Construction Week

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

ConstructionWEEK NEWS, ANALYSIS, PROJECTS,

TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST

SEP 12–18, 2009 [287]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM

INSIDENEWSPoor quality materials blamed for Deira building collapsePAGE 9

LEGALPenalty impositions in Qatar and how they affect both partiesPAGE 20

TOP 5 PROJECTSThe best of Leed certified projects within the GCCPAGE 30

CITY FOCUSThe latest news and opportunities within Tripoli, Libya PAGE 44

LOADEDHOW THE DOWNTURN HAS IMPACTED THE HEAVY EQUIPMENT MARKET

OVER

CONTENTS

15 FACE TO FACEExperts discuss what’s in store for the construction sector after Ramadan.

17 EVENTSIndustry dates for your diary.

19 COMMENTMohammed Azad Hossain highlights, in the second of a two part series, the most common reasons for building failure.

20 LEGALDr Chandana Jayalath discusses his beliefs that time extension provisions are not for the benefi t of anyone.

REGULARS2 ONLINE6 MAIL

FRONT9 POOR QUALITY MATERIALS TO BLAME FOR BUILDING COLLAPSEAn investigation into the building collapse that took place in Dubai last month, has revealed that poor quality materials were used.

10 DAMAC CEO TO QUIT Damac Properties CEO Peter Riddoch is due to leave the company next month.

12 NEWS IN BRIEFHighlights of the week.

13 NEWS IN PICSTopical images with the latest news.

FEATURES21 SPECIAL REPORTCW discovers the market outlook for the heavy equipment sector.

30 TOP FIVEFive Leed certifi ed buildings located in the Gulf.

DIRECTORY34 TENDERS38 PROJECTS 40 SPECIALIST SERVICES

BACK44 CITY UPDATEThe latest news and projects from Tripoli, Libya.

46 CONSTRUCT SAFEThe industry’s very own comic strip on health and safety best practices.

48 DIALOGUEEmirates Green Building Council chairman discusses where the UAE is going in terms of green building.

SEPTEMBER 12-18, 2009 | ISSUE 287

1SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK

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CONSTRUCTION WEEK SEPTEMBER 12–18, 20092

FEATURESMEP

INVISIBLE INFRASTRUCTUREFrom power supply to telecoms, cables and cabling constitute the ‘invisible infrastructure’ that holds buildings together.

Architect

CITYSCAPE PRE-SHOW REPORTA look at why Cityscape is so important for the industry.

A look at the big, bad and bizarre in the world of cranes, including the largest, the oddest…and the most mysterious. See more images at www.ConstructionWeekOnline.com

IN PICTURES: THE WORLD’S GREATEST CRANES

ONLINEwww.ConstructionWEEKonline.com

Design

ALL-ENCOMPASSINGThe award-winning City Hospital focuses on carers and families as well as patients.

PMV

RETREAD TYRESThe secrets behind reusing tyres.

MOST POPULAREXCLUSIVE: PM FIRM CLAIMS CITY OF ARABIA WALKOUTHRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDEVIDEO: STUNT LOADER DRIVINGSTRIKE-HIT FIRM CLEARED OF ANY PAY VIOLATIONSUK CONSTRUCTION GIANT EYES QATAR PROJECTS IN 2010

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

HAVE YOUR SAYWHAT WILL BE THE METRO EFFECT?Do you think we’ll be seeing greater interest in mass transit in the region now the Dubai Metro’s up and running?

JOBS OF THE WEEKFinishing site engineer, DohaSenior proposal engineer, Al KhobarClaims surveyor, Damman

ONLINE POLLWHAT’S YOUR OPINION ON CUSTOMER RESPONSES TO SERVICE CHARGES?

42.9%RERA needs to step in with stronger guidelines for all developers

28.6%More needs to be done to communicate the value gained from service charges to end users

28.5%A few developers are outright unfair when it comes to the costs they pass on

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MAIL

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

I think that the attainability of the productivity bonuses needs to be examined fi rst before images of increased hardship are portrayed. Surely getting overtime is not a right! Any work has to be measured by results.MIKE

RE: DAMAC CHAIRMAN CALLS FOR GREATER TRANSPARENCYI think the chairman has to start to making his company transparent before discussing this issue.OSCAR

implemented and enforced and continually monitored. VORPAL SWORD

RE: STRIKE-HIT FIRM CLEARED OF ANY PAY VIOLATIONSI wonder why these poor brothers went on strike? Was it because of delayed wages, poor accommodation and lack of medical coverage? Or maybe it was something more endemic. May I suggest the blatantly exploitative wages?MOHAMMED KERR

RE: RAK INVESTORS WIN COURT CASERAK will not honour original payment plans, and will insist upon advance payments from investors. Escrow accounts are not guarantees of completion, nor of protection of investor’s money.WILL

RE: 30,000 FAKE TRUCK PARTS SMASHED IN SHARJAHIt is very admirable, because fake spare parts for vehicles take the lives of many innocent people. I congratulate the Sharjah Municipality to go on with this, not only on truck parts, but with all spare parts for all types of vehicles.VG NAIR

RE: EXCLUSIVE: PM FIRM CLAIMS CITY OF ARABIA WALKOUTI am actually amazed that there are still consultants left on that project. Why is

Damac’s ‘big picture’ sentiments are laudable, but it needs to apply this transparency to relations with its own investors before he [chairman] advises others.EWOUD

RE: WORKER DIES IN BAHRAIN FALLThe directors of the company should be personally responsible and liable to imprisonment if their company was found to be negligent, and they had not taken measures to ensure that proper safety practices are

everything always covering up or twisting the reality in Dubai. Everyone in the construction industry knows there was not enough money at the start of the project so it obvious it wouldn’t be completed. The original date for completion was August 2008. Where is all the money people paid in advance for the Wadi Walk apartments, for instance? The group has a reputation of not paying their consultants or contractors on time, if at all.DRIES

RE: ARE YOU EXPECTING A SEPTEMBER UPTURN?The coming months will witness a major change in the construction market. I hope developers and clients will take a stand and continue with projects they are working on as it is almost a year since the meltdown began. The entire equation has changed and only the fi ttest will survive. All the small-timers are disappearing from the market.CLARENCE LEWIS

RE: WORKERS FLEE DUBAI BUILDING COLLAPSEHaving served for the last 30 years in the construction fi eld I could say that safety failure comes when it is fi led in the page of expenditure rather than production. An accident affects the production. Safety is a long journey, not a destination.JALEEL NAZIRUDEEN

RE: HRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDEThese rich construction bosses are dragging the name of Dubai and the UAE through the mud. And all in the name of greed. Don’t blame the workers and don’t blame the international press. Blame those rich bosses who continue to put their personal interests before the interests of their own country. As Holy Ramadan is a time of refl ection for Muslims, and as charity is a fundamental tenet of the great Islamic faith, perhaps it is not too late for construction bosses to refl ect on their actions and to show some charity to their workers.

GEORGE THOMAS

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


FOREWORD

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

“WE’D LIKE TO SEE HOW MANY COMPANIES TAKE HEALTH AND SAFETY SERIOUSLY”

CONRAD EGBERT [email protected]

With Eid around the corner and the ‘busy season’ looming, we’re expecting things to get a little out of hand up here in the Construction Week towers.

Cityscape comes to town next month, and we’re looking forward to it with keen interest since the show has become a sort of testing ground for the regional construction industry. Just like the exhibition was used as a benchmark to judge the health of the sector last year, this year it’s being watched even more closely. Fingers crossed.

The Construction Week Conference is also not too far off - in November, followed by what has come to be known as the industry’s event of the year, the much anticipated Construction Week Awards. This year we’ve included several people awards, in order to recognise individuals who make a difference in their fi elds and to their companies.

Construction Week has always upheld best practice within the industry and so in appreciation of others who do the same, it has included a special award – The Build Safe UAE Award for Best Practice. BSU has been doing some great work and we love those who love doing great work. The idea for this additional award came out of a meeting between Build Safe coordinator Elias McGrath and myself, a couple of weeks ago.

As we all know, health and safety, particularly the issue of falls from height, is not being dealt with adequately, to say the least. And from my understanding, the reasons for this broadly fall into two categories: one – some companies, usually the smaller ones (a cliché I know, but the sad truth nonetheless) don’t care much about safety issues or can’t afford it, and two – the importance of safety isn’t explained enough to the workers. Many HSE offi cers that I’ve spoken to have expressed frustration over workers having a couldn’t-care-less attitude towards safety. But I don’t believe that anyone, whether a company CEO or an illiterate worker, wouldn’t care to keep his own life.

Thanks to the recent media coverage, we already know how much (or less) some companies care for their workforce. Now, we’d like to see who, and how many companies, take health and safety seriously. Hopefully, this award will put on a pedestal that company, which shows superior intelligence and the best business sense by protecting its biggest asset - its workforce.

This is the last week to submit your nominations for the awards. Nominations close at 6pm Tuesday, so please do hurry.

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An investigation into the building collapse that took place in Deira, Dubai, last month has revealed that one of the main reasons for the catastrophe was the use of poor quality materials during construction.

Speaking at an informal Ramadan din-ner at the Dubai Press Club, municipal director-general Hussain Lootah said the municipality’s technical team had ques-tioned both the quality of materials and the manner in which they were used.

He also said there were faults in the iron poles used to support the concrete in the building, and that an ‘unorthodox’ struc-tural style had been used.

