< Previous30 FEBRUARY 2023 | Q&A | In an exclusive Q&A with Construction Week Middle East, newly appointed regional director for Construction Management, Richard Cushnan reveals Compass Project Consulting’s short-term and long-term plans LEADERSHIP AND NEW BEGINNINGS Richard Cushnan, the newly appointed regional director for Construction Management at Compass Project Consulting, talks to Construction Week Middle East about easing lifecycle challenges and taking full responsibility for successful project delivery. Congratulations on your new role! Briefly explain how you plan to utilise your experience of over 25 years to lead and evolve the company’s construction management services. Thank you – I am thrilled to be part of the renowned Compass team, which is known as one of the most reputable project consultancies in the Middle East. Being a local brand with top leadership from global giants, we are now expanding our services with the launch of Construction Management, complementing our existing Project and Cost management services for clients. With my experience in various projects such as commercial, retail, hospitality, residential and healthcare, I have had the opportunity to work with great companies and leaders who helped me grow my career and develop my leadership style. I hope to create a similar culture within our team that will drive success and give autonomy to essentially lead itself. We aim to recruit a diverse team of young and experienced professionals, fostering a dynamic and supportive culture where we can mentor and learn from each other, while providing simple and transparent construction services. Client demand has driven this natural evolution for a comprehensive solution approach to construction management and modern methods of construction. Our team will provide an unparalleled level of support throughout the entire construction process, ensuring that project is completed on time and within budget. FEBRUARY 2023 31 | Q&A | In your opinion, how do you think your new role will position Compass as one of the leading project development consultancies in the Middle East? In my opinion, the new Construction Management service line will position Compass as the leading project development consultancy in the Middle East, due to the uniquely positioned nature of there being not many other consultancies offering a true turnkey solution for every fit-out or construction project requirement. By broadening our skills, backgrounds, and experiences in projects and construction, we will not only enhance our areas of expertise but also offer a more comprehensive service to our clients. The Construction Management service line has already generated a lot of interest among clients, and we are committed to meeting their needs and exceeding their expectations, which can only benefit both our clients and Compass in terms of growth and expansion across the region. Talking about the region, where do you see the most potential for growth, and how do you plan to capitalise on it? When it comes to potential growth in the Middle East, Saudi Arabia is a clear area of focus for many companies due to the high-profile projects such as NEOM, Qiddiya, The Red Sea, and the other supporting projects. As Compass, we also see a significant opportunity in the sphere of commercial office fit-out, which we have not yet heavily invested in. We plan to develop and grow our design and build capabilities in this field and provide support to clients within their workplace projects. Additionally, we also see potential in the high-end residential fit-out market, particularly for VIP villas, as there is a major demand for renovation and upgrade works in this sector. Please elaborate on your short-term and long-term plans, and how do you envision business growth in a changing landscape. In terms of short-term and long-term plans, we aim to integrate sustainable practices and intelligent solutions into all aspects of our business and project dealings. In the short-term, we plan to focus on creating a paperless office environment by implementing practical and intuitive software and construction management reporting systems. This will allow for agile live reporting in the field and reduce the reliance on paper trails. We also plan to explore the growing use of 3D augmented virtual technology in design consultation, which will help us to be more efficient and reduce the need for physical meetings. In the long-term, we plan to make energy efficiency and the use of sustainable building products a basic requirement in all construction projects. The promotion of sustainability for future projects is not a only desirable talking point but rather an essential requirement, in my opinion. Elaborate on how this division is different from Compass’ existing Project Management Consultancy Representational image. [Shutterstock] Richard Cushnan, regional director, Compass Project Consulting. division, and how will it benefit clients in different sectors. The new Compass Construction Management (CCM) division differs from our existing Project Management Consultancy division in that it offers a more comprehensive and integrated approach to construction management. Unlike our Project Management team, CCM will take on the full project risk and provide a turnkey solution for clients. It complements our Project Management service line by