MIDDLE EAST

CONSTRUCTION HANDBOOK
2013
www.aecom.com
M
I
D
D
L
E

E
A
S
T

C
O
N
S
T
R
U
C
T
I
O
N

H
A
N
D
B
O
O
K

Designed in-house by AECOM’s creative marketing and communications team 2013
Middle East offices

Bahrain (Manama)
bahrain@aecom.com
+973 1 755 6452

Egypt (Cairo), North Africa
cairooffice@aecom.com
+202 2 750 8145

K.S.A. (Khobar)
AAL.MiddleEast@aecom.com
+966 3 849 4400

K.S.A. (Jeddah)
AAL.MiddleEast@aecom.com
+966 2 606 9170

K.S.A. (Riyadh)
AAL.MiddleEast@aecom.com
+966 11 200 8686

Kuwait (Kuwait City)
kuwait@aecom.com
+965 2 232 2999

Lebanon (Beirut)
lebanon@aecom.com
+961 1 780 111

Oman (Muscat)
muscat@aecom.com
+968 2 448 1664

Qatar (Doha)
doha@aecom.com
+974 4 407 9000

U.A.E. (Abu Dhabi)
abudhabi@aecom.com
+971 2 414 6000

U.A.E. (Dubai)
dubai@aecom.com
+971 4 439 1000
MIDDLE EAST
CONSTRUCTION HANDBOOK
2013
2
1 AECOM
Global expertise ... local solutions 7
Middle East history 7
Industry awards 8
2 BUILDINGS + PLACES
Game changer 11
The bigger picture 11

3 ECONOMIC ROUND UP
Global indicators 15
Economic and construction overview 27
Country statistics 2012 38
4 ARTICLES
Business drivers and the development cycle 41
Sports sector 43
Leisure sector 55
Healthcare sector 63
Education sector 73
Asset management in the Middle East 83
Sustainability — a global understanding 87
5 REFERENCE ARTICLES
Procurement routes 91
Middle East forms of contract 94
Building regulations and compliance 99
3
6 REFERENCE DATA
Global Unite system 109
International building cost comparison 112
Regional building cost comparison 114
Mechanical and electrical cost comparison 116
Major measured unit rates 118
Major material prices 120
Labor costs 122
Building services standards 123
Exchange rates 126
Measurement formulae — two dimensional figures 127
Measurement formulae — three dimensional figures 128
Weights and measures 130

7 DIRECTORY OF OFFICES
Middle East 135
North Africa 139
Africa 140
Americas 141
Australia New Zealand 142
Europe and U.K. 143




4
FOREWORD
Welcome to the seventh edition
of the Middle East Construction
Handbook. I hope that you will enjoy
this year’s selection of articles,
reference information and cost data.
As you may know, AECOM provides
over 60 professional services for
projects of varying scope, budget, schedule and complexity.
Increasingly, we are seeing the emergence of clients and
projects that demand all of our services, brought together
in an integrated way. Whether as a means to create
innovative and sustainable buildings and places, drive cost
efficiencies, or both, we are in a unique position to respond
positively to their demands.
This year, consistent with 2012, we are seeing huge
opportunities in the region that are being predominantly
driven by the demands of Saudi Arabia’s increasing
population and the preparation for major sporting events
in Qatar. An increase in large, publicly-funded construction
and transportation projects in the U.A.E. is also boosting the
region’s development spend.
Overall drive to invest in education, health, sporting venues
and leisure facilities remains strong and is expected to
provide ample construction opportunity over the coming
years. You can find in-depth analysis of each of these
market sectors in the Economic Round Up section of this
handbook
I hope you find the handbook of interest, assistance and
value to you, your projects and developments across the
region. As with previous years, we are seeking feedback to
support our drive for continuous improvement in everything
that we do.
Anthony McCarter
Regional Business Line Leader
Buildings + Places, AECOM
5
1
AECOM
6
7
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 world’s finest engineering,
design, construction, consulting, environmental, planning
and government services companies, AECOM’s 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
8
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 magazine’s list of the top 500
design firms
Ethisphere
AECOM named one of the World’s Most Ethical Companies
in 2011, 2012 and 2013
Engineering and Information Technology Magazine
AECOM named Best Diversity company in 2008, 2009,
2010, 2011 and 2012 by readers of Diversity/Careers in
Engineering and Information Technology Magazine
9
2
BUILDINGS + PLACES
10
11
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 AECOM’s 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.
The bigger picture
In analyzing situations where our advice has been most
effective, it is in the creative application of our knowledge
and experience. While our roots are in technical delivery,
our clients value the fact that our offer always contains a
strategic component.
Our ability to think big means we focus on the successful
delivery of the project in hand, whilst also appreciating our
client’s goals and objectives from a broader perspective.
Our engagement with the bigger picture enables us to
operate beyond project level and support long-term
business strategies. It is this approach which makes us the
leading consultancy we are today.
2
12
2
Page Left Intentionally Blank
13
3
3
ECONOMIC
ROUND UP
14
3
15
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.
16
3
The Growth Index indicates the proportion of survey respondents anticipating
construction growth in the medium term.
C
a
n
a
d
a