FRONT

POOR QUALITY MATERIALS TO BLAME FOR DEIRA BUILDING COLLAPSEBy James Boley

IRON POLES USED TO SUPPORT THE CONCRETE IN THE BUILDING THAT COLLAPSED IN DEIRA LAST MONTH ARE SAID TO HAVE BEEN FAULTY.

“There were faults found in all three of the categories,” Lootah said, according to UAE daily Gulf News. “There was an engi-neering fault, misuse of building materials, and the structure of the building was found to be weak. That is evident from the fact that the building collapsed on itself from its middle.”

The building was in the fi nal stages of completion when it collapsed on August 16. Eleven construction workers narrowly escaped death when the six-storey building fell to the ground.

According to Dubai Police, the contractors on the project, Hazaa Contracting and Bait

Al Emarat Engineering Consultants, are being interrogated in co-ordination with Dubai Municipality.

A committee was set up to identify the causes of the collapsed building by Dubai Municipality the day after the collapse.

The investigation report will be released to the media after it has been viewed by the Executive Council.

The building next to the collapsed build-ing will be demolished because of damage to its structure.

The fi rm had insured the building for a contract value of US $19 million (AED70 mil-lion) with National General Insurance.

>Damac CEO to quit next month 10>News in brief 12>Face to Face 15>Industry events on the horizon 17>Building failure 19

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FRONT

MATERIALS INDEX 2009

Damac Properties CEO Peter Riddoch is due to leave the Dubai-based developer next month, he said in a statement emailed to Construction Week.

He said he wished to focus more on personal interests and family, and that he felt it was time for him to move on.

His resignation comes at a time when the global job market is at a low and most fi rms still have a freeze on recruitment.

“To leave an organisation that has been a signifi cant part of my life for so many years will not be easy, but I know that the time is right for me to make some changes, focus a bit

DAMAC CEO QUITS FIRMBy Conrad Egbert

AL HABTOOR SLAMMED OVER OBSCENE ATTITUDEBy James Boley and Conrad Egbert

International human rights campaigners Human Rights Watch (HRW) has slammed Al Habtoor over their “obscene” attitude towards their staff following a labour strike last month.

Al Habtoor managing director David Savage had said, “The company is in the process of implementing a new productivity-based incentive scheme, whereby workers are rewarded for increased productivity as opposed to working longer hours. The scheme is expected to result in workers increasing their take-home pay.”

Speaking to Construction Week, HRW Middle East head of research Samer Muscati criticised Al Habtoor’s payment scheme and raised questions over the personal safety of its workers.

“There is something a bit obscene with company bosses telling workers, who toil for long hours in the punishing summer heat of the Emirates for low wages, that they are just not sweating enough to justify higher pay,” said Muscati.

“Al Habtoor’s proposal that workers work harder could well result in an increase in the number of work-related accidents.”

Muscati was also concerned about the fate of the strike leaders. “We know that in the UAE, workers who attempt to organise, bargain collectively, or strike to demand their rights may face deportation.”

“Al Habtoor disagrees with the comments of Human Rights Watch. The company continuously reviews the employment contract conditions – including accommodation - of its workforce,” a spokesperson for Al Habtoor said.

“Our ability to retain a high quality workforce is an important element of the company’s success.”

DAMAC CEO PETER RIDDOCH WILL LEAVE HIS COMPANY NEXT MONTH.

* These materials fi gures can be found on ConstructionWeekOnline.com

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more on my personal interests and family, and possibly even take on new challenges,” Riddoch said.

Hussain Sajwani, Damac’s chairman, confirmed that he had “reluctantly” accepted Riddoch’s resignation.

He said: “Peter has contributed signifi cantly in steering our busi-ness over the past seven years and as an organisation we have greatly benefi ted from his industry knowl-edge and experience.”

Day to day operations will be run by senior management at Damac Properties under the direction of the chairman until a replacement is found, the company added.

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FRONT

NEWS IN NUMBERS

The Pentominium is to be completed

by the second half of

2013,the project’s

main contractor Arabian

Construction Company (ACC)

has said

A phased handover will begin by the

end of

2010for the

US $5billion

City of Arabia development despite delays to the project,

company offi cials have said

HIGHLIGHTS

Infrastructure

MAYKOL BAGS AL BATINAH ROAD JOBTurkish construction company Maykol has bagged a US $325.5 million (OMR125.3 million) contract to build a 126km road in Oman. A tender board offi cial told newswire Reuters that the contract was for the fi rst phase of Al Batinah coastal road project. The contract for the second phase is expected to be awarded by the end of the year.

Projects

DEYAAR TO DOUBLE PORTFOLIODubai-based developer Deyaar has said it plans to double the size of its property management portfolio in the

next fi ve years. “Since the past year, Deyaar has been working with a long-term strategy of diversifying its income streams, and our planned expansion in property management is in line with this overall strategy,” said company CEO Markus Giebel.

Banking

CENTRAL BANK TAKES STEPS TO STIMULATE BANK LENDINGThe UAE Central Bank announced that it is lowering the interest rate on the liquidity support facilities extended to the banks and clarifi ed its position on minimum capitalisation targets. These measures are aimed at restarting bank lending in an economy that

has come to a standstill following several years of rapid growth. Banks in the UAE, and particularly in Dubai, have been reluctant to lend despite supportive measures taken by the Central Bank.

Projects

RAK PROPERTIES GETS FINANCE FOR PROJECTSUAE-based real-estate developer, RAK Properties, has obtained a fi ve-year US $150 million (AED552 million) loan from state-owned Investment and Development Offi ce, the investment arm of Ras Al Khaimah, Bloomberg has reported. The loan will be used to fi nance RAK Properties’ projects including the $2.72 billion Mina Al Arab

beachfront development, the developer said.

Real Estate

GREEN SHOOTS IN UAE PROPERTY SECTOR Property in the UAE showed further signs of recovery after transaction volumes in June and July reached levels of the third quarter last year, a new report has found. In its August sales guide, real estate adviser Landmark Advisory said end-users remain the dominant buyers of freehold property in Abu Dhabi, but investors continue to make up the bulk of demand in Dubai.“Sales in both emirates during June and July 2009 have been the most active since Q3 2008, with the majority of transactions in Abu Dhabi.

Qatar’s Midmac Contracting and

Belgium’s Six Construct JV have won the

US $490million

contract for the extension

of Qatar’s convention centre at Education City

Dutco Balfour Beatty has picked up a

US $40.8millioncontract for the completion of all commercial buildings at the

Al Ruwaya Golf Club

at the Tiger Woods

Dubai


FRONT

RIGHT: Last week, Dubai made it into the history books by being the fi rst in the region to launch a metro line. With the trains set to ease traffi c and make the city less polluting, the UAE’s environmental footprint is expected to fall drastically in the coming years.

RIGHT MIDDLE: In celebration of Ramadan, Dubai Municipality organised a charity Iftar at its labour camp in cooperation with Dubai Charity. Momin Al Jasmi, head of the housing and internal transportation unit, said the event was organised to draw attention to the importance of interaction with the employees, labourers in particular, during the holy month.

RIGHT BOTTOM: A mechanical dancing troupe is set to wow the crowds as they take their fi rst ever bow in Dubai at the Big 5 PMV Show. The ‘Dancing Diggers’ comprise a dozen JCB 3CX backhoe loaders. Formed some forty years ago by the Staffordshire fi rm’s founder to promote the versatility of the hydraulic system, they have curtsied for the Queen of England, pirouetted for TV, and appeared at countless machinery and agricultural shows across the UK. Due to the scale of the show, each performance will take centre stage at The Plaza, an area at the immediate entrance to the new exhibition halls.

BELOW: Princess Tower is on track to be completed by August, 2011, Tameer has told Construction Week. The Dubai Marina project has reached the 54th fl oor and is continuing to advance in accordance to the developer’s schedule. The 107-storey tower will be the tallest residential building in the world once completed. However, the 124-storey Pentominium tower, also located in the Dubai Marina, is set to break this record if completed by the planned date, which is the second half of 2013.

NEWS IN PICS

> For in depth coverage of the metro log on to www.ConstructionWEEKonline.com/dubaimetro

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FRONT

We are hoping for positive movements in the market after

Ramadan. The reduced focus on business activities and

delayed decision making processes, during this time,

naturally has an effect on our organisation. Although

we are not expecting business to return to the levels

of previous years, we should notice an increase in the

market as Ramadan ends.

Traditionally, Ramadan refl ects a slowdown in some

business activities. However, this has been compounded

this year by the overlap of the summer leave period.

In previous years, key decisions were often made

immediately before the summer, resulting in a productive

summer period.

As landscape consultants we are focusing on buoyant

territories in the region and we are looking to increase our

presence. As construction funds are slowly released we

will focus on continuing a dynamic cash fl ow. To maintain

a healthy project turnover in Q4, our fees need to be

increasingly competitive to win bids.

A diverse spread of clients, regions and projects should

assist in greater stability in the future. Exposure to a

small number or even a single developer has placed many

consultants in a vulnerable position. As a region, which

has acutely benefi ted from the upturn – those same areas

are now suffering on the other side.

The construction industry will recover, but not straight

after Ramadan. It is still too soon. There is still an over

supply in the market that needs to be balanced by

demand. The overall real estate and construction industry

in the UAE is directly affected by the international markets

and since these markets have not fully recovered, signs of

recovery will take a bit more time.

Ramadan is usually slower than other months due to short

working hours. It is expected that business will be slower

during this holy month. Progress and project schedules

incorporate this period into the overall programme.

The biggest challenge for contractors has been the

collection of payments and banking. Contractors must

focus on this so that they can successfully move forward

to Q4, 2009. Also, diversifi cation and presence in

emerging markets is essential for continuity, growth and

existence.

