< Previous58 CONSTRUCTION WEEK JUNE 2020 POWER 100 WWW.CONSTRUCTIONWEEKONLINE.COM WWith offices in Dubai, London, Toronto, and Cape Town, U+A was set up in 2006 by chartered architect Pedram Rad and his business partner Pierre Martin Dufresne. Rad took on the role of U+A’s managing director in 2010, and was recently promoted to the roles of chairman and board member of the company’s recently set up branches in the UK and KSA. The firm opened its KSA office in Riyadh in 2019, to deliver architecture, interior design, and master planning for several projects. U+A has worked on several key projects in the past 12 months including Arabian Ranches III by Emaar Properties; Sur La Mer by Meraas; and Amaala Hotels – by Amaala, among others. Rad is focused on driving the company’s business to achieve a revenue expectation of $24.5m (AED90m) for the year. In addition, he is committed to embedding learning and development within the framework of the business. This has been made possible through the recent implementation of training sessions for software technologies, as well as the introduction of U+A University, which is structured to suit young graduates. PEDRAM RAD MANAGING DIRECTOR, U+A 95 Oil services company Petrofac International returns to the Construction Week Power 100 ranking after its debut in the 2019 list. In 2019, National Petroleum Construction Company (NPCC) and Petrofac, in a joint venture with CNPC, won a front-end engineering design (Feed) contract from ADNOC Group company Al Yasat Petroleum for the Belbazem Block Development project located offshore in Abu Dhabi. In addition, the oil services giant was picked as the EPC contractor for the Salalah Liquefied Petroleum Gas (LPG) Project in Oman. In the beginning of 2020, Petrofac secured a $130m (OMR50.1m) engineering, procurement, construction, and management (EPCM) services contract from the sultanate’s exploration and production firm, Petroleum Development Oman (PDO) for the Mabrouk North East Development Project. The Ayman Afsari-led company along with Sapura Energy Berhad was picked by ADNOC in February 2020 for two engineering, procurement, and construction (EPC) contracts that covered work on offshore facilities, with Petrofac Emirates’ portion of the scope of work valued at $1.5bn (AED5.5bn). Despite the termination of the contract, Petrofac has said that it will continue to implement its remaining group backlog of around $7bn as planned and it will tender for major contracts in Abu Dhabi. XXXXXXXX CEO OF CHINA STATE ME 94 AYMAN ASFARI CHIEF EXECUTIVE OFFICER PETROFAC INTERNATIONALPOWER 100 WWW.CONSTRUCTIONWEEKONLINE.COM AHMED OSMAN MANAGING PRINCIPAL DESIMONE CONSULTING ENGINEERS POWER 100 WWW.CONSTRUCTIONWEEKONLINE.COM Aleading player in the field of structural engineering, DeSimone Consulting Engineers has many notable projects to its name across the Middle East. These include Wasl Tower in Dubai; Saadiyat Island Resort Development, ADNOC Medical Centre, and Sheikh Zayed Grand Mosque New Visitor’s Centre and Plaza in Abu Dhabi; and Saudi Aramco’s South Dhahram Housing and Community, and King Abdullah Financial District Museum of the Built Environment in Saudi Arabia. In addition, the company has worked on Kuwait’s Al Wafra Seef and Khiran Pearl Development projects, as well as Al Ain Wildlife Park Resort & Residences, and Sheikh Khalifa Mosque in the UAE. DeSimone Consulting Engineers has offices in the US, South America, Asia, and the Middle East. During the eight years of his time leading the company’s Abu Dhabi branch, managing principal Ahmed Osman successfully increased the staff by 55% and raised the office revenue by 45%. Osman was a strong contender for the Construction Week Awards’ Construction Executive of the Year honour in 2019. 96 Atkins Acuity has reclaimed its spot in the Construction Week Power 100 annual ranking. The strategic and financial advisory consultancy that is part of SNC-Lavalin Group, is led by Kathleen McGrail as its managing director for the MENA region. The 2019 list featured Johan Hesselsøe, who held the same position for the MEA business operations. Hesselsøe, who is now the managing director of the MEA business for Faithful + Gould, was replaced by McGrail. McGrail oversees Atkins Acuity’s strategic, financing, and technical consulting services. She has been associated with the company for eight years in key roles, growing and developing the Acuity business. Furthermore, McGrail boasts more than 20 years of experience in transformation, program and change management. As part of its ongoing response to the COVID-19 pandemic and its impact, the SNC-Lavalin Group member recently released a report to inform consumers about the potential implications that the crisis may have on the Middle East’s transport sector. Atkins Acuity delivers strategic planning in transport; energy and water; cities and urban infrastructure; portfolio, programme, and asset management. The company’s services also include ensuring bankability of infrastructure and real estate projects. 