providing a seamless “One Team” approach, where clients can benefit from having a single contract award to CCM for the entire project lifecycle. What are some projects you would like to put the spotlight on? One of the projects we are currently looking into is the development of a large commercial office complex in the heart of the city. This project is a great fit for our Construction Management division as it allows us to showcase our ability to provide a comprehensive approach to construction management. We are also looking forward to highlighting a large-scale residential development. This project also aligns with the focus of our Construction Management division as it demonstrates our ability to provide a turnkey solution for clients, taking on the full project risk and delivering on quality, program, and cost. 32 FEBRUARY 2023 | INTERVIEW | David Milligan, Integrated Development Director of U+A, shares the company’s future growth plans and how it plans to position itself as a lead design consultancy in the region ELEVATING DESIGN EXCELLENCE & DELIVERY; U+A ‘PLUS’ As U+A continues its growth trajectory, focusing on delivering a seamless experience for clients, David Milligan, the company’s Integrated Development Director, shares insights with Construction Week Middle East on its expansion plans. In addition, he sheds light on the implementation of the project control department and its pivotal role in reinforcing U+A’s position as an integrated lead design consultancy. In the past year, U+A has seen a rapid increase in technical staff, revenue, and contract growth, which Milligan attributes to the company’s focus on attracting top talent and its new approach to client management. “In the near future, our approach involves implementing a multi-team structure comprising dedicated key account managers for our diverse clientele. This approach entails a more organised and professional demeanour, allowing us to transition from a design consultancy to a comprehensive solution provider. The integration of the new division is a crucial aspect of this strategic implementation,” says Milligan. U+A also formed a global partnership with EGIS, providing the company with an opportunity for growth and becoming a turnkey provider from inception to completion of a project. Milligan also reveals that U+A will penetrate the Saudi Arabian market in an expeditious, controlled fashion as well as look towards growth in other GCC countries. When asked about current projects in Saudi Arabia, Milligan states that U+A is working with PIF entities and exclusive, high-end, complex projects with challenging aspirations and exciting design and procurement methodologies. He adds: “Within U+A, we try to be diverse and nimble in how we service our clients, and our recent growth positions us well to take on a greater role as a lead design consultancy (LDC). Moreover, we are continuously refining our processes, from document control to project execution and presentation, to align with this objective.” He also states that U+A is constantly evolving and upskilling its staff to convert every challenge into a growth opportunity. A collaborative environment According to Milligan, the main objective behind the project control division is to handle day-to-day administration and communication, freeing up the architects and design teams to focus on the coordination, quality, and delivery of their projects. He elaborates: “The added benefit of the model is that the design teams can concentrate on the actual deliverable, including the product and the design, thus removing the difficult conversations, programs, variations, invoices, and payments that can sometimes become contentious and lead to a breakdown in communication and relationships.” The project control division not only helps to manage the company’s contract viability but also plays a crucial role in mitigating risks. Milligan explains: “The project control team is involved from the outset; from when we receive an RFP and proceed to go through the go/ no-go stages. They’ll also be involved in producing an execution methodology, highlighting the complexity, producing an execution plan, analysing the risk, and forecasting potential internal resources and how it impacts our projects at hand.” He continues that on the success of the tender, the assignment then transfers from a potential to a live project, which is then adopted by the project control team, who facilitate the execution, internal process and kick-off meetings. Milligan adds: “The team also ensures that the briefing is aligned with the fundamentals of the immediate and long-term deliverables, and the direction of the appointment of successful partners. The process ensures that we maintain a smooth transition from tendering straight into design and mobilisation.” When asked how the project control division can help U+A strengthen its role as an LDC in the industry, Milligan points Words by: Angitha Pradeep | Image: Supplied “THE [PROJECT CONTROL] TEAM ALSO ENSURES THAT THE BRIEFING IS ALIGNED WITH THE FUNDAMENTALS OF THE IMMEDIATE AND LONG- TERM DELIVERABLES, AND THE DIRECTION OF THE APPOINTMENT OF SUCCESSFUL PARTNERS. THE PROCESS ENSURES THAT WE MAINTAIN A SMOOTH TRANSITION FROM TENDERING STRAIGHT INTO DESIGN AND MOBILISATION.”FEBRUARY 2023 33 | INTERVIEW | out that the firm’s goal is to prioritise collaboration and