< Previous50 APRIL 2024 | TOP 30 KSA CONTRACTORS | ABV ROCK GROUP MAKKAH CONSTRUCTION AND DEVELOPMENT COMPANY ABNIYA 25 26 27 ABV Rock Group Company Limited traces its roots back to Armerad Betong Vägförbättringar, founded in Sweden in 1918. In 1974, ABV expanded its operations to Saudi Arabia, establishing a branch with its main offi ce in Jeddah and a branch in Yanbu. During the mid-1980s, the Saudi Arabian government initiated a nationwide Strategic Storage Program, for which ABV Rock Group was contracted. The Saudi Strategic Storage Program (SSSP) began in 1987 and concluded 22 years later in 2010, marking the completion and handover of the project. Some of its most notable projects include Prince Salman Centre, King Fahd Cardio Surgery & Disease Centre, Hilton 5-star residential suites, Al Faisal University, Security Forces Medical Centre, and King Khaled University Hospital Expansion. Founded during a momentous period in Saudi Arabia’s modern history, Abniya emerged amidst unprecedented transformation and dynamic innovation. With a rich foundation of 15 years of industry experience, Abniya was established with a clear vision: to become a leading innovator and competitive powerhouse within the kingdom’s construction sector. Throughout its journey, Abniya has remained steadfast in pushing the boundaries of what’s possible, delivering exceptional results, and contributing meaningfully to the kingdom’s landscape. In an era where transformative projects are reshaping the nation, Abniya stands stall, leveraging its substantial industry experience to propel itself towards distinction in innovation and competitiveness within the kingdom. Established in 1988 with an initial capital of US$360.6 million, later increased to $438.7 million, Makkah Construction and Development Company has been dedicated to enhancing the areas surrounding the Makkah Holy Mosque. The company’s objectives include owning, developing, operating, and investing in real estate around the Mosque. It is entrusted with carrying out all engineering, surveying, demolition, and construction work for its projects. Currently, the company is engaged in the construction of the first Commercial and Residential complex situated in the vicinity of the Makkah Holy Mosque. This complex comprises a commercial centre, a prayer hall accommodating 20,000 people, towers, and a hotel. Moreover, Makkah Construction and Development Company holds the largest share in Jabal Omar Development Company, responsible for executing the Jabal Omar project located on Ibrahim Al- Khalil Street in Makkah.APRIL 2024 51 | TOP 30 KSA CONTRACTORS | Established in 1980, Abdul Aali Al Ajmi Company has emerged as a preferred choice for government and semi- government entities seeking a specialised contractor with extensive experience in major road and bridge construction and maintenance. While the company’s portfolio primarily showcases infrastructure projects, its services extend across a wide spectrum, encompassing petroleum services, surface treatment and road safety, electricity works, building construction, water and sanitation works, among others. As a classifi ed fi rst-grade contractor, Al Ajmi Company has successfully met the requirements of prestigious organisations such as Saudi Aramco, the Ministry of Transport, the Border Guard, the Ministry of Municipal and Rural Aff airs, and the Ministry of Water and Electricity. BIN ZAFRAH FREYSSINET SAUDI ARABIA ABDULALI AL-AJMI COMPANY 28 29 30 Over the past 12 months, Bin Zafrah Contracting Co. has achieved signifi cant milestones, spearheading groundbreaking initiatives and expansion eff orts. One notable success is its collaboration with NovoCrete, a Swiss/German company specialising in Road & Rail stabilisation. Introducing their innovative solution, Bin Zafrah has revolutionised construction practices, achieving remarkable reductions in costs, materials, completion time, and CO2 emissions. Among its key projects in the past year are the Ras Qasabah and Four Seasons Resort Sindalah Island developments in NEOM, with a total value exceeding SAR387 million. Over the next 5 years, Bin Zafrah is dedicated to delivering high- quality projects that drive community development and growth. Aligned with Saudi Arabia’s Vision 2030, the company prioritises economic diversifi cation, social development, and sustainable practices in all of its endeavours. Founded in 1978, Freyssinet Saudi Arabia (FSA) has achieved remarkable success, completing numerous turnkey projects valued at several billion Saudi Riyals. Initially focusing on pre-fabricated and pre- stressed concrete, FSA has evolved into a prominent general contracting and engineering fi rm, expanding its scope to encompass value engineering, feasibility studies, project management, and project maintenance. Leveraging a dynamic team of highly skilled professionals and embracing advanced and innovative solutions, the company has garnered recognition as a specialised contractor for building complexes, hospitals, industrial projects, commercial centres, bridges, and various structures. Since 2020, FSA has been engaged in a $292.9 million contract with Qiddiya Investment Company, in partnership with Haif Contracting, to construct major roads and bridges on the upper plateau of the Qiddiya giga-project. Expanding its portfolio, FSA secured a $78.2 million infrastructure works contract for the Ministry of Housing, along with a $74.8 million restoration project for the Royal Commission for Riyadh City. Furthermore, the company obtained a design and build contract for a Najdi-style mock-up from the Diriyah Gate Development Authority.