97 KATHLEEN MCGRAIL MANAGING DIRECTOR ATKINS ACUITY (MEA) JUNE 2020 CONSTRUCTION WEEK 5960 CONSTRUCTION WEEK JUNE 2020 POWER 100 WWW.CONSTRUCTIONWEEKONLINE.COM A new player in the recruitment industry, FifthEdge is a construction and engineering speci c recruitment rm, which expects to disrupt the hiring process in the said sectors at an industry level. The platform, spearheaded by industry leader Marcus Taylor, aims to increase the recruitment capacity of companies by up to 467% and to reduce cost-to-hire by 52%. Taylor decided to step away from his construction and engineering recruitment rm Taylor Sterling to launch FifthEdge in October 2019. More recently, FifthEdge launched a Coronavirus Recovery Initiative, to aid the recovery of employers and employees in the construction and engineering sectors impacted by COVID-19. MARCUS TAYLOR FOUNDER, FIFTHEDGE 99 In February 2019, SKEC was awarded an EPC contract valued at $1.2bn (AED4.4bn) by ADNOC Group to construct the largest single storage facility in the emirate of Fujairah. The heavyweight contractor was chosen to implement design, build, civil, and track works for the 139km Package A of Etihad Rail’s 605km Stage 2 along with China State Construction and Engineering Corporation Middle East (CSCEC ME), under a contract worth $408.4m (AED1.5bn). 98 JAE-HYUN AHN PRESIDENT & CEO, SK ENGINEERING AND CONSTRUCTION (SKEC) French engineering group Egis International, which is led by Christian Laugier, obtained a managed turnover in 2019 of €1.22bn, recording a 7.9% growth YoY. The growth in the aforementioned gures is attributable to Egis International’s Business Unit Middle East, which accounts for 14% of the result, marking a 13% YoY increase. Egis Middle East has identi ed Saudi Arabia as one among its “high-interest” countries. The engineering group has strong Middle East presence with of ces in Saudi Arabia, Bahrain, Kuwait, UAE, Egypt, Oman, and Jordan. Egis International’s key services include transport engineering and urban development. The company’s training and development budget for 2019 stood at $150,000. XXXXXXXX CEO OF CHINA STATE ME 100 CHRISTIAN LAUGIER CHIEF EXECUTIVE OFFICER EGIS INTERNATIONALJUNE 2020 CONSTRUCTION WEEK 61 EDITOR’S LETTER WWW.CONSTRUCTIONWEEKONLINE.COM There we have it. The 11th annual Power 100 list is finally revealed for all to see after a significant amount of preparation and deliberation. For this year’s list, I wanted to shake things up from previous Power 100 editions with some surprises and several new names that will hopefully turn heads. The individuals included in the 2020 Power 100 – and their respective positions – have been selected based on publicly available information and details submitted directly to Construction Week. The editorial team has spent months discussing who deserves to be featured, and in what order. The final rankings reflect our collective decision, which was made based on the most pertinent information available. The Power 100 brand has established itself as a celebration of those most influential in shaping the future of the Middle East’s cities, and through this list, continues its endeavour to identify, promote, and appreciate the region’s excellent construction leaders. As we look back over the past 12 months, it’s one that has been filled with many successes and recognitions, but as we know, 2020 has been a year to remember for the wrong reasons. As we enter into almost our third month of lockdown, the Power 100 issue, on a personal note, has been pivotal in turning the attentions away from the dreaded COVID-19 pandemic that has swept headlines. The experience of putting together a complex list for the very first time in my career has been a challenge, but one that I have thoroughly enjoyed. After beginning the process around the end of April, many of you have shown how much the Power 100 list really means to you with several queries, phone calls and the odd individual asking for a spoiler on the rankings. While reviewing all the submissions, it was fascinating to see the amount of high-profile projects that our participants have been involved in and the direction that companies are heading towards as it looks to overcome the challenges that they have faced. Construction Week’s team is confident that the readers and viewers of the 2020 Power 100 will receive an education in how industry leaders take critical decisions – be it about which disruptive technology to adopt, or which contract model to follow – that affect construction workforces across the region. I would like to thank all the companies that took part in the listing, and it was certainly a close call between ALEC’s Kez Taylor and China State’s Yu Tao for the top spot. The Power 100 list will return for next year and we look forward to see what the future holds for the Middle East’s construction industry. Power 100 ranking provides welcome distraction With months of doom and gloom from the impact of COVID-19, the Power 100 ranking puts the focus back onto the successes of the industry “I WANTED TO SHAKE THINGS UP FROM PREVIOUS POWER 100 EDITIONS WITH SOME SURPRISES AND SEVERAL NEW NAMES THAT WILL HOPEFULLY TURN HEADS” Ashley Williams EditorTHE LEGAL TABLE 62 CONSTRUCTION WEEK JUNE 2020 Fenwick Elliott's managing partner for its Dubai branch, Ahmed Ibrahim, and fellow partner Patrick Stone tells CW's Ashley Williams the defence mechanisms to relieve contractors from legal