I think our industry has learnt that moderate growth is

sustainable growth, and that not every company that

claims to be a developer or construction company is fully

equipped. There needs to be a more planned and steady

way forward so that the industry does not fi nd itself in

another pit.

DO YOU EXPECT THE CONSTRUCTION INDUSTRY TO FULLY RECOVER FROM THE DOWNTURN AFTER RAMADAN?

HOW HAS YOUR COMPANY BEEN AFFECTED BY THE HOLY MONTH? HAS BUSINESS BEEN SLOWER THAN USUAL?

WHAT SHOULD CONTRACTORS BE FOCUSING ON GOING INTO Q4 2009?

WHAT LESSONS SHOULD HAVE BEEN LEARNED FROM THE CRISIS?

LEE ALLENCracknell Associate

SALEH MURADWEIJGulf Technical Construction Company executive director

FACE-TO-FACE

ROAD TO RECOVERY


EVENTSEvent: MEP KuwaitOverview: This conference aims to shine the spotlight on Kuwait and will discusses the challenges of engaging with Kuwait developers; future opportunities; the technology required now and in the future; and the long-term plans for the country and how these will impact on operations. Strong desings coming from architects offer an incentive for MEP companies to relocate or set up offi ces in Kuwait.Date: October 28Venue: Radisson SAS, Kuwait CityPhone: +971 4 435 6127Email: [email protected] Website: www.constructionweekonline.com/conferences

Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate.Date: November 3Venue: Raffl es Hotel, DubaiPhone: +971 4 435 6127Email: [email protected] Website: www.constructionweekonline.com/conferences

Event: Construction Week Awards 2009Overview: In its 5th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in 15 key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Award categories include project manager of the year, construction manager of the year, sustainable project of the year and developer of the year among others. But, this year’s awards promise to be bigger, better and tougher than last year.Date: November 4Location: Grand Hyatt, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/cwawards

Event: Construction Week India ConferenceOverview: This event is designed to equip individuals in the construction industry to identify project risks and implement risk mitigating processes that can be easily and effi ciently integrated into the entire construction process which will be essential in the transformation of Indian cities.Date: November 11-12Location: New DelhiPhone: +971 4 435 6127Email: [email protected]: www.constructionweekonline.com/conferences

Event: CID Awards 2009Overview: This year’s CID Awards will celebrate the success of the Middle East design industry

and demonstrate how the region’s sector can stand alongside its international peers. Date: November 15Venue: Park Hyatt, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/cidawards

Event:Buidsmart 2009Overview: The offi cial launch of buildingsmart Middle East alliance. Speakers at the event will present new technologies and best practice for improvements in effi ciency, productivity and quality in construction.Date: November 15-16Venue: Yas Hotel, Abu DhabiWebsite: www.itp.net/events/buildsmart

Event: MEP Awards Date: December 9Venue: The Westin, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/mepawards

Event: Construction Week North Africa Conference.Overview: This Construction Week conference will provide a fi rm basis for all interested parties to come together and share their experience of the economic renaissance in North Africa. Date: December 17Venue: Intercontinental Hotel, CairoPhone: +971 4 435 6127Email: [email protected]: www.constructionweekonline.com/conferences

Event: Cityscape DubaiOverview: International property and development event.Date: October 5-8Venue: Dubai International Exhibition CentrePhone: +971 4 332 1000Website: www.eventseye.com

Event: International Symposium on Architectural MembranesOverview: The workshop will address the theoretical bases for structural analysis necessary for computer implementation. Date: October 14-15Venue: American Univeristy in DubaiWebsite: http://isam-dubai.web.offi celive.com/about.aspx

Event: The Big 5Overview: Big 5 is the annual meeting place for all industry professionals. Over 58,000 key buyers and decision makers from the public and private sectors attended the 2008 event.Date: November 23-26Venue: Dubai World Trade CentreWebsite: www.thebig5exhibition.com

Event: Building Sustainability into the Middle EastOverview: Construction Week has merged the Building Sustainability

into the Middle East conference, and the GreenBuilding training series in order to offer

strategic insight and practical learning in one exhibition. Date: October 25-26Venue: Crown Plaza Hotel, Abu DhabiPhone: +971 4 4356464Email: [email protected] Website: www.constructionweekonline.com/conferences

The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. The awards recognise both regional and international architects and engineers who have made signifi cant contributions to the development of the Gulf. Award categories include overall project of the year, restoration/conservation project of the year, green project of the year, mixed-used development of the year and infrastructure project of the year. �

Event focusMIDDLE EAST ARCHITECT AWARDS 2009

DATE: SEPTEMBER 30LOCATION: THE WESTIN, DUBAIPHONE: +971 4 435 6133EMAIL: [email protected]: WWW.CONSTRUCTIONWEEKONLINE.COM/MEAA


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

COMMENT

“STATUTORY BODIES SHOULD BE MORE

PROACTIVE IN IMPOSING STRICT

REGULATIONS IN BUILDING DESIGN”

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

Common material faultsMost structural failures are associated with materials and are the consequence of human error involving a lack of knowledge about materials or the combination of contrary materials. There are structural failures that can be endorsed to irregularity in materials. Although much reliance is given on modern structural materials, the manufacturing or production faults may exist even in the most dependable structural materials, such as standard structural steel. Stone frontage sheets or glass curtain walls may have hidden serious faults.

PreventionMost of the structural failures (other than those caused by natural disasters) have occurred due to such faults, which are controllable. Good operational planning and detailed deliberations can save the failures of the valuable structures. The well-designed structures, coupled with the hard effort of the experts and correct materials can ensure the structure a complete success. Some other important points of failure prevention are:

ProfessionalismIt is of extreme signifi cance for building professionals, including builders and government bodies, to understand that the design process does not stop at the conclusion of design drawings and specifi cations. The design aim must take second place in the construction stage.

Increased antagonism during construc-tion bidding, along with developers’ aim of profi t making, can place intense pres-sure and demand on the engineers/consul-tants to create the most inexpensive and effi cient design. However, this should not compromise safety. Building experts have a great liability to make sure that the safety of the buildings and infrastructures is to the maximum.

Statutory bodies should be more proactive in imposing strict regulations in building design, codes and standards and impose penalties for the violators.

Integrated efforts by all parties Consultants and contractors must have total control of site operations and quality. Site staff are required to be well qualifi ed and competent and correctly trained in the trade in which they are working to ensure good workmanship and high quality of building works. Independent inspections by statutory bodies are essential to make sure that the building is constructed in accordance with approved plans and specifi cations.

A check system must be utilised to assess the integrity of structures based on the pro-fessional engineer’s design and to give inde-pendent design results to ascertain the suf-fi ciency of the major structural rudiments of the buildings.

The recognised check should therefore give particular concentration to unusual design details. The inspector and checker should concentrate on signifi cant areas such as transfer beams and columns, and the centre of attention should be kept on areas where errors are critical and frequent.

ConclusionDesign is a human endeavor and thus it is subject to error. Due to this, some designs are destined to fail.

In case of a building failure there must be a transparent investigation with pro-fessional engineers and forensic experts experienced in identifying the root cause of failure. And having found the possible causes of the failure, it is vital to know how to avoid it in the future. The primary step in preventing building failures is to develop a programme for educating all parties on lessons learnt from past failures. It is not advisable that a mistake once committed and affected is repeated.

Building failure — Part 2AFTER THE BUILDING COLLAPSE IN DUBAI LAST MONTH, MOHAMMED AZAD HOSSAIN HIGHLIGHTS, IN THE SECOND OF A TWO PART SERIES, THE MOST COMMON REASONS FOR BUILDING FAILURE AND HOW TO AVOID A COLLAPSE

Mohammed Azad Hossain is the head of

the contracts department for Gulf Consult, Kuwait. His background includes 30 years of experience in

all types of contractual, constructional and financial

aspects and procedures of projects in the GCC.

Hossain is a professionally qualified chartered quantity

surveyor and is a fellow of the Institute of engineers.


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

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

Penalty and Liquidated Damages (LD) has no difference in Qatar. Everyone talks about penalty without fear of being contested in court. A penalty is imposed as stipulated in the contract per day, subject to a ceiling limit, usually 10% of the contract sum, or adjusted contract sum, as the case may be. Although the contractor’s exposure to a penalty starts only when he fails to achieve scheduled completion, there are some notable exceptions.

Levying a penalty starts according to a schedule of eventaualities already qualifi ed in the contract. These may be, for instance, on a road project where the contractor is delayed in commencing designated trench work or even a section of asphalt work. There are cases where a penalty is applicable due to a delay in either commencement or in completion of almost all individual activi-ties shown in the bar schedule. A delay, due to submission of a traffi c management plan would even be a case for penalty in addition to usual delay in completion of the entire work. Sometimes the engineer has been given discretion to consider a further penalty if he feels its is required. However, this discretion has no legal effect and is called a ‘dummy’ clause that is non-enforceable.

Contracts ridden with penalty clauses keep the contractor from managing the project. This is simply because of the wrong belief that extension of time (EOT) provisions are for the benefi t of the contractor and

LD for the employer. However, a closer look at these provisions, along with the case history, suggests that they promote the reverse of true intensions. The primary idea of including an EOT provision in a contract is to preserve the contractor’s obligation to complete work within a specifi ed time. The fact that the contractor is gaining relief from LD is a secondary outcome.