coherence in all aspects of the project. “We communicate with one voice through a set of documented standards and methodologies for day- to-day operations, work quality, and coordination. Our talented design team is the cornerstone of our success, supported by a transparent and efficient management system. “The most important thing is that the majority of our staff understand real estate development. Moreover, at U+A, we place great importance on ensuring that all staff possess a comprehensive understanding of real estate development. This is achieved through ongoing internal training programs that aim to equip our team with a broader understanding of the industry, including the language and concepts of asset management and the life cycle of a project. This approach translates into our focus on delivering unique designs that meet both budget constraints and client expectations whilst prioritising the commercial viability of each project.” He also notes that U+A’s strong relationships with its sub-consultants are maintained regularly and that the firm takes pride in its role as a mediator in any contractual or client-related issues. Winding the conversation to a conclusion, Milligan says that the goal of the project control division is to ensure that the projects run smoothly and efficiently, and to minimise any potential risks. He states: “We believe that we’ve made the right move, and we execute this model with no extra expense to the client. Additionally, we believe that we’re very competitive in the current market dynamics and offer a superior product with a great degree of communication and hands-on administration.” He adds that the introduction of the project control division at U+A has allowed the company to streamline their operations, improve communication, and ultimately deliver a higher- quality product to its clients. Milligan concludes that the investment in this division will set the company apart from its competitors and make them the consultant of choice in their field. David Milligan, Integrated Development Director, U+A.| SPECIAL REPORT | 34 FEBRUARY 2023 Following the launch of Dubai’s economic agenda, Construction Week Middle East analyses, discusses, and evaluates the possibilities of accelerating the city’s real estate and construction industry to reach the $8.7 trillion target Words by: Julianne Tolentino | Images: Shutterstock In a world dominated by rapid transformation and digital innovations, major cities are competing to stay on top of their games. As confidence rises post-pandemic, so do people’s outlooks in seeking a more stable and sustainable future. Fittingly, residing within the brainstorming and the conceptualising process is the city of Dubai; a metropolis bustling with economic potential to become one of the top cities in the world. Boasting a diverse economy with advanced inclusivity, Dubai has EVOLUTION, NOT REVOLUTION: THE ANSWER TO A DEVELOPED ECONOMY developed into a flourishing cosmopolitan community. Its ability to reinvent, embrace, and shape the future is one of the reasons why the city continuously reinforces its standing as a leading global destination, not only for tourists, but for businesses and investors alike. Dubai’s real estate growth has increased by 86% since 2021.FEBRUARY 2023 35 | SPECIAL REPORT | Launched as per the directives of HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the implementation of the Dubai Economic Agenda ‘D33’ will pave the way for a new phase of Dubai’s development journey. With a particular focus on fruitful partnerships, investments, and people empowerment, Dubai’s position will be consolidated as the world’s safest, most lucrative, and best-connected city. The D33 agenda, which features an economic target of $8.7 trillion over the next 10 years, includes ambitious goals that require bullet-proof strategies and digital advancements. To achieve this, many industries must be fundamentally involved at its core. One such industry that has accelerated Dubai’s economy and will | SPECIAL REPORT | 36 FEBRUARY 2023 continue to do so is the real estate market; an industry that could act as an enabler for Foreign Direct Investments (FDIs) and higher overall GDP. In this special report, we will learn about and understand the instrumental role that real estate and construction will play in catapulting the industry forward. The role of real estate Dubai’s real estate industry has always been a major contributing factor to its growing economy. With an influx of High Net-Worth Individuals (HNWI) moving to and settling in the city, there is an increased demand from people seeking to invest in luxury real estate. In addition to this, the UAE’s real estate market offers some of the highest ROIs in the world. It is a buyer’s market, with prices still lower in comparison to those of other major cities. According to Farhad Azizi, CEO of Dubai-based Azizi Developments, the city’s real estate sector will “play an instrumental role in catapulting the industry forward.” He says: “By the end of December 2022, the value of Dubai’s real estate market has surpassed $65 billion, a 61% increase over 2021. “Dubai’s real estate growth has been fueled by an increase in off-plan transactions, which increased by 86% since 2021. Off-plan transaction values accounted for 44% of all transactions in 2022, up from 40% in 2021 based on volume.” Analysing