disputes and how they are supporting construction clients through the impact of COVID-19 As restrictions begin to ease from the COVID-19 pandemic that has disrupted global economies, preparations will now be put in place to revive businesses that have plunged into a financial hole. While the construction industry was one of the less impacted sectors, the real cause of concern is whether stakeholders can perform their contractual obligations. The GCC, particularly Saudi Arabia and the UAE, is filled with an abundance of multi-million dollar projects, and the risk of payment delays and cost overruns could arguably be the next headache along the line. So what are the next steps for contractors and employers to prevent legal disputes from arising and what are their rights? To try and get some advice and answers from experts in the legal field, Construction Week joined forces with global construction and energy specialists Fenwick Elliott for The Legal Table webinar edition last month. Joining the discussion was Fenwick Elliott’s managing partner for its Dubai branch, Ahmed Ibrahim, and other partner, Patrick Stone, to share their expertise and insights on how the impact of the pandemic WWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM "COVID-19 adds another possible ground for dispute" Photo courtesy: Pixabay [representational] might be dealt with under common forms of construction contracts used across the MENA region. Both legal experts have a considerable amount of experience within the legal field in the Middle East, with Ibrahim establishing Fenwick Elliott’s growth in the region by opening a Dubai office in 2015 and Stone specialising in International Arbitration. The most likely clause for construction contracts in providing relief to contractors is the Force Majeure clause, but Ibrahim said the clause will only provide some relief to contractors facing legal issues from COVID- 19 if they can prove that the pandemic makes it an impossibility to perform their obligations. “My view is that the coronavirus could qualify as a Force Majeure event if the contracting party intends to rely on Force Majeure as a defence, only if you can prove that the pandemic resulted in the impossibility to perform their obligations and establish a causal link,” Ibrahim told Construction Week. “It’s very important to know that Force Majeure is a defence that can be raised to defend yourself against liabilities including avoiding to pay liquidated damages for delay in completing works. In other words you may be entitled to an extension of time due to the impact of the Force Majeure on the critical path of the project.” However, Ibrahim clarified that Force Majeure cannot be used in a UAE civil court as a means for compensation. “Force Majeure is not a ground to seek compensation such as additional payment or any kind of adjustment of contract price,” added Ibrahim. “If you see a provision of Force Majeure within context of contractual liability, you have article 273 of the UAE civil court that speaks about impossibility of performing contractual obligations and therefore these obligations will cease and the contract should be automatically cancelled.” While fellow partner Patrick Stone echoed the majority of Ibrahim’s views on defences that contractors can take, he said the virus is likely to have an impact on the progress and costs of works, which could contribute to increases in the number of disputes between employers and contractors. “It is fair to say that the coronavirus adds another possible ground for disputes on projects where claims already existed. It’s likely that if contractors think they have an entitlement where an extension of time and JUNE 2020 CONSTRUCTION WEEK 63 THE LEGAL TABLE of this nature. He concluded the webinar by saying: “If provisions rely on the pandemic being unforeseeable then could it be said, if another pandemic occurred in two years time, that is an exceptional event under the WWW.CONSTRUCTIONWEEKONLINE.COM RUCTIONWEEKONLINE.COM Force Majeure provision." The Legal Table webinar edition with Fenwick Elliott and Construction Week will return once again for another exclusive webinar in due course with more expert insights. “It’s our responsibility to take care of the entire project – and that’s the ultimate bene t at the end of the day” Photo courtesy: Metito money under a contract, then they likely will use the pandemic has an excuse,” Stone told Construction Week. “It’s equally likely that if an employer thinks they have the better of the argument in relation to the coronavirus under its contract then it is likely to use this as a defence to the contractor’s claims.” Looking ahead for the industry in terms of mitigating legal disputes, Stone advises employers and contractors to take a “realistic approach” to any claims that they become involved in and take a “sensible pragmatic approach” to measures being undertaken and to keep proper records that is vitally important to resolving any disputes that may arise. “Ultimately, if you find yourself in a formal dispute, as a result of the coronavirus, then your access to justice is still there. There are ways and means for disputes to be heard from tribunals during the crisis, and I think