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www.aecom.com
2013
MIDDLE EAST
CONSTRUCTION HANDBOOK
2013
MIDDLE EAST
CONSTRUCTION HANDBOOK
2013
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1 AECOM
Industry awards
2 BUILDINGS + PLACES
Game changer
11
11
3 ECONOMIC ROUND UP
Global indicators
15
27
38
4 ARTICLES
41
Sports sector
43
Leisure sector
55
Healthcare sector
63
Education sector
73
83
87
5 REFERENCE ARTICLES
Procurement routes
91
94
99
6 REFERENCE DATA
109
112
114
116
118
120
Labor costs
122
123
Exchange rates
126
127
130
7 DIRECTORY OF OFFICES
Middle East
135
North Africa
139
Africa
140
Americas
141
142
143
FOREWORD
Anthony McCarter
Regional Business Line Leader
Buildings + Places, AECOM
AECOM
1
AECOM
Global expertise ... local solutions
From road, rail, energy and water systems to enhancing
environments and creating new buildings and communities,
our vision is to make the world a better place.
What differentiates us is our collaborative way of working
globally and delivering locally. A trusted partner to our
clients, we draw together teams of engineers, planners,
architects, landscape architects, environmental specialists,
economists, scientists, consultants, cost managers,
construction managers, project managers and program
managers all dedicated to finding the most innovative
and appropriate solutions and improving the quality of life.
Formed from many of the worlds finest engineering,
design, construction, consulting, environmental, planning
and government services companies, AECOMs technical
expertise and creative excellence combine to provide fully
integrated planning, design, engineering, environment,
consulting, cost management, construction management,
project management and program management
capabilities to a broad range of markets.
Listed as a Fortune 500 company, our 45,000 employees are
based in more than 140 countries, enabling us to deliver
global knowledge and expertise with an understanding of
local cultures and needs.
Our adaptable and flexible approach to projects delivers
consistency, longevity and high quality along with
efficiencies in cost and time.
Middle East
AECOM has a long and distinguished history in the Middle
East. For more than 60 years, we have been working in
the region to help create a brighter future. With more than
3,300 staff located across Bahrain, Egypt, Kuwait, Lebanon,
Oman, Qatar, Saudi Arabia and the United Arab Emirates,
we use our unparalleled depth and breadth of resources
and local knowledge to deliver and manage projects of any
type or scale.
1
Industry awards
The consistently high standard of professional service
provided by AECOM is recognized throughout the
construction industry, as evidenced by the following
prestigious industry awards:
Engineering News-Record
AECOM is ranked No. 1 on the magazines list of the top 500
design firms
Ethisphere
AECOM named one of the Worlds Most Ethical Companies
in 2011, 2012 and 2013
BUILDINGS + PLACES
10
2
BUILDINGS + PLACES
Buildings + places is one of four major market sectors
that enhance our ability to provide a comprehensive and
integrated offer to clients.
Incorporating architecture, building engineering, design +
planning and economics, and program, cost, consultancy,
buildings + places brings together 10,000 talented people
capable of delivering the most high-profile, most complex
and most dynamic projects on the planet.
Buildings + places operates in all market sectors and leads
in our primary markets commercial, sports, leisure,
healthcare, education and government and works
closely with AECOMs other practices to deliver our services
in end markets such as manufacturing, transportation,
water, energy and industrial.
Game changer
AECOM aspires to be a game changer in the built
environment. Our industry not only has significant
inefficiencies, but its current fragmentation is a great
barrier to innovation, a barrier to truly sustainable design
for example. We can see this, and many of our clients are
seeing this too. They are beginning to ask us what the
answer is, what the new approach will be.
AECOM is big enough and significant enough to influence a
positive change in our professions. We focus on identifying
issues and encouraging our people to find innovative
solutions. This approach allows our clients to assemble a
business case that is well considered, technically advanced
and sensitive to the local environment.
12
ECONOMIC
ROUND UP
13
14
3
GLOBAL INDICATORS
Mixed fortunes for global construction
Construction in many developed markets had another
difficult year in 2012. In much of Europe, the combination of
a weak private sector and government austerity measures
have limited any demand growth for construction, while
risk aversion and tighter capital control for banks have
made credit harder to come by for projects. Public sector
funding for infrastructure projects also remained limited
in the U.S., while the private sector is recovering only very
slowly. Meanwhile, reconstruction efforts in Japan have
proved harder to realize than expected. Emerging markets
generally continued to perform better. In Europe, Russia
and Turkey were the outperformers. China showed signs
of slowing in capital spending in 2012, but this highlighted
opportunities elsewhere in the region, such as in Taiwan,
Singapore or Hong Kong. The flow of project awards in
the Middle East last year may have disappointed regional
industry players, but the region still performed well
compared to many other places around the world. Latin
America as a whole has posted construction growth above
the global average last year and this trend is expected to
continue.
Outlook
Construction as a whole is expected to pick up in 2013, but
the outlook for the industry remains mixed with greater
recovery in some regions, while others will be slower to
bounce back. Our global research examined these trends
by talking to local industry decision-makers about where
investment will be concentrated. The resulting Global
Growth Index (depicted overleaf) encapsulates this
sentiment and highlights the hotspots for growth in the
medium term.
15
16
66
76
Qatar
US$7
86
63
62
Philippines - US$26
Australia - US$119
94
50
Malaysia - US$26
Vietnam - US$8
74
54
58
17
Indonesia - US$86
India - US$142
Singapore - US$18
72
63
China - US$1,384
Thailand - US$10
Russia - US$117
74
Eastern Europe
US$114
Turkey - US$81
64
Bahrain - US$2
United Arab
74
Emirates
50 US$36
13
Source: AECOM Global Construction Sentiment Survey, 2012, Various National Accounts
26
33
-30 33
Ireland - US $11
United Kingdom - US$182
Nordic - US$113
35
53
Canada - US $134
3
Global Growth Index
3
Middle East
Construction work in the Middle East will be driven by
demand from shifting population demographics, several
cash-rich governments pursuing infrastructure work
and the regions global sporting events such as the 2022
FIFA World Cup in Qatar. The financial strength of Saudi
Arabia, Qatar and the U.A.E. will encourage publicly
financed projects. Our industry research shows that social
infrastructure considered necessary to maintain social
cohesion will be one of the biggest opportunities in
the regional buildings market. Government and semigovernment entities are also focusing on energy and water
security, as well as transport projects to improve the
competitiveness of particular regions. The recent revival in
the Dubai real estate market has raised expectations of a
broader pick up in the private sector sentiment across the
region and a gradual resumption of stalled projects.
Key challenges for the Middle East construction industry
in the medium term include an underdeveloped private
banking sector, capacity pressures on labor and materials,
and responding to imperatives toward greater resource
efficiency.
Middle East buildings market expected growth
High
growth
market
Percent
90
Healthcare
80
70
Industrial
Education
Tourism &
Leisure
Residential
60
50
Public Buildings
Retail
40
Mixed-use
Existing Building
30
20
Low
growth
market
10
Office
17
3
Middle East projects planned or underway
1,400
US$ billion
1,200
1,000
800
600
400
Bahrain
Qatar
Iraq
Kuwait
Saudi
Arabia
Oman
Jul 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
200
United Arab
Emirates
U.S.
In 2012, the U.S. construction sector grew for the first
time after six consecutive years of decline, which had
reduced industry capacity significantly. Some spending
has begun to filter its way through from the private sector
into construction projects and there have been gains
from rock-bottom levels in the residential sector. Private
investment has increased in the power sector, including oil
and gas facilities; spending in this sector was 31 percent
higher in 2012 than the previous year and 57 percent above
the ten-year average, according to the U.S. Census Bureau.
Our industry research also indicates that more sustainable
energy use is a top priority for the U.S. industrial sector.
U.S. construction
18
3
In addition to energy sector
activity, there are promising
trends in other sectors such as
manufacturing. Construction in
this area increased during 2012
as older plants were replaced.
Industries such as aerospace
and agriculture, updated
their plants to keep pace
with new technologies. These
investments were also driven
by U.S. companies deciding
to keep operations onshore
due to currency fluctuations
and lower transportation and
energy costs in the U.S.
2005
2009
Aviation
D+
Bridges
Dams
Drinking Water
D-
D-
Energy
D+
Navigable
Waterways
D-
Rail
C-
C-
Roads
D-
Solid Waste
C+
C+
Transit
D+
Wastewater
DDIn contrast, the outlook
for publicly financed
Overall
D
D
Infrastructure
projects remains weak,
Score
with the political scene
Source: American Society of Civil
deadlocked over spending
Engineers, 2009
plans. Transport is set to
bear the brunt of spending
cuts, despite the passing of a US$105 billion surface
transportation bill in July 2012. There is an urgent need for
infrastructure improvements. In 2009, the American Society
of Civil Engineers (ASCE) highlighted the poor existing state
of U.S. infrastructure, assigning it a cumulative D grade
defined as poor and arguing that this posed a threat to
the continued competitiveness of the country.
Europe
Europes growth recovery continues to be limited by public
sector austerity and private deleveraging, weak export
markets and a relatively strong Euro, as well as growing
concerns over a renewed escalation of country-specific
vulnerabilities. Thus, while financial conditions appear to
have improved and risks have diminished, the fundamental
problems of the Euro zone surrounding lack of growth
drivers remain.
An improvement in consumer and business confidence is
expected to translate into a gradual return of spending and
investment growth over the course of 2013, with a more
pronounced recovery pencilled in for 2014. Construction in
the Euro zone and the wider EU is expected to contract this
year, but modest growth is forecasted for 2014.
19
3
Looking ahead, our industry research shows the emergence
of an east-west and north-south divide across the broader
European region, with the best prospects in Russia, Norway,
Romania and Turkey. Germany, Switzerland, Denmark and
Ukraine are also forecast to see growth, but at a much
more moderate pace. Across Europe, the need to upgrade
vital infrastructure, such as ageing or insufficient power
generation, or transport links, is expected to drive renewed
growth in the construction sector.
European building and infrastructure expected growth
High
growth
market
Percent
100
80
Russia
Turkey
East
60
40
20
0
Central
Ireland
-20
Negative
growth
market
Nordic
United
Kingdom
-40
Note: Central Europe covers Germany, France, Austria, Switzerland, Netherlands and Belgium. Nordic
Europe covers Norway, Sweden, Finland, and Denmark. Eastern Europe covers Poland, Romania, Czech
Republic, Slovakia and Hungary.
EUR billion
250
200
150
100
20
Norway
Spain
Slovak Republic
Ireland
Hungary
Portugal
Czech Republic
Turkey
Denmark
Finland
Austria
Sweden
Poland
Belgium
Switzerland
Russia
Netherlands
Italy
United Kingdom
France
Germany
50
3
European market appeal to foreign investors
Eastern Europe
Western Europe
100
80
60
40
20
0
-20
-40
Openness
Attractiveness
Decreasing
Openness
Steady
Attractiveness
Increasing
Asia-Pacific
CHINA
Despite the recent cuts in capital spending, Chinas capital
expenditure plans are still significant, dwarfing all other
emerging countries. At the same time, industry sources
point to a rebound in residential and non-residential growth
after a two-year slowdown.
China is slowly seeing a shift away from an exportdriven economy to a domestic market more focused on
knowledge-based industries. Their growing prominence
is reflected in the above average annual wage growth in
sectors such as finance, retail and education over the last
decade. These growing services and other industries will
change the shape of Chinas cities, and will drive urban
infrastructure requirements.
Largest investment regions
2012 annual growth
25
250
20
200
15
150
10
100
Anhui
Hubei
Sichuan
Zhejiang
Guangdong
Hebei
Henan
0
Liaoning
0
Shandong
50
30
Value of investment
300
Jiangsy
350
21
3
Certain provinces of China are changing more rapidly
than others; in the five years leading up to 2011, Jiangsu,
just north of Shanghai, saw the biggest leap in its urban
population. In the same period, construction in this region
more than doubled in value to meet the needs of this
changing economy.
In addition to the retail, residential and tourism sectors, our
industry research pointed to considerable growth in road
and rail, in particular in the south of the country. China has
earmarked about US$85 billion for rail related projects in
2013 alone. Energy investments are particularly important
in the Western regions of China Water will be an important
focus in Hong Kong as it relies on mainland China for up to
80 percent of its supply and will be looking to other water
security solutions in the future.
Our industry survey showed that the openness of Chinas
market was slowly increasing, but a significant number
of participants within our industry research believe
that foreign entrants still struggle with local demands,
particularly in understanding regulations and the culture.
Investment in fixed assets
Other fixed investment
Construction
Total investment growth rate (annual)
3,500
24
3,000
CNY billion
25
23
2,500
22
2,000
1,500
21
1,000
20
500
0
4,000
2010
2011
2012
19
INDIA
By 2030, India is expected to have 13 cities with populations
of more than four million people and six megacities with
populations greater than 10 million (McKinsey). Indias
growing middle class expects more quality services, driving
this is a younger aspiring population. This transformation
will require greenfield infrastructure, as well as
considerable investments in residential, healthcare and
energy supplies, particularly in the northeast where more
work will be required to raise infrastructure standards.