-

U
S

$
1
3
4
U
n
i
t
e
d

S
t
a
t
e
s

-

U
S

$
8
5
5
S
u
b
-
S
a
h
a
r
a
n

A
f
r
i
c
a

-

U
S
$
3
0
I
r
e
l
a
n
d

-

U
S

$
1
1
U
n
i
t
e
d

K
i
n
g
d
o
m

-

U
S
$
1
8
2
N
o
r
d
i
c

-

U
S
$
1
1
3
C
e
n
t
r
a
l

E
u
r
o
p
e

-

U
S
$
7
9
3
E
a
s
t
e
r
n

E
u
r
o
p
e

U
S
$
1
1
4
T
u
r
k
e
y

-

U
S
$
8
1
R
u
s
s
i
a

-

U
S
$
1
1
7
N
e
w

Z
e
a
l
a
n
d

-

U
S
$
1
0
A
u
s
t
r
a
l
i
a

-

U
S
$
1
1
9
B
a
h
r
a
i
n

-

U
S
$
2
U
n
i
t
e
d

A
r
a
b

E
m
i
r
a
t
e
s

U
S
$
3
6
S
a
u
d
i

A
r
a
b
i
a

-

U
S
$
3
3
Q
a
t
a
r

U
S
$
7
C
h
i
n
a

-

U
S
$
1
,
3
8
4
H
o
n
g

K
o
n
g

-

U
S
$
5
V
i
e
t
n
a
m

-

U
S
$
8
P
h
i
l
i
p
p
i
n
e
s

-

U
S
$
2
6
M
a
l
a
y
s
i
a

-

U
S
$
2
6
I
n
d
o
n
e
s
i
a

-

U
S
$
8
6
S
i
n
g
a
p
o
r
e

-

U
S
$
1
8
I
n
d
i
a

-

U
S
$
1
4
2
T
h
a
i
l
a
n
d

-

U
S
$
1
0
Global Growth Index
T
h
e

s
u
r
v
e
y

w
a
s

n
o
t

c
o
n
d
u
c
t
e
d

i
n

S
o
u
t
h

A
m
e
r
i
c
a
S
o
u
r
c
e
:

A
E
C
O
M

G
l
o
b
a
l

C
o
n
s
t
r
u
c
t
i
o
n

S
e
n
t
i
m
e
n
t

S
u
r
v
e
y
,

2
0
1
2
,

V
a
r
i
o
u
s

N
a
t
i
o
n
a
l

A
c
c
o
u
n
t
s
: Global Growth index
US$ : Construction output 2012 estimates in US$ billion
5
3
3
5
6
6
*
*
-
3
0
3
3
3
3
2
6
6
4
7
4
7
2
5
0
7
6
8
6
6
3
6
3
6
2
9
4
5
8
1
3
1
7
5
0
4
7
4
5
4
7
4
17
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 region’s 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 semi-
government 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 under–developed private
banking sector, capacity pressures on labor and materials,
and responding to imperatives toward greater resource
efficiency.
Middle East — buildings market expected growth
Source: AECOM Global Construction Sentiment Survey, 2012
90
80
70
60
50
40
30
20
10
0
High
growth
market
Low
growth
market
Industrial
Percent
Retail
Office
Education
Healthcare
Tourism &
Leisure
Residential
Public Buildings
Existing Building
Mixed-use
18
3
Source: MEED Projects
Middle East — projects planned or underway
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.
The value of projects in Saudi Arabia has
risen 29% since January 2009, while U.A.E.
projects have dropped 51% in value from
the 2009 peak.
1,400
1,200
1,000
800
600
400
200
0
U
S
$