If such provisions are not in place, the contractor would be able to claim time at large and the contractor’s obligation would be to complete within a reasonable time. Courts will never uphold LD when the cli-ent has contributed to delays and restricted the contractor to complete on time. Such a penalty arrangement defi nitely upsets the contractor’s technical movements freely within the project and tilts the even risk in the contract.

While liquidated damages are early calcu-lations of expected loss under the contract, penal damages strictly go further and seek to penalise a party in some way beyond the loss suffered. Even if two parties, genuinely and without coercion, wish to consent to a contract which includes a penal clause, they are unable to. As such, the imposition of a penalty on each activity of the programme is imprudent if the true intension is to per-suade timely completion. If the intention is to counter slow progress, then there is a separate provision in the contract where the engineer calls for a recovery action plan that is technically feasible.

“CONTRACTS RIDDEN WITH PENALTY CLAUSES KEEP THE CONTRACTOR FROM MANAGING THE PROJECT”

Dr Chandana Jayalath is a Member of the Royal Institution of Chartered Surveyors and a senior contracts specialist for the Public Works Authority (PWA) in Qatar. His latest industrial exposure has been sidelined in the settlement of various commercial and contractual issues, claims and disputes arising in the infrastructure projects spearheaded by the PWA.

Penalty imposition – a real life experience in QatarCHANDANA JAYALATH BELIEVES THAT TIME EXTENSION PROVISIONS ARE NOT FOR THE BENEFIT OF THE CONTRACTOR AND LIQUIDATED DAMAGES FOR THE EMPLOYER

SPECIAL REPORT

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK 21

HEAVY MACHINERYCW DISCOVERS THE MARKET OUTLOOK FOR THE HEAVY EQUIPMENT SECTOR


TOP MIDDLE EAST AUCTION HOUSES

WORLDWIDE AUCTIONEERWorldwide Auctioneers’ holds fully

unreserved auctions, with no minimum

bids, seller bids or reserved items, assuring

buyers and sellers that equipment is traded

at fair market value.

Its Middle East auction centre comprises a

100,000m² compound in the Jebel Ali Free

Trade Zone, Dubai. The fi rm held a market

share of more than 65% of all industrial

equipment auction sales concluded in

Dubai in 2005, 2006, 2007 and 2008. It has

held auctions in other countries such as

Qatar and plans to expand its auction and

private equipment sales business into other

GCC countries.

www.wwauctions.com

RITCHIE BROS AUCTIONEERSCanada-based Ritchie Bros Auctioneers

is the world’s largest industrial auctioneer,

selling equipment to both on-site and online

bidders. The fi rm sells a wide range of used

and unused equipment for the construction

industry through unreserved public auctions.

It offers auctions at more than 110 locations

worldwide, including 38 auction sites, such as

the one at the Jebel Ali Free Zone.

In 2008 it sold US $3.57 billion (AED13

billion) of used and unused equipment at

340 unreserved auctions, including a wide

range of heavy equipment, trucks and other

assets for the construction industry.

www.rbauction.com

IRON PLANETUS-based online auction house Iron Planet is

targeting Middle East buyers and sellers via

its European base in addition to its American

auctions. The fi rm is also aiming to increase

its presence in the region in the future.

http://eu.ironplanet.com


The effects of the global economic downturn have rippled through the Middle East con-struction industry over the past year, reaching all connected sectors in turn. Manufacturers and suppliers of heavy equipment have not escaped the tide, with orders for new plant dropping as mega projects in the region were

cancelled or put on hold. With an increased emphasis on cash fl ow and uncertainty about future workloads it’s inevitable that contractors have been taking stock of all aspects of their business. One of the fi rst steps in terms of plant was the reassignment of existing equipment, but how are fi rms approaching the issues of new requirements and any excess stock?

MARKET FIGURESThere have been a number of changes to the spread of heavy equipment sales over the past year. While the second-hand market appears to have grown in strength, the overall demand has reduced and the cost of units sold has fallen. In addition, Middle East traders of both new and second-hand plant, have begun to expand their sales targets into other countries to counteract the fall in demand in the local markets, in particular the UAE, and offl oad excess equipment. Several of the major manufacturers have announced large drops in profi ts, yet their long-term outlooks generally remain positive.

Japanese fi rm Komatsu’s net sales for April to June 2009 showed a drop of more than 47% compared to the same period in 2008. The fi rm also reported a 90% fall in operating income over the three-month period. The overall worldwide demand for con-struction equipment remained sluggish during this period, the fi rm states.

Atlas Copco also reported a drop in sales during Q2 of 2009, with revenues down by 14%, which represents a 27% organic decline. The fi rm’s profi tability, however, was in line with Q1 and cash fl ow was strong. The group is implementing restructuring measures in response to the lower global market demand, which has included cutting the workforce by 5440 since September 2008.

“We have achieved a strong result in light of the tough demand situation and we will continue optimising our manufacturing

HEAVY DUTYHOW ARE HEAVY EQUIPMENT SUPPLIERS BEING AFFECTED BY THE

ECONOMIC DOWNTURN AND WHAT DOES THIS MEAN FOR PURCHASERS AND END-USERS? CONSTRUCTION WEEK INVESTIGATES

By Alison Luke

> For more special reports visit www.ConstructionWEEKonline.com

structure,” Atlas Copco Group president and CEO Ronnie Leten stated at the release of the fi gures. The fi rm stresses that it is tak-ing a long-term view of the market and is investing in product development and services.

But not all fi rms have seen a loss. India-based Tata, for example, reported continuing profi ts in 2009. The fi rm’s medium and heavy commercial vehicles sales during August 2009 were 10% higher than the August 2008, showing the second consecutive monthly growth for the business.

MEETING LOCAL DEMANDIn terms of local sales, enquiries are continuing to varying degrees across the region and there is more than enough available stock to meet current demand, according to dealers. Firms with dealerships in several countries are showing the most success in the current economic conditions.

Hitachi Construction Machinery Middle East sales represen-tative Jawad Qureshi confi rmed: “We still have many enquiries, and, although sales are down, the UAE market share is lower compared to other regions. But we have dealers in other coun-tries as well that have stronger sales [fi gures].” The fi rm has taken steps to ensure continued sales and reports recent positive changes in the market.

“In the UAE [the market] was fi ne up until September last year, then to July this year the conditions have been bad; but they have been improving over the past few months,” reports Qureshi.

Mohamed Azeem, marketing analyst with Al Bahar, the sole agent for Caterpillar in Bahrain, Kuwait, Qatar and the UAE, reports: “All departments have been affected by the recession, but Al Bahar [in general] has not been badly affected because we have 11 branches in the Middle East and the Abu Dhabi branch is still going well, for example.”

Other market developments include a move towards buying from local dealers rather than directly from overseas manufacturers. China-based LiuGong managing director Tang Longgui reports: “Regarding the Middle East market, this year we are mainly sell-ing our stock through our dealer due to the economic crisis and there are very few purchases from the factory.” The fi rm reports good sales growth on forklifts during 2009, with Longgui attribut-

“WE HAVE ACHIEVED A STRONG RESULT IN LIGHT OF THE TOUGH DEMAND SITUATION AND WE WILL CONTINUE OPTIMISING OUR MANUFACTURING STRUCTURE”

ing this to the fact that there was no heavy stockpiling of the equipment in 2008.

EXPANDING MARKETSWhile suppliers expand geographically in order to gain sales, this will also have

East and Africa during summer 2009.In May the fi rm’s Middle East Centre (MEC)

announced a new dealership agreement with Yusuf Bin Ahmed Kanoo of Saudi Ara-bia, under which the fi rm will specialise in the promotion and sales of crawler cranes. This is in addition to MEC’s long-standing partnership with the Kingdom’s Al-Esayi, which specialises in excavators and wheel loaders for the Saudi Arabian market.

In July, MEC received its fi rst order for four ZX350H-3, a ZX210H-3, a ZW180, and a ZX470H-3 from the China Road and Bridge Corporation, Kenya and Rock Plant, for use in quarry and road construc-tion projects.

“We are delighted to deliver our fi rst machinery shipment to Kenya. The markets of Libya, Algeria and Egypt are huge and

WORLD WIDE AUTIONEERS REGIONAL SALES DIRECTOR AND VICE PRESIDENT KEITH LUPTON.

“OMAN AND THE LEVANT MARKETS ARE STILL HEALTHY, PLUS IRAQ AND SYRIA ARE STILL NEEDING AND BUYING EQUIPMENT”

positive implications for end-users, as their immediate choice of equipment rises. Manufacturers have also been quick to recognise the need to diversify sales into other countries. Hitachi, for example, made signifi cant moves throughout the Middle


this modest preliminary order is just the beginning; we are hopeful of many future sales in Kenya’s rapidly developing region,” commented MEC general manager Mut-sumi Kitai. “MEC expects this pivotal order to expand the Hitachi Brand throughout surrounding countries including Tanzania and Uganda. We look forward to becoming a key player in the East African market,” Kitai added.

In a further move, during August Hita-chi’s MEC signed a memorandum of under-standing (MoU) with international trading fi rm JSM and Iraqi Hitachi dealer, Savanna Group. The MoU reinforces the agreement for MEC to sell machinery and parts to Savanna Group via international traders, hence increase Hitachi’s operations in the Iraq market.

And, as well as starting operations in other countries, an outfl ow of equipment from the

UAE is occurring as locally-based fi rms are selling and shipping machinery to buyers and dealers out of the Emirates to counteract lower local demand following the delay to major projects such as the Arabian canal, for which suppliers had begun to prepare in anticipation of large contract awards.

“We’re selling lower quantities in the UAE, but we are also selling into other countries. We’re seeing good demand out of the UAE and selling in the GCC, Iran and African countries,” confi rms Qureshi.