from a different point of view, Faraz Ahmed, associate and researcher at JLL MENA, discusses how the D33 agenda could accelerate the growth of the commercial real estate industry with the help of government incentives and support. He says: “With 100 transformational projects planned over the next decade, key industry stakeholders, including government entities and private developers will be at the forefront to drive investment and lead the development within each respective sector. “One of the notable examples from the first batch of projects includes the scale up program to support the growth of 30 companies to become global unicorns as well as identifying 400 SMEs to support their global expansion. This will ultimately bolster the commercial real estate market with new corporates looking to set up base in Dubai.” To prove the real estate industry’s influence to lead Dubai towards its trillion-dollar target, we must first consider its resilience. PNC Menon, the chairman and founder of Sobha Realty, a developer who has been in the property market since 1976, emphasises on the factors that position Dubai as an attractive choice for residence and investments. He notes: “Since the end of 2020, the real estate sector has been on an upward trend, owing to various factors including increased demand from foreign and local investors. The sector has remained resilient and agile, with prices rising steadily since last year.” Menon says that Dubai’s overall prosperity, global structure, economic stability, and various investment-friendly policies proves that the real estate sector should not be neglected to accelerate the economy’s development. “I firmly believe that the new government initiatives, such as the D33 strategy, will advance the sector by enabling it to offer more luxury properties that meet the greatest standards of quality, thereby boosting investor confidence.” The construction industry’s golden opportunity As a significant part of the UAE economy, representing 6% of the GDP and in Dubai – a historical average of 8-9% in recent years – the construction industry has always played a major part in the development of Dubai. In fact, regardless of the economy’s diversification in the mid-2000, the industry has not stopped contributing to the city’s GDP. As well as, there are many aspects to be considered to allow the construction industry to fully accelerate the city’s overall economy. David Clifton, regional director MEA at Faithful+Gould, a member of the SNC-Lavalin Group, says that “while the current level of infrastructure in the city is world class, further investment will be required to build for the future.” The value of Dubai’s real estate market surpassed $65 billion by the end of December 2022. Farhad Azizi, CEO, Azizi Developments. PNC Menon, chairman & founder, Sobha Realty.“DIGITISING THE REAL ESTATE INDUSTRY IS ESSENTIAL FOR IMPROVED OPERATIONAL EFFICIENCY, CONSISTENT GROWTH, AND FUTURE-PROOF CITIES.” SAMIT SHETH, DIGITAL DELIVERY LEAD, JLL MEA FEBRUARY 2023 37 | SPECIAL REPORT | He adds: “The industry should expect to engage much more in PPP/PFI type models and look at whole lifecycle engagement across all sectors, not just government-led infrastructure.” Clifton also emphasises on the “golden opportunity” presented for the construction industry, saying: “As D33 looks to engage new models of working and cutting edge technology, construction has a golden opportunity to assist in the attraction of technology investments through the actual implementation of cutting edge delivery systems. “The economy is fast-moving towards a more advanced landscape, and construction needs to pick this up to contribute its piece to the plan and diversification.”. With Dubai’s strategies focused on significant growth in manufacturing, logistics, tourism, and finance, the requirement for sustainable and enhanced infrastructure becomes more apparent. According to Richard Stratton, partner and managing director at Cundall EMENA, “exciting opportunities for the construction sector is participating in the drive towards sustainable development, digitisation, educational excellence, and Emiratisation.” He says: “There is a significant opportunity for the construction sector to lead the way in sustainable innovation and construction sector. This can be combined with employment programmes that create partnerships with government and educational institutions to develop home grown talent and diversity.” Investing for the future A country’s economy thrives on higher investments and vice versa. A positive economic growth directly reflects stability, therefore increasing confidence in businesses, new ventures, and real estate. “When more people invest in new developments, it gives back to the country’s economy,” Ahmed explains. “It improves overall market confidence, increases revenues, creates jobs, and grows customer demand.” In Dubai, real estate has traditionally been a key driver of economic growth. Investing in new real estate and infrastructure developments will help elevate the city’s economy by attracting more investors and generating economic activity. According to Azizi, focusing on improving real estate transactions will drive investments to the city. He says: “By providing seamless real estate services, effective and safe legislation, leading digital infrastructure, and empowered human capital, Dubai