However, Indias inadequate infrastructure is prohibiting the
country to fulfil its growth potential.
22
3
India has set a massive target for doubling investments in
infrastructure to INR 40.9 trillion (US$906 billion) during the
Twelfth Plan period of 2012-2017. Almost a third of Indias
infrastructure spending to 2017 is expected to be in the
energy sector. Indian authorities estimate that commercial
energy supplies will have to grow at an annual rate of
7 percent to service a growth domenstic product (GDP)
growth of 9 percent.
Our industry research shows that the attractiveness of the
Indian market could be more promising than Chinas if the
business environment improves. Steps are being taken to
boost investor sentiment, for example, regulations have
recently been announced to allow foreign investment in
retail and aviation. However, whilst the Indian government
is making some attempts to resolve the regulatory hurdles
in the various sectors, it remains to be seen whether these
reforms will be executed successfully. Other roadblocks are
also plentiful, including finding local expertise to deliver
projects and achieving a cost-effective mix of offshore and
onsite resources.
AUSTRALIA AND NEW ZEALAND
While Australias economy has fared better than most other
advanced economies in recent years, a contraction was
witnessed in 2012, particularly in the construction industry.
The outlook remains constrained in 2013, but projections
for GDP growth to 2015 at an average of 3.2 percent per
annum according to the International Monetary Fund (IMF)
are still more promising than the average for advanced
economies globally.
However, this will depend on the size of investments in
the resources sector and other sectors stepping in to
contribute to growth. Uncertainty prior to the election in
September 2013 may lead to investor hesitation, while
others await greater surety in the labor market and a return
of consumer confidence.
Average annual GDP growth
8
Percent
6
5
4
3
2
1
0
Developing
Asia
2010 - 12
European
Union
U.S.
Australia
New Zealand
2013 - 15
Source: IMF
23
3
New Zealand has seen growth below the annual average
for advanced economies in recent years, but is forecast
to achieve higher GDP growth by 2015. Much of this
buoyancy will stem from developments undertaken to
rebuild Canterbury and the growing significance of foreign
investment to the countrys recovery.
Of growing importance to both nations is trade with
Southeast Asia. Robust growth is expected across
developing Asia from 2013 to 2015, such as in Indonesia
(around 6.5 percent) and the Philippines (around 5
percent). Our construction industry research points to clear
opportunities in the region Indonesia and the Philippines
rated very highly in terms of growth expectations, alongside
the powerhouse economies of India and China in the
broader Asia region.
Africa
African infrastructure needs are attracting significant
interest from international investors, both private and
public, seeking new opportunities and growing markets.
China is one of the biggest sources for infrastructure
financing in the region (see page 25). While investment
is flowing into the region, several roadblocks still exist
such as corruption, insufficient infrastructure, inefficient
bureaucracies and an inadequate workforce. There is
great potential, for example, in the resources sector with
significant oil and gas reserves in East Africa but regulatory
and infrastructure gaps are currently hindering production.
Ease of doing business ranking by region
Country Ranking
Harder to do
Business
140
120
100
80
60
40
20
24
Sub-Saharan
Africa
South Asia
Middle East/
North America
South America
East Asia
East Euro/
Central Asia
0
Organisation of
Economic Co-operation
and Development
(OECD) High Income
Easier to do
Business
3
Our industry research shows that other challenges are
holding local developers back in the buildings market,
such as difficulty in obtaining project funding or lack of
government capability to deliver projects. However, as
momentum builds, further residential and commercial
development is having a knock-on effect in other sectors
such as retail.
Chinese investment offers in Africa since 2010
ALGERIA
EGYPT
MAURITANIA
NIGER
ERITREA
SUDAN
CHAD
DJIBOUTI
GUINEA
SIERRA
LEONE
LIBERIA
NIGERIA
ETHIOPIA
SOUTH
SUDAN
GHANA
CAMEROON
UGANDA
DEMOCRATIC
REPUBLIC OF THE
CONGO
KENYA
UNITED
REPUBLIC OF
TANZANIA
ANGOLA
ZAMBIA
ZIMBABWE
MOZAMBIQUE
MADAGASCAR
NAMIBIA
SOUTH
AFRICA
Source: Stratfor
25
3
South America
Economic growth in South America has been much
stronger in recent years compared to the worlds advanced
economies. The region has witnessed a massive increase in
foreign investment and significant growth in the resources
and tourism sectors. The regions construction sectors are
expected to continue to outperform many other countries
over the next few years. Brazil and Argentina are by far
the largest markets in the region, but others such as Chile
and Peru are also buoyant construction markets. Chiles
infrastructure investments are mainly delivered by private
players, while Perus government is the main investor in the
sector. Brazil is expected to step up investments near term,
as the government delivers its second growth acceleration
program (PAC II), which comes to a close in 2014 along with
the preparations for the 2014 FIFA World Cup.
Foreign direct investment in regions change 2009 - 2011
Rising
investment
500
400
South
Amercia
Percent
300
Change
2009 - 2011
200
100
0
Africa
-100
Falling
investment
-200
Europe
North
America
Central
East
and
Middle South Asia Asia
East
Oceania
Source: IMF
26
3
ECONOMIC AND
CONSTRUCTION OVERVIEW
Expectations for the global economy turn
positive
In many ways, 2012 turned out better than had been feared,
with none of the worst case scenarios facing the global
economy materializing namely a Eurozone breakup, hard
economic landing in China, the U.S. toppling over the fiscal
cliff, or a large-scale escalation of Middle East tensions.
This has raised confidence in the global outlook and
expectations of firming economic activity have gathered
pace since the turn of the year, despite the fact that 2013
started with many of the economic and political issues
remaining unresolved.
2012e
2013-15f average p.a.
Annual percent
10
8
6
4
U.A.E.
Bahrain
Kuwait
Oman
Lebanon
Jordan
Egypt
Saudi
Arabia
Iraq
Qatar
27
3
Consequently, countries such as Egypt, Bahrain and Tunisia
continue to seek political normality in 2013.
Elsewhere in the Middle East, economic prospects are
brighter than in many other regions. Countries with oil
resources and stable governments are outperforming their
counterparts, supported by robust non-oil gross domestic
product (GDP) growth and larger external current account
surpluses. The U.A.E., Oman, Qatar and Saudi Arabia all
have set out expansionary budgets for 2013, which should
continue to benefit their construction markets.
Construction and transportation projects
(Anticipated) Project awards by status in GCC, Iraq and Lebanon
300
Progressed
Cancelled/On hold
US$ billion
250
200
150
100
50
0
2009
2010
2011
2012
2013e
Source: MEED
3
and building sectors were heavily contested, with fierce
competition driving prices down.
Nevertheless, our industry survey shows that many
construction firms saw an increase in infrastructure and
building work over the past year and the region performed
better than many other markets around the globe.
Infrastructure work was led by cash-rich governments
pursuing ongoing spending commitments and gearing
up for major global events, while building construction
benefited from an upturn in general confidence. This has
led to a re-start of some projects that were previously
on hold/have been stalled and a renewed appetite for
expansion. This has particularly been evident in Dubai
where building activity has been slow for a number of years
now. Survey respondents reported that the increase in their
building work over the past year has been mainly driven
by specific company initiatives and their ability to build on
existing client relationships.
For 2013, government investment will remain the central
pillar of construction activity in the Middle East. Indeed,
considerable commitments by the cash-rich Saudi Arabian
and Qatari governments to increase capital spending
both related to internal demand pressures from a growing
population, as in Saudi Arabia, or gearing up for staging
major global events, such as in Qatar, are the main reasons
for positive sentiment over future workload in the region.
There are also signs that the Dubai real estate market
is picking up and Abu Dhabi is progressing with public
spending programs after a two-year hiatus. This is expected
to result in increased demand for utilities, transport,
housing and social infrastructure across the region.
Workload expectations over the next three years
Balance of respondents expecting a decrease/increase
Decreasing
Increasing
Building
Infrastructure
29
3
According to our research, construction opportunities
backed by real economic, social and global event needs
are the dominant reasons that attract offshore investors/
businesses to the region. This is compounded by the fact
that opportunities appear more limited elsewhere in the
world, with investors seeking business in higher-return
countries where internal capital is fueling spending on
big-ticket public capital projects. A low-tax environment,
relatively low regulatory restrictions and stability of
countries are also cited as inducing businesses to invest.
Attractiveness and openness of the Middle East to offshore
suppliers/service providers
Decreasing
Increasing
Attractiveness to
offshore suppliers/
service providers
Openness to offshore
suppliers/service
providers
Stability of country/
Openness to trade
Low entry barriers
Availability of
internal capital
3
population and the perception that supply appears to be
well behind demand.
Consequently, our research shows that the construction
industry expects building work to outpace infrastructure
projects in Saudi Arabia over the next years, with a
significant increase in healthcare and education-related
works, as well as residential, in particular, affordable
housing projects. Infrastructure work related to transport
connections, as well as water and wastewater provisions
are also expected to remain in focus. In particular, the
western regions of Saudi Arabia are expected to benefit
from this, with the vast majority of those surveyed
suggesting this will be the most active region in the
years ahead.
The U.A.E. awarded the most construction and
transportation contracts in the region in 2012, totalling
US$24.1 billion. Dubai awarded over US$12 billion of
construction and transportation projects, compared to
US$4.7 billion in 2011. Indeed, on the back of a strong
performance of its services, logistics and trade sectors,
increased optimism in the Dubai economy has resulted
in growing confidence in its real estate market, with
expectations that the market will show further signs of a
broad-based recovery this year.
Construction and transportation projects
Progressed projects only
120
2012
2013 anticipated
US$ billion
100
80
60
40
20
0
Bahrain
Iraq
Kuwait
Oman
U.A.E.
Qatar
Saudi
Arabia
Source: MEED
3
Kuwaits project market
continues to be hindered
by political stalemate and
uncertainty. In total, Kuwait
awarded US$10 billion of
construction and transportation
deals in 2012, which includes
the US$3.7-billion contract
award for the Subiya causeway
in October 2012. It is hoped
that the project will give
renewed impetus to other
urban development projects
in Kuwait City and Subiya.
For 2013 and beyond, the
performance of the Kuwaiti
construction sector will depend
on the progress of projects
such as the governments
hospitals program and the
Kuwait metro. At the start of
2013, it was announced that
four large projects, including
the metro and rail schemes,
are being reviewed by the
Communications Ministry,
leading to uncertainty about
their implementation.
Market pricing
Changes in tender price trends reflect the adjustments to
market and sector activity in the Middle East. Across the
region, the pricing environment remains very competitive
and client organizations continue to press for the best
possible prices, often through negotiation. Consequently,
consultants, contractors and their supply chains continue
to see challenging trading conditions.
Lower demand and excess capacity continue to be evident,
although regional variations exist in view of the different
levels of government expenditure, and also that of the
private sector. Consequently, trends in tender prices over
the past year have ranged from relative stability, to a
gradual drift downwards to notable falls in those countries
where industry volumes remained relatively low.
Our industry survey shows that input cost inflation in the
region has been mainly driven by (raw) materials prices
in 2012, most notably in Qatar and Saudi Arabia, where
global price pressures have been compounded by firm local
demand. The vast majority of these increases have been
moderate. Energy and fuel costs are judged to have exerted
upward pressure on construction costs in Saudi Arabia
and the U.A.E. Looking ahead to the next twelve months,
raw materials together with energy costs are expected to
be the main drivers of construction costs in the region.
Further ahead, survey participants expect a significant
increase in labor costs in Qatar on the back of strong
workload increases.
33
3
Tender prices and profit margins
Balance of respondents reporting an increase/decrease
60
Last 12 months
Tender Prices
Profit Margins
Percent
40
60
Next 12 months
40
20
20
no change
-20
-20
-40
-40
U.A.E.
Qatar
Saudi
Arabia
U.A.E.
Qatar
Saudi
Arabia
3
expenditure against income,
and for oil-exporting countries,
income is determined by
the global price of oil. Large
swings in oil prices increases
uncertainty over fiscal budgets,
which could have impact on
government spending. Capital
spending is usually more
vulnerable to spending cuts
than current spending on
front-line government services,
such as public wages or benefit
transfers.
35
3
lacking in the region. There is also a view that there is
a lack of understanding of procurement processes and
available options. In addition, the roles of contracting
parties are often unclear when new or complex systems
are introduced, with quality being compromised when the
only incentive for the client and contractor is to reduce
cost. Given the strong concerns over time, cost and quality
of project delivery there are opportunities for improvement
across the industry supply chain. Survey respondents
feel that over the longer term, negotiated contracts and
partnerships/alliances would provide more efficiency and
value for owners. What is needed for this to happen is an
increase in the experience of working with local clients/
developers from the delivery side of the industry.