“The branches are dealing with dealers worldwide [to offl oad any excess stock]. We have been shipping both new and used equipment to Saudi Arabia, Pakistan and the Russian States,” adds Azeem. “This was a move the fi rm made due to the recession. We have enough stock [to meet

> For more special reports visit www.ConstructionWEEKonline.com

local demand] but orders were placed in 2008 to Caterpillar [to meet the region’s predicted demand, which has now fallen] and we don’t have enough storage space for these units,” Azeem explains.

This unexpected over-supply has resulted in the immediate availability of Caterpillar plant worldwide being among the highest in the UAE, with the manufacturer refer-ring other worldwide dealers to Al Bahar for new equipment reports Azeem.

The region’s auction houses are also wit-nessing this changing geographic trend. “At our auctions before [the recession] normally 60% to 70% of items were sold into the

UAE, but over the last nine months 70% has been sold [to purchasers] outside the UAE. We’ve seen a shift in equipment leaving the region, including to Saudi

HEAVY EQUIPMENT FIRMS TO WATCH

ATLAS COPCOAtlas Copco is a leading worldwide provider

of industrial productivity solutions. The

fi rm’s products and services include

compressed air and gas equipment;

generators; construction and mining

equipment; and industrial tools and

assembly systems.

The fi rm offers a variety of heavy

machinery for the construction industry

including road construction equipment,

underground vehicles and a wide range of

demolition equipment.

www.atlascopco.com/aeus/

CATERPILLARCaterpillar is represented in Bahrain, Kuwait,

Qatar and the UAE through the Machinery

Group of the Mohamed Abdulrahman

Al Bahar business. The fi rm’s associate

- Oasis Trading and Equipment - represents

Caterpillar in Oman.

With a head offi ce in Sharjah, Al Bahar

offers a caterpillar machinery and power

systems for a wide range of applications

including earthmoving, building and heavy

construction, road making and demolition.

www.albahar.com

available through the company’s network

of branches and dealers. From operating

weights of 970-780,000kg, Hitachi provides

a variety of equipment and attachments

to cover functions including digging,

loading, carrying, breaking, grabbing,

cutting, crushing and screening. It offers

a wide portfolio of machines for general

construction work, from hydraulic

excavators to articulated dump trucks,

wheel loaders and a range of factory-

modifi ed excavators.

www.hitachi-c-m.com/mideast/

JCBJCB is one of the world’s top three

construction equipment manufacturers,

and sells its products in 150 countries

through around 1500 dealer depot

locations. Founded in 1945, the fi rm has

continually invested heavily in research

and development, and now produces a

portfolio of more than 300 machines for the

construction equipment market.

Products range from the tracked excavator,

to the robust range of wheeled loading

shovel, and the JCB Dumpster.

www.jcb.com

LIUGONGLiuGong is one of China’s top heavy

equipment manufacturing companies. The

fi rm manufactures and sells more than

36,000 machines annually and has a service

network that includes 124 global dealers that

cover more than 80 countries and regions

worldwide. It achieved sales in excess of US

$1.6 billion (AED5.8 billion) in 2008.

The fi rm has 12 product lines in its portfolio,

ranging from hydraulic excavators; road

equipment, such as rollers, pavers, motor

graders, millers and planers. Compact

products include skid steer and backhoe

loaders; forklifts; cranes; concrete pumps and

mixers; to its signature wheel loader, which

holds the highest market share in China.

www.liugong.com

HITACHI CONSTRUCTION MACHINERY MIDDLE EAST (HCME)HCME Middle East Centre is a branch

offi ce of Hitachi Construction Machinery

(Europe). Founded in 2002, it is a distributor

of heavy equipment and provides products

and support for the earthmoving and

construction industries throughout the

region. Sales and product support are

“WE ARE SEEING GOOD DEMAND OUT OF THE UAE AND ARE SELLING IN THE GCC”

Arabia and Qatar, which are still strong markets,” reports Ritchie Bros Auctioneers regional manager Steve Barritt.

“We’ve started seeing movement into Iraq and a lot of bidders from Africa r, including areas such as Nigeria,” adds Barritt. “[Deal-ers] are trying to move [excess stock] into other markets worldwide,” he explains.

“Oman and the Levant markets are still healthy, plus Iraq and Syria are still want-ing, needing equipment and buying,” adds World Wide Auctioneers regional sales direc-tor and vice president Keith Lupton.

SECOND-HANDOne of the most obvious ways in which contractors can buy additional plant for lower capital costs is to opt for used machinery and this market has seen a sharp upturn. Auction houses are playing a large role here, reporting strong increases in sales during 2009.

“Our attendees have increased by 25% this year and we have increased our volume [of sales] massively,” reports Barritt. “Ritchie

Bros’ previous biggest sale in Dubai was three years ago and made US $36 million (AED132 million); this year the June sale made $46 million. Every sale this year has increased massively in revenue. Our turnover per year generally rises by 15% to 20%, this year it’s at the top end,” Barritt adds.

But despite the large increase in revenue, the wider availability of second-hand units has meant auction prices have fallen. There has also been a move away from buying older plant due to local regulation changes.

“The GCC now has many age limitations and strict pre-licensing testing,” stress-es Lupton, “but the banks are not fi nancing new products, so a discounted second-hand unit has attraction,” he explains. “The strong Euro means that machines are not cheap from the Euro zone and Chinese products, with a few exceptions based on solid, well engineered designs, have lost their market attraction,” Lupton reports.

Older models are now more realistically priced, giving end-users an edge when tackling the current cost-cutting trends. “This year we’ve sold more two year old equipment [than older plant] and the older equipment that was sold at high prices before is now being sold at more realistic prices, which is good for end-users,” explains Barritt. “These prices were previously infl ated due to the high demand and [vendors] were getting prices that they wouldn’t receive elsewhere in the world,” he adds.

And it’s not only auction houses that are focusing on second-hand equipment, many of the major plant manufacturers are also offering used products.

Last year thousands of second-hand Cat-erpillar machines were sold through Cat Certifi ed Used programme.

The plant available through the programme is ‘low hour’ machines, which are subjected to an inspection and refurbishment process by the local Caterpillar dealer prior to sale.

“WE HAVE STARTED SEEING MOVEMENT INTO IRAQ AND BIDDERS FROM AFRICA”

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“During the challenging economic times of today, buyers are naturally cost conscious and Cat Certifi ed Used, benefi tting from the same fi nancing options as the new Cat equip-ment, has become a real option for budget conscious customers. The rigorous inspection and refurbishment process gives our dealers absolute confi dence,” explains Caterpillar used equipment manager Emmanuel Feront.

INTO THE FUTUREWith the predicted timescale for the end of the recession still a moveable feast, what preparations is the heavy equipment industry making for this eventuality? And will enough plant be available for the potential workloads?

“We expect the current trend to continue until at least mid-2010, however people are becoming more optimistic again,” states Barritt. But he warns: “Manufacturers have dropped their output, which means that when the world recession ends there’s going to be a shortage again. There wasn’t ever enough plant here when [the market] was going at its peak, [suppliers] were try-ing to catch up with the market demands,” explains Barritt.

“Recovery is there but it will be slow and a long while before it reaches the infl ationary and speculator-driven 2007/8 marketplace,” predicts Lupton. “There is loads of equipment available, because of the insatiable buying spree. This will take time to clear.”

And with major manufacturers like JCB, Volvo and Caterpillar all adding new products to their portfolios over the past six months, it seems the choice for the end-user can only get larger, at least in the short-term. �

HEAVY EQUIPMENT FIRMS TO WATCH (continued)

KOMATSU MIDDLE EASTKomatsu is one of the world’s largest

manufacturers of construction, mining

and utility equipment. It offers a variety

of construction and mining equipment,

ranging from super-large machines capable

of mining applications to mini units for

urban use; the product portfolio also

includes a wide variety of attachments and

system products. The Middle East branch

was established in 1999.

www.komatsu.com

MANITOWOC CRANE GROUPManitowoc lattice-boom crawler cranes,

Potain tower cranes, Grove mobile hydraulic

cranes and National Crane telescoping

cranes are built, sold and serviced at

multiple locations on fi ve continents.

The Middle East facility based in Jebel Ali

Free Zone serves 20 countries in the Gulf,

Arabian peninsula, Turkey and central

Asia. The 1400m2 facility includes sales

offi ces, a workshop, parts warehouse and a

training centre.

www.manitowoccranes.com

fi rm Telco Construction Equipment

Company, of which Tata holds 60% makes;

the rest is held by Hitachi Construction

Machinery. The GCC is a key market for

Tata, the fi rm having established in the

region in the early 1990s.

www.tata.com

VOLVO CONSTRUCTION EQUIPMENTVolvo Construction Equipment is one of

the world’s top three largest construction

equipment manufacturers. The fi rm

offers a broad range of products for the

construction industry, with a total of more

than 150 different models of excavators,

wheel loaders, motor graders and

articulated haulers.

It has operations in a number of countries

in the Middle East including Iran, Kuwait,

Oman, Qatar, Saudi Arabia and the UAE.

In the UAE the fi rm is represented by Al

Futtaim Auto and Machinery Company; Al

Rehab Equipment and Machinery represent

the fi rm in Saudi Arabia.

www.volvoce.com

TADANOEstablished in 1948, Tadano is one of the

world’s largest manufacturers of hydraulic

cranes, with a wide product range that

includes rough terrain cranes, all-terrain

cranes, truck cranes, truck loaders, aerial

platforms and a variety of related products

and equipment.