Land Department’s soon- to-be-activated strategy will also widely benefit the real estate sector in Dubai.” The D33 Agenda features a target of $8.7 trillion. Richard Stratton, partner and managing director, EMENA, Cundall. Samit Sheth, digital delivery lead, JLL MEA. On the other hand, investments made in the real estate sector grow as the industry appeals to a wide range of global and local investors. A rapidly expanding economy will draw investors from around the world, thus making it necessary for developers in the city to put their money on newer projects in order to keep up with the needs of current investors. As Menon states: “Customers are now favouring more sustainable and environmentally friendly properties. These include integrated service hubs and smart homes. By making it imperative for developers to create properties that meet these varied customer demands, the Emirate will claim its spot as a global leader in fostering sustainability. “We believe that investing in sustainable designs and operations will result in long- term wellness, as they contribute to the overall well-being of the community and generate long-term value for the assets.” He adds: “Consequently, investing in projects that have the potential to strengthen and add value to the economy can certainly be profitable.”| SPECIAL REPORT | 38 FEBRUARY 2023 Future-proofing cities According to Samit Sheth, digital delivery lead at JLL MEA, Dubai’s real estate industry is witnessing a notable shift towards digital transformation, initiated by proptech innovations across the globe. This will prove to be a significant contributor to a better economy, given how digital revolution has affected almost all sectors of the global economy. Supporting Sheth’s comments, Menon says: “Digitising the real estate industry is essential for improved operational efficiency, consistent growth, and future-proof cities.” He explains that not only will technology decrease the time and costs for buyers and sellers, it will also boost the sales of products and services in the industry. He continues: “The use of digital technologies in the industry can provide a comprehensive understanding of business operations. This is done by enabling the collection and storage of vast quantities of data, which could then be examined for more streamlined planning in the future.” Menon also mentions that this could provide valuable insights on data patterns, customer trends, prices, associations, demographic data, and prospective value in certain locations. On the other hand, similar ideas can be applied to the construction industry. Digital transformation, from design to construction delivery, improves efficiency, productivity, and reliability throughout the development of any construction projects. Though, according to Stratton, digital transformation “at present, is not being adopted to anything like its full potential.” He notes: “Access and interrogation of a much wider data platform, through interfaces with facility operators and digital performance databases, will help optimise and standardise the design of buildings and their component parts. “This offers opportunities in areas such as off-site fabrication, 3D printing of parts, and the development of AI-driver facility operations.” Ultimately, Stratton explains that the demand for different skills will become apparent, creating an opportunity for the development of educational programmes that focus on digital transformation. Similarly, digital transformation for the development of the Dubai economy must “move towards evolution, not revolution,” according to Clifton. He explains how we cannot solely rely on manpower and productivity for the growth of the industry. However, should we increase the industry’s productivity by 5% to 26%, we would, as a result, increase the UAE GDP by 0.5%, adding over $2.1 billion to the economy in a steady state. Clifton affirms that “any digital implementation to increase the low hanging fruit of productivity cannot be ignored.” In conclusion, the ambitious goals of the Dubai Economic Agenda is attainable, given the right industries are placed in order of priority. The real estate and construction sectors will play a pivotal role in helping the city achieve its goals, however, a clear strategy is imperative. The real estate sector has been on an upward trend since 2020. Faraz Ahmed, associate, Research, JLL MENA. | SPECIAL REPORT | David Clifton, regional director, Faithful+Gould MEA.Constructive. Credible. Connected CCoonnssttrruuccttiioonn WWeeeekk is the leading industry brand delivering exclusive multimedia content that matters to the Middle East. Site Visits Experience hands-on access to the region’s construction sites through our multimedia platforms. Exclusive columns Get daily insights from the industry experts shaping the cities of the Middle East. Lists Read our comprehensive annual ranking of the Middle East’s most powerful names from the built environment. Multimedia platforms Be the first to hear our weekly podcast series, world-renowned webinar series and thought-provoking range of videos. Events Get early bird access to be first in line for our industry-leading conferences and awards. Tenders Learn about the latest tenders from the most exciting projects and developments throughout the Middle East. 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