Balancing cost and quality: Contractors and consultants
also see unrealistic client expectations about cost and
time, as well as fees as a major issue. In turn, clients are
faced with the challenge of project teams not delivering
projects within budgets and schedule. Quality of work has
also been cited by clients as a major concern, which has
partly been explained by poor project management in some
parts of the industry.
Bureaucracy and funding approvals: The delivery market
cites onerous bureaucracy as a main challenge, which
delays the approvals and permitting process and impacts
client decision-making, which in turn affects contractors
and consultants cash-flows, resourcing and workflow
certainty. Consultants and contractors have also indicated
that client payment practices are a major concern for the
delivery side of the industry. Whilst public budgets are
generally in order, there appears to be a lack of committed
funds in certain parts of governments in the region. The
private sector is facing tighter lending conditions, which
impacts investment decisions.
Effectiveness of procurement method
Poor
Satisfactory
Excellent
20%
40%
80%
36
60%
100%
3
Considerations for project success
Uncertainty increases the need for awareness and
monitoring. Some of the key issues to ensure active
management of projects include:
Entry and exit prices: Lower prices can be an
opportunity for clients but at the same time they introduce
risk. Too much focus on achieving the lowest price should
be counter-balanced by an acceptance that higher
transaction costs in post-contract administration
may follow.
Risk transfer: A willingness by contractors to accept
a wider transfer of risk in the hope of winning work will
stretch business fundamentals. In short, incentives for
contractors to maximize post-contract returns because of
excessive risk transfer should be minimized. It is not only
in hard financial metrics where incorrect transfer of risk
manifests itself project team morale can suffer and this
in turn affects project performance and quality.
Scenario planning: Uncertainty and volatility in markets
require greater attention to the assessment and modeling
of the financial viability of developments.
Risk management and removing sources of uncertainty:
Design completion, supervision, finding the right people,
procurement options and interface risks are all areas
for consideration.
Contractual provisions: With heightened risks related to the
supply chains financial standing, it is imperative to include
contractual provisions that ensure the financial stability
of the supply chain. Security can be achieved through
adequate warranties and performance guarantees.
37
38
****2011/12
7.2
n/a
11.5****
4.6**
6,557
5.3
2.0
255.0
82.0
Cairo
995,500
Egypt
*****2011
5.6
26.2
8.8***
4.7**
4,620
10.9
10.2
130.6
33.6
Baghdad
434,300
Iraq
4.8
1.8
1.4
4.5**
6,044
4.2
3.0
31.4
6.4
Amman
88,800
Jordan
2.9
14.1
2.8
1.8**
43,847
3.4
6.3
174.6
3.8
Kuwait
17,800
Kuwait
6.6
2.0
6***
15.0**
15,884
3.7
2.0
41.8
4.0
Beirut
10,200
Lebanon
3.0
8.2
3.5*****
4.8**
28,512
3.5
5.0
80.0
3.2
Muscat
309,500
Oman
1.9
21.5
7.2
3.9**
102,769
6.0
6.3
184.6
1.8
Doha
11,600
Qatar
All data are 2012 data unless otherwise stated. Value of construction in Lebanon, Kuwait, U.A.E. is calculated based on the share of construction in GDP in 2009 applied to 2012 GDP figures.
***2010
2.8
0.9
*estimate only
1.8****
6.0**
Construction Output, %
of GDP
28,182
2.8
2.0
26.5
1.2
Manama
800
Bahrain
Population, million
Capital City
Statistic
4.6
63.6
24.5
4.6**
25,722
4.1
6.0
657.0
28.8
Riyadh
2,149,700
Saudi
Arabia
0.7
31.0
35.7*****
10.5**
48,992
3.2
4.0
361.9
5.5
Abu Dhabi
83,600
U.A.E.
ARTICLES
39
4
BUSINESS DRIVERS AND
THE DEVELOPMENT CYCLE
Transforming industry intelligence into
effective development frameworks
The Middle East development market is driven by real
economic and social demands that are unchangeable.
At the same time, political instability and the regions
integration with global markets has left it susceptible to
regional and global shifts in demand and resources. This
brings specific business challenges and opportunities
for owners, developers and operators. The first step in
managing these challenges and realizing the opportunities
is to understand the key business drivers in the
development cycle.
We regularly engage with our clients (owners, developers
and operators) through our Key Account Management
program. The program is an enterprise-wide best practice
approach that focuses on fully understanding the business
and project needs of our clients, successfully managing our
client relationships and monitoring our clients success. It
supports our commitment to our clients and communities
of delivering solutions that enhance and sustain the worlds
built, natural and social environments.
The latest product of the program is a set of development
frameworks for assets within the education, healthcare,
leisure and sports sectors. Informed by our clients
insights, these frameworks outline growth, revenue, cost
and performance drivers that contribute to the success
of developments within these sectors. The full customer
activity cycle review provides owners, developers and
operators with a discerning yet concise overview of key
factors that affect their assets.
Working together we transform our clients visions into
profitable, sustainable, community-focused and brand
building projects.
41
4
Holistic understanding of the business drivers and
development cycle
Pre
Client decides
what to build and
when
Growth drivers
Post
During
Client is
maintaining the
asset
Client is
executing the
project
Cost drivers
Community
focused
Profitable
Sustainable
42
Revenue
drivers
Brand
builder
4
Sports sector
The excitement generated from watching or playing sports
drives demand for sports-related facilities. Public and
private investors see sports as a channel to enrich the lives
of community members, raise a team, a city or a regions
national and international profile, and use it as a catalyst
for growth in other related sectors such as tourism, retail
and healthcare. Sports facilities are also an important
component of many urban regeneration programs, bringing
investment and people back into previously derelict innercity areas.
Sports facilities can take many forms, from small-scale
community recreational centers and sporting facilities,
to large open recreational areas such as golf courses and
multi-billion dollar investments in arenas and stadiums
used by professional league teams or needed to host mega
events such as the Olympic Games or the FIFA World Cup.
Sport facilities built for global events present a unique
set of opportunities and challenges for the host country.
Apart from spectator experience, they are seen and used
within the context of environmental, economic and social
sustainability, development and regeneration.
Within the Middle East, Qatar is investing heavily in
infrastructure and sport facilities ahead of the 2022 FIFA
World Cup. The event will certainly help to raise Qatars
international profile, accelerate growth within the country
and encourage sporting involvement within the community.
However, legacy planning is essential, as it will determine
whether the initial investment has a positive and lasting
impact on the country.
One of the major issues facing the construction of sports
facilities is the question of their funding and justification
for their investment. This is due to large capital costs,
almost certainly with substantial public investment, and
often not justifiable in a cost-benefit analysis. The hosting
of mega sporting events, which require major infrastructure
investments by the public sector, raises questions
concerning the multiplier effects of a flagship project,
its links and connections with the rest of the urban area or
country, its social impact and its financial consequences.
This is particularly true for event-specific built facilities
where, in addition to the huge expense of infrastructural
outlay, there is a high risk of facilities not being used
post-event.
43
4
There is a trend to reduce traditional funding sources
(i.e. taxes, grants, public funding) and to encourage the
public sector to form partnerships with the private sector
in providing services and facilities. This in turn has led to
the development of a number of management and funding
organizations within the private sector that are interested
in partnering on facilities with revenue-generating
potential.
Business and development drivers
44
4
Key growth drivers
Government expenditure
on community projects
Urban regeneration
Professional leagues
Private investment in
sporting sector
Availability of credit
Population growth/
urbanization
Increase in disposable
income
Socio-political stability
Key client insights
All stakeholders are
increasingly adopting a more
comprehensive approach to
sporting facilities ... shifting
towards a 365-day-a-year
experience and improving
local communities.
Despite attractiveness and
pride associated with sporting
facilities, return on investment
remains the deciding factor.
Opportunity cost of developing
a sport facility is compared
with other investments.
45
4
Middle East Sports Sector
The two primary growth drivers within the Middle
East sports sector are improving the health and living
standards of local populations and achieving regional
and international recognition. The Middle East has
some of the highest obesity and diabetes prevalence
rates in the world as a growing number of the regions
populations live sedentary lifestyles and have unhealthy
diets. These factors, in turn, contribute to higher
healthcare costs and burden governments to meet the
required healthcare demand. To help their populations
lead healthier lifestyles, governments invest in sport
facilities, including women exclusive facilities as
women have the highest obesity numbers across the
region. Private investments in the sector, particularly
in the form of private sport clubs and gyms, have
increased. Investors recognize the real demand for such
facilities amongst communities plagued with unhealthy
lifestyles but privileged with growing income levels.
Obesity prevalence in selected MENA countries
60
Males
50
Females
Percent
40
30
20
10
0
Kuwait
U.A.E.
Saudi
Arabia
Egypt
Bahrain
Jordan
Qatar
Kuwait
Diabetes
prevalence rate
World
ranking
24
Saudi Arabia
23.4
Qatar
23.3
Bahain
22.4
U.A.E.
18.9
11
Egypt
16.6
12
46
4
Brand building is another key driver within the sector,
particularly in the form of hosting regional and global
events. To date, Qatar and the U.A.E. have been the key
players, hosting the highest number of events annually.
Sport sector projects award by date and country
7
Bahrain
Iraq
US$ billion
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
U.A.E.
2010 - 2012
2013 - 2015
Source: MEED
47
4
The sports sector is typically known for having low profit
margins and high capital investment due to the specificity
of the built structures and low facility usage fees charged
to end-users. Public sports facilities in particular report
minimal profits if any, as most end-users expect them to
be provided free of charge or for a nominal fee. Private
facilities, on the other hand, are not expected to be free and
can charge more than public facilities. However, given the
price elasticity of demand, end-users will only pay up to the
price they deem reasonable regardless of the fluctuations
in the facilitys utility or maintenance costs.
Global sports revenue
160,000
Media Rights
Merchandising
140,000
Gate revenues
Sponsorship
US$ million
120,000
100,000
80,000
60,000
40,000
20,000
2015f
2014f
2013f
2011e
2011e
2010e
2009
2008
2007
2006
48
4
This arrangement allows private investors to diversify their
portfolio, undertake highly visible projects while minimizing
operational project risk in the long-run.
Sports revenue by region
100
Merchandising
90
Media Rights
Percent
80
70
Sponsorship
60
Gate revenues
50
40
30
20
10
0
North America
EMEA
Asia Pacific
Latin America
49
4
Taking a closer look at arena developments
Arenas are complex buildings that provide flexible
accommodation for a wide range of spectator sports,
concerts, exhibitions and other events.
Revenue generation within an arena is event driven. The
more events are held in the arena, the higher the number
of visitors, ticket sales or advertising opportunities.
Utilizing an arena all year round is a challenge as
sports competitions are seasonal. Many owners and
developers attempt to address this issue by building
multi-functional/flexible facilities to diversify the events
that can be held and improve the likelihood of having an
arena occupied more often. In North America, owners
and operators respond to the seasonality of sporting
events by signing anchor/principal tenants to the facility.
The renting fee does not cover all operational costs
but ensures that the owner/operator receives a steady
stream of revenue each year. In Europe and the Middle
East, not all clubs own their stadiums, but pay annual
rents to sports councils a model that is deemed to
be less successful in these regions. As a result, the
sports arena business model has been altered to focus
primarily on entertainment events rather than sporting
ones. This shift allows countries to build arenas that
attract world attention and help secure hosting bids
for international sporting events, but at the same time
incorporate legacy planning by allowing spaces to be
utilized for more common entertainment events such
as concerts.
Simplified revenue model for an arena
Act
$$
Promoter
$$
Anchor tenant
$$
$$
$$
$$
$$ Merchandising
Fixed costs
$$ Premium seating
Venue
$$
$$ Parking ?
$$ ?
Third party
Source: AECOM
50
$$
Commercial rights
Naming, sponsorship, advertising
Variable costs
4
KPI 1:
KPI 2:
KPI 3:
KPI 4:
KPI 5:
51
4
From a design element, the bowl form, comfort
standards, circulation provision, auditorium flexibility,
special suite/luxury areas, back-of-house space and
front-of-house accommodation plans need to be
reviewed and evaluated carefully as they will directly
impact revenue streams and operational costs.
Changing any of these components after construction
can be very costly.
Most arenas are U-shaped, with one end left open,
providing space for an end stage for concert events.
Concerts generally attract the largest audiences and
it is therefore not economic to provide fixed seating
across the free end of the bowl. The requirement for
flexible seating is driven by the combination of events
for which the arena is designed. Moveable seating
costs significantly more than fixed seating and also
reduces the amount of storage space available below
the bowl. The loss of this space, together with the need
for storage space for retractable seating, may result
in a requirement either for a larger bowl footprint or
extra space outside the bowl. Storage requirements
for seating and track are extensive and may result in
a further requirement for ancillary accommodation
beyond the perimeter of the facility.