The fi rm re-established a Middle East offi ce

in the Jebel Ali Free Zone in 2003, its previous

Bagdhad offi ce closing in 1990. The offi ce

serves the wider Middle east region including

the UAE, Saudi Arabia, Kuwait and Egypt.

www.tadano.co.jp

TATA MOTORSEstablished in 1945, Tata Motors is India’s

largest automobile company and among the

world’s top fi ve manufacturers of medium

and heavy trucks. The company began

manufacturing commercial vehicles in 1954

and its range now extends from the light

two-tonne truck to heavy dumpers and multi-

axled vehicles of more than 40 tonnes.

The fi rm has several associates include

construction equipment and allied services

“BANKS ARE NOT FINANCING NEW PRODUCTS, SO A DISCOUNTED UNIT HAS ATTRACTION”

MANUFACTURERS OF HEAVY EQUIPMENT HAVE STARTED TO DIVERSIFY SALES INTO OTHER COUNTRIES.


PACIFIC CONTROLS HEADQUARTERSLeed rating: PlatinumIn 2007, the Pacifi c Controls Headquarters based

in Techno Park, Dubai became the fi rst Platinum rated building in the Middle East and the 16th in the world for achieving 55 Leed points. The 11,000m², 5-storey, green building focuses on developing automation solutions and products for global markets. Some of the green features of the building include soil erosion measures, water effi cient equipment and solar-thermal air conditioning for fresh air requirements. High-effi ciency chillers, solar photovoltaic for building lighting have also been used, as well as materials with high recycled content.

AS GREEN BUILDING AND SUSTAINABLE DESIGN ARE NOW TOP PRIORITIES ON THE CONSTRUCTION SECTOR’S AGENDA, CW HAS LISTED FIVE ENVIRONMENTALLY FRIENDLY PROJECTS IN THE GULF

By Sarah Blackman

TOP 5 LEED CERTIFIEDBUILDINGS IN THE GULF

ABN AMRO BANK INTERIOR WORKS PROJECTLeeds rating: GoldIn December last year, Abn Amro Bank, was declared

as a Leed Gold certifi ed building. The bank is located in Dubai Outsource Zone and is a commercial interiors development, which includes call centres and offi ces. A number of aspects lead to the certifi cation such as the eco-friendly, recycled materials selection; segregation and recycling of waste during operations, recycling and diversion of 75% construction waste from landfi ll; daylight control; and 100% covered car parking.

Buildings listed in this feature are in order of Leed ratings

METITO HEADQUARTERSLeeds rating: GoldMetito is an international company specialised in the design and supply of water and waste

water treatment. In 2007, Metito’s headquarters in Technopark, Dubai was certifi ed as the fi rst green building in the Middle East to receive the Gold Leed after having met green building standards, such as sustainable site development, water savings, energy effi ciency and indoor environmental quality.

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LEED CERTIFICATIONRating Points

Certifi ed 26-32 points

Silver 33-38 points

Gold 39-51 points

Platinum 52-69 points

HOW POINTS ARE DISTRIBUTED ACCORDING TO LEED 2009:Energy and atmosphere - 17 points

Achieve points by: Optimising energy performance.

Indoor environmental quality - 15 points

Achieve points by: Monitoring outdoor air delivery;

control indoor chemicals and pollutants; and increase

ventilation in the building.

Sustainable sites - 14 points

Achieve points by: Providing public transportation access;

offering pollution prevention plans; reducing light pollution.

Materials and resources - 13 points

Achieve points by: Reusing building materials; recycle

construction waste; and manufacture materials within 500

miles of the building site.

Water effi ciency - 5 points

Achieve points by: Using innovative wastewater

technologies; and reducing

water use.

Innovation and design

process - 5 points

Achieve points by:

Have a Leed Accredited

Professional as a principal

participant on the project.

Additional points for this

category are awarded above

and beyond 64 points.

> For more top 10s visit www.ConstructionWEEKonline.com

DISTRICT COOLING CHILLER PLANTLeeds rating: GoldWafi City’s district cooling plant received the

Leeds Gold certifi cation from the US Green Building Council in 2006. The utility building had already achieved the Silver Award the previous year but applied to be upgraded soon after. The project was short of a few minor points, which were mainly administrative, but after documents were gathered to prove certain green initiatives the development was accredited with the desired award. The plant utilises energy-effi cient chillers and environment-friendly refrigerants and the habitable area of the automated plant has waterless urinals, water-based paints and other green features.

DUBAI INTERNATIONAL ACADEMIC CITY – PHASE 3Leed rating: SilverThe phase three complex at Dubai International

Academic City (DIAC) has become the fi rst certifi ed academic facility in the Middle East. The DIAC, the world’s only free zone dedicated to higher education and a member of Tecom investments, earned Silver Leed certifi cation in June this year and is expected to save approximately US $626,000 (AED2.3 million) per year from reduced energy costs, cooling demand, irrigation water costs, sewage tanker and domestic water costs. Phase three comprises four academic buildings and a food court spread over a built area of 55,741m². Its green features include heat recovery wheels, enhanced levels of insulation, optimisation of fresh air through variable speed drives, recessed windows, and low lighting power densities

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DIAC IS SET TO SAVE US $626,000 PER YEAR FROM REDUCED ENERGY COSTS.

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34 TENDERS38 PROJECTS

SPECIALIST SERVICES40 Building materials41 Construction chemicals/concrete42 Education & training/fl ooring43 Recruitment/steel

CITY UPDATE44 Tripoli, Libya

DIRECTORY

SEPTEMBER 12–18, 2009 CONSTRUCTION WEEK 33

TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE


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

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BAHRAIN

Issuer: Electricity and Water AuthorityTender No: 204/2009/6000Description: Construction of a multi-storey car park building in Juffair.Closes: September 16Fees: BHD50 Bond: BHD5000Contact: www.tenderboard.gov.bh

Issuer: Bahrain Electricity and Water AuthorityTender No: 226/2009/5310Description: Supply an underground 11KV power cable.Closes: September 30Fees: BHD50Bond: BHD5000Contact: www.tenderboard.gov.bh

Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09Description: The scope of work includes the supplying of spare parts for Al Door Substation.Closes: September 30Fees: BHD15Contact: www.tenderboard.gov.bh

Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09Description: The scope of work includes the supplying of spare parts for Al Door Substation.Closes: September 30Fees: BHD15Contact: www.tenderboard.gov.bh

EGYPT

Issuer: Potable Water and Sanitary Drainage CompanyDescription: Request of offers from contractors to design and implement lifting stations household connections at villages within Gharbiya Governorate. Closes: September 16Fees: EGP5000Bond: EGP660,000Contact: Potable Water and Sanitary Drainage Company, opposite the court yards complex, Tanta

Issuer: Potable Water and Sanitary Drainage Company Description: Request of offers from companies specialised in water and waste water solutions and networks for the design of lifting stations at villages within Kafr El Sheikh Governorate.Closes: October 7Fees: EGP5000Bond: EGP500,000Contact: Potable Water and Sanitaty Drainage Company, opposite the court yards complex, Tanta

OMAN

Issuer: Oman Tourism Development Company Tender No: 249/2009Description: Consultancy services for Oman convention centre.Closes: September 21Fees: OMR1000Contact: www.tenderboard.gov.om

Issuer: Muscat Electricity Distribution CompanyTender No: 250/2009Description: The project calls for providing distribution Scada system for Muscat Electricity Distribution Company.

The Public Pension Agency (PPA), a government organisation based in Saudi Arabia, was set up with the aim to secure fi nancial resources for civil and military pensioners and survivors, as well as activating communication channels between pensioners in all social classes. Recently, the PPA has become known for being the owner of the US $10 billion (SAR37.5 billion) King Abdullah Financial District (KAFD) in Riyadh, a project that will house professionals working in the fi nancial sector and host the headquarters of the Capital Market Authority, the stock exchange, banks, fi nancial institutions and other service providers.

In September 2007, the PPA awarded the project management contract for this project to Hill International and in October last year Saudi Oger was handed the main construction contract for two packages within the development. El Seif Engineering is also working on two parcels while Saudi Binladin is working on four.

Last month, Construction Week revealed that the client is on the verge of awarding a major design and build contract for 30 parcels of land within the KAFD. The award is expected to be made later this month or early October and will account for the bulk of the development. The contracts, which run over a 30 month period, are expected to be completed by mid-2011 and around 70% of the entire project is due for completion by mid-2012. �

Tender focus

PUBLIC PENSION AGENCY

THE PPA HAS INVESTED IN THE US $10 BILLION KING ABDULLAH FINANCIAL DISTRICT.


