor business.The buildings green

features help it reduceenergy consumption by66% and water by 48%. Inaddition, 36% of construc-tion material used wasrecycled content.

HH Sheikh Hamdanbin Rashid Al Maktoum,Deputy Ruler of Dubai,Minister of Finance, andPresident of Dubai Elec-

tricity and Water Authority(DEWA), officially openedthe building in Al Quoz at aspecial ceremony,

The new building,which occupies 340,000square feet is part of ourGreen Buildings initia-tive to achieve the highestlevels of efficiency in theconsumption of electricityand water, said AbullahObaidullah, EVP of Waterand Civil at DEWA.

The building has beencompleted as per DEWAsGreen Building regula-tions, with recycled mate-rials accounting for 36%of the total constructionmaterials used.

It has a laboratory toensure that the quality ofwater conforms to all theenvironmental standardsapplicable to green build-ings around the world. Inaddition, the building has

a fully automated control

tomer call centre, an engi-neering and control centerand the Supervisory Con-trol And Data Acquisition(SCADA) centre for watersystems.

Shortly after the openingDEWA announced that ithas signed a contract for anew 132 kV electricity cablenetwork for the Gardensand Dubai Investment Parkarea in Dubai.

The contract, worth$5.3m, is expected to com-plete in February next year.DEWA said the deal waspart of its plan to strength-en its infrastructure byboosting the capacity and

efficiency of its electricitytransmission networks.

Led by our vision to be-come a sustainable world-class utility, DEWA con-tributes effectively to thesocial, economic and envi-ronmental development ofthe emirate, by providinguninterrupted and stableelectricity and water ser-vices to achieve the visionof Dubai, said Al Tayer.

The new cable network

further strengthens ourinfrastructure and enablesus to provide swift and ef-ficient power supply to ourcustomers.

The length of the newcables network is up to 26kilometres, and covers awide area in Jebel Ali, withthe scope of work coveringthe supply and drilling ofextensions, testing, com-missioning, and managinglinks with existing net-

works, he added.

DEWA celebrates new LEED

Platinum sustainable buildingContract award for $5.3m electricity cable network follows opening ceremony for authoritys

new sustainable Water and Civil Engineering Division building said to be largest of its kind

panel to control the cool-

ing, and air conditioningsystems, and a number ofventilation units, to reduceenergy consumption,said Abullah Obaidullah,EVP of Water and Civilat DEWA.

The building will achievean energy performance ef-ficiency level of over 66%by providing additionalinsulation in its walls androof. Special glass hasbeen installed to reduce

heat transfer into the build-ing, while highly-efficientwater-cooled chillers cutdown energy consumption.The building also useslow-powered LED lightsand automatic lighting

control systems with

occupancy sensors.In addition, renewable en-ergy is available through anon-site 660 kW solar powerplant, thereby reducing thebuildings carbon footprinteven further.

Home to the headquar-ters of DEWAs Water andCivil Engineering Division,it features a storm-watermanagement plan thatensures recycling of wa-ter for irrigation. Special

regulators, sensor taps, lowflow fixtures and waterlessurinals help reduce waterconsumption by as muchas 48%.

It is now the largestgovernment building in

the world with a Platinum

rating for green buildingsfrom Leadership in Energyand Environmental Design(LEED), the US GreenBuilding Council institute,which has a set of ratingcriteria for the design,construction and opera-tion of high-performancegreen buildings, homesand neighborhoods in theworld. The DEWA Sus-tainable Building achieved98 out of 110 points, said

HE Saeed MohammedAl Tayer, MD and CEO ofDEWA .

The building includesDEWAs 14th customerservice centre; providing avariety of services, a cus-

HE Saeed Mohammed Al Tayer, MD and CEO of DEWA hailed the new building at an opening ceremony.

The building has been completed as perDEWAs Green Building regulations, with recycledmaterials accounting for 36% of the total

construction materials used.


14/60

HVAC


DISTRICT COOLING

Tabreed, the Abu Dhabi -based district

cooling company, has signed a partnership

agreement with the Masdar Institute of Sci-

ence and Technology to perform research

into energy consumption in district cooling

plants.The company said that it is already cur -

rently working on one research project that

aims to create a smart control system capable

of independently managing cooling plants to

improve operational performance and reduce

energy consumption with minimal interfer-

ence from operatives.

The two organisat ions are also developing

a software module that can be integrated

with cooling plant control systems to mea-

sure all of the external variables that can

affect a plants performance, such as the out-

side temperature and humidity levels, chilled

water supply levels and the return flow to

decide at what capacity major equipment likechillers, water pumps and cooling towers

need to run.

Tabreeds CEO, Jasim Thabet, said: We

are delighted to be partnering with the

Masdar Institute in this important area and

hope to utilise this project to gain some

critical insights.

Although we are in the data gathering

stage at this point, this system offers interest-

ing possibilities for the future as it can poten-

tially lead to significant energy reductions.

Masdar Institute president Dr Fred

Moavenzadeh said: Our research initiatives

aim to bring operational benefits to organ-isations while contributing to mitigat ing

carbon emissions.

Dr. Peter Armstrong and Dr. Afshin A f-

shari will be the principle Masdar research-

ers on the project. Dr Armstrong said:

For the Tabreed project we will model and

monitor a typical chiller plant in order to find

cost effective ways to reduce peak-demand,

energy and carbon impacts.