| ADVERTORIAL | 52 APRIL 2024 Since the fi rst modern elevator was invented in the 1850s, traction sheave elevators are an indispensable means of transport for the vertical transportation of people and goods. Modern elevators are an integral part of the growth of our cities, having improved access to our public and commercial spaces, and even changed the way we live. Approximately 80% of the market use gearless traction machines, especially for the machine room less application which are state-of-the-art and have THE RISE OF MODERN GEARLESS ELEVATOR TECHNOLOGY ZIEHL-ABEGG on the evolution and bene ts of modern gearless elevator machines Modern gearless internal rotor machine Modern gearless external rotor machine | ADVERTORIAL | APRIL 2024 53 been preferred by the market over other available solutions. Gearless elevator machines are the best bet when it comes to having space saving elevator hoist way designed for machine room less elevator application. As the demand for more effi cient and compact gearless elevators increases, it creates new opportunities for elevator machine manufacturers to design and provide elevator machines which are advantageous and state-of-the-art. In our region, most installations are with geared machines, which account for approximately 50% of the market size. These machines are slowly being replaced with more energy effi cient gearless machines to be on par with the global standards and to support the green initiatives of the region. Replacing the old technology geared machines with gearless machines also enhances the possibility of achieving LEED certifi cations for the building as they consume less energy, reduced installation space and maintenance visits, which makes it ideal solution for buildings of the future. The suspension element connecting Gearless elevator machine series SM200 For steel ropes Gearless elevator machine series SM132 For round steel rope with TPU coating Gearless elevator machine series ZAtopx For at coated steel belts Round steel ropesRound steel rope with TPU coatingFlat coated steel belts the car and the counterweight plays a key role in the design of the gearless elevator machines. Since the start of machine room elevators, the focus has been to develop compact elevator machines, which was made possible by “more fl exible” suspension elements. The elevator machine which has always been using steel ropes has evolved and now provide elevator machine with traction sheave suitable for round steel ropes, round steel rope with TPU coating, and fl at coated steel belts. The challenge for an optimal gearless elevator machine for new suspension devices is to have smaller width, small traction sheave, a tiny electric motor and an even smaller brake. It also must be reliable and thoughtfully designed and balanced in the provision of torque and axle load. ZIEHL-ABEGG from Germany provides reliable and high-performance elevator gearless machines suitable for all the above suspension elements. The fl exible design of ZIEHL-ABEGG gearless elevator machines provides machine width as low as 205mm and diameter of the traction sheave size starting from 100mm. This enables elevator complete kit manufacturers and elevator installation companies to choose the most suitable suspension element for optimising the available hoist way due to compactness of the machine. For example the ZIEHL-ABEGG ZAtop SM132.35 machine model having overall width of only 205mm can be installed in a narrow hoist way for elevator system with a payload of up to 1000kg. Apart from the design, in the ever- changing technological landscape, modern gearless elevator machines need to be space-saving, energy-effi cient, sustainable, low-maintenance, cost-friendly, safe, and durable. ZIEHL-ABEGG’s high-effi ciency permanent magnet gearless motor system meets all the above. It also contributes to lowering the energy consumption by more than 50% compared to the geared systems. Additionally, the use of lightweight, lubrication-free, PU coated steel ropes instead of steel wire ropes further increases energy-effi ciency. | ADVERTORIAL | 54 APRIL 2024 NEXT IN SUMMIT: BRIDGING CULTURES, CRAFTING FUTURES ACCIONA Cultura is part of the ACCIONA Group, a global company leading the transition towards a low-carbon economy by addressing some of the planet’s most pressing challenges through sustainable infrastructure solutions ACCIONA Cultura, the leading cultural fi rm specialising in the creation of cultural experiences, museums, and events, is behind one of the biggest events happening in Spain this coming