b
i
l
l
i
o
n
J
a
n

0
9
Bahrain Qatar Iraq Kuwait Saudi
Arabia
Oman United Arab
Emirates
J
a
n

1
1
J
a
n

1
2
J
u
l

0
9
J
u
l

1
1
J
u
l

1
2
J
u
l

1
3
J
a
n

1
0
J
u
l

1
0
Source: U.S. Census Bureau
U.S. construction
Value of construction put in place, annualized
19
3
Europe
Europe’s 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.
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.
In contrast, the outlook
for publicly financed
projects remains weak,
with the political scene
deadlocked over spending
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.
American Society of Civil
Engineers Score Card for U.S.
Infrastructure
Sector 2005 2009
Aviation D+ D
Bridges C C
Dams D D
Drinking Water D- D-
Energy D D+
Navigable
Waterways
D D-
Rail C- C-
Roads D D-
Solid Waste C+ C+
Transit D+ D
Wastewater D- D-
Overall
Infrastructure
Score
D D

Source: American Society of Civil
Engineers, 2009
20
3
While local private sector activity is constrained by low
confidence and a lack of project finance, our industry
research indicates that foreign investors still view cities
such as London as a “safe haven” for long-term returns.
Foreign entrants find the East increasingly attractive,
according to 51 percent of our industry participants, while
only 32 percent see the West gaining ground.
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 construction market value, 2012
Source: Euroconstruct, National Accounts, AECOM
50
250
300
E
U
R

b
i
l
l
i
o
n
200
150
100
0
G
e
r
m
a
n
y
F
r
a
n
c
e
I
t
a
l
y
U
n
i
t
e
d

K
i
n
g
d
o
m
R
u
s
s
i
a
N
e
t
h
e
r
l
a
n
d
s
S
w
i
t
z
e
r
l
a
n
d
P
o
l
a
n
d
B
e
l
g
i
u
m
A
u
s
t
r
i
a
S
w
e
d
e
n
F
i
n
l
a
n
d
T
u
r
k
e
y
D
e
n
m
a
r
k
P
o
r
t
u
g
a
l
C
z
e
c
h

R
e
p
u
b
l
i
c
I
r
e
l
a
n
d
H
u
n
g
a
r
y
S
p
a
i
n
S
l
o
v
a
k

R
e
p
u
b
l
i
c
N
o
r
w
a
y
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.
Source: AECOM Global Construction Sentiment Survey, 2012
European building and infrastructure — expected growth
There is a considerable east-
west divide in future workload
expectations across Europe.
Percent
100
80
60
40
20
0
-20
-40
High
growth
market
Negative
growth
market
United
Kingdom
East
Nordic
Russia
Turkey
Central
Ireland
21
3
Asia-Pacific
CHINA
Despite the recent cuts in capital spending, China’s 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 export-
driven 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 China’s cities, and will drive urban
infrastructure requirements.
Source: AECOM Global Construction Sentiment Survey, 2012
European market appeal to foreign investors
Western Europe
20
40
80
100
P
e
r
c
e
n
t

o
f

s
u
r
v
e
y

r
e
s
p
o
n
d
e
n
t

60
0
-20
-40
Increasing Steady Decreasing
Eastern Europe
Openness Attractiveness Openness Attractiveness
Largest investment regions
Value of investment
2012 annual growth
350
300
250
200
150
100
50
0
30
25
20
15
10
5
0
A
n
n
u
a
l

g
r
o
w
t
h
,

p
e
r
c
e
n
t
I
n
v
e
s
t
m
e
n
t
,

C
N
Y


b
i
l
l
i
o
n
J
i
a
n
g
s
y
S
h
a
n
d
o
n
g
L
i
a
o
n
i
n
g
H
e
n
a
n
H
e
b
e
i
G
u
a
n
g
d
o
n
g
Z
h
e
j
i
a
n
g
S
i
c
h
u
a
n
H
u
b
e
i
A
n
h
u
i
Source: National Bureau of Statistics, China
22
3
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). India’s
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, India’s inadequate infrastructure is prohibiting the
country to fulfil its growth potential.
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 China’s
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.
Source: National Bureau of Statistics, China
C
N
Y