Actions may include variable-speed drives

and multi-stage compressors as well as

optimal control to coordinate operation of

compressors, pumps and cooling towers.

Phase 2 will consider cool storage and ad-vanced controls to shif t chiller load (and thus

also electric utility load) to morning hours

when cooler temperatures result in more

efficient operation.

Air-conditioning accounts for 40-50%

of Abu Dhabis total energy consumption.

although this can r ise to around 70% on its

hottest days.

Tabreed joinswith Masdar toresearch energyefficient cooling

Abu Dhabi-based National

Cooling company announces

signing of partnership

agreement with the Masdar

Institute of Science &Technology to carry out

research into reducing the

amount of energy consumed

within district cooling plants Jasim Thabet, CEO of Tabreed, welcomed the partnership.

We are delighted to be

partnering with the Masdar

Institute in this important areaand hope to utilise this project

to gain some critical

insights.

DISTRICT COOLING

Belhasa Projects has been award-

ed a contract for a 10,000RT

(refrigeration tonne) expansion

project by Sorouh and Tabreed

for the Shams Abu Dhabi district

cooling project.

The deal is part of the total

20,000RT development and will

include relocation of the existing

cooling tower, pumps and piping

to the new location.

According to Aziz Ayoub, busi-

ness unit manager, Belhasa Proj-

ects: The regions district cooling

industry is rapidly expanding and

we have the technical expertise to

deliver projects on schedule and

up to standards.

Apart from setting up of a dis-

trict cooling plant, it is the mainte-

nance that is a main challenge to

utility companies. We are focused

on minimising the operating cost

for the plant in Shams Abu Dhabi

and keeping the project on sched-

ule by delivering as promised,

he added.

Belhasa Projects has also won a

contract for the construction of a

sewage pumping station for Wes-

tin Abu Dhabi Golf Resort, located

within the existing Abu Dhabi

Golf Club, which is fully owned

by Tourism and Development

Investment Company (TDIC),

Abu Dhabi.

Belhasa Projects wins Shams district cooling deal


15/60


16/60

14 MEP Middle East |October 2012 www.constructionweekonline.com

BIMBIMBIM: Is it going to happen in the Middle East or arewe going to keep asking the same old questions?

What is BIM? :Building Information Modeling (BIM)

is a new dimension for managing construction pro-

jects throughout the lifecycle within a virtual col-

laborative working environment.

Which piece of software do you suggest? : BIM is not like an

illness that requires prescription of medicine/treatment in order

to get better. The idea is to understand the business needs and

requirements; know the strength of all products in the market;

choose the right solution in the right place; and know how to utilise

them in the process with the right skill set.

How much is it going to cost?: Regardless of being a client,

quantity surveyor, contractor, consultant, architect or facility man-ager; it will save you a huge amount of money and strengthen

future prospects if you

concentrate on how to

best apply with the right

methodology, process

and protocols.

Is BIM good for me

while fixing the form-

work and pouring the

concrete?: Yes, BIM should lead your program, cost plan, quanti-

ties and construction methodology while improving safety and re-

ducing the waste (with construction being one of the largest waste

producing industry).

These are normal and typical questions due to lack of knowl-edge about BIM or misunderstanding due to the BIM experts

who have been overselling the capabilities of pure technology

without understanding the process, implementation and nature

of collaborative working throughout the lifecycle of construction

projects. But finally and very recently, the industry has come to a

point where we started discussing this topic around BIM Round

Tables, and conducting BIM Forums in order to find the right way

of delivering it on the ground throughout the lifecycle of construc-

tion projects in UAE and MENA.

There are various issues behind the question of How to Make

it Happen? Some of them are: setting clear standards and guid-

ance for BIM Management including modelling, implementation,

monitoring the performance through the lifecycle and ownership;

upskilling of workforce, not only training for BIM, but also for de-

sign management, project management and

safety management; and addressing the limita-

tions in collaborative working due to traditional

procurement methods.

These questions and issues can be resolved

and BIM has the potential to be a norm in

the Middle East adopting an industry wide

approach once governments, universities,

industrial bodies, technology providers and

other relevant parties from the construction

sector get together with a unified initiative

to be achieved within a specific time frame.A good example that sets the benchmark for

BIM is UK with a clear strat-

egy and a government initiated

BIM Task Group for deliver-

ing public projects with BIM

until 2016.

Another good example to

take lead from is Singapore and

their BCA-Building Construc-

tion Authority where they have an approach

similar to the UKs government-supported

BIM. They allocate specific funds for setting

the guidelines, standards and furthermore sup-

porting projects with a certain level of fundingfor achieving widespread BIM implementation

by 2015 and upgrading construction industry

to the next level.

The industry is keenly looking forward to see

the next level of BIM development in Middle

East countries and the key question is who is

going to set a new benchmark with a clear BIM

strategy and time frame?

Dr. Ozan Koseoglu is an Asst. Professor for Con-

struction Management and Surveying at the

School of the Built Environment, Heriot-Watt

University in Dubai. and an expert in Building

Information Modelling.

The BIM question

BIM is not like an illness that

requires prescription of medicine/

treatment in order to get better.


17/60


COMMENT

April2013|MEP Middle East 15

International and local contractors need to join forces to meet ifthey are to meet the goals of Qatars 2022 FIFA World Cup

There is no greater reminder of the pulse of a city than

being stuck in its traffic. Recently I was reminded of

this maxim when commuting from the West Bay area to

Salwa Road.