April: NEXT IN Summit. WHAT IS NEXT IN? NEXT IN Summit 2024, taking place at the ACCIONA Campus in Madrid, Spain between 24-25 April, and will serve as a unique gathering to explore what comes next in Vally from Counterspace, the director of the Biennale of Islamic Art, and Enrique Sobejano; designers such as Gary Walker Kerr from Haley Sharpe Design, Shirin Brückner from Atelier Brückner, Femke Bijlsma from Kossmann Dejong, Patrick Gallagher from Gallagher & Associates and Nick Appelbaum from RAA. Additionally, they will have representatives from Qatar Museums, Louvre Abu Dhabi, Victoria and Albert Museum, Misk Art Institute, Musées d’Orsay et de l’Orangerie and the Grand Palais Immersif, among others. museums, architecture, design, technology, and sustainability. It’s a platform created by ACCIONA Cultura to connect leaders in the international cultural industry: museum directors, renowned architects and designers, cultural managers and programmers, along with collection and exhibition curators. This cultural summit will gather over 40 speakers, including artists such as Refi k Anadol and Mario Klingemann; architects like Paola Cattarin from Zaha Hadid Architects, Jens Richter from estudio Herreros, Sumayya | ADVERTORIAL | APRIL 2024 55 “NEXT IN will be a call to action for the museum community to embrace innovation, preserve cultural heritage, and work together” WHAT WILL BE TALKED ABOUT AT NEXT IN? NEXT IN will provide a space to showcase innovative projects that are transforming public spaces and creating meaningful visitor experiences. During the two-day event, attendees will have the opportunity to delve deeply into three distinct topics. These will be explored through various formats—keynotes, presentations, and roundtable discussions—led by over 40 esteemed speakers. Latest Trends: crafting meaningful missions for museums Questions such as how can museums transcend fl eeting trends and stablish enduring missions that truly resonate with their communities? Or what are the essential qualities that defi ne a meaningful mission for a museum? These topics will be answered at the summit. According to a global survey conducted by the International Museum Council in 2021, 82% of museums worldwide are actively engaged in redefi ning their missions and purposes to the changing needs of society. Museums as catalysts for community engagement and positive change How are museums becoming dynamic hubs of cultural exchanges social progress and sustainable innovation? How can we design for transformation? A study conducted by the American Alliance of Museums revealed that 73% of museums see their leadership role extending beyond cultural preservation to actively addressing contemporary issues such as social justice and environmental sustainability. Transformative power of storytelling: narratives and experiences How can a museum eff ectively engage with the diff erent audiences and visitors using a powerful storytelling? How to balance the use of storytelling with the preservation and interpretation of their collections? The 2022 MCN Annual Survey, which polled over 1,000 professional museums worldwide, found that 85% of respondents reported using immersive technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR) in their museums. WHERE IS THE EVENT HAPPENING? The two days summit will be held at the headquarters of ACCIONA, the new ACCIONA Campus, located in the heart of Madrid, Spain. A beacon of innovation and sustainability, ACCIONA’s new campus rises as a testament to the company’s commitment to excellence and environmental consciousness. The campus’s dynamic spaces, brimming with natural light and verdant greenery, provide a stimulating environment for two days of collaborative thinking at NEXT IN. Overall, NEXT IN will be with no doubt a call to action for the museum community to embrace innovation, preserve cultural heritage, and work together to shape the future of culture. BEHIND THE NEXT IN SUMMIT ACCIONA Cultura creates museums that become cultural landmarks. Spaces that serve as catalysts for growth, inspiring positive change and enriching the lives of those who visit them. The company crafts unique experiences that transcend the ordinary, pushing the boundaries and exploring new perspectives. Through cutting-edge technology and storytelling, they take people on a journey that ignites curiosity and wonder. ACCIONA Cultura also develops events with a conscious approach, aspiring to leave a mark on people, not on the planet. From choosing the venue to incorporating the latest technology, they aim to ensure that every aspect aligns with our sustainable values. ACCIONA Cultura is well established in the Middle East. Achievements in the UAE include the National Museum of Oman, Dubai Expo 2020 (Sustainability Pavilion, UAE Pavilion, Spanish Pavilion, Youth Pavilion, Expo Live Pavilion, Thematic Pavilions and Micro-museums), as well as the Shindagha Museums in Dubai and the Qasr Al Watan Presidential Palace in Abu Dhabi. They also have a strong presence in the museums, exhibitions and events sector in Qatar, with outstanding