The key areas that need to be addressed in the design
of the building services installation refer to health and
safety and environmental conditions, i.e. fire detection
or air conditioning in the arena space, which should
have in-built flexibility to adjust to different densities of
occupation and uses. The nature of the event determines
the quality, levels, direction, color and brightness of
lighting required, which should all be adjustable.
Driven by spectators quality expectations and demand
for a wide range of services, technological requirements
and integrated communication technologies (ICT) have
become integral parts of any arena. Television, radio
channels and websites all play a role in promoting and
broadcasting an event and marketing an arena. Acoustic,
visual and transmitting technologies all need to be
able to accommodate media requirements. If arenas
are built to host entertainment events and concerts, a
higher level of technological specification and acoustic
buffering is required.
In the masterplanning stage, integrating the building
into existing transport routes and urban axes decreases
project cost by reducing the need to build connecting
infrastructure.
52
4
Additional event
costs
Organizers/ushers
Security
Food and
beverages
ICT and other
event support
equipment
Cleaning staff
Maintenance
Utilities
Daily costs
Utility
Maintenance
KPI 7:
KPI 8:
KPI 9:
KPI 10:
53
54
4
Leisure sector
Leisure is an important sector within any economy as it
helps to attract domestic and international consumers,
diversifying the income pool of a country. As well as its
direct economic impact, which reflects spending on travel
and tourism by residents and non-residents, and spending
by governments on related services directly linked to
visitors, such as cultural, such as museums, or recreational
attractions, such as national parks, the industry has
significant indirect and induced impacts. The indirect
revenue drivers include capital investment spending by all
sectors directly involved in the industry, such as transport,
restaurants and leisure facilities for specific tourism use.
Induced contributions relate to other supply chain effects.
Business and development drivers
55
4
Secondly, credit is readily
available for new construction
projects. Thirdly, our clients
Income growth/
urbanization
have particularly expressed
Consumer spend
that construction of new
leisure facilities increases
Corporate/business travel
in the absence of attractive
Meetings, Incentives,
Conferences and
refurbishment or asset
Exhibitions (MICE) sector
transformation opportunities.
Growth of tourism sector
In markets with tighter credit
Credit conditions
conditions and an uncertain
Socio-political stability
demand outlook, lenders are
more likely to provide acquisition
Key client insight
or refinancing loans for operating
Construction of new
facilities with a proven net
leisure facilities increases
in the absence of attractive
operating income history than
refurbishment or asset
construction financing for new
transformation opportunities.
Lenders are more likely
projects. In addition, if market
to provide acquisition or
conditions are such that facilities
refinancing loans for operating
are selling for below replacement
facilities with proven net
operating income history than
cost, some investors may seek to
construction financing of
acquire these assets at favorable
new projects.
prices and improve their value
with renovations, refurbishment and repositioning strategies
rather than pursue new construction.
Key growth drivers
Economic activity
56
4
many cities across the region will only help increase
accessibility and boost regional and international
tourism.
Top Middle East countries by international
visitors, 2012 estimates
40
35
Visitors in millions
30
25
20
15
10
5
Tunis
Amman
Riyadh
Abu Dhabi
Cairo
Dubai
Casablanca
25
35
20
30
15
25
10
20
15
Percent
40
10
2010
2012
Tunis
Amman
Beirut
2011
Casablanca
-10
Abu Dhabi
-5
0
Cairo
5
Dubai
US$ million
57
US$ billion
Bahrain
60, 000
Iraq
50, 000
Kuwait
Lebanon
40, 000
Oman
30, 000
Qatar
20, 000
Saudi Arabia
10, 000
U.A.E.
2010-2012
2013-2015
Source: MEED
Economic challenges,
increased competition, rising
costs, and ever changing
consumer taste characterize
the leisure industry. Revenues
within the leisure sector
depend on the ability of owners
and operators to attract
consumers and retailers by
creating a demand for their
services.
58
4
Typical demand generators are location and infrastructure,
corporate headquarters, offices and industrial parks,
MICE activity, natural attractions or sporting events. These
demands impact performance indicators such as ticket
sales, room revenues or food and beverages revenues.
Leisure services prices need to reflect value of leisure and
recreational experiences delivered. Revenue forecasts for
leisure facilities in the subject market area are essential
in determining the feasibility of a proposed facility or the
value of an existing one.
59
4
Taking a closer look at the hotels and
resorts sub-sector
Revenue streams in a full service hotel or resort facility
are dominated by room sales, on average representing
64 percent of revenue generated. However, full service
hotels tend to benefit from revenue generated from other
value added services, particularly food and beverages
sales which make up 30 percent of revenue generated.
Revenue breakdown
Percent
100
KPI 1:
Occupancy rate
Cancellation Fee
80
60
40
Telecommunications
Food and Beverage
20
Rooms
0
Revenue
KPI 2: Revenue
per available
room (RevPAR)
KPI 3: Total
revenue per
available room
(TrevPAR)
KPI 4:
Conference
and banqueting
revenue per
available sqm
(RevPAM)
80
Percent
FF&E
60
Site improvement and
building construction
40
Development and soft costs
20
Land
0
% of total project cost
60
4
Hotel INvestment Tool (HINT) is a unique interactive tool created by
AECOMs cost and economics experts to allow clients to balance
investment with potential income.
For more details check aecom.com/HINT or contact, hint@aecom.com
Percent
60
Management Fees
Insurance
40
Percent
80
Telecommunications
Rooms
60
20
0
Variable operating cost
61
4
Operational variable costs, however, will depend greatly
on capacity utilization and the ability of hotel owners
and operators in creating economies of scale. Variable
operating costs typically include utility costs (HVAC,
water and energy costs), food and beverages, rooms,
telecommunications and marketing. Maintenance,
repair and replacement costs are also variable costs
and are influenced by age of property and equipment,
use of a preventive maintenance system, quality of
initial facilities and equipment, and legislative/health
and safety requirements. On average, food and beverage
costs tend to exceed any other variable cost category,
representing 37 percent of the total variable cost. Room
costs are the second highest representing 30 percent.
KPI 5:
KPI 6:
KPI 7:
KPI 8:
Annual revenue
Annual variable
operating cost
Annual fixed
operating cost
62
4
Healthcare sector
The healthcare sector is undergoing dramatic changes in
customer behavior, market dynamics and the regulatory
framework, making the way healthcare is delivered ever
more complex. Consumer-driven health, in which informed
individuals demand greater choice and have more control
over their healthcare spending, together with pressure to
deliver the highest possible quality of care at the lowest
possible cost, is driving the most dramatic shift in the
industry. Healthcare providers have to re-evaluate products
to meet increased demand and new business models
to stay competitive. Healthcare facilities are diverse,
ranging from hospitals, clinics and nursing homes, to
high-tech diagnostic and research centers. By embracing
the new competitive landscape, healthcare funders and
providers will find new opportunities in both existing and
new markets.
Business and development drivers
4
Healthcare services demands
can be met through different
channels, primarily public,
Government reforms and
expenditure on healthcare
private or charitable. Although
Socio-political stability
demand for healthcare services
is universal, objectives for
Population growth/
demographic change/
undertaking healthcare
urbanization
provision varies by provider.
Rising income
Governments invest in
healthcare to improve living
Key client insight
standards of their populations,
The sector shift towards
patient-centric healthcare
private investors focus
delivery in many countries has
on profits and charitable
encouraged the growth of new
market participants.
organizations are assumed
to support community or
funders objectives, including religious and political. Cost
pressure on governments to deliver health services for their
population is leading to an increase in public and private
sector partnerships, creating a global market for the private
and charitable sector and helping governments provide
sustainable healthcare for their citizens.
Key growth drivers
Economic activity
64
4
Healthcare demand drivers
Qatar, the Kingdom of Saudi
Arabia and Egypt have the
highest forecast growth in
healthcare spending per
capita between 2012-2017.
Saudi
Arabia
65
4
Revenue drivers what makes healthcare
developments successful?
Revenue drivers
Capturing target market
needs and creating suitable
healthcare products
Capacity and space
utilization (functional use
and flexibility)
Intensity of non-built
assets
Effective pricing
Key client insight
Healthcare facility revenue
streams do not solely depend
on providing good medical
services but are increasingly
more dependent on the ability
of owners and operators
to capture patient demand
differences and to create
appropriate products.
66
4
Key client insight
Success of a healthcare
facility can be improved by
creating multi-functional
spaces ... e.g. by building
facilities that can be rented
to private consultants or
physicians, you diversify your
income pool and help raise your
facilitys profile indirectly.
4
Taking a closer look at hospital
developments
Revenue sources for hospitals differ by hospital type.
The revenues of public and private hospitals are
primarily generated from insurance companies
whether public or private companies with small
segments coming from self-funded individuals. In
countries where health insurance is not yet the norm,
individuals are generally expected to self-fund their
hospital visits.
Sources of revenue might be different (who pays the
bill) between public and private hospitals, but the
services generating the revenues are almost constant.
Clients noted that medical and patient services typically
accounted for over 95 percent of a hospitals income.
Other incomes usually generated from space rentals
within a hospital facility, such as coffee shops and gift
and flower shops, are small compared to the overall
revenue.
Revenue by funding source
68
4
KPI 1:
KPI 2:
KPI 3:
KPI 4:
KPI 5:
Source: AECOM
69
4
Construction cost per bed by hospital size
Source: AECOM
Fixed cost
Variable cost
Source: AECOM
Analysis of five hospitals MHA, AGPC, Overlake Hospital FS, Cook Country Hospital FS
70
4
Despite the fact that hospitals today have a high
element of technological structures that require
maintenance and drive up utility costs, variable
operational costs usually make up less than 40 percent
of a facilities total operational costs. Fixed operational
costs covering staff salaries and benefits make up over
55 percent of the total operational costs.
Hospital supplies are the most significant segment
of variable operational costs for a hospital. Supplies
correlate directly with patient treatment demands and
requirements. Outsourced labor, including support
nurses and personal care nurses, also make up a
significant segment of variable operational cost.
Fixed
operational costs
Variable
operational costs
100
90
80
70
60
50
40
30
20
10
0
Average
Employee benefits
Salaries and wages
Administrative costs +
insurance
Average
Maintenance
Purchased services
(incl. non-payroll staff)
Supplies
Utilities
Source: AECOM
Analysis of five hospitals MHA, AGPC, Overlake Hospital FS,
Cook Country Hospital FS
71
4
Finally, refurbishment and demolition are the two main
disposal cost options for a healthcare facility. Built
structures tend to be highly specific and seldom provide
opportunities for conversion to other uses. It should be
noted that both disposal options, either refurbishment
or demolition, of hospitals are expensive compared
to other built structures. This is due to the high level
of technology upgrades typically needed during the
refurbishment process and the demolition premium
resulting from complex processes involved in the safe
disposal of medical and hazardous waste.
KPI 6:
KPI 7:
KPI 8:
KPI 9:
KPI 10:
KPI 11:
KPI 12:
KPI 13:
KPI 14:
KPI 15:
72
4
Education sector
Education is the single largest expenditure for many
governments, as investment in human capital is not only
beneficial for individuals, but also to society at large as
it helps to create conditions that could lead to increased
economic growth prospects, productivity and technological
development and adoption. Growth in education is seen
as an important contributor to social mobility and the
convergence in incomes, as well as a host of non-economic
benefits, such as lower crime, better health and more
informed citizens.
The balance of public and private funding of education is
an important policy issue in many countries, particularly
in those segments where full or nearly full public funding
is less common, for example tertiary education. As more
people participate in a wider range of educational programs
offered by an increasing number of different providers,
governments seek to attract private participants, forging
new partnerships to mobilize the necessary resources
and to share the costs and benefits. As a result, public
funding increasingly provides only part of the investment in
education, while the role of the private sector is becoming
more important.
Globalization, integration of economies, high mobility of
consumers and growing demand for product innovation
intensifies demand for educational facilities in specific
regions, with many governments competing to attract
students. Schools, community colleges, vocational schools,
colleges, universities and research centers all facilitate the
knowledge acquisition and utilization process.
Business and development drivers
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Growth drivers what market conditions
support education developments?
Key growth drivers
Economic activity
Government reforms and
expenditure on education
Availability of credit
Population growth/
urbanization
Rising income
4
MENA selected countries populations by age bracket
Egypt, Kuwait, Oman and the
Kingdom of Saudi Arabia have
the youngest populations
overall with more than
40% of their populations
under 25.
Overall, GCC countries have
the highest urbanization
levels in the region with
urbanization levels in Kuwait
and Qatar already estimated
to have reached 100%.