Well, commuting in fits and starts, with a leisurely view of the

construction work underway along Salwa Road, which is an abso-

lute nightmare to negotiate at present. While I was fidgeting and

glancing at my watch constantly, the driver was rather more stoic,

and told me that the traffic situation in Doha was only likely to

worsen as work on the metro got underway in earnest.

In many respects Doha reminds one of Dubai before the big

boom and its subsequent upheaval in terms of construction work.The city is only at the beginning of an amazing transformation

that will see it become

a proud world-class host

of the 2022 World Cup.

A local contractor

at the vanguard of this

transformation is Ur-

baCon Trading & Con-

tracting. MD Ramez

Al Khayyat tells CWQ

that the secret to Qatar

achieving all its World

Cup goals both in

terms of timeframe andthe range and quan-

tity of infrastructure re-

quired lies in the design-and-build approach.

Al Khayyat argues that this will promote upfront involvement on

the part of contractors, and encourage them to use their expertise

and experience from as early on as the design stage in order to

meet their clients goals for cost-effective and fast delivery of qual-

ity projects.

One only has to look at the Lekhwiya Sports Complex, a design-

and-build project that UrbaCons sister company Khayyat Contract-

ing & Trading delivered in 18 months from start to finish, which is

a remarkable achievement.

No stranger to challenging projects, UrbaCon is also deliver-

ing the Banana Island Village Resort & Spa project at present, lo-

cated on an island about 10km offshore from

Doha itself.

All building materials and equipment have

had to be barged in, while a labour camp and

full facilities have had to be established on the

island itself.

Al Khayyat says that UrbaCons success

with this project, which is on track for comple-

tion towards the end of the year, despite some

changes being brought about at this late stage

by the client itself, is to have a tightly-knit pro-

fessional team encompassing all facets, fromdesign through to MEP.

Such integration is critical

from a planning and logistics

point of view, especially with a

project as complex and as con-

strained as the one to found at

Banana Island.

One gets the feeling from

speaking to local contractors

like UrbaCon that Qatars

World Cup legacy is in very

good hands.

There has been a lot of

speculation about the coun-try being slow off the mark in

awarding critical infrastructure

contracts, but it is clear that the government

is focusing on project integration and planning

before it lets any work go.

It is equally clear that Qatar should not be un-

der-estimated when it comes to the expertise

and commitment of its own contracting sector,

especially as the local construction industry

becomes increasingly competitive as interna-

tional companies continue to enter the market

hoping for a slice of the World Cup pie.

Gerhard Hope is editor of CW Qatar.

The big win-win

Such integration is critical

from a planning and logistics

point of view, especially with a

project as complex and as

constrained as the one to be

found at Banana Island.


18/60

NEWS ANALYSIS


Dubai Municipalitys new green building rules and

regulations, which are set to come into force in 2014,

will transform the MEP industry in the emirate from

top to bottom

materials, improving public health, safety

and general welfare and by enhancing the

planning, design, construction and operation

of buildings to create an excellent city that

provides the essence of success and comfortof living.

The regulations are intended to support

Dubais Strategic Plan, create a more sus-

tainable urban environment and extend the

ability of the Emirates infrastructure to meet

the needs of future development.

Green building is clarified by the docu-

ment as the practice of creating structures

and using processes that increase the effi-

ciency of resource use energy, water, and

materials while reducing building impacts

on human health and the environment dur-

ing the buildings lifecycle, through better

siting, design, construction, operation, main-tenance, and removal.

The rules and regulations cover all as-

pects of the construction process, with many

having universal application to all parties

involved. For example, Section 401.02 deals

with air quality during construction, renova-

tion or decoration, stating that building oc-

cupants and systems must be protected from

airborne contaminants which are generated

or spread during construction or renovation

inside the buildings. Other uniform meas-

ures tackle environmental tobacco smoke,

the use of environmentally-friendly materials

and resources, and the responsible manage-

M

andatory green building rules

and regulations on all build-

ings in Dubai are scheduled to

be enforced in 2014. Currently,

it is optional for private buildings.According to Dubai Municipality, the pur-

pose of the regulations is to improve the

performance of buildings in Dubai by reduc-

ing the consumption of energy, water and

ment of waste generated by the various con-struction processes.

However, at its heart, this document is

a new testament for the MEP industry in

the emirate of Dubai. The bulk of its con-

tent deals with freshly defined standards

for HVAC systems, electrical efficiency

and lighting, and water efficiency through

plumbing and drainage. Consequently, it is

set to transform work practices and behav-

iours in the industry from the design and

planning stage right through to testing, com-

missioning and maintenance.

Section Four of the document, which deals

with Building Vitality, has several points of

Greener on

the Other Side

EXTERIOR LIGHTING LEVELS

IN DUBAI ARE SET TO BE

SUBJECTED TO STRICT

NEW RULES

75%Domestic hot water requirements tobe provided by solar water heaters innew villas and labour accommodation

3 secondsMaximum time allowed for escalator tooperate at full speed when no activity is

detected

25mmMinimum air break allowed betweenpotable water sources and greywater

collection systems


19/60


NEWS ANALYSIS

April 2013|MEP Middle East 17

interest for MEP practitioners. Its first chapterdeals with ventilation and air quality, opening

with the decree that All new and existing air-

conditioned buildings must be mechanically or

mixed mode ventilated and must comply with

the minimum requirements of ASHRAE Stand-

ard 62-2007.