b
i
l
l
i
o
n
A
n
n
u
a
l

g
r
o
w
t
h
,

p
e
r
c
e
n
t
Other fixed investment
Construction
Total investment growth rate (annual)
2010 2011 2012
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
25
24
23
22
21
20
19
Investment in fixed assets
23
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 India’s
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 China’s 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 Australia’s 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.
Source: IMF
Average annual GDP growth
8
7
6
5
4
3
2
1
0
P
e
r
c
e
n
t
Developing
Asia
2010 - 12 2013 - 15
The Association of Southeast
Asian Nations (ASEAN) region,
an important trade partner to
Australia and New Zealand, is
expected to generate at least
5.7% annual growth to 2015.
Of the advanced economies, Australia
and New Zealand are expected
to average closer to 3% growth,
compared to the average for other
nations which is closer to 2%.
European
Union
U.S. Australia New Zealand
24
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 country’s 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.
Source: World Bank
Ease of doing business ranking by region
140
120
100
80
60
40
20
0
Harder to do
Business
Country Ranking
Easier to do
Business
O
r
g
a
n
i
s
a
t
i
o
n

o
f

E
c
o
n
o
m
i
c

C
o
-
o
p
e
r
a
t
i
o
n

a
n
d

D
e
v
e
l
o
p
m
e
n
t

(
O
E
C
D
)

H
i
g
h

I
n
c
o
m
e
Sub-Saharan Africa is considered the hardest region
to do business in, whereas South America and South
Asia are considered easier places to do business.
E
a
s
t

E
u
r
o
/

C
e
n
t
r
a
l

A
s
i
a
E
a
s
t

A
s
i
a
S
o
u
t
h

A
m
e
r
i
c
a
M
i
d
d
l
e

E
a
s
t
/

N
o
r
t
h

A
m
e
r
i
c
a
S
o
u
t
h

A
s
i
a
S
u
b
-
S
a
h
a
r
a
n

A
f
r
i
c
a
25
3
NIGER
ALGERIA
MAURITANIA
SUDAN
SOUTH
SUDAN
NIGERIA
CHAD
SIERRA
LEONE
CAMEROON
GUINEA
LIBERIA
GHANA
EGYPT
ETHIOPIA
KENYA
UGANDA
DEMOCRATIC
REPUBLIC OF THE
CONGO
UNITED
REPUBLIC OF
TANZANIA
NAMIBIA
SOUTH
AFRICA
ZAMBIA
MOZAMBIQUE
ZIMBABWE
ANGOLA
ERITREA
DJIBOUTI
MADAGASCAR
Source: Stratfor
Chinese investment offers in Africa since 2010
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.
26
3
South America
Economic growth in South America has been much
stronger in recent years compared to the world’s advanced
economies. The region has witnessed a massive increase in
foreign investment and significant growth in the resources
and tourism sectors. The region’s 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. Chile’s
infrastructure investments are mainly delivered by private
players, while Peru’s 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.
While in many cases the domestic banking sectors are
unable to support large–scale infrastructure projects, South
America has seen consistent growth in private investment
assistance in developing infrastructure — the value in 2011
was more than triple the level in 2003. The main destinations
for these funds are Brazil, Argentina and Mexico, which are
among the top five destinations for private infrastructure
investment, according to the World Bank. Institutions like the
Andean Development Corporation (CAF), the Inter-American
Development Bank (IADB) or the European development
banks, such as the European Investment Bank, are important
for providing funds in smaller countries and those with less
access to international financial markets, such as Ecuador
and Venezuela. Public-private partnerships (PPPs) and
concessions have also grown in the region, with many of the
larger countries in the region planning further PPP/concession
packages for 2013, while others are looking to use the model
for the first time. Financing constraints, regulatory and
political issues are the main obstacles to investment
in the region, though the magnitude varies greatly
among countries.
Foreign direct investment in regions — change 2009 - 2011
Source: IMF
Size of bubble equals
the total value of
investments in 2011
Rising
investment
Falling
investment
Change
2009 - 2011
500
400
300
200
100
0
-100
-200
P
e
r
c
e
n
t
South
Amercia
Europe
Africa
North
America
Middle
East
Central
and
South Asia
East
Asia
Oceania
27
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.
Political issues and oil prices divide wealthy
hydrocarbon exporters and poor importers
In the Middle East, political tension has become more of a
constant than a variable, impacting economic performance
and causing large swings in oil prices. The Arab uprisings
have altered the region’s political landscape, but it is too
early to assess the long-term impact they will have on
societies and economies The region began 2012 with a
series of historic elections in the post-revolutionary states
in North Africa.
However, expectations of smooth transitions were
quickly squashed, as internal division’s stunned
political progress, while the civil war in Syria escalated
and tensions over Iran’s nuclear program mounted.
Source: IMF, National Statistics
MENA GDP growth forecast
12
10
8
6
4
2
0
A
n
n
u
a
l