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4
Share in number of schools, GCC
Source: MEED
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4
public educational facilities is
Key client insight
influenced by the number of
In the GCC, school tuition is
the main revenue source for
students the facility serves,
private schools.
the students socio-economic
backgrounds and the need
The GCC private education
for additional non-teaching
market is highly fragmented
consisting of standalone
services, such as counselling,
schools owned by individual
health services and extrainvestors, this provides
opportunities for existing
curricular activities. An
operators to consolidate and
educational facility can secure
develop economies of scale.
more governmental funds by
showing how valuable it is to the community it serves.
Revenue streams of private facilities are more diverse.
Grants and contributions from public and private investors
make up a significant portion of the revenue but so do
tuition fees. A private educational facility can increase its
revenue by raising its tuition fees. However, the need to
reflect services provided to the consumers, while tuition
fees increase may be restricted by the government to a
certain extent.
In general, return on investment in education depends on
the agent involved in the investment, namely individual
participants (those undertaking education), funders (agencies
making a financial commitment), providers (institutions/
organizations delivering the service), and government/
taxpayers/society (agency mandating that the service be
funded and provided). Investment will only take place when
at least one of these investors gains a sufficiently high rate
of return.
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Performance indicators monitoring the
success of an educational facility
Dynamic changes to end-market knowledge and skill
requirements, and variations in source and size of revenue
streams add to the complexity of variables to be incorporated
into an educational facilitys business model. Key
performance indicators need to be identified to help owners
and operators evaluate asset operational and financial health,
gauging operational effectiveness, quality levels, satisfaction
of stakeholders and returns on investment.
Examples of key indicators are provided in the schools indepth review section overleaf.
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Taking a closer look at school
developments
School revenue streams depend on the type of school and
governmental support available. The revenue streams of
public schools come primarily from government funds,
with a small proportion of revenues generated from
alternative sources such as sponsorships, donations or
student tuition fees.
Private school revenues are more diverse. In countries
where education is heavily subsidized, governments
contribute significantly to private education. For
example, in Germany government support accounts for
almost 90 percent of the revenue. In the U.K., U.S. and
the Middle East however, private school revenue funds
are predominantly dependent on tuition fees paid by
the parents.
The interaction between key development drivers such
as availability of funding, source of operational revenue,
facilities to be provided and segment of the education
market targeted, dictates the type of school to be built
and the size of capital investment needed to deliver the
project.
Schools built with limited project budgets, that depend
on private tuition fees for revenue typically sit at the
bottom of the construction cost per student spectrum.
Such private/budget schools are able to reduce
construction costs by focusing on infrastructure needed
for teaching purposes and reducing if not eliminating
optional non-teaching support and student life
enrichment facilities.
Public school construction costs per student are
typically higher than private/budget schools and show
limited inter-group variation. This is a result of schools
being built to similar specification/facility requirements
and being dependent on government funding to cover
building and operational costs.
KPI 1:
KPI 2:
KPI 3:
KPI 4:
KPI 5:
KPI 6:
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Private schools built under international standards,
supported by private investor funding and high tuition
fees can afford higher construction costs associated
with providing a higher level of internal finishing and
additional facilities covering a wider construction area.
Additional cost saving measures can be taken by
creating multi-functional spaces and by increasing
student density, such as lowering the space to
student ratio.
Private school revenue by source
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Other key determinants of operational cost include
educational level and facilities provided. Around the
world, operating expenditures per student of postsecondary schools are higher than for elementary or
secondary schools. Among the primary reasons for this
difference are the higher educational qualifications of
teaching and administrative staff in post-secondary
education facilities, earning them higher salaries.
Construction cost per student by school type
Source: AECOM
Source: AECOM
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KPI 7:
KPI 8:
KPI 9:
KPI 10:
KPI 11:
KPI 12:
KPI 13:
KPI 14:
KPI 15:
KPI 16:
Student satisfaction
KPI 17:
Employee satisfaction
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ASSET MANAGEMENT IN
THE MIDDLE EAST
Objectives and drivers of asset management
Asset management provides an overarching, multidisciplinary and enterprise-wide perspective on the
optimal long-term management of physical assets,
allowing organizations to achieve their economic, social,
environmental and cultural objectives.
The Institute of Asset Management defines asset
management as the systematic and coordinated activities
and practices through which an organization optimally and
sustainably manages its assets and asset systems, their
associated performance, risks and expenditures over their
life cycles for the purpose of achieving its organizational
strategic plan.
Asset management layers
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Our industry survey revealed that there are number of
drivers for organizations to adopt an enterprise-wide asset
management process, including:
Regulatory
Organizational
excellence
Operational cost
Sustainability
Asset
performance
Competition
4
Global stock of physical assets
Sub-Saharan Africa
MENA
South Asia
Europe & Central Asia
Percentage growth of
physical assets 2000 - 2005
by region
10
US$, trillion
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Market drivers will include regulatory requirements that
support the implementation of asset management, as
well as the consolidation of elements that fall under
asset management as one service, which may be enforced
with the market entry of true asset management service
providers. These are also likely to drive the systematic and
coordinated implementation of asset management in the
region.
On the organizational side, organizations need to be
willing to invest time and funds into the systematic and
coordinated implementation of asset management,
which includes, for example, linking asset management
to decision making, overcoming resistance to change and
building up databases and inventories of assets.
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SUSTAINABILITY A
GLOBAL UNDERSTANDING
According to our global industry survey, the importance
of sustainability principles varies among construction
industry participants in different parts of the world.
The research examined perceptions of sustainability
and the practical application of sustainability principles
on projects in the respective regions. Developed and
developing countries alike generally place emphasis on
environmental issues, such as managing impacts on scarce
resources, as well as social and cultural considerations.
However, in some cases there is a clear discord between
participants understanding of sustainability and the level
of consideration these principles were given on projects in
their field.
A vision of sustainability economic, environmental and
social priorities
Low Social
Priority
High
Economic
Priority
North America
High Social
Priority
Australia
Europe
New Zealand
Middle East
Sub-Sahara Africa
SE Asia
India
China
Low
Economic
Priority
Low Environmental
Priority
High Environmental
Priority
4
Generally, the construction industry in the Middle East
believes that environmental sustainability issues are
given high consideration on construction projects in the
region. However, the picture is more mixed when looking
closer at the industry, with more than a fifth of those
surveyed arguing that environmental sustainability is
given low priority in the region. Cultural issues are given
more consideration than social consideration, which ranks
relatively low on the agenda. The main topics associated
with sustainability in the Middle East are energy efficiency
and renewable energy, and life-cycle management of
assets. Sustainable development is expected to progress
in the region, with many countries already having
established environmental authorities to develop policies
and regulations. Others have already started implementing
progressive programs, like the Estidama initiative in Abu
Dhabi and the Green Building decree in Dubai, that require
all developments to meet certain sustainability criteria.
The Middle East construction industry has a more
conservative view of the amount of attention paid to
sustainability on projects than other regions, pointing to
opportunities for greater efforts as the industry believes
that there is some way to go before full consideration of
sustainability on projects is achieved.
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REFERENCE
ARTICLES
89
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5
PROCUREMENT ROUTES
All clients expect buildings to be delivered on time and
budget, with an agreed level of quality, and with the risk
rightly managed by their professional and contracting
team. But which other multi-million or, in terms of the
Middle East, multi-billion dollar business goes from
having no staff or expenditure for the final delivery of a
unique product as quickly as the construction industry?
This is why the right procurement process, systems and
approach are imperative.
To use an analogy, a new car model at US$50,000 has
enormous planning, refinement and design occurring very
early in the development process, the cost of which is in
excess of the individual car. In the construction industry,
we dont have the luxury of rolling out thousands of the
same product, which is why it is important we all learn
from past experience and seek to understand and define
what made a project successful. In doing this, we come
to understand which procurement methods should be
followed and why it is important to consider the structure
and process for delivery from the start.
AECOM has developed strategies for the delivery of
buildings that we know work, successfully delivering
hundreds of projects over our long history. New and
existing developers have the opportunity to learn from this
knowledge and maximize the value of their time, cost and
quality mix, while adhering to a process that increases the
likelihood of their building being successfully procured by
their team.
Studies conducted with our key clients who regularly
undertake development work have shown that buildings
can be delivered for 12-15 percent less cost when
procured correctly, with no impact on quality or time.
Buildings are more likely to be on time and meet clients
expectations when procured correctly. So what is the right
procurement approach for your building? Which funding
strategy, funding partner, team behaviors, attitudes,
communication channels, budget and program delivers
the best approach and how can we best combine these to
lead our clients to ultimate success?
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Project Management
AECOM offers important advice to help determine the right
procurement approach, adding the most value throughout
the building process. This understanding of our clients
time, cost and quality requirements maximizes the value
we can offer. Some of the procurement strategies followed
in the industry are listed below, but the real challenge is
mixing the right approach for the needs of an individual
client.
Traditional Lump Sum: Design is completed by the clients
consultants before contractors tender for and then carry
out the construction. The contractor commits to a lump
sum price and a completion date prior to appointment.
The contractor assumes responsibility for all financial and
program risks for carrying out the building works, while
the client takes responsibility and accepts the risk for the
quality of the design and the design teams performance.
Accelerated Traditional: As above, but procured in the
market place before being fully designed (normally 80-85
per cent designed), leaving simple elements of the building
to be procured once the contractor has been appointed. It is
important to understand the way in which a client procures
the remaining elements of work with a contractor under
this approach and to design out those areas that carry
inherent risk early in the process. It may also involve the
procurement of an early works package for enabling and/or
piling works.
Two-Stage: A contractor is invited to become part of the
project team in the initial stage, usually by way of a preconstruction fee. They design and procure the project on
behalf of the client, until such time that a second stage
lump sum offer can be agreed, which should be before
construction begins on site. An understanding of the
original appointment and the subsequent framework under
which the second stage is agreed are the important aspects
of this approach, as well as working with transparency and
trust preventing an early commitment to a full scheme that
a client cannot afford.
Design and Build: Detailed design and construction
are undertaken by a single contractor in return for a
lump sum price. Where a concept design is prepared
by a design team employed directly by the client
before the contractor is appointed (as is normally the
case), the strategy is called develop and construct.
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The contractor commits to a lump sum price, for completion
of the design and the construction and to a completion
date, prior to their appointment. The contractor can either
use the clients design team to complete the design or
use his own team. With design and build, it is important to
design out or specify in detail those parts of the building
the client wants to see perform a particular function or
provide a particular visual impact.
Management Contract: Design by the clients consultants
generally overlaps with the construction. A management
contractor is appointed early to tender and commission
elements of work progressively by trade or package
contracts. The contracts are between the management
contractor and the trade contractors, rather than between
the client and sub-contractors. The management
contractor in theory assumes responsibility for the
financial (and program) risks for the works, but in reality
this is normally diluted by the terms of the contract so their
liability is similar to that of a construction manager.
Design, Manage and Construct: Similar to the management
contract, the contractor is also responsible for the
production of the detailed design or for managing the
detailed design process.
Private Finance: A detailed and complicated form of
procurement used predominantly for public services when
the private sector feels it is advantageous to design, build,
finance and operate a particular service or building type.
It is becoming more popular in the Middle East as a way to
limit public sector spending while meeting the demands
of a growing population. AECOM has been involved with
private finance for over 20 years. We have successfully
completed many projects worldwide and use this global
knowledge to benefit clients locally.
Engineer, Procure and Construct: This form of procurement
places risk in the right hands and offers solutions to clients
engineering requirements from those specialized to meet
the performance requirements set by a client team. Many
of the large utility companies procure work in this way,
bringing high levels of certainty from the supply chain,
which helps to achieve business-critical benefits over the
long term.
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MIDDLE EAST FORMS OF
CONTRACT
This article considers the different forms of contract used
in construction across the region.
Bahrain
Government work in Bahrain is undertaken using a bespoke
suite of contract forms that were issued in 2009.
Private developers predominantly use the current
International Federation of Consulting Engineers (FIDIC)
Conditions of Contract for Construction, the 1999 edition of the
red book, which is well understood in the local market but
often heavily amended for specific use.
Most of the work completed in Bahrain is under a
traditional lump sum form of contract, where the design
is completed upfront and a price agreed with a contractor
before work begins on site. However, many of the new
developments are looking at faster procurement routes
to adapt to market difficulties that are prevalent within
the Middle East. Progress is slow as Bahrain has a limited
number of contractors with the capacity and capability
to undertake large-scale projects. Historically it has been
difficult for new contractors to enter the Bahrain market.
Design and Build, and Two-Stage procurement strategies
are in use across Bahrain but are not considered to be the
industry norm. As more international private developers
have started working in Bahrain with time constraints as
their main driver, the market has adjusted to accommodate
this demand. Design and Build contracts, however, are not
routine. This is largely due to the Committee for Organizing
Engineering Professional Practice (COEPP) restrictions
on contractors undertaking in-house design which
necessitates the novation of the clients architect or a subconsultant appointment.