The finer detail of the chapter goes on to

establish strict thresholds for compliance

with indoor air quality in new buildings in

section 401.06. Maximum acceptable limits

are outlined for contaminants such as formal-

dehyde (


20/60

NEWS ANALYSIS


greater interest in section five which covers

resource effectiveness specifically energy-ef-

ficiency. Chapter One sets out the parameters

for air-conditioning design, with the heat load

of buildings to be calculated by factoring in the

outdoor condition of a building with a dry bulb

temperature of 46C, wetbulb temperature

of 29C, Dubai City location latitude of 25N,

and an extent of variation on the day of designof 13.8C. Further parameters are outlined

for the indoor condition of a building and the

sensible and latent heat safety factors applied.

Regulations on air loss from entrance and exit

and air leakage are also covered.

Perhaps the most singularly prescriptive

aspect of the entire document can be found in

section fives second chapter which provides

exhaustive detail on the minimum energy effi-

ciency requirements of HVAC equipment and

systems. The reference table it provides speci-

fies equipment type, size category, heating

section type, subcategory or rating condition,

minimum efficiency (T1) levels, maximum ef-ficiency (T3) levels, and test procedure. While

it will surely limit the selection of HVAC sys-

tems across various applications, its clarity is

sure to simplify decision-making and focus

efforts on necessary action. Of further inter-

est to HVAC professionals will be the chapters

stipulations on demand controlled ventilation.

Lighting also comes in for rigourous regula-

tion, with maximum average levels set for the

watts per square metre (W/m) across the to-

tal interior area of a variety of building types.

Retail outlets, shopping malls and workshops

must not exceed 14W/m, while manufactur-

ing facilities (13), educational facilities (12),

smaller than 10 microns (


21/60


22/60

THE BIG INTERVIEW

20 MEP Middle EastApril 2013 www.constructionweekonline.com

THE BIG INTERVIEW

20 MEP Middle EastApril 2013 www.constructionweekonline.com


23/60

April 2013| MEP Middle East 21www.constructionweekonline.com

THE BIG INTERVIEW

Thrasos Thrasyvoulou, managing director of Habtoor

Leighton Specon, on how a patient and prudent approach

in recent years means his company is well positioned for a

move into new markets

BREAKINGNew Ground

I

f a book were to be written on

the history of the MEP industry

in the Gulf over the last 35 years,

there may be no better author than

Thrasos Thrasyvoulou, managing

director of Habtoor Leighton Specon(HLS). Having worked in the region

since 1977, he has seen it all, and

with a boundless enthusiasm can

relay much of it in such incisive detail that it

would be sure to make interesting reading.

The master-raconteurs wealth of experi-

ence has undoubtedly been central to the

steady rise of his companys fortunes in the

years since it was established in 2005 as an

MEP partner to the Habtoor Leighton Group

(HLG). It was certainly put to good use dur-

ing the trauma suffered by the industry in

recent years. Although exposed like the rest

of the industry to the rougher elements of

the economic climate during that time, HLS

has seemingly weathered the storm betterthan some of its competitors, and is now pre-

paring to make the most of that advantage

with committed moves into the rapid growth

markets of the region.

For Thrasyvoulou, this is a big moment

for HLS. We are at a very important time

for the company, he says. This year will

see our efforts in 2012 to move into other

countries materialising, particularly in Iraq

and Saudi Arabia. It is the beginning of a


THE BIG INTERVIEW

HLS carried out the MEP projects on both the Sheikh Zayed (left) and Paris-Sorbonne (right) universities in Abu Dhabi.


24/60

This year will see

our efforts in 2012 to

move into other countries

materialising, particularly

in Iraq and Saudi Arabia.

THE BIG INTERVIEW

22 MEP Middle EastApril 2 013 www.constructionweekonline.com

2005The year HLS was established as an

independent partner of HLG

very interesting period. Our vision to expand

geographically is underway and it will see

us continue to be one of the major players in

the region.

Of all the Gulf states, Thrasyvoulou

believes that Iraq holds the most promise.

He says that the relentless tragedy which

the country has suf fered since its war with

Iran in the 1980s has left the country in need

of major reconstruction, development and

investment. With proven oil reserves in thecountry on a par with Saudi Arabia, currently

the worlds largest oil producer, Thrasy-

voulou says it is only a short matter of time

before Iraq is transformed into a hotbed of

fevered construction activity.

I personally believe in two or three years

that Iraq will surpass Saudi Arabia in terms

of the amount of [construction] business

there, adding that it is always in my

thoughts to enter in there ver y decisively.

HLS is already assisting HLG in securing two

or three oil and gas and infrastructure jobs

in Basra and North Iraq, and Thrasyvoulou

says that this is a precursor to HLS develop-ing something very serious in Iraq by the

end of the year.

More predictably, Saudi is also of huge

interest and HLS is expecting to make

significant inroads into the market in 2013.

Currently the biggest construction market

in the Gulf, Thrasyvoulou says the work

needed in Riyadh and Jeddah should mean

Saudi is busy for years to come. While other

companies have rushed into Saudi over

the last five years, HLS has been patient,

which has given his team and he ample time

to analyse the market before proceeding.

They have concluded that the best approach

The New Mafraq Hospital in Abu Dhabi, seen here in November 2011, is currently HLSs biggest project and is being carried out as part of a Habtoor Leighton/Murray Roberts JV.