p
e
r
c
e
n
t
2012e
2013-15f average p.a.
I
r
a
q
S
a
u
d
i

A
r
a
b
i
a
L
e
b
a
n
o
n
B
a
h
r
a
i
n
Q
a
t
a
r
J
o
r
d
a
n
K
u
w
a
i
t
E
g
y
p
t
O
m
a
n
U
.
A
.
E
.
28
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.
The largest risks to regional performance stem from
continued political uncertainty, including unresolved
political issues in Egypt, succession in Saudi Arabia,
ambiguity over Iran and spill-over from Syria’s war. Other
risks, including further deterioration of the global economy
and volatile commodity prices, also loom large.
Investment growth and prospects
There have been major differences in the performance of
Middle East construction industries over the past year, both
in terms of location and sectors.
A total of US$87 billion of construction and transportation
projects were awarded across the Gulf Cooperation Council
(GCC), Iraq and Lebanon in 2012, down from some US$106
billion in 2011. Economic uncertainty, geopolitical risks
and oil price volatility, as well as bureaucratic delays,
were the main contributors to this drop. In addition,
governments continuing to review their strategies for
implementing major development projects and investor
hesitation in investing in (mega) projects weighed on the
regional projects market in 2012. Against this background,
construction in the region, both in the infrastructure
Source: MEED
Construction and transportation projects
(Anticipated) Project awards by status in GCC, Iraq and Lebanon
300
250
200
150
100
50
0
U
S
$

b
i
l
l
i
o
n
Progressed
2009 2010 2011 2012 2013e
Cancelled/On hold
29
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.
Source: AECOM Global Construction Sentiment Survey, 2012
Workload expectations over the next three years
Balance of respondents expecting a decrease/increase
Decreasing
Building
Infrastructure
Increasing
30
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.
Qatar, unsurprisingly, is seen as the major growth area over
the next few years. Qatar’s infrastructure and construction
growth is currently pausing to take a breath as the 10-year
boom in large-scale gas-exporting infrastructure work
comes to an end. Going forward, on the back of staging the
FIFA 2022 World Cup, a large number of infrastructure and
building projects have been announced, covering all modes
of transport, as well as leisure and hospitality, commercial
and fit-out projects, to gear the nation up for the big event.
In Saudi Arabia, the sharp drop in project awards in
2012 surprised most industry commentators, given the
Kingdom’s large spending commitments. According to
Middle East Economic Digest (MEED) Projects, Saudi Arabia
awarded construction and transportation projects worth
just US$17 billion in 2012, compared to US$39 billion in
2011. Anecdotal evidence suggests that leadership changes
at key ministries such as the Ministry of Interior meant that
major spending decisions were delayed. With more than
US$100 billion of construction and transportation projects
in the pipeline due to be awarded in 2013, Saudi Arabia
remains the region’s largest market and expectations are
that the flow of project awards will speed up this year.
Social pressures have increased demand for built projects
most vocally in Saudi Arabia given its relatively large
Attractiveness and openness of the Middle East to offshore
suppliers/service providers
Source: AECOM Global Construction Sentiment
Survey, 2012
Factors making the
Middle East attractive to
offshore investors
– Market demand/
higher return country
– No/low taxes
– Stability of country/
Openness to trade
– Low entry barriers
– Availability of
internal capital
Decreasing
Attractiveness to
offshore suppliers/
service providers
Openness to offshore
suppliers/service
providers
Increasing
31
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.
Abu Dhabi awarded US$9.3 billion of projects in 2012,
compared to US$18 billion in 2011. Encouragingly, the
hiatus in Abu Dhabi’s government spending program
since early 2010 appears to be coming to an end, with the
government announcing a US$90 billion infrastructure
spending program. While the increased market sentiment
and the U.A.E.’s leadership commitment to many large
infrastructure projects in 2013 are welcome, an increase
in construction work will continue to depend on available
financing and governments following through with their
ambitious plans.
Construction and transportation projects
Progressed projects only
Source: MEED
120
100
80
60
40
20
0
U
S
$