works such as the design, development and execution of 150 media productions for the National Museum of Qatar, the museum development and implementation of Msheireb Museums, and the production of various temporary exhibitions for Doha’s Museum of Islamic Art and the Orientalist Museum. ACCIONA Cultura has also designed the Net Zero Exhibition for Ithra, opened in Dhahran, Saudi Arabia. To convey the net- zero concept, all the elements designed and delivered by ACCIONA Cultura will have a second life when the exhibition fi nishes in October 2024, adhering to a zero-waste philosophy. ACCIONA Cultura is part of the ACCIONA Group, a global company leading the transition towards a low-carbon economy by addressing some of the planet’s most pressing challenges through sustainable infrastructure solutions. With several projects here in the Middle East region carried out by their diff erent sustainable solutions (specially water and transport solutions), through ACCIONA Cultura, ACCIONA aims to contribute to the foundations of a prosperous society and ensure public welfare. | OPINION | 56 APRIL 2024 VISON 2030, A RACE TO THE DEADLINE: ACCELERATE WITHOUT LOSING CONTROL Sena Gbedemah, a construction specialist for Ankura in Saudi Arabia, explains how to avoid common pitfalls while negotiating acceleration agreements As Vision 2030, the 2029 Asian Winter Games, and Expo 2030 get closer, project stakeholders in KSA are adopting various measures to ensure timely delivery. On 7 December 2023, global media reported that the KSA Finance Minister Mohammed Al-Jadaan had said that some Vision 2030 projects would be re-scheduled to allow further building of manufacturing capacity and resources. Certain projects are being prioritised and accelerated to meet With care, supplemental agreements can allow owners and contractors to reach their goals without ending up in acrimony and dispute. THE MOVING BASELINE At the outset of discussions, owners and contractors need to consider reaching an agreement on the project’s current status in terms of time and cost to provide an agreed baseline from which to negotiate the extent and eff ect of accelerative measures required. the aggressive deadlines as the industry faces signifi cant resource challenges to meet the unprecedented scale of the kingdom’s gigaprojects. Inevitably, the re-scheduling and acceleration of existing project schedules may lead to supplementary agreements having to be concluded for projects to recover delays and participants having to fi nd innovative ways of meeting ever-ambitious completion dates, particularly where infrastructure projects are interlinked.| OPINION | APRIL 2024 57 “If negotiations take too long, the process can be self-defeating or have built-in obsolescence, placing the agreement that everyone has worked so hard to define on paper at risk” Sena Gbedemah, construction expert, Ankura Acceleration can be a complex concept, and there is often overwhelming pressure to reach a rapid agreement. Both parties should not underestimate the need for the management resources required to structure any plan, appropriate risk allocation, and technical and legal due diligence. The time taken to conclude agreements is often in tension with the programme, and a phased or interim approach may assist while issues are concluded. Parties need to be attuned to the art of the possible and not promise more than they can deliver and control. If negotiations take too long, the process can be self- defeating or have built-in obsolescence, placing the agreement that everyone has worked so hard to defi ne on paper at risk. Prevention is better than cure. In drafting contracts, parties may need to consider how they can regulate and specify the process for instructing and compensating acceleration, ensure contract mechanisms are followed, and avoid constructive acceleration disputes. Both parties will benefi t from near real- time visibility into the work’s progress and identifi cation of the causes behind any current or potential future delays. Eff ective project and programme management to allow regular status checks on progress during negotiations will enable the development of an acceleration programme that aligns with the terms of the agreement that have been negotiated and agreed upon so that it remains relevant. UNREALISTIC EXPECTATIONS Disputes can also arise from unrealistic acceleration milestones. In any negotiation, each party may have diff ering priorities. An owner may be driven by a fi xed deadline (e.g. a sporting event), fi nancial covenants, or other imperative deadlines. A contractor may have diff erent considerations. Issues can be complicated if one party considers the other may have contributed to and/or have responsibility and liability for delays to date. These competing priorities can sometimes result in agreements that are under immediate tension. Acceleration programmes need to include a clear delivery timeline and details of how resources will be obtained and deployed with clear lines of responsibility. Any acceleration plan may benefi t from considering issues that