5
on the engineers (consultant) authorities under the
contract. All contracts are subject to Saudi laws where
Islamic Sharia is the prime source of legislation. Litigation
and arbitration are both available for resolution of disputes
in the private sector.
Within the public sector, however, construction contracts
are based on the Standard Conditions for Public Works, which
are amended to suit particular projects. These conditions
are generally based on those given in the fourth edition of
the FIDIC Conditions of Contract for Works of Civil Engineering
Construction, the FIDIC 4 red book, but with greater control
given to the employer for the administration of the contract.
All public work contracts are given on a re-measured basis
and are subject to the Saudi Government Tendering and
Procurement Regulations, as issued by Royal Decree M/58
dated 4.7.1427 AH. Disputes are referred to the Grievance
Board and will not be dealt with under arbitration, unless a
Special Council of Ministers Resolution is issued.
Lebanon
Construction contracts in Lebanon are generally
based upon the FIDIC forms of contract. Some largescale developers in Lebanon, as well as the Lebanese
Government, have promoted the development and use of
bespoke forms of contract, tailored to each client. Such
contracts generally use the FIDIC 4 red book form as a
basis, amended to a greater or lesser degree depending
upon the risk profile of each client.
In the public sector, all works are procured on a remeasurement basis. The private sector, however, uses
either fixed-price lump sum or re-measured contracts.
It is worth noting that there is no standard method of
measurement of building works for Lebanon and the
RICS Principles of Measurement (International) for Works of
Construction (POMI) is widely used.
Design and Build contracts are not yet popular in Lebanon.
Both arbitration and litigation methods are available for
dispute resolutions in the private and public sectors.
Oman
Public works in Oman are undertaken using a bespoke
government contract known as the Standard Documents
for Building and Civil Engineering Works, fourth edition, 1999
(Standard Documents). The document is based on early
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FIDIC contracts with the fourth edition containing only
minor changes from the previous third edition, 1981. The
most important change is that the contract is now printed
in Arabic. The Ministry of Legal Affairs is in the process of
preparing a new edition but its release date is yet to be
announced.
The Standard Documents facilitate both a re-measurement
and lump sum contract dependant on choice of clauses,
and is based upon a fully completed design, specification
and bill of quantities. The RICS Principles of Measurement
(International) are the most widely used method of
measurement.
Infrastructure projects have their own method of
measurement, as detailed within the Ministry of Transport
and Communications document, Highway Design Standards.
Oman Tender Board laws require all government projects to
utilize the Standard Documents on every project, without
amendment. The only current exception to this law is the
new Muscat International Airport project which has been
procured and awarded using a series of heavily amended
FIDIC yellow book design and build contracts.
In addition, the Tender Board facilitates all government
tenders centrally through the tender board process. Only
the Royal Office and Royal Court of Affairs projects are
exempt from this process, although they do go through a
similar internal tender process.
Standard Documents are commonly used by private sector
clients in the local market, particularly for small-tomedium sized contracts. Private clients tend to prefer the
third edition as this is written in English, but varies only
in a minor way from the Arabic fourth edition preferred
by the government ministries. International and private
sector clients with large project contracts, worth more than
US$150 million, commonly use an amended version of the
FIDIC red book.
While some of the larger integrated tourism developments
have used a Design-Build form of contract, Design and
Build as a procurement route is not routinely used.
Qatar
In Qatar, the most common forms for building works are
those issued by the Public Works departments through the
Ministry of Municipal Affairs and Agriculture (MMAA) and
the Qatar Petroleum Company (QP).
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These are lump sum contracts, generally using bills of
quantities or specifications and drawings. These contracts
are onerous and slanted towards the client, but are usually
administered in a reasonable manner.
In the private sector, similar contractual arrangements
are adopted. However, there are now some construction
projects being undertaken using cost plus or Design and
Build arrangements, although these are usually for smaller
scale fitting out or highly specialist works.
The last 12 months has seen an increase in the number
of FIDIC-based contracts being implemented for both
private and key public sector clients. In addition, in some
very long duration contracts, the government is beginning
to introduce a price adjustment mechanism to allow
compensation for fluctuations in market prices.
Before any contract is awarded, there are commonly a
number of rounds of negotiation, during which the price
and other contractual terms can be modified to respond to
a reduction in contract price.
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However, there are exceptions. More and more clients are
procuring projects using a fast-track approach and will
therefore incorporate a re-measurable element, reflecting
those parts of the design which are incomplete at the
tender stage.
Design and Build contracts are used on some major
projects, but this procurement route is not yet
commonplace. The increasing tendency for clients to
demand a fast-track approach to projects does require
a greater design input from the contractor, but this
requirement is not always formalized in the contract
wording itself.
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5
BUILDING REGULATIONS
AND COMPLIANCE
This article outlines the procedures for obtaining building
permission across the region.
Bahrain
Procuring a Municipal Building Permit in Bahrain is done
through a three stage process.
Stage 1: Seeking the Preliminary Building Permit
This is preliminary permission sought from the Municipality
of Bahrain. To complete the application it is generally
sufficient to include simple outline plans, cross-sections
to indicate overall heights and an area statement. The main
authorities involved at this stage are the municipality, the
Physical Planning Directorate and the Roads Directorate.
Stage 2: Informing the Various Directorates
This should be done in writing to the town and Village
Planning Directorate, Roads Directorate, the Civil Defence
and Fire Services Directorate, the Electricity Distribution
Directorate (EDD), EDD Damage Protection and Control
Unit, the Sanitary Engineering Operations and Maintenance
Directorate, the Water Distribution Directorate and Batelco.
The initial contact should be made through the Central
Planning Office (CPO) of the Ministry of Works.
Copies of the title deeds must be submitted at this stage.
All relevant information and documentation is given to each
of the above directorates, until the final building permit is
in hand.
Stage 3: Obtaining the Final Municipal Building Permit
This is the third and last stage and is processed through
each of the directorates in a specific sequence. The initial
contact should be made through the municipality. All
documents, drawings and municipality forms must be
completed and submitted together with the appropriate
fees for each directorate.
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Municipal charges must be paid for the following elements:
Site sign board
Insurance on the site sign board
Insurance for Construction Contract (refundable)
Fee for occupying road
If the Environmental Affairs Department is involved in the
process, they will charge a reviewing fee.
5
The Fire Department approves these plans and sends them
back to the municipality. This process takes ten days and
does not incur a charge.
Stage 4: Obtaining a Final Building Permit
The branch municipality issues a building permit and sends
it to the main municipality for approval, which is given
dependent on the nature of the building. The owner can
collect the permit from the main municipality after one to
three months. The cost of this permit is SAR 1,200.
Lebanon
Obtaining a building permit in Lebanon requires various
procedures and approvals from the Order of Engineers and
Architects, the Urban Planning (Development) Department,
statutory authorities and the local municipality. The time
needed to obtain these approvals is typically between six to
twelve months.
In general, the procedures and documents required for
obtaining a building permit are the same throughout
Lebanon, except for the cities of Beirut and Tripoli where
the Urban Development Department is located within the
individual municipality. The following is a general outline of
the steps needed to obtain a building permit:
Stage 1: Obtaining Ifadat Takhteet Wa Tasneef
To obtain this, the following documents must be submitted
to the Urban Planning (Development) Department:
Real Estate Registry (Ifedeh Ikarieh) from the Real
Estate Department in each Mohafaza
Official Land Survey (Kharitet Masaha) from the
Cadastre Department
Receipt Wasel Takhteet Wa Irtifak from the municipality
Stage 2: Appointing a registered civil engineer or an
architect from the Order of Engineers and Architects to
finish the permit file
The engineer must submit the following documents:
Three copies of the contract agreement between the
owner and the appointed engineer
Four copies of the preliminary design drawings
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A written undertaking from the appointed engineer to
submit the execution drawings
A contract with other engineers involved in the project
Following no objection from the Order of Engineers and
Architects, the appointed engineer or the owner must pay
them the building permit fees to enable them to present the
building permit file to the Urban Planning (Development)
Department.
Stage 3: Appointing a chartered land surveyor to prepare a
topographic drawing of the land
The appointed chartered land surveyor must prepare a
topographic drawing of the land illustrating the different
levels of the plot and register this at the Syndicate of Land
Surveyors.
Stage 4: Submitting the building permit file to the Order of
Engineers and Architects for their approval
The appointed engineer must submit an application
that includes a copy of the building permit file for power
connection to Electricit du Liban (EDL) and for other
statutory authorities depending on the region in which the
building is located.
Stage 5: Study of building permit file
Submit and register the full building permit file to the
Urban Planning (Development) Department. They will
inspect the property and plans to ensure they conform
to construction laws and regulations and then issue
clearance for the building permit.
The Urban Planning (Development) Department
calculates the building permit taxes depending on
the area of the building and the region in which this
building is located.
On approval by the Urban Planning (Development)
Department, part of the calculated building taxes need
to be paid to the Order of Engineers and Architects.
The building permit file is withdrawn from the Urban
Planning (Development) Department and registered at
the municipality.
On approval of the building permit by the Mayor,
the owner shall pay the building permit taxes to the
municipality and the Ministry of Finance.
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Stage 6: Obtaining the building permit
The applicant collects the building permit from the
municipality. The appointed engineer is allowed to apply
at the Order of Engineers and Architects for a letter of
commencement of works following the submission of the
execution file.
Oman
The following is a general outline of the procedure for
obtaining a building permit in the Sultanate of Oman but
there are many further obligations and procedures to be
completed within each of the stages. It is generally the
responsibility of the lead consultant to obtain the building
permit, although all applications must be signed off and
submitted by locally registered consultants.
Stage 1: Submitting concept design/master plan stage
application
The applicant submits a concept design/master plan
application to the Ministry of Housing Directorate
General of Planning for approval of the proposed usage.
At the same time, utility requirements are identified and
indicated to the relevant utility providers. If the project is
tourism related, further approvals are required from the
Ministry of Tourism and the Supreme Committee for Town
Planning.
Stage 2: Obtaining No Objection Certificates (NOCs)
No Objection Certificates are obtained from various
governmental and municipal departments, including,
the Royal Oman Police; Security Department; Traffic
Department; Civil Defence; Ministry of Environment;
Municipality Road Department; Ministry of Transport and
Communications; Civil Aviation; and many more projectspecific ministry departments, such as the Ministry of
Education if the project is a school or university.
Stage 3: Submitting a building permit application
The full building permit application, including all NOCs,
is submitted to the relevant municipality or statutory
authority.
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Stage 4: Obtaining building occupancy certificate
Upon completion of the building works, it is the
responsibility of the construction contractor or lead
consultant to obtain the occupancy permit. This is achieved
by having the building permit signed off, effectively closing
it out. To obtain this closure, the contractor must obtain
certificates and signatures from various government
departments, including Civil Defence, Food and Hygiene,
etc., prior to presenting these to the municipality or
statutory authority for final approval.
Qatar
Compared with many countries, the planning and building
approval process in Qatar is relatively clear and structured.
Land ownership, other than by Qatari nationals and the
state, is still extremely limited. The key process in securing
development rights is obtaining a land title or pin number
since without it all other permits and applications cannot
commence. Once the land is secured, the project master
plan is submitted for approval to the Planning Department
and local municipality offices.
Stage 1: Design Control Stage 1 (DC1) Approval
General overviews and strategies for the utilities and
primary infrastructure are submitted to the relevant
utility companies for comment. During this process each
department generally issues a series of reference numbers
which are then used as the file number for all future
submissions. The culmination of this round of submissions
is the DC1 approval.
Stage 2: Design Control Stage 2 (DC2) Approval
As the design develops, a second round of submissions is
made to the same utility departments for final approval.
In addition, a submission is made to the Civil Defence
department who review the fire and life safety aspects of
the project.
Depending upon the scale and nature of the project,
separate traffic studies may be required and these would
be submitted to the Road Affairs Department for approval.
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Stage 3: Building Permit
Once the DC2 approval is secured a further set of standard
forms are circulated with a consolidated set of documents
for final signing and approval. These documents constitute
the building permit.
As a general guide, the whole process usually takes at least
80 days, depending upon the quality of the submission.
However, in practice it often takes much longer due to
comments from different departments and progressive
design revisions.
During the whole process, it is generally not advisable
to revise or modify any submission as it may delay the
approval process.
All submissions have to be either bilingual or in Arabic
and endorsed by locally registered and approved design
companies. International companies cannot make these
submissions by themselves.
There are some parts of Qatar that are exempt from the
building permit approval process, but these are generally
related to the oil and gas production facilities.
Recently a number of revisions have been made to the
design standards of buildings, in particular high-rise
structures. These address issues such as fire safety, refuge
areas, the use of lifts in the event of fire and the nature and
extent of faade glazing.
All fit-out projects are being brought under the control of
the regulatory departments, in particular Civil Defence,
and all such works are now required to be submitted for
approval prior to commencement. This submission must be
made by a registered local consultant and failure to do this
can significantly delay the approval and permitting process.