this also applies to the earlier steps in the dispute resolution process like mediation or dispute boards that are quite common in the FIDIC Red Book contracts,” said Stone. In terms of negiotiating contracts, Stone believed that we will no doubt see employers push the risk of the pandemic onto the contractor, but said employers should think about whether this is in their interest. “I think in terms of negotiating subsequent contracts, I believe that both parties will have to look at what impact current provisions will have on future projects,” he added. “We talk about some of the clauses that may well give rise to the entitlement for an extension to time or money in a situation to the current pandemic, but that position may change if there are future pandemics Ahmed Ibrahim, Fenwick Elliott's managing partner for its Dubai branch Patrick Stone, Fenwick Elliott partner www.egis-middle-east.com IMAGINE. CREATE. ACHIEVE. a sustainable future Egis is an international group offering engineering, project structuring and operations services. Egis is present in all Middle Eastern countries on infrastructure projects in rail, road, aviation, but also buildings (hotels, hospitals, educational institutions and residential buildings), urban development, water, environment, energy. DIGITAL FOCUS 64 CONSTRUCTION WEEK JUNE 2020WWW.CONSTRUCTIONWEEKONLINE.COM With a remote way of working and digitalisation becoming the only way forward as businesses effectively tackle the impacts of the ongoing COVID-19 pandemic, Saudi Arabia’s Resa Gulf Scaffolding (RGS) has recognised the need to go digital and “re- appraised divisions within the business where previously digitalisation was not a priority.” However, the company identified the need of the hour prior to the outbreak of the pandemic, and is well on its way to achieve digital transformation, as part of its three-year “Good-to-great” framework. Speaking exclusively to Construction Week, RGS’ general manager, Ash T. Arshad, said: “We believe digitalisation of our services and development of our software are key elements to operational success. What’s changed now in response to the COVID-19 outbreak is that while our sales team previously relied heavily on site visits and face to face customer meetings, we have now developed a new remote sales development framework, using technologies like web conferencing and interactive data-share to engage our prospects and customers. While Arshad believes that the scaffolding sector has been slow to adapt to digital transformation, and slower still in applying innovative management techniques, the general manager has taken it upon himself to debunk his own statement. “Through our ‘Fit for Growth’ programme last year, which is part of RGS’ ‘Good-to-great’ journey, we recognised the need to cultivate a culture of learning and development within our workforce.” When RGS faced shortages of Saudi Aramco-certified personnel including supervisors, inspectors and work permit receivers (WPR), the company resorted to developing in-house training programmes to facilitate the employment of qualified personnel. “Our software allows our scaffolders to train remotely using their smart phones; they have the ability to take mock Aramco exams as many times as required. This training is supported by video demonstrations and detailed explanations on any aspect of their work. Increased salaries and bonus arrangements THE FUTURE IS DIGITAL FOR KSA’S RESA GULF SCAFFOLDING Resa Gulf Scaffolding’s general manager Ash T. Arshad speaks with Construction Week’s Disha Dadlani about the company’s digital focus and its connection with the company’s internal communication approach as well as its training and development elementsJUNE 2020 CONSTRUCTION WEEK 65WWW.CONSTRUCTIONWEEKONLINE.COM required on site. The company developed a trackable material management system prototype which will allow its engineer and operations teams to remotely see the scaffolding structure being erected live on site. While RGS has voluntarily embraced digital transformation, it has also had to make certain changes in its operations, owing to the implications associated with the ongoing COVID-19 outbreak. Arshad tells Construction Week: “Remote working in our industry is limited as the source of revenues is the supply, installation and dismantle of our own patented Resablok system scaffold and mast climbers. These site activities cannot be performed remotely. However, areas like design and engineering, can comfortably succeed; we are now running our sales and business development remotely.” The Kingdom of Saudi Arabia recently announced that it would implement an increase in the value-added tax rate (VAT) from 5% to 15% as part of its slew of measures that aim to offset the challenges associated with the COVID-19 outbreak in the kingdom. The announcement was made in view of the ‘shocks’ produced by the crisis, on the kingdom’s economy. Speaking about the impact of the kingdom’s decision on RGS’ operations and business, Arshad told Construction Week: “Although the VAT rate will be tripled on July 1 2020, our compliance costs will not increase because we already have the infrastructure in place, and therefore there will be no adverse effect on