b
i
l
l
i
o
n
2012
Bahrain Iraq Kuwait Oman U.A.E. Qatar Saudi
Arabia
2013 anticipated
32
3
Kuwait’s 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 government’s
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.
As the Omani government pushes ahead with major
infrastructure development plans, construction
opportunities are expected to increase. Oman’s 2013
budget outlines capital projects worth US$10.6 billion for
transport infrastructure, health and education, as well
as water and wastewater projects. With currently US$32
billion of construction and transportation in the pipeline
due to be awarded in 2013-14, the Sultanate could be an
attractive market in the near term.
There is a general view that to maintain political stability
Bahrain needs to invest in social infrastructure, in
particular housing, while at the same time, to keep
up with its fast expanding peers, it needs to invest in
transport and industrial infrastructure. However, limited
public finances are unlikely to be able to deliver this,
hence private investment and funding support from
neighboring countries is needed. In 2011, Kuwait, Qatar,
Saudi Arabia and the U.A.E. pledged US$10 billion
to Bahrain over 10 years to offset the costs of social
unrest and help fund needed development projects.
Key drivers of construction over
the next three years
– Qatar 2022 FIFA World Cup
– Social pressure for
infrastructure
– Oil and gas revenues
– Reconstruction of Libya
and Iraq
– Inter-regional projects, such
as rail and energy networks
Key obstacles to construction
over the next three years
– Regional political stability
– Slow flow of public spending
– Underdevelopment of
private banking sector and
fully-functioning capital
markets limits private
sector participation
– Delays and backlogs
in tendering and
construction phases due
to amount of investment
planned/underway
– Labor and material
shortages raise the prospect
of inflation
33
The funds have started rolling in the second half of 2012
with the Bahraini government signing agreements with the
Kuwait Arab Economic Development Fund and the Saudi
Development Fund. The government signed its most recent
agreement with the Abu Dhabi Development Fund in early
2013 and it is anticipated that a similar agreement will be
signed with Qatari investment funds this year. The GCC
funds are expected to focus on housing, electricity, water,
infrastructure and social services projects.
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.
34
3
Contract awards in the pipeline suggest an upturn in
industry activity this year, but the industry will adopt a wait-
and-see approach to whether these schemes materialize.
Overall, our research shows that the industry expected to
increase modestly this year — with the exception in Saudi
Arabia — due to a moderate increase in tender prices on
the back of a steady but slow recovery in the construction
sector. Despite firm workload expectations, the majority
of survey respondents expect tender prices to continue
to ease in Saudi Arabia over the next twelve months, due
to increasing competition and fierce project cost cutting
by clients.
The construction industry across the region has
consolidated significantly in recent years, meaning that
competition may have reduced with the effect that pricing
is less aggressive than it otherwise may have been.
However, in turn this has increased the possibility that
prices could come under significant pressure once large-
scale programs such as Qatar’s 2022 FIFA World Cup get
underway in earnest, unless there is a marked increase
in contracting and materials supply capacity. Increased
confidence and the psychology of pricing on the back of
higher work volumes will see prices increase accordingly,
though variation by market will remain.
Challenges for the regional project market
Our research shows that clients and delivery organizations
cite various issues that are impacting project delivery. The
main challenges are outlined below:
Government finances: The oil-exporting Middle
East countries are generally cash-rich, but to varying
degrees. At the same time, governments must balance their
Tender prices and profit margins
Balance of respondents reporting an increase/decrease
Source: AECOM Global Construction Sentiment Survey, 2012
60
40
20
0
-20
-40
60
40
20
0
-20
-40
P
e
r
c
e
n
t
Last 12 months Next 12 months
U.A.E. U.A.E. Qatar
no change
Qatar Saudi
Arabia
Saudi
Arabia
Tender Prices
Profit Margins
35
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.
Project finance needs diversification: Significant
uncertainty over the global economic outlook and tighter
credit conditions has led to a retreat of lending to the
project sectors and an increase in the cost of capital. In
addition, foreign banks have also been cautious given
recent experience of deep haircuts and restructuring in the
region, which has reduced appetite for project financing.
On the back of this — and given the financial strength of
the three main Middle East governments, namely Saudi
Arabia, Qatar and the U.A.E. — public-financed projects
continue to dominate. This trend is expected to continue. A
more recent trend is that due to the scale of some projects,
even those cash-rich governments in the region are looking
to issue project bonds to fund key schemes, but the use
of project bonds in the region is judged to be still in its
infancy and a number of projects have taken a long time to
structure a project bond that appeals to investors. In the
longer term and with the development of regional capital
markets, the role of Islamic debt finance (Sukuk) could play
an increasingly important role.
Procurement of projects: Procurement is a key concern
for construction project delivery in the Middle East. Our
research shows a general consensus that negotiated
contract (private sector), construction management and
design only/then construct only would deliver the best
outcome for a project on the metrics of time, cost, risk
and reputation. In contrast, guaranteed maximum price,
and design and construct via a novated design would yield
the least satisfactory results for all project participants.
According to survey participants, negotiated contracts
are only available in the private sector and require strong
relationships of mutual trust, something that is generally
Factors limiting project finance
– Banking/capital market
maturity
– Risk appetite/project
feasibility
– Global financial/banking
crisis
– Change in banking
regulation/requirements for
project finance
– Regional political stability
36
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
Source: AECOM Global Construction Sentiment Survey, 2012
Poor
0% 20% 40% 60% 80% 100%
Guaranteed Maximum Price
Design and Construct via a novated design
Managing Contractor
Design and Construct
Public-Private Partnership
Partnership/Alliance
Design only then construct only
Construction Management
Negotiated contract
Program Management
Satisfactory Excellent
37
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 chain’s 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.
38
3
S
t
a
t
i
s
t
i
c
B
a
h
r
a
i
n
E
g
y
p
t
I
r
a
q
J
o
r
d
a
n
K
u
w
a
i
t
L
e
b
a
n
o
n
O
m
a
n
Q
a
t
a
r
S
a
u
d
i