HLS executed the MEP work on Daman Towers in Dubai.


25/60


THE BIG INTERVIEW

will be to establish strategic partnerships in

pursuit of individual projects. With this ap-

proach Thrasyvoulou expects the company

to pick up maybe two to three projectsthere by the end of this year.

Like several other Dubai-based MEP con-

tractors, HLS has already made a significant

dent in Qatar. It has had a presence there for

the last two and a half years and is currently

finishing work on three hotels, Merweb,

Rotana and Shangri-La, with a total value of

around QAR 600m. Further projects are be-

ing sought in the power sector with Kahram-

ma, the Qatari power and water corporation,

and other discussions with several main

contractors for upcoming work are ongoing.

According to Thrasyvoulou, Qatar needs

1bnHLSs approximate turnover at its

highest peak in UAE dirhams

The MEP works on Mafraq Hospital constitute around 40% of the entire project value and are set to be complete in early 2014.

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to build around 55 more hotels before the

2022 World Cup in order to meet the ac-

commodation needs of the expected visitor

numbers attracted by the tournament. Along

with the imminent rail and metro project,

for which HLS are pre-qualified along with

their Spanish partner Cobra, and work on

the stadiums, he says that there should be

sufficient contracts to be won there by most

of the major contractors in the region.

However, he is doubtful of predictions that

Qatar will replicate the construction boom

experienced by Dubai between 2003 and

2008. I believe that, because of the smaller


26/60

THE BIG INTERVIEW

24 MEP Middle EastApril 2 013 www.constructionweekonline.com

size of Qatar and the fewer number of tourist

attractions in the country, it will never reach

the peak that sometime ago Dubai had, but

it will reach an enviable level of business for

all big contractors to get their fair share, he

says. Thrasyvoulou also predicts that Dubai

itself will recover significantly but will never

return to the crazy heights of the last dec-

ade: It has already built most of what was

required, he says. Maybe the healthcare

sector and education may offer something,

but I dont think other sectors require muchmore work, for now at least.

Beyond the big growth markets of Iraq,

Saudi and Qatar, HLSs ambitions for geo-

graphical expansion also extend to Oman

and Kuwait, where they currently have

invitations to tender for hospital projects.

However, HLSs plans for growth do not

stop there with Thrasyvoulou revealing that

the company is targeting growth through

diversification of specialities as well. We are

one of the few companies who have in-house

oil and gas, energy and power, and solar

capability, he says. Together with Cobra

[HLSs Spanish partner] we have submitteda tender to Kahramma in Qatar for seven

substations in the past few months. We are

also in a good position to secure an award for

a 12MW power station in Corsica.

The aim of this growth, both geographi-

cally and by diversification, is to make HLS

number one in terms of turnover and

profit, Thrasyvoulou says. He describes

HLS as a 1bn dirham company in terms

of turnover, although a difficult 2012 for

the entire industry saw that figure drop.

The companies backlog currently stands at

approximately AED 1.5bn, with a workforce

made up of 150 qualified engineers, 500

to 600 support staff, and 4000 technicians

spread between the UAE and Qatar. With the

moves into new territories and new sectors,

Thrasyvoulou expects the company to reach

AED 2bn in revenue in the next few years.

However, he is quick to highlight that

turnover is not his or the companys barom-

eter of success. A healthy bottom line is

fundamental to his thinking and central to

the daily operation of any sound business,

he says. I want the company to do well and

make a profit so I can look after my people.If I dont have a profit we cannot take care of

our employees. We could win ten contracts

tomorrow morning and have a huge turno-

ver, but if we dont make a profit from those

contracts then it is of no use.

Such behaviour, unfortunately, has been

quite common in the industry of late. The

HLS managing director can offer a glut of

tales about other contractors, who he is too

polite to mention by name, undercutting his

company only for those parties to r un into

trouble on the job and HLS to be brought in

to clean up the mess. He believes that the

current price-cutting war besieging the MEPindustry can only end badly, but he thinks

main contractors are beginning to realise the

danger of encouraging this behaviour.

The mechnical corridor in Mafraq Hospital through which the chilled water pipes travel illustrate the size of the project.Thrasyvoulou says turnover is not HLSs biggest priority.

I want the company to

make a profit so I can look

after my people. If I dont

have a profit we cannot take

care of our employees.

HLS was established in October

2005 following an agreement between

Thrasyvoulou (Specon Ltd) and Al Habtoor

Engineering (now HLG) to establish a

standalone MEP partner to the group,

with ownership split 49/51 between

Thrasyvoulou and HLG respectively.

When we signed the MoU (Memorandum

of Understanding) we set out the basicprinciples such as the legal status,

working capital, finance and management

Thrasyvoulou explains. I undertook the

overall responsibility for the companys

operations and was appointed the first

managing director and deputy chairman

of the company. Obviously we regularly

consult the groups board of directors

on major issues and strategy, but the

agreement is that I have the responsibility

for running the company.

These first few years saw HLS focus

primarily on projects on which HLG was the

main contractor as the company had anextensive backlog of work. This dynamic

continued up to 2011 when Thrasyvoulou

decided that HLS would like to expand

business with other contractors.