our operation. However, the outcome of the VAT rate increase will largely impact our cash flow. “ have become motivational factors for our teams to continue learning and improving,” Arshad tells Construction Week, adding that post the success of the software, the company is considering taking it out to the market as a new revenue stream. Further boosting a culture of learning, training, and development within the company, RGS also developed a HR talent management software and appraisal system as part of its drive to create an “A Team”. The company rolled out a private social and professional network to some of its employees including select supervisors, quality, health, safety and environment managers, and salesmen at the start of the year. “The programme allows our staff to engage with one another on a one-on- one basis or at company-wide level. Engineering drawings can be shared and discussed live with on-site teams, and material management and productivity concerns can be assessed as required by site managers,” Arshad says. The software is “designed to encourage interaction and problem-solving between functional teams without intervention by senior staff, and so, senior personnel can enter conversations only if requested.” RGS is not stopping at the successful feedback of its private network and aims to “develop it further by introducing it to product manufacturers, suppliers and shareholders to allow international interaction and additional problem solving capabilities.” Along with digital transformation, RGS has also placed focus on strengthening its innovative leadership style for the year. The company has employed several programmes including PeX, which is a programme specific to RGS’ logistics department, that ensures timely deliveries, minimises risk of sending wrong material, and identifies product types. In addition, customer risk is managed through the company’s internally-developed matrix, which is based on regression and probability analysis. The risk model developed by the company facilitates informed decision- making. In an attempt to overcome any previously unforeseen site obstacles, RGS has made available the option to re-engineer real time solutions, and to control the amount of material actually “Given the impact COVID-19 and the drop in oil prices is having on global markets we expect a downturn in Saudi Arabia’s economic activities at least for the rst half of 2020” [Image: ITP Images/ Shutterstock] Resa Gulf Scaffolding’s general manager, Ash T. Arshad follows a strategic leadership approach Image: Supplied RSG’s mast climbers are quick to assemble, disassemble, and move, cutting down on lost productivity time on the job site Image: SuppliedFEATURE 66 CONSTRUCTION WEEK JUNE 2020WWW.CONSTRUCTIONWEE WWW.CONSTRUCTIONWEEKONLINE.COM “The dawn of a new era in construction”JUNE 2020 CONSTRUCTION WEEK 67 FEATURE Ramboll and Losberger De Boer Middle East talks to CW's Ashley Williams about the region’s emerging modular construction methods and how restrictions and curfews could impact off-site development As society begins to re-open from COVID-19, the built environment is now preparing for a shift in construction methodologies to mitigate the economic impact of the pandemic. One of these methods includes modular construction, which promises contractors with leaner costs and sufficient speeds of development, which are now likely to matter more than ever. While it is not new to the Middle East’s market, modular construction has been touted as the future of developing large- scale buildings. While the use of prefabricated building components is a feature of many projects in today’s market, global consultancy firm Ramboll believes there is a gap in the market for what they consider to be “the next step in modular construction for the region”. That step is prefabricated pre- finished volumetric construction (PPVC), according to Ramboll’s head of project management for buildings, Brian Sweeney, who described its introduction to the Middle East market as “the dawn of a new era in construction”. “The construction industry is notoriously slow to implement changes to tried and tested ways of working when compared to other industries, for example, the automotive industry. Currently, less than 1% of buildings are built using PPVC construction, but we view its introduction to the Middle East market as the dawn of a new era in construction in the region,” Sweeney told Construction Week. WWW.CONSTRUCTIONWEEKONLINE.COM RUCTIONWEEKONLINE.COM FOLLOW CONSTRUCTION WEEK @CWMIDDLEEAST “There are existing projects in the region where PPVC has been used, but its use is limited to buildings with a maximum of two to three floors.” Ramboll is looking to change PPVC’s limitations in the region through a new partnership with Abu Dhabi-based developer, Roken Al Khalig Development LLC, to develop the first high-rise PPVC project in the region. “Over the last six months, we have been appointed by Roken Al Khalig to engage with the Abu Dhabi Municipality to develop a road map for the approval of PPVC systems. This is the first step in clearing any obstacles which may lie in the way of a major shift in the way buildings are built in the Middle East,” Sweeney added.Next >