A
r
a
b
i
a
U
.
A
.
E
.
L
a
n
d

A
r
e
a
,

k
m
2
8
0
0
9
9
5
,
5
0
0
4
3
4
,
3
0
0
8
8
,
8
0
0
1
7
,
8
0
0
1
0
,
2
0
0
3
0
9
,
5
0
0
1
1
,
6
0
0
2
,
1
4
9
,
7
0
0
8
3
,
6
0
0
C
a
p
i
t
a
l

C
i
t
y
M
a
n
a
m
a
C
a
i
r
o
B
a
g
h
d
a
d
A
m
m
a
n
K
u
w
a
i
t
B
e
i
r
u
t
M
u
s
c
a
t
D
o
h
a
R
i
y
a
d
h
A
b
u

D
h
a
b
i
P
o
p
u
l
a
t
i
o
n
,

m
i
l
l
i
o
n

1
.
2
8
2
.
0
3
3
.
6
6
.
4
3
.
8
4
.
0
3
.
2
1
.
8
2
8
.
8
5
.
5
G
D
P
,

U
S
$

b
i
l
l
i
o
n
2
6
.
5
2
5
5
.
0
1
3
0
.
6
3
1
.
4
1
7
4
.
6
4
1
.
8
8
0
.
0
1
8
4
.
6
6
5
7
.
0
3
6
1
.
9
R
e
a
l

G
D
P

G
r
o
w
t
h
,

%
*
2
.
0
2
.
0
1
0
.
2
3
.
0
6
.
3
2
.
0
5
.
0
6
.
3
6
.
0
4
.
0
R
e
a
l

G
D
P

G
r
o
w
t
h
,

2
0
1
3
-
2
0
1
7

p
a

f
o
r
e
c
a
s
t
2
.
8
5
.
3
1
0
.
9
4
.
2
3
.
4
3
.
7
3
.
5
6
.
0
4
.
1
3
.
2
G
D
P
/
C
a
p
i
t
a

(
P
P
P
)
,

U
S
$
2
8
,
1
8
2
6
,
5
5
7
4
,
6
2
0
6
,
0
4
4
4
3
,
8
4
7
1
5
,
8
8
4
2
8
,
5
1
2
1
0
2
,
7
6
9
2
5
,
7
2
2
4
8
,
9
9
2
C
o
n
s
t
r
u
c
t
i
o
n

O
u
t
p
u
t
,

%

o
f

G
D
P
6
.
0
*
*
4
.
6
*
*
4
.
7
*
*
4
.
5
*
*
1
.
8
*
*
1
5
.
0
*
*
4
.
8
*
*
3
.
9
*
*
4
.
6
*
*
1
0
.
5
*
*
V
a
l
u
e

o
f

C
o
n
s
t
r
u
c
t
i
o
n

O
u
t
-
p
u
t
*
,

U
S
$

b
i
l
l
i
o
n
1
.
8
*
*
*
*
1
1
.
5
*
*
*
*
8
.
8
*
*
*
1
.
4
2
.
8
6
*
*
*
3
.
5
*
*
*
*
*
7
.
2
2
4
.
5
3
5
.
7
*
*
*
*
*
P
r
o
j
e
c
t

a
w
a
r
d
s
,

U
S
$

b
i
l
l
i
o
n
0
.
9
n
/
a
2
6
.
2
1
.
8
1
4
.
1
2
.
0
8
.
2
2
1
.
5
6
3
.
6
3
1
.
0
C
o
n
s
u
m
e
r