We are now in search of work and the

objective is to have at least 50% of our

turnover coming from other contractors, he

says. It was 15% at times, and sometimes

even lower, because there was no need to

over-expand. Recently we are looking for

more work beyond HLG as part of our longer

term strategy in becoming the leading

diversified MEP player in the region.

THE GROUP DYNAMIC


27/60


THE BIG INTERVIEW

2bnTurnover target in coming years in UAE

dirhams

You are not getting the best service on

a difficult MEP project if you get the lowest

price, he says. We want to maintain quality

and, speaking to main contractors in the

last few months, they are realising that itis not in their interest to keep squeezing

sub-contractors. Its not as dif ficult to secure

work these days with our reputation for qual-

ity and history, but if it is a matter of price

we have our red line on price and we dont

accept projects that we know will not provide

a return to the group.

This restraint in a time of difficulty for

the industry, particularly in the UAE, has

apparently allowed HLS to avoid the pitfalls

into which others have walked. While 2012

saw its balance sheet take a marginal hit, its

backlog of projects following the construc-

tion market collapse has enabled it to

carry on without too much of an upset to its

structure and finances. Work on the Paris-Sorbonne and Zayed universities in Abu

Dhabi, as well as the ongoing New Mafraq

Hospital project, have meant the company

has been kept occupied during the darkest

days of the downturn. Thrasyvoulou believes

that the worst is certainly over and expects a

return to growth for the entire industry this

year and in the years to come.

We have been hearing in the last six

months that liquidity has increased in the

banks, investors are more confident now

and there will be a lot of projects, he says.

We are having discussions about three to

four major projects in the region, in whichour partners HLG are also involved, that are

more than AED 2bn in total in terms of MEP

works. We expect those to come through and

the backlog to grow once again, which will

set us up well for the coming years.

Going forward, Thrasyvoulou says that his

vision to firmly establish HLS as the number

one diversified MEP contractor in the region

will depend on maintaining its reputation as

a company that delivers quality on time and

within budget. But he also stresses that this

vision must be shared by everyone in the

company and that, without their investmentin it, the vision is unattainable.

As a leader, you must share your vision

with your people, he says. You must have

a strategic plan on how to get there and they

must know how it is to be implemented. If

your people dont know where you are going,

they cannot follow, and no one can make it

happen alone.

Mafraq Hospitals HVAC system is of the highest standard.


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26 MEP Middle East | April 2013 www.constructionweekonline.com

SITE VISIT

Stuart Matthewsvisits the FuturePipe Industries facility in AbuDhabi, to see how this manufacturerhas built a business one layer of

glass fibre at a timeWORKPipe


29/60


SITE VISIT

For some manufacturers accreditation is a must. Its not enough

to say a product is a quality performer, it has to be proven be-

yond any doubt. Thats why Future Pipe Industries Abu Dhabi

facility has 29 accreditations to its name.

Coming from internationally recognised and respected

bodies, such as DNV and TUV and a host of others, these accredita-

tions are essential to the success of the companys pipe manufactur-

ing business. Without them the company would find it difficult, if not

impossible, to secure contracts on the large-scale projects that drive

this production facility and the four others operated around the Gulf.

Each individual facility must have its own accreditations and getting

them represents a major investment in time, money and manpower.

All the facilities are run the same way, to the same standards. Its the

effor t and diligence involved that makes Sameer Abu Hannun, the

companys vice president of GCC manufacturing, so proud of what the

company has achieved.

They are very important to us, says Hannun. They really cost us,

but if you want to run a professional operation, you must have them

and you must keep them.

We are happy and proud to have made this kind of investment

because it impacts on the services we provide. The accredita-

tion secures the product performance and the customer can feel

much safer.

The Abu Dhabi factory features its own testing facilities, where


30/60


SITE VISIT

both finished products and raw materials

are put through their paces. Long-term

pressure testing under extreme tempera-tures is just one of the hurdles the fin-

ished products have to clear, to keep their

accreditations valid.

As general manager Fady Assad explains,

the products are tested well beyond their

normal operational boundaries.

If a product is rated at 10 bar, we may test

it to 30, he says.

The manufacturing process is one the

company is always striving to refine, whether

its for its smallest 25mm pipes, or those with

a 4m diameter. In fact, just recently, one pro-

FPIs helical winding machine takes polyester fibres from various spools and wraps these around a mould while reesin is applied in order to make fibreglass piping.

Pipes are produced for infrastructure and for plumbing.

The companys yard acts as a spacious storage facility.

SITE VISIT

TOP 5 GCC PROJECTSProject name Country End User Value

Ras Laffan common cooling seawater project(largest fiberglass pipe system project in the world)

Qatar Qatar Petroleum $500m

Ghantoot water transmission UAE DEWA $65.9m

Sohar 3 / barka 2 power and desalination plant Oman Oman power and waterprocurement company(OPWP)

$6m

Petrochemical complex pipe system Kuwait Equate $25m

Jubail Export Refinery KSA Saudi AramcoTotal Refining and

Petrochemical company

$30.7m

Pipe

ROJECTS


31/60


SITE VISIT

duction process underwent some additional

automation, reducing the manpower needed

on the job from three people to one.

You can always improve, says Hannun.

We are concentrating on being more ad-

vanced in everything we do. Were concen-

trating on automation and looking at improv-

ing processes to boost our efficiencies.

PRODUCTION LINEWith an annual capacity of around 150,000

tonnes, regularly updated automation equip-

ment and software across its 12 produc-

tion lines is key to the Abu Dhabi facilitys

efficiency. Overall FPI has 45 production

lines of fibreglass pipe across all its global

manufacturing facilities.