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Closes: September 21Fees: OMR1500Contact: www.tenderboard.gov.om

Issuer: Oman Tender Board Tender No: 262/2008Description: The scope of work includes the construction of new Salalah Airport.Closes: September 21Fees: BHD1500Contact: www.tenderboard.gov.om

Issuer: Majan Electricity CompanyTender No: 251/2009 Description: The scope of work includes construction of a new 2x10MVA 33/11KV substation in Tarrif Makhmra, Shinas province.Closes: September 21Fees: OMR323Contact: www.tenderboard.gov.om

Issuer: Ministry of ManpowerTender No: 244/2009 Description: The scope of work includes construction of a Ministry of Manpower Building at Airport Height.Closes: September 27Fees: OMR1500Contact: www.tenderboard.gov.om

Issuer: Ministry of Transport and CommunicationTender No: 261/2009 Description: The scope of work includes construction of airfi eld infrastructure for Sohar Airport in Oman.Closes: September 28Fees: OMR1500Contact: www.tenderboard.gov.om

Issuer: Oman Wastewater Services Company Tender No: 258/2009 Description: The scope of work includes the development of Al Ansab wetland in Oman.Closes: October 5Fees: OMR686Contact: www.tenderboard.gov.om

Issuer: Oman Wastewater Services CompanyTender No: 258/2009 Description: The scope of work includes the construction of a car park for Haya Water Headquarters in Al Ansab.Closes: October 5Fees: OMR686Contact: www.tenderboard.gov.om

QATAR

Issuer: Qatar GasTender No: LTC/A/1124/09Description: The scope of work includes landscaping and maintenance services to be carried out at Qatar Gas premises at Ras Laffan.Closes: September 14Fees: QAR500Contact: Qatar Gas offi ce, 6th fl oor, Salam Towers, West Bay, Doha

Issuer: Public Works AuthorityTender No: PWA/GTC/048/07-08/R2Description: The scope of work includes the construction of a service building in Um Salal. The entire plot area of the site is 12,439m2.Closes: September 29Fees: QAR1000Contact: Contracts department, Public Works Authority

Issuer: Qatar PetroleumTender No: GT09109900Description: Irrigation, landscape maintenance and refurbishment works at Qatar Petroleum locations.Closes: October 4Fees: QAR500Contact: Contracts department, operations division, Qatar Petroleum, PO Box 3212, Royal Plaza, Green Wing, 4th fl oor, room G13, Doha

Issuer: Public Works AuthorityTender No: PWA/GTC/009/09-10Description: The design and construction of trunk and internal sewers within Musaimeer.Closes: October 13Fees: QAR6000Contact: Contracts department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/010/09-10Description: Construction of trunk and internal sewers within Musaimeer – phase one. Closes: October 27Fees: QAR6000Contact: Contract department, Public Works Authority

Issuer: Public Works AuthorityTender No: PWA/GTC/009/09-10Description: Construction of trunk and internal sewers within Ain Khalid Area – phase 2.Closes: November 10Fees: QAR8000Contact: Contract department, Public Works Authority

SAUDI ARABIA

Issuer: Royal Commission for Jubail and YanbuTender No: PIC A-1011Description: Procurement and construction of a bridge and intersections to connect the highway with the industrial and community areas at Yanbu Industrial City.Closes: September 13Fees: SAR9000Contact: Director of Purchasing, Contracting Department, PO Box 30031, Yanbu Industrial City

Issuer: Royal Commission for Jubail and YanbuTender No: 113-C60Description: Supply labour supervision, tools, materials and equipment necessary for the procurement and construction of residential apartment buildings in Jubail Industrial City.Closes: September 14Fees: QAR1000Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City

Issuer: Royal Commission for Jubail and YanbuTender No: PIC G-1589D Description: Construction of housing units for bachelor medical staff at Haii Al Nawa 3 at Yanbu Industrial CityCloses: September 28Fees: SAR1000Contact: Director, Purchasing and Contracting Department, PO Box 30031, Yanbu Industrial City

Issuer: Royal Commission for Jubail and YanbuTender No: 325-S13Description: Operation and maintenance of infrastructure including roads, storm drainage, material handling facilities in Jubail Industrial City.Closes: October 12Fees: QAR12,500

Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City

Issuer: Holy Makkah MunicipalityTender No: 4/00/00/296/1/2/19Description: Construction of pedestrian facilities in several areas of Makkah.Closes: October 24Fees: QAR5000Contact: www.holymakkah.gov.sa

Issuer: Saline Water Conversion CorporationTender No: 1/2009Description: Construction of a housing complex in Haql, Dhia and Al Wajh.Closes: October 24Fees: SAR3000Contact: Saline Water Conversion Corporation

Issuer: Royal Commission for Jubail and YanbuTender No: 655-C13Description: Construction of sports centres at Al Ferdos and Jalmudah. The work includes site preparation, construction of new roads, sidewalks and utilities.Closes: October 25Fees: SAR9000Contact: Contracts section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City

Issuer: Holy Makkah MunicipalityTender No: 4/0/0/296/1/2/19Description: Construction of pedestrian facilities in several areas of Makkah – phase four.Closes: November 1Fees: SAR9000Contact: www.holymakkah.gov.sa

Issuer: Royal Commission for Jubail and YanbuTender No: PIC G-1613003Description: Expansion of Royal Commission Medical Centre in Yanbu.Closes: November 10Fees: SAR9000Contact: Director of purchasing and contracting department, PO Box 30031, Yanbu Industrial City

UAE

Issuer: Dubai Electricity and Water AuthorityTender No: CNE/0114/2008(R)Description: The construction of a water intake channel.Closes:September 13Fees: AED5000Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE

Issuer: Dubai Electricity and Water AuthorityTender No: CNE/0114/2008(R)Description: The construction of a water intake channel.Closes:September 13Fees: AED5000Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE

> Check the latest tenders online at www.ConstructionWEEKonline.com/tenders

Issuer:Issuer: Public Pension AgencyPublic Pension AgencyDescription:Description: Design and build contract for 30 parcels of Design and build contract for 30 parcels of land within King Abdullah Financial District.land within King Abdullah Financial District.Award date:Award date: September/October 2009September/October 2009Contact:Contact: www.pension.gov.swww.pension.gov.saa

ONE TO WATCH


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

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The US $400 million King Abdulaziz Centre of Entertainment and Knowledge is set to be built in Saudi Arabia’s eastern province city Dhahran. Currently at design stage, the project resembles a rock mass incorporating fi ve separate buildings. For example, a keystone is suspended between a 17-storey tower and a library ‘pebble,’ which further refl ects the appearance of a rock mass.

Once completed, the development will contain some 60,000m² of cultural facilities, including an auditorium, cinema, library, exhibition hall and a museum situated underground beneath a landscaped dome. Each of the fi ve buildings will have a unique function and structural geometry, and will be independent and isolated from the other buildings in the landscaped dome.

Saudi Aramco – the client on the development – has invited companies to express interest in the tender for the main construction contract, which is expected to be issued this month. The closing date for bids is Decem-ber, 2009. King Abdulaziz Centre for Entertainment and Knowledge is expected to be opened to the public in June,

2012. The centre will mark the 75th anniversary of Saudi Aramco, the world’s largest oil producing company. The architect on the project is Snonetta, while Davis Langdon Schumann Smith is the design project manager. Construc-tion is expected to start in Q1 of next year. �

Project focus

KING ABDULAZIZ CENTRE FOR ENTERTAINMENT AND KNOWLEDGE

THE CENTRE IS DESIGNED TO RESEMBLE A ROCK MASS.

PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR

VALUE(US$MN)

STATUS

SAUDI ARABIA

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - EP CRACKER PACKAGE

Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia Kellogg Brown & Root 1200 project under construction

ISO-OCTANE PLANT AT JUBAIL Alujain Corporation/Noble Americas

In House Not Appointed 550 award awaited for the construction contract

SECOND ALUMINIUM SMELTER IN JIZAN ECONOMIC CITY Saudi Binladin/MMC Corporation Berhad/Chalco

Not Appointed Not Appointed 3000 project under study

TANTALUM AND NIOBIUM DEPOSITS AT GHURAYYAH AREA Tertiary Middle East St Barbara Consult-ing/SRK Consulting

Not Appointed 100 project under study

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - POLYCARBONATE PACKAGE


Asahi Kasei Daelim Industrial Company

500 project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - EO/EG PACKAGE Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia China Technical Con-sultants Incorporate


KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - PP PACKAGE Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia Samsung Saudi Arabia 400 project under construction

RAS TANURA PETROCHEMICALS COMPLEX Saudi Aramco/Dow Chemical Company

Kellogg Brown & Root Not Appointed 17,000 project under design

AL ZABIRAH BAUXITE DEVELOPMENT Maaden Bechtel Not Appointed 2000 project under design

SYNTHETIC RUBBER PLANT AT KEMYA Sabic / ExxonMobil Chemical Not Appointed 2.5 - 15 project under design

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

PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR

VALUE(US$MN)

STATUS

SAUDI ARABIA

HIGH-TECH COATING FACILITY IN DAMMAM BLDGTEC/Nukote Coating Systems Building Technology Trading & Contracting


CAUSTIC CHLORINE/ETHYLENE DICHLORIDE FACTORY IN JUBAIL Arabian Chlor Vinyl Company CMAI Consulting Company

Not Appointed 400 award awaited for the construction contract

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL 2 DOUBLE - WALL TANKS PACKAGE


Fluor Corporation Chicago Bridge & Iron 40 project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - LDPE PACKAGE Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia Simon Carves 400 project under construction

STEEL PLANT IN JIZAN ECONOMIC CITY - PHASE 1 Pan Kingdom Investment Company Corus Consulting Sabac 250 project under construction

JUBAIL 2 EXPORT REFINERY - COKER UNIT PACKAGE Saudi Aramco / Total Foster Wheeler Samsung/Chiyoda 850 project under construction

ALUMINA REFINERY IN RAS AL ZOUR Maaden/RCJY/Alcan Bechtel Fluor Arabia 6000 project under construction

AROMATICS PLANT IN YANBU Safra Company EN Global Corpora-tion/Lurgi/GTC

Hanwha International 400 project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - PHENOLICS PACKAGE


Fluor Arabia Tecnicas Reunidas 1200 project under construction

KAYAN PETROCHEMICALS COMPLEX AT JUBAIL - AMINES PACKAGE Sabic/Saudi Kayan Petrochemical Company