105
5
It is the responsibility of the construction contractor or
lead consultant, to obtain the building permit, although
all applications must be signed by locally registered
consultants.
Stage 1: Submitting preliminary application
The applicant submits a preliminary application to
the relevant municipality or statutory authority and
pays a deposit.
Stage 2: Obtaining No Objection Certificates (NOCs)
No Objection Certificates (NOCs) are obtained from various
governmental and municipal departments, including Civil
Defence; Fire Department; Drainage; Communication; Water
and Electricity; Civil Aviation; Oil and Gas; Coastal and
Military.
Stage 3: Submitting a building permit application
The full building permit application, including all NOCs,
is submitted to the relevant municipality or statutory
authority.
Stage 4: Obtaining a building permit
On approval, the applicant collects the building permit and
applies for a demarcation certificate.
Stage 5: Obtaining a building occupancy certificate
Upon completion of the building works, it is the
responsibility of the construction contractor or lead
consultant to obtain the occupancy permit. This is achieved
by having the building permit signed off, effectively closing
it out. To obtain this closure, the contractor must obtain
certificates and signatures from various government
and quasi-government departments, including Civil
Defence, Food and Hygiene, and the Criminal Investigation
Department prior to presenting these to the municipality or
statutory authority for final approval.
It should be noted that although process requirements are
fairly similar for free zones in Dubai, certain entities replace
others. For example, the Dubai Municipality will be replaced
with Trakhees and Civil Defence will be replaced with the
Environment, Health and Safety Department.
AECOMs project management team is experienced in the
procedures for obtaining building permits across the region
and are able to oversee this process.
106
REFERENCE
DATA
107
108
6
GLOBAL UNITE SYSTEM
Collaboration Drives Global Knowledge
for Local Projects
Capturing and storing data from cost plans gives project
teams the knowledge to deliver better project outcomes
and minimise project budget risks.
Project developers increasingly need to capture and
benchmark cost and design parameters on projects,
requiring them to manage vast amounts of data.
Our response to capturing this data and ensuring it is
presented in a way that is relevant to individual projects is
Global Unite, a tool we have developed to drive evidencebased decision making.
By comparing active projects, these performance indicators
go beyond cost and have the potential to influence
decisions through information-led design.
Parameters that define a buildings effectiveness or
efficiency can be analysed instantly against local or global
standards, allowing clients to make informed design
decisions consistent with worlds best practice.
Insights gathered by accessing the Global Unite tool have
the capacity not only to improve project outcomes for
our clients but also to build knowledge and support the
advancement of our industry.
109
Measurement
01
Cost
02
110
03
2.5
Cost Plan
Best Fit
2.0
01
1.5
1.0
0.5
0
5.000
10,000
15,000
20,000
04
111
112
3,280
3,420
3,600
2,540
860
3,280
4,550
3 Star/Budget
5 Star/Luxury
680
INDUSTRIAL
3,180
COMMERCIAL/RETAIL
2,850
Sydney,
Australia
RESIDENTIAL
Building Type
4,010
2,880
1,460
1,340
N/A
2,840
2,340
3,990
2,560
2,320
Hong
Kong
1,950*
1,205*
N/A
N/A
1,080
1,300#
975
810#
1,050
685
Beijing,
China
4,500*
3,100*
1,700
1,600
3,200
2,800
2,400
3,000
3,100
1,800
Singapore
2,485
1,625
570
480
995
1,210
825
1,045
1,165
515
Kuala Lumpur,
Malaysia
2,760
1,580
670
435
550
590
495
650
550
415
Mumbai,
India
1,980
1,410
N/A
630
985
1,035
790
1,010
1,225
875
Bangkok,
Thailand
2,230
1,690
530
380
1,100
1,420
1,100
1,470
1,460
840
Joburg,
South Africa
5,030
2,400
2,000
1,250
3,350
4,800
4,250
4,100
4,900
4,000
New York,
U.S.A.
5,100
2,610
2,540
1,490
2,200
3,600**
2,950**
6,930
4,950
3,330
London,
U.K.
1,710
AUD
0.95
EXCHANGE RATES
7.98
HKD
1,700
3,500
1,000
N/A
Hong
Kong
6.46
CNY
N/A
N/A
N/A
N/A
Beijing,
China
1.22
SGD
1,400
N/A
780
4,500*
Singapore
3.14
RM
320
1,080
310
1,760
Kuala Lumpur,
Malaysia
54.58
INR
530
690
215
1,480
Mumbai,
India
31.58
THB
N/A
N/A
370
2,345
Bangkok,
Thailand
8.93
ZAR
760
1,110
410
2,670
Joburg,
South Africa
1.00
USD
3,900
6,800
1,000
N/A
New York,
U.S.A.
0.62
GBP
2,010
4,400
650
N/A
London,
U.K.
Excluded: external works and services; tenant fit-out; fittings, furnishings and equipment (FF&E); professional fees; land acquisition costs; financing costs; Value
Added Tax (VAT) or similar, where applicable.
# Rate includes parking and minimal external works
* Rate includes FF&E
** Up to 12 storeys
4,070
District Hospital
890
4,130
Resort Style
OTHER
Sydney,
Australia
Building Type
113
114
1,700
2,100
1,600
1,300
1,700
3,000
3 Star/Budget
5 Star/Luxury
750
1,000
INDUSTRIAL
1,250
COMMERCIAL/RETAIL
1,200
Beirut, Lebanon
RESIDENTIAL
Building Type
2,650
1,700
900
700
1,300
2,000
1,500
1,600
1,800
1,500
Riyadh, KSA
3,350
2,050
1,100
970
1,250
2,050
1,800
1,900
2,100
1,500
Doha, Qatar
2,620
1,800
700
620
1,230
1,280
1,170
1,700
1,600
1,300
Manama, Bahrain
2,925
1,820
910
780
1,300
N/A
N/A
1,690
N/A
N/A
Muscat, Oman
2,800
1,900
890
610
1,350
1,770
1,500
1,250
1,700
1,360
1,507
3.75
SAR
1,100
2,000
600
3,200
Riyadh, KSA
3.64
QAR
1,250
3,590
760
3,750
Doha, Qatar
0.37
BHD
1,510
2,450
620
3,200
Manama, Bahrain
0.38
OMR
1,235
2,340
650
2,665
Muscat, Oman
3.67
AED
1,430
3,158
820
3,400
Excluded: external works and services; tenant fit-out; fittings, furnishings and equipment (FF&E); professional fees; land acquisition costs; financing costs; Value
Added Tax (VAT) or similar, where applicable.
N/A
LBP
EXCHANGE RATES
2,700
600
N/A
Beirut, Lebanon
District Hospital
OTHER
Resort Style
Building Type
115
116
437
416
348
296
276
676
3 Star/Budget
5 Star/Luxury
229
INDUSTRIAL
343
COMMERCIAL/RETAIL
343
Beirut, Lebanon
RESIDENTIAL
Building Type
Riyadh, KSA
728
416
416
312
426
478
416
510
406
495
335
290
325
720
480
530
365
1,050
Doha, Qatar
870
580
400
350
420
670
N/A
730
440
Manama, Bahrain
N/A
N/A
420
310
325
N/A
N/A
N/A
N/A
Muscat, Oman
820
410
480
360
520
580
450
540
410
EXCHANGE RATES
N/A
N/A
156
832
3.75
SAR
Riyadh, KSA
3.64
QAR
N/A
N/A
225
1,150
Doha, Qatar
0.37
BHD
N/A
N/A
120
1,000
Manama, Bahrain
0.38
OMR
N/A
N/A
135
940
Muscat, Oman
3.67
AED
N/A
N/A
130
880
Excluded: incoming service utility lines and connections; site distribution networks; associated builders work; and Value Added Tax (VAT) or similar, where applicable.
1,507
N/A
LBP
130
N/A
District Hospital
754
Beirut, Lebanon
OTHER
Resort Style
Building Type
117
118
kg
kg
kg
Foundation Excavation
Reinforcement in Beams
Unit
Basement Excavation
Description
30
3.5
3.5
1.1
200
23
20
125
135
125
35
16
15
Beirut, Lebanon
13
13
11
30
1.2
200
40
32
130
130
125
Riyadh, K.S.A.
Doha, Qatar
40
1.4
185
44
44
150
150
140
30
15
12
30
1.2
205
20
20
135
135
128
13.5
Manama, Bahrain
22
189
15
19
100
99
92
11
Muscat, Oman
22
2.9
2.9
173
29
29
117
117
108
11
14
32
10
60
160
35
35
51
615
440
Riyadh, K.S.A.
Doha, Qatar
75
200
70
36
95
600
255
39
160
53
48
52
535
220
Manama, Bahrain
56
98
24
35
60
540
273
Muscat, Oman
51
163
36
35
39
540
230
These rates (US$) are indicative and represent competitively tendered prices for average specification works of the type described. Location factors should be
applied to address geographic variations in each country. The rates are exclusive of contractors preliminaries (site establishment, scaffolding, hoisting etc) and Value
Added Tax (VAT) or similar, where applicable.
65
130
35
50
700
250
Beirut, Lebanon
Unit
Description
119
120
Tn
Tn
High Tensile
Mild Steel
REINFORCING STEEL
AGGREGATE
Tn
SAND
Tn
In Bulk
Unit
In Bags
Description
690
660
74
88
97
17
22
94
103
Beirut, Lebanon
690
690
60
70
75
14
12
78
88
Riyadh, K.S.A.
34
25
80
85
850
900
94
99
105
Doha, Qatar
800
800
80
90
100
25
20
80
95
Manama, Bahrain
725
725
63
74
79
15
13
82
92
Muscat, Oman
740
680
49
59
68
18
12
61
66
Softwood
Litre
Petrol Premium 95
1.14
0.85
550
1,600
1,500
Beirut, Lebanon
0.16
0.07
432
732
1,400
Riyadh, K.S.A.
10
0.25
0.27
775
1175
1,540
Doha, Qatar
0.27
0.27
395
790
1,300
20
18
Manama, Bahrain
0.31
0.38
454
769
1,470
Muscat, Oman
0.47
0.89
443
885
1,090
These cost rates (US$) are indicative and represent supply-only costs of the materials listed. Location factors should be applied to address geographic variations in
each country. The rates are exclusive of Value Added Tax (VAT) or similar, where applicable.
Litre
Diesel
FUEL
Hardwood Meranti
TIMBER
Tn
STRUCTURAL STEELWORK
Unit
Description
121
122
Day
Day
Day
Day
Day
Day
Day
Day
Mason
General Laborer
Crane Operator
Plumber
Electrician
Foreman
8,500
4,200
110
35
35
32
55
60
20
32
37
28
28
Beirut, Lebanon
90
65
70
55
65
25
25
50
50
50
45
13,000
5,000
Riyadh, K.S.A.
90
55
55
50
66
66
27
44
44
40
40
14,000
7,000
Doha, Qatar
11,130
5,250
132
87
75
59
75
84
46
50
58
58
29
Manama, Bahrain
68
48
48
36
54
54
27
40
48
40
40
11,400
4,020
Muscat, Oman
11,200
5,600
74
46
44
41
54
59
20
31
31
29
29
These rates (US$) are indicative and represent an all-in unit cost for each of the disciplines listed. Included: wages, salaries and other remunerations prescribed by
local labor legislation, average allowances for costs of employment, recruitment, visas/permits, paid leave, travel, accommodation, health and welfare. Excluded:
overtime working, contractor mark-up for overheads and profit, VAT (Value Added Tax) or similar, where applicable. These cost rates should not be misinterpreted as
contractors daywork rates.
Month
Day
Carpenter
Month
Day
Steel Bender
Construction Manager
Day
Concreter
Site Engineer
Unit
Description
none stated
none stated
70 - 80%
1:7 - 1:12/m
1:10 - 1:14/m
80 - 85%
1:8 - 1:13/m
Bahrain Specification
Subject
1:7/m
1:10 - 1:15/m
75 - 80%
U.A.E. Specification*
1:7 - 1:12/m
1:10 - 1:14/m
70 - 80%
Qatar Specification
1:7/m
1:10 - 1:15/m
70 - 80%
Oman Specification
none stated
1:7/m
1:12 - 1:14/m
80 - 85%
Lebanon Specification
123
124
20 - 25 W/m, 20 - 25%
area
none
15 - 25 W/m
12 W/m
NR 40 - 45
NR 35 - 40
none stated
Acoustics Offices
none stated
12 W/m
Subject
none
35 W/m
15 W/m
NR 40
NR 35
none
60 - 215 W/m
25 W/m
15 W/m
Bahrain Specification
25 W/m to 25%area
800 or 1,600W/person
25 W/m
12 W/m
NR 40 - 45
NR 30 - 35
45 W/m
15 W/m
12 W/m
U.A.E. Specification*
none
none
30 - 40 W/m
12 - 15 W/m
NR 40
NR 30 - 35
none
none
15 W/m
12 - 15 W/m
Qatar Specification
none stated
none stated
25 - 30 W/m
12 - 15 W/m
NR 40
NR 30 - 35
none stated
none stated
15 W/m
12 W/m
Oman Specification
20 - 25 W/m, 20 - 25%
area
none
15 - 25 W/m
12 W/m
NR 40 - 45
NR 35 - 38
none
12 W/m
12 W/m
Lebanon Specification
U.A.E. Specification*
150lux
200lux
250lux
500lux
Qatar Specification
215lux
215lux
200 - 270lux
Oman Specification
Lebanon Specification
* Specific to the Emirate of Abu Dhabi (differing standards in the seven Emirates). Excludes implications of new building code regulations for the Emirate that came
into effect at the beginning of the 2011.