The plant operates two distinct types of

production. One is helical winding, where

pipes are formed over a mandrel by winding

fibres around the mould while resin is ap-

plied. Built up layer by layer, the pipe moves

from the winder to an oven to be set, before

being separated from the mandrel.

Sameer Abu Hannun, VP of GCC manufacturing.

Future Pipe Industries also produce custom made pipes.

The continuous winding unit in action at the facility.

a

The other method is continuous winding,

where, as the name suggests, a machine

continually adds layers of fibre to the pipe

until the desired thickness is met. These

pipes can be made to any length, with the

only restrictions being the size of the factory

and the practical issue of transporting the

finished product.

The technology behind the manufac-

turing process is owned by Future Pipe

We are happy and

proud to have made

this kind of investment

because it impacts on the

services we provide. The

accreditation secures the

product performance and

the customer can feel

much safer.Sameer Abu Hannun, VP-GCC manufacturing


32/60


SITE VISIT

.

industries. Part of it was acquired when

FPI bought the fibreglass arm of a Dutch

manufacturer in the 90s.

The team at the site are quick to empha-

sise the benefits of the fibreglass product.

Much lighter than the steel equivalents it

can replace, fibreglass pipe products can

be easier to handle on site thanks to that

weight reduction and the subsequent reduc-

tion in lifting capacity required. They also

claim a 50-year lifespan for the product, so it

requires less frequent replacement. In some

applications the pipes also result in lower

pumping costs, since the internal friction ofthe product is lower than steel alternatives.

AGILITY AND PROXIMITYAs with any product, client education is key

and Future Pipe Industries acknowledges that

making things easy for clients and customers

is an essential part of a successful business.

To help contractors get to grips with the prod-

uct, it offers engineering services that help to

turn a pipe from a simple product into that

favourite output of all companies: a solution.

These services include guiding contrac-

tors through the installation process. The

company also conducts third-party-certified

training, to teach the skills needed to

complete pipe joins, resulting in contractorsgaining the skills they require to work with

the product.

These qualities and services, reinforced

by the fist-full of accreditations the company

has worked hard to earn and maintain, have

resulted in major project success.

Hannun doesnt want to talk project

value in simple contract terms, he wants

to position the companys work in the

context of each projects importance. From

Ras Laffan to Ruwais, or Al Ain to Abu

Dhabi, the companys products are going

into projects that make a difference to

national economies.

From left: Sameer Abu Hannun, VP of GCC manufacturing; Fady Assad, general manager.

We are so flexible,

for any project we can

easily install machines

and increase capacity in a

couple of weeks.

Fady Assaad, general manager, Abu Dhabi

Future Pipe Industries gets closer to its

customers by adding value to its product

through additional services

Future Pipe Industries site services

department offers an after-sales service to

its customers to provide site supervision and

technical assistance for laying the pipes it

has supplied.

The department takes on the preparation

and execution of the services provided as

part of the companys contracts. This canrange from supplying an entire site crew to

join pipes, to simply providing a site engineer

to oversee a pipe-laying.

Future Pipe Industries also uses its

strategic alliance partner, Dynaflow

International, to provide engineering

consulting services for all aspects of piping

structure. Dynaflow develops software for

clients to address issues ranging from small-

scale ad-hoc stress problems, to large-scale

fluid flow problems and has built up a broad

experience in all design aspects of glass

reinforced polyester (GRP) piping systems.

KEY STRATEGY

Flanges are added to connect to steel piping.


33/60


SITE VISIT

Number of football pitches equivalent

to Abu Dhabi plant

12

Its a big-picture view and the project cred-

its make for a long list, but it takes an agile

company to manage the spikes in production

these big projects demand. The fluctuating

costs of the resin raw material, linked to theprice of oil, also contributes to a complex

balancing act that needs careful stewardship.

FPIs spacious Abu Dhabi plant - its the

size of 12 football pitches - has more capacity

built in, but the company has a more mobile

back-up plan, in case a big order lands in one

particular plant.

We are so flexible, for any project we can

easily install machines and increase capacity

in a couple of weeks, says Assaad. We have

two machines ready to be transported to any

plant in the group.

This transportable machinery, ready to

move to any of the companys five plants

Future Pipe Industries produce a vast array of pipes at the Abu Dhabi facility, from 25mm to 4 metres in diameter.

around the Gulf, can be assembled and

producing in a matter of weeks, allowing the

company to boost capacity as, where and

when its needed.The team at Future Pipe Industries

builds a picture of a good business to be in.

The pipes it makes are a necessar y par t of

infrastructure and plumbing development

on all scales and across many sectors.

Demand is broad and the range of prod-

ucts the company can produce is intended

to match the market needs. It makes for a

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market ripe with opportunity for a manu-

facturer that has spent decades building

the experience and agility needed to take

advantage of it.We have the advantage of being a pioneer

in this kind if manufacturing, says Hannun.

We have our own technology, a wide range

of products, the ability to engineer them,

plus the experience, the capacity and the

know how.


34/60

www.constructionweekonline.com32 MEP Middle East|February 2013

To much of the MEP and wider construction in-dustry in the GCC, Kuwait must seem like aquiet stranger seated in the corner of a livelyparty. As its Gulf counterparts loudly engage ina game of build the biggest, best or brightest,their neighbour to the north appears contentto observe the spectacle with a curious indif-ference, all the while keeping its own counsel.