might arise, such as lower productivity caused by congested sites, extended working hours, and the need for increased supervision. Issues that need to be considered realistically are: • Is there enough labour and engineering capacity, and where will it come from? • Is there enough equipment and materials, and is the supply secured? • Where will the equipment be sourced? • What is the impact of cost infl ation either generally or on specifi c materials? POWER IMBALANCES Acceleration agreements can fail or falter if either party exploits a power imbalance; for example, any change to a contractor would be counterproductive or costly to the owner, or conversely, the owner may face too much risk if the issue is not resolved. Aspirations need to be realistic. One issue is the incentivisation of milestones, which leads to the deployment of additional resources. However, if the milestone is not achieved, it often results in arguments over the costs of acceleration, limited recovery options, and the use of sliding scales or other mechanisms that avoid a simple yes-or-no outcome. It’s natural for parties to strive to get what they consider to be a good deal. However, the priority needs to be project delivery, which may require visible compromises from both sides. PROJECT GOVERNANCE IS CRITICAL Solid project governance is an essential element in ensuring suffi cient information and visibility for both parties to work together and devise appropriate solutions to demanding schedules, which appropriately allocate risk for the unforeseen. Reliable and timely reporting by project management, in conjunction with an incentivised supply chain, will give both parties a clear view of moving baselines and illuminate hidden pitfalls. The best agreements and solutions may fail without a strong project culture of trust and clear communication, led by the leadership of both the employer and contractor organisations. This is especially true for many projects in the kingdom with fi xed deadlines, where failure is not an option if the kingdom’s vision is to be realised. | OPINION | 58 APRIL 2024 HOW EFFECTIVE COMMUNICATION CAN MITIGATE PROJECT DELAYS George Matta, Director at TBH, delves into how proactive dialogue and transparency can mitigate the adverse impacts of project delays and maintain project integrity The old saying “time is money” is particularly relevant in project management, where even minor delays can lead to substantial fi nancial repercussions for all parties involved. Delays can escalate fi nancing costs, hinder revenue generation, and increase overhead expenses, among other fi nancial strains. Besides direct costs, a failure to meet project timelines can negatively impact revenue streams and, ultimately, the fi nancial viability of the entire project. My experience in Western Australia includes large mining and gas projects, where every day spent in delay can cost millions of dollars. For instance, a one-day delay in a mining project safety on construction sites. These issues can damage reputations, leave clients dissatisfi ed, and ultimately cause a loss of earnings. Eff ective communication is key to managing changes and unforeseen circumstances— whether internally between the client’s project team and the contractor’s project team or externally between the contractor and the client. CAUSES OF DELAYS Some delays are due to unforeseen circumstances beyond the control of the parties involved in the project—such as natural disasters like fl oods or earthquakes, that could not have been anticipated and prepared for. Other times, changes in laws or regulations impact the project, or delays are caused by late payments or changes to the project scope. One of the most common causes of delay I see is incomplete design. It often starts with clients being so passionate about their projects that they initiate them without a complete design, which can lead to considerable expenses down the line. Incomplete designs also create an unclear scope of work, complicating accurate estimates and quotes for contractors. This often results in provisional contract sums, acting as could prevent the client from exporting millions of dollars worth of iron ore. Similarly, contractors incur costs too. In off shore gas projects, the daily rental rate for off shore vessels could be around a million dollars. As a result, delays must be viewed not only in terms of time but also as an expenditure. HOW COMMON ARE DELAYS? According to research, at least 60% of construction projects worldwide experience delays—and that number is probably even higher. Besides extending the timeline, delays also increase costs, decrease productivity, compromise quality, and even compromise | OPINION || OPINION | APRIL 2024 59 George Matta, Director, TBH placeholders for costs determinable only after design completion. As designs evolve, these sums can escalate, causing budget overruns. Poor project planning, characterised by a lack of preparation and understanding of the construction process, often arises from unclear goals, inaccurate cost estimates, and poor scope control. This lack of