215lux
Lighting Plantrooms
200 - 270lux
400 - 500lux
Bahrain Specification
215lux
Lighting WCs
Lighting Stairs/Circulation
Lighting Office
Subject
125
126
3.63
0.374
3.67
0.384
1,147
Qatari Riyal
Bahraini Dinar
U.A.E. Dirham
Omani Rial
Iraqi Dinar
1,151
fixed
fixed
fixed
fixed
0.280
fixed
0.706
6.03
1,487
Source: Oanda.com
3.75
0.284
0.706
Jordanian Dinar
Kuwait Dinar
6.74
Saudi Riyal
1,486
1,128
fixed
fixed
fixed
fixed
0.277
fixed
0.705
5.98
1,471
Low
Egyptian Pound
2012
Average
Latest
Lebanese Pound
Exchange Rates
1,165
fixed
fixed
fixed
fixed
0.282
fixed
0.708
6.16
1,499
High
2011
1,158
fixed
fixed
fixed
fixed
0.276
fixed
0.706
5.92
1,491
Average
-0.7
fixed
fixed
fixed
fixed
1.3
fixed
0.0
2.0
-0.3
6
Measurement Formulae Two
Dimensional Figures
Figure
Area
Perimeter
Square
4a
Rectangle
ab
2(a + b)
ch
a+b+c
r
d
where 2r = d
2 r
d
ah
2(a + b)
h (a + b)
a+b+
c+d
Approximately
ab
(a + b)
Triangle
Circle
Parallelogram
Trapezium
Ellipse
Diagram
Hexagon
2.6 x a
Octagon
4.83 x a
Sector of
circle
rb or q r
360 q r
note b = angle
Segment of
circle
360
S-T
where S = area of sector
T = area of triangle
Bellmouth
3 x r
14
127
6
Measurement Formulae Three
Dimensional Figures
Figure
Surface Area
Volume
6a
2(ab + ac + bc)
abc
bd + hc + dc + ad
hcd
Cylinder
2 rh + 2r
dh + d
rh
dh
Sphere
4r
4/3r
Segment
of sphere
2Rh
Pyramid
(a + b) l + ab
Frustum
of a
pyramid
l (a+b+c+d) +
(ab+cd)
[regular figure only]
Cube
Cuboid/
rectangular
block
Prism/
triangular
block
128
Diagram
/ h (3r + h)
/ h (3R - H)
1 6
1 3
/ abh
1 3
h/3(ab +
cd +
abcd)
Figure
Cone
Frustrum
of a cone
Diagram
Surface Area
rl + r
dh + d
+ R + h (R+r)
Perimeter
/ r h
/ dh
1 3
1 12
/ (R + Rr
+ r)
1 3
129
6
Weights and Measures
Metric Measures and Equivalents
Length
1 millimeter (mm)
= 1 mm
= 0.0394 in
1 centimeter (cm)
= 10 mm
= 0.3937 in
1 meter (m)
= 100 cm
= 1.0936 yd
1 kilometer (km)
= 1000 m
= 0.6214 mile
Area
1 square centimeter (cm2)
= 100 mm2
= 0.1550 in2
= 10 000 cm2
= 1.1960 yd2
1 hectare (ha)
= 10 000 m2
= 2.4711 acres
= 100 ha
= 0.3861 mile2
Capacity/Volume
1 cubic centimeter (cm3)
= 1 cm3
= 0.0610 in3
= 1000 cm3
= 0.0353 ft3
= 1000 dm3
= 1.3080 yd3
1 liter (liter)
= 1 dm3
= 1.76 pt
1 hectoliter (hl)
= 100 liter
= 21.997 gal
Mass (Weight)
1 milligram (mg)
= 0.0154 grain
1 gram (g)
= 1000 mg
= 0.0353 oz
1 kilogram (kg)
= 1000 g
= 2.2046 lb
1 tonne (t)
= 1000 kg
= 0.9842 ton
= 0.9689 UK pint
= 0.5506 liter
= 1.0408 UK fl oz
= 29.574 ml
= 0.8327 UK pt
= 0.4723 liter
1 gallon
= 0.8327 UK gal
= 3.7854 liter
130
6
Imperial Measures and Equivalents
Length
1 inch (in)
= 2.54 cm
1 foot (ft)
= 12 in
= 0.3048 m
1 yard (yd)
= 3 ft
= 0.9144 m
1 mile
= 1760 yd
= 1.6093 km
= 2025.4 yd
= 1.853 km
Area
1 square inch (in2)
= 6.4516 cm2
= 144 in2
= 0.0929 m2
= 9 ft2
= 0.8361 m2
1 acre
= 4840 yd2
= 4046.9 m2
1 sq mile (mile2)
= 640 acres
= 2.59 km2
Capacity/Volume
1 cubic inch (in3)
= 16.387 cm3
= 0.0283 m3
= 1728 in3
= 28.413 ml
1 pint (pt)
= 20 fl oz
= 0.5683 litre
1 gallon (gal)
= 8 pt
= 4.5461 litre
1 ounce (oz)
= 437.5 grains
= 28.35 g
1 pound (lb)
= 16 oz
= 0.4536 kg
1 stone
= 14 lb
= 6.3503 kg
1 hundredweight (cwt)
= 112 lb
= 50.802 kg
1 ton
= 20 cwt
= 1.016 tonne
Mass (Weight)
Temperature Conversion
C = 5/9 (F 32)
F = (9/5 C) + 32
131
132
DIRECTORY
OF OFFICES
133
134
7
MIDDLE EAST
Kingdom of Bahrain
AECOM
Al Saffar House
Unit 22, Building No. 1042
Block 436, Road 3621
Seef District
PO Box 21271
Manama
Kingdom of Bahrain
T: +973 17 556 452
F: +973 17 556 457
Office E: bahrain@aecom.com
Contact: Clarke Morton-Shepherd
E: clarke.morton-shepherd@aecom.com
135
7
Kingdom of Saudi Arabia (Riyadh)
AECOM Arabia Ltd
4th Floor, Tower 4
Tatweer Building
King Fahad Road
PO Box 58006,
Riyadh 11594
Kingdom of Saudi Arabia
T: + 966 11 200 8686
F: + 966 11 200 8787
Office E: AAL.MiddleEast@aecom.com
Contact: Andy Ritchie
E: andy.ritchie@davislangdon.com
Kuwait
AECOM
PO Box 29927
Safat 13160
Kuwait
T: +965 2 23 22 999
F: +965 2 23 22 990
Office E: kuwait@aecom.com
Contact: Adam Ralph
E: adam.ralph@aecom.com
Lebanon
Davis Langdon, An AECOM Company
Floor 1, Chatilla Building
Australia Street
Rawche, Shouran
PO Box 13-5422
Beirut
Lebanon
T: +961 1 780 111
F: +961 1 809 045
Office E: lebanon@aecom.com
Contact: Muhyiddin Itani
E: muhyiddin.itani@aecom.com
136
7
Oman
AECOM
PO Box 434
Al Khuwair, Postal Code 133
Muscat
Oman
T: +968 2448 1664
F: +968 2448 9491
Office E: muscat@aecom.com
Contact: Chris Beasley
E: chris.beasley@aecom.com
Qatar
AECOM
4th Floor, The Pearl Building
Airport Road, Umm Ghuwalina
PO Box 6650
Doha
Qatar
T: +974 4407 9000
F: +974 4437 6782
Office E: doha@aecom.com
Contact: Jason Kroll
E: jason.kroll@aecom.com
137
7
United Arab Emirates (Abu Dhabi)
AECOM
Al Jazira Sports & Cultural Club
Muroor Road, 4th Street
PO Box 43266
Abu Dhabi
United Arab Emirates
T: +971 2 414 6000
F: +971 2 414 6001
Office E: abudhabi@aecom.com
Contact: Stephen Gee
E: stephen.gee@aecom.com
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NORTH AFRICA
Egypt
Davis Langdon, An AECOM Company
Ground Floor, Corner Road 23 / El Sharifa Dina Street
Building 13
Maadi
Cairo
Egypt
T: +20 2 2750 8145
F: +20 2 2750 8146
Contact: Aly Omar
E: aly.omar@davislangdon.com
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AFRICA
Botswana
Davis Langdon, An AECOM Company
Plot 127, Unit 10
Kgale Court
Gaborone International Finance Park
Gaborone
Botswana
T: +267 390 0711
Office E: admin@davislangdon.co.bw
Contact: Fred Selolwane
E: fred.selolwane@aecom.com
Mozambique
Davis Langdon, An AECOM Company
Rua de Argelia, 453
Maputo
Mozambique
T: +258 21 498 797
Office E: admin@davislangdon.co.mz
Contact: Elton Olivier
E: elton.olivier@davislangdon.co.mz
South Africa
Davis Langdon, An AECOM Company
2nd Floor Citibank Plaza Building
145 West Street
Sandton, Johannesburg
2196
South Africa
T: +27 (0) 11 666 2000
Office E: africa@aecom.com
Contact: Indresen Pillay
E: indresen.pillay@aecom.com
Also at: Cape Town, Durban, George, Pietermaritzburg,
Port Elizabeth and Stellenbosch
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AMERICAS
U.S.A.
Davis Langdon, An AECOM Company
515 South Flower Street
8th Floor
Los Angeles
California 90071
USA
T: +1 213 593 8100
F: +1 213 593 8178
Contact: Nicholas Butcher
E: nbutcher@davislangdon.us
Also at: Boston, Honolulu, Houston, New York, Philadelphia,
Sacramento, San Francisco, Seattle and Washington, D.C.
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AUSTRALIA
NEW ZEALAND
Australia
AECOM
Level 21, 420 George Street
Sydney, NSW 2000
Australia
T: +61 2 8934 0000
F: +61 2 8934 0001
Office E: sydney@aecom.com
Contact: Alan Baker
E: alan.baker@aecom.com
Also at: Adelaide, Brisbane, Cairns, Canberra, Darwin,
Hobart, Perth, Sydney and Townsville
New Zealand
Davis Langdon, An AECOM Company
Level 2, AECOM House
8 Mahuhu Crescent
Auckland 1010
New Zealand
Mailing Address:
PO Box 4241
Shortland Street
Auckland 1140
New Zealand
T: +64 9 379 9903
F: +64 9 309 9814
Office E: auckland@aecom.com
Contact: Trevor Hipkins
E: trevor.hipkins@aecom.com
Also at: Christchurch and Wellington
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EUROPE & U.K.
Central Eastern Europe
AECOM
68-72 Strata Polona
2nd Floor
Bucharest
Romania
T: +40 (0)21 316 11 63
F: +40 (0)21 316 11 68
Contact: Carlos Glvez
E: carlos.galvez@aecom.com
Also at: Bulgaria, Czech Republic, Estonia, Latvia, Poland
and Ukraine
Western Europe
Davis Langdon, An AECOM Company
Calle Serrano 98 2nd Floor
28006 Madrid
Spain
T: +34 91 431 0290
F: +34 91 576 9211
Contact: Jon Blasby
E: jon.blasby@davislangdon.com
Also at: France, Germany, Greece, Italy and The Netherlands
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Ireland
Davis Langdon, An AECOM Company
24 Lower Hatch Street
Dublin 2
Ireland
T: +353 1 676 3671
F: +353 1 676 3672
Office E: ireland@davislangdon.com
Contact: Paul Mitchell
E: paul.mitchell@davislangdon.com
Also at: Cork, Galway and Limerick
United Kingdom
AECOM
MidCity Place
71 High Holborn
London WC1V 6QS
United Kingdom
T: +44 20 7061 7000
F: +44 20 7061 7061
Contact: Steve Waltho
E: steve.waltho@aecom.com
Also at: Aberdeen, Belfast, Birmingham, Bristol, Cambridge,
Cardiff, Edinburgh, Exeter, Glasgow, Leeds, Liverpool,
Maidstone, Manchester, Newcastle, Norwich, Oxford,
Peterborough, Plymouth, Southampton and York
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