News from Kuwait is scarce and the impres-sion given is of an insular country moving at its own pace. Ithas the coffers to match the peacock displays of the UAE,Qatar and Saudi, with a 2011 GDP close to $180bn accordingto the World Bank and the fifth largest oil reserves in the

world, but it has taken somewhat of a tortoise approach to

development. With the 2012 construction market in Kuwaitestimated at $2.5bn, it is comparatively the lowest spenderin the GCC when GDP and GDP per capita are considered.Based on the common estimation of the MEP market repre-senting 25 to 30% of total outlay on construction, the Kuwaiti

MEP market sits at somewhere between $625m and $750m modest by GCC standards.

However, the experience of some of those in the industryoperating in Kuwait suggests that those frugal figures maybe about to change. Darrel Strobel, managing director ofMEP engineering at KEO International Consultants says thatthere are signs that investment may be finally making its wayinto the construction market after a particularly lean periodbrought on by recent events.

While the government continued to spend on healthcare,education and some major road and infrastructure projectssuch as the new bridge crossing Kuwait Bay, the private sec-tor slowed down quite a substantial amount in recent years

with the global recession. There are signs, however, that this

is starting to come back to life, he says.The next few years are key for a lot of services in Kuwait

as construction and government spending are likely to in-crease, and the MEP industry is going to get pulled along forthe ride. Kuwait never experienced the boom and bust of the

KUWAIT FOCUS

MEP Middle Eastsets its gaze on a market that is a potential goldminefor the industry but, having shunned the attention so craved by its GCCcounterparts, has remained something of a mystery until nowUNKNOWN

Into the


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www.constructionweekonline.com February 2013|MEP Middle East 33

KUWAIT FOCUS

LIGHT ON THE HORIZON

Kuwait's construction industry neverreached the Icarus heights of its GCCcounterparts during the last decade, but

its construction sector has still suffered anoticeable decline in the last few years.However, there has been somemovement in the market recently whichhas given those operating in the countrya ray of hope that their perserverance inKuwait might be rewarded.The quiet man of the Gulf has announcedsome major projects and, while theMEP industry might not be the firstin line to benefit from them, there isthe potential that the projects maygive the entire sector the boost it hasbadly needed.

"Recent articles in the press haveindicated that the government hasannounced several infrastructuredevelopments and re-introduced othersthat had been delayed due to either fiscalconstraints or parliamentary hurdles,"says KEO's Darrel Strobel. "Some examples include the $486.5million contract to construct a portnext to the Al Ahmadi refinery, the $6billion expansion of Kuwait Internationalairport, up to $14.2 billion of roads workto be completed over the next 5 years,and a new sea port on Boubyan Island.

These mega-projects in conjunctionwith an expected increase in the privatesector may point to better times ahead,"he adds.


36/60


rapid expansion evident in other GCC coun-

tries and, while Kuwait has never been con-

sidered an overactive market, it has a more

steady stream of projects in the pipeline.

Some of those projects have been in the

pipeline so long, that many believed they

would not happen, but some recent events

such as the start of the Sulaiybiya Causeway,has given an indication that the government

is serious about spending and is keen to im-

prove a broad range of sectors, he adds.

This optimism that the construction mar-

ket can move beyond public infrastructure

projects, which generally present scant op-

portunity for the MEP industry, and towards

the bigger bounties of privately funded pro-

jects, is shared by Tawfiq Abu Soud, Drake &

Sculls managing director for both MEP and

Water and Power divisions.

There are clear signs that Kuwaits con-

struction industry could receive a boost from

the private sector as demand in the residen-tial, investment and commercial segments ap-

pears to be rising steadily, he says.

If such advocacy for Kuwaits construc-

tion sector means a move there seems like

a tempting proposition, further attraction

may be derived from testimonies revealing

how the MEP industry there is not really

that different from those of the more popular

Gulf markets.

There are only minor differences in the

requirements from the various authorities in

Kuwait compared to other GCC countries and

there are no significant variations in design

issues, says Strobel. The only item that pre-sents sizable differences is the requirements

in the field of sustainable engineering. The

UAE, in particular Abu Dhabi with Estidama,

has rigorous demands in this field, whereas

Kuwait lags behind a bit, he adds.

For Abu Soud, there are also some distin-

guishing features to the approach of contrac-

tors in the country.

MEP contractors in Kuwait are keen to

gain a competitive edge by offering a scal-

able and comprehensive contracting service

solution, complemented by effective qualified

manpower for project design, installation, and

service support, he says.

KUWAIT FOCUS

He also believes that the Kuwaiti market

shares the characteristics of other GCC states

in the demand to meet short deadlines and

the challenge of rising costs, but offers a

general profile of the challenges facing con-

tractors in Kuwait itself.Broadly speaking, some of the major chal-

lenges being faced by MEP contractors in Ku-

wait include: finding a balance between the

tight deadlines imposed by clients and high

Tawfiq Abu Soud, managing director of Drake & Scull's MEP division and Water and Power division.

quality work; ensuring that MEP installations

comply with the new green building stand-

ards; the availability of suitable manpower;

the growing cost of commodities and equip-

ment in the MEP sector; and inflation.

On the consultancy side, similar difficultiesare encountered

mep volume 8 april 2013 issue

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