Fluor Arabia Samsung Saudi Arabia 300 project under construction

KING ABDULLAH ECONOMIC CITY-ALUMINIUM SMELTER Emaar/Emal International Not Appointed Not Appointed 5000 project in concept stage

ALUMINIUM CHIP MANUFACTURING FACILITY IN JUBAIL Al Ihsa Development Company Not Appointed 220 award awaited for the construction contract

PETROCHEMICAL COMPLEX - ETHYLENE CRACKER PACKAGE Saudi Chevron Phillips Petrochemi-cal Company/SPC

Parsons Engineering Corporation

JGC Corporation 1200 project under construction

RAILWAY TRACK MILL Al Ittefaq Steel Products Company Not Appointed Not Appointed 250 project under study

SHRIMP FARM & PACKAGING PLANT Jazadco Haif Trading & Con-tracting Establishment


PETROCHEMICAL COMPLEX - POLYOLEFINS PACKAGE Saudi Polyolefi ns Company Parsons Engineering Corporation

Daelim Industrial Company


INTEGRATED FERTILISER COMPLEX - AMMONIA PLANT Maaden Technip / Uhde Samsung Saudi Arabia/ Uhde



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

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Headquartered in Dusseldorf, Germany, ThyssenKrupp Elevator is one of the leading elevator companies in the world and represented at over 800 locations in more than 60 countries. The fi rm employs 43,000 employees worldwide. Its capabilities include passenger and freight elevators, escalators and moving walks, stair and platform lifts, passenger boarding bridges, as well as a quality service for all products.

ThyssenKrupp Elevator UAE set up independently in Dubai in 2005 as a subsidiary of ThyssenKrupp Elevator AG after winning the largest contract in the history of the elevator industry – more than 800 elevators, escalators, moving walkways and passenger boarding bridges for Dubai International Airport’s Emirates Terminal 3.

In recent years, the company has won contracts in the Gulf including the New Doha International Airport and QIPCO’s Tornado Tower in Qatar. ThyssenKrupp Eleva-tor also supplies the Twin elevator system, which has two cabins in one shaft functioning independently, thereby saving on construction costs and increasing the level of saleable space in a building.

Another technology offered by the company is the desti-nation selection control in which all calls are distributed considering the shortest time to the destination. Thys-senKrupp Elevator UAE has branch offi ces in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. �

Supplier focus

THYSSENKRUP ELEVATORMANUFACTURER OF ELEVATORS

THYSSENKRUP’S TWIN ELEVATOR SYSTEM BEING USED IN GERMANY.

BUILDING MATERIALS


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

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FLOORING

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CITY UPDATETRIPOLI, LIBYA

There is almost no international A-grade offi ce stock and less than 100,00m² of dedi-cated offi ce space in the city. Meanwhile, R&M suggest that purchasing power and demand is increasing. “Growth in sales/rental prices has been exceptionally high, with an average increase of approximately 65% to 70% in 2007-2008, rising to 150% in certain areas,” states the report.

As a result, the country has a US $127 billion (SAR476 billion) fi ve-year redevelopment plan to modernise water and sanitation facilities, and schools and housing.

According to a report, Libya is “set to enjoy real annual GDP growth of over 8% from 2008-2011 and remains rela-tively immune from

the international fi nancial crisis”. Economic growth is accompanied by a population growth of around 2% per year in Tripoli – a city drastically under-supplied when it comes to quality housing. Offi ce space also appears to be a likely area for growth.

With this in mind, Tripoli holds a great deal of promise. However the practicali-ties of doing business in the Libyan capital appear to be discouraging developers.

“Everyone’s now fl ocking to Libya. From what I hear, anyone who’s been to Libya will not go back but those who haven’t been there are quite enthusiastic,” says Simplex Infrastructure country director Ani Ray.

His view is supported by Six Construct GM Philippe Dessoy. “We used to work in Libya but we closed the offi ce there. Every-thing takes a lot of time. You never know when they will start – we had to wait for

Test time for TripoliHAVING BEEN SOMEWHAT ISOLATED FOR MANY YEARS, LIBYA HAS REMAINED SOMETHING OF AN UNTAPPED RESOURCE FOR DEVELOPERS IN THE MENA REGION. HOWEVER, ACCORDING TO A REPORT BY RESEARCH AND MARKETS, THERE ARE SEVERAL OPPORTUNITIES, PARTICULARLY WITHIN THE CAPITAL, TRIPOLI

By James Boley

CONSTRUCTION CONTINUES IN TRIPOLI DESPITE UNCERTAINTY.

“ANYONE WHO’S BEEN TO LIBYA WILL NOT GO BACK BUT THOSE WHO HAVEN’T BEEN THERE ARE QUITE ENTHUSIASTIC”


one or two years to get a contract. I don’t see anything changing.”

How contracts are drawn up appears to be a particular fl ashpoint for developers. “What I understand is that they have a rate contract – it is government controlled,” says Ray. “So if they like you, they’ll tell you to go by their rates. If the parties agree, they’ll give you the contract but even that is very loose.”

R&M suggest there are still deterrent fac-tors, particularly the fact that most foreign

THE OIL AND GAS SECTOR UNDERPINS THE LIBYAN CAPITAL’S ECONOMIC GROWTH.

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individuals cannot buy property or land in Libya, although in joint ventures with Libyan companies the foreign party may hold a stake of up to 65%.

“Signifi cant incentives are offered to large scale investors, including a fi ve-year corpo-rate tax holiday.”

Therefore, it is clear that Tripoli holds potential for developers – but questions still remain over whether realising that potential is still possible. �

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INFRASTRUCTURE AND FACILITIES ARE A KEY AREA FOR GROWTH.

TRIPOLI IN NUMBERS:

400,000m² of offi ce space expected to come online between 2010 and 2012.

Foreign companies can have a stake of up to 65% in a joint venture.

Foreign companies in joint ventures get a tax holiday of fi ve years.

Tripoli’s population of 1.5 million is growing by 2% each year.

House prices increased on average by 65% to 70% during 2008, and in some areas increased by 150%


Construct SAFEConstruction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.


experience. Poor health, safety & welfare knowledge

Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge

Illustrations by Jincom Publishing

Introducing the Construct Safe lead characters (from Left to Right)

Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge

Achmat: Construction labourer with little

> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com

If you have a health & safety or environment issue that you would like to see addressed through this comic strip email your ideas or comments to [email protected]. Alternatively, log onto www.ConstructionWeekOnline.com to see the comic strip.

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DIALOGUEJEFF WILLIS

What progress has been made in the Middle East so far in terms of green building?Some progress has been made, and more will be made, as new regulations and Estidama come into use. Some developers have done more than others. Tecom, for example, has made a signifi cant effort. But we had around 300 buildings that have been submitted to the US Green Building Council (USGBC) for certifi cation and only about three or four of them got through to the end. The reasons for this was probably because of programme cost and because these projects have been approached in the wrong way. You can’t produce a glass-fronted building and then expect it to be Leed certifi ed. There have been lots of good intentions at the start but not enough to carry companies through to the future.

Why do you think some contractors and developers are discouraged from implementing green initiatives into their projects?It is commonly and wrongly accepted that greener is more expensive. It is diffi cult to change mind sets and habits, and here, as in any part of the world, it is diffi cult to get people to take steps to improve the conditions of operation of a building when the plan is to sell the building on. People have the idea that they wish to build something very quickly and very cheaply in order to sell it at a profi t as soon as they can.

The Emirates Green Building Council wishes to increase its members by around 30% per year. How will you achieve this?We want to make people see the number of benefi ts of belonging to the EGBC organisation by raising our profi le, making people more aware of our aims and encouraging them to take part in achieving them. We have increased our members by 30% per year in the past and I suspect, if we manage ourselves very well in the next six months, then we will achieve more than that. Also, we want to increase the variety of our members. We have a lot of contractors, consultants and

Green thinkingEmirates Green Building Council (EGBC) chairman Jeff Willis talks to CW about his views on the progress made so far in terms of green building and his hopes for the future

By Sarah Blackman

FM managers on board, but not a lot from other occupations in the construction industry and we want to improve on this.

There were reports that a regional ratings system for green buildings was going to be implemented in the UAE. Is this still true?At the moment we are not producing our own rating system. We never were really. We were going to work with the USGBC to produce one that was our own but this also meant that we would have to have entirely our own infrastructure to operate it. The USGBC has changed its process in order to make the system more fl exible to use here, which means that one of the main reasons for having our own ratings system has disappeared. So, we didn’t scrap the idea, things changed, which meant it was no longer the right way to go.

Will there ever be a certifying body that will serve all of the UAE?I would like to think there will be and Emirate-wide certifi ed body, but I would not like to guess a timescale. It would also make sense for all building regulations to be consistent across the UAE.

Do you think that green building will be a top priority once the downturn is over?

The new regulations and Estidama will require that green buildings be a top priority. I think that the international concern with climate change will also bring a focus on green building issues. With the Irena HQ being located in Abu Dhabi, more of an emphasis is likely be put on appropriate technologies and buildings.

What are your main aims for 2010?We would like to establish regular functions, both educational and informative. Furthermore, we want to establish working relationships with government bodies related to green building issues.

Jeff Willis is an engineer with nearly

40 years experience in the construction

industry. He is the Arup representative

and a founder member of the Emirates

Green Building Council. He currently

holds the position of chairman.

Willis has been working for Arup for 30

years, located in offices in Europe, the

Middle East and the Far East. During

that time he has worked on a variety of

projects from individual building design

to master planning, and in commercial,

industrial and transportation and

infrastructure design.

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