planning can result in scope creep, exceeding the initial plan without adjusting time and budget, leading to disputes, rework, and potential project failure. Resource planning challenges in the Middle East, where resources are often imported, expose projects to delays and cost increases. Global market fl uctuations, transportation hurdles, and customs issues, compounded by reliance on materials from high-infl ation areas like Asia and Europe, can cause delays. These are exacerbated by material unavailability or contractors’ inability to absorb fi nancial losses. Inadequate resource allocation can also lead to delays. In the construction industry, resources are often shared among diff erent disciplines and projects. To ensure successful project completion, these shared resources must be allocated carefully, aligned with the project’s open work front and agreed upon schedule. CLASSIFICATION OF DELAYS Understanding delays is the fi rst step towards developing eff ective communication strategies. Generally, delays can be divided into three categories: 1. Critical and non-critical delays The Society of Construction Law (SCL) protocol distinguishes between critical and non-critical delays as “delay to completion” and “delay to progress.” Delays to the contract completion date are known as critical delays. A Critical Path Method (CPM) technique or schedule is generally used to identify critical and non-critical delays. On the other hand, non-critical delays only delay the contractor’s progress without causing the contract completion date to be missed. However, delay to progress may still be compensable via other delay or disruption costs, even if it does not lead to a time extension or time extension costs. 2. Excusable and non-excusable delays These types of delays are initially categorised by whether or not a time extension or other form of relief will be given to the contractor as a result of the delay. A delay is generally excusable when it is caused by an unforeseeable event or something that is beyond the contractor’s control. A non-excusable delay is one caused by an event within the contractor’s control, or by a foreseeable event. The specifi c contract for the project outlines the instances of excusable and compensable delays. 3. Compensable and non-compensable delays If an excusable delay is compensable, the contractor is entitled to additional monetary compensation. Conditions of contracts generally distinguish between compensable and non-compensable delays, as well as how compensation is to be determined. EFFECTIVE COMMUNICATION For construction project management to be eff ective, and delays mitigated, roles and responsibilities must be clearly defi ned. This ensures that every team member knows their specifi c duties and what is expected of them, preventing misunderstandings and delays. Establishing consistent and clear communication channels, such as regular meetings and updates, is especially important. This facilitates timely and transparent information sharing among all stakeholders, helping ensure fast decision-making and problem resolution. Stakeholder engagement, cultural awareness, and facilitating collaboration are also important. Building trust, aligning incentives, maintaining open dialogue, and confl ict resolution are key components of an eff ective communication strategy. Understanding cultural nuances unique to specifi c regions is also essential. In the Middle East, this might include considering the importance of building relationships before entering into contractual deals, the infl uence of hierarchy within business contexts, and a preference for indirect communication styles. I advocate for negotiation, and mediation via the practice of active listening as a means for resolving confl icts. By employing these problem- solving techniques, it’s possible to achieve mutually benefi cial outcomes. However, it is imperative to maintain neutrality and objectivity, as this is what enables both sides to address issues in a constructive manner, ensuring that solutions are fair and balanced. TOOLS FOR COMMUNICATION Some great collaborative tools, such as project management software, can help improve communication and information sharing between team members, enhancing collaboration and information exchange. These tools provide a centralised platform for information sharing, task assignments, and progress tracking, ensuring everyone is on the same page. Teams can access project data in real time from anywhere, which helps with collaboration and reduces the chances of miscommunication and delays. SUMMING UP Construction delays are a common challenge, but creating an environment that fosters open communication can help manage them eff ectively. As Nat Turner said, “Good communication is the link between confusion and clarity.” Being honest and realistic about delays while remaining fl exible to changes is crucial. Eff ective communication ensures that all stakeholders are informed about delays, their impact on the project, and any solutions, fostering collaboration and easing the decision- making process. Next >