P
r
i
c
e

I
n

a
t
i
o
n
,

%
2
.
8
7
.
2
5
.
6
4
.
8
2
.
9
6
.
6
3
.
0
1
.
9
4
.
6
0
.
7
*
e
s
t
i
m
a
t
e

o
n
l
y










*
*
s
h
a
r
e

i
n

c
u
r
r
e
n
t

G
D
P










*
*
*
2
0
1
0










*
*
*
*
2
0
1
1
/
1
2










*
*
*
*
*
2
0
1
1

A
l
l

d
a
t
a

a
r
e

2
0
1
2

d
a
t
a

u
n
l
e
s
s

o
t
h
e
r
w
i
s
e

s
t
a
t
e
d
.

V
a
l
u
e

o
f

c
o
n
s
t
r
u
c
t
i
o
n

i
n

L
e
b
a
n
o
n
,

K
u
w
a
i
t
,

U
.
A
.
E
.

i
s

c
a
l
c
u
l
a
t
e
d

b
a
s
e
d

o
n

t
h
e

s
h
a
r
e

o
f

c
o
n
s
t
r
u
c
t
i
o
n

i
n

G
D
P

i
n

2
0
0
9

a
p
p
l
i
e
d

t
o

2
0
1
2

G
D
P


g
u
r
e
s
.
S
o
u
r
c
e
:

I
M
F
,

W
o
r
l
d

B
a
n
k

a
n
d

v
a
r
i
o
u
s

n
a
t
i
o
n
a
l

s
t
a
t
i
s
t
i
c
s

o
f

c
e
s
.
C
O
U
N
T
R
Y

S
T
A
T
I
S
T
I
C
S

2
0
1
2
39





4
ARTICLES
41
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 region’s
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 client’s success. It
supports our commitment to our clients and communities
of delivering solutions that enhance and sustain the world’s
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.
42
4
Community
focused
Sustainable
Profitable
Brand
builder
Growth drivers
Revenue
drivers
Cost drivers
Key macro and micro factors to consider
Pre
Client decides
what to build and
when
During
Client is
executing the
project
Post
Client is
maintaining the
asset
Client activity cycle
Performance indicators measuring
business and project success
Holistic understanding of the business drivers and
development cycle
Source: AECOM and ©Sandra Vandermerwe
43
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 region’s
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 inner-
city 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 Qatar’s
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.
44
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
Growth drivers — what market conditions
support sport developments?
Sports and leisure facilities have multiple growth drivers,
including public (local and national) investment in
communities and urban regeneration, university sports,
sport franchises and professional teams’ facilities
requirements, or private investors seeking revenues. What
is notable is that all stakeholders are increasingly adopting
a more comprehensive approach to the development of
sporting facilities and major events, with the focus not just
on the main event itself, but shifting towards a 365-day-a-
year experience and improving local communities.
45
4
Public funders undertake sport
facility developments for a
variety of reasons, including to
help communities live healthier
lives; support local athletes;
host national, regional or
international events that would
raise the city/country’s profile;
attract tourists; and encourage
inward investment. These
facilities are often community
(or even country) specific, and
factors such as demographic
profile, proximity to other
service providers, potential
growth, available resources,
etc., make the type of
investments very different with
respect to needs and wants.
Private investments follow the
same pattern, but instead of
focusing on cities or countries,
they typically support the
needs of communities of
interest or professional
league teams.
Mega-sporting events, such as the Olympic Games,
Commonwealth Games, or World Cups are considered
one-time opportunities for cities or countries to secure
resources for infrastructure development and to achieve
global exposure. Developed countries/cities are using
multiple events of varying size and scale to increase
tourism and urban regeneration, while emerging cities/
countries are using them as development catalysts and
brand builders. Cities vigorously compete to host sporting
mega-events as they perceive that doing so will enhance
their image and stimulate their economies by attracting
investment and consumer spending.
Ultimately, the deciding factor in moving a sports project
forward remains in its expected return on investment.
Investors and developers compare the opportunity cost of
developing a sport facility with other investments.
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.”
46
44
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 region’s
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
Source: World Health Organization
In Kuwait, the female
obesity prevalence level
— the highest in the
region — has reached
55.2% compared to
29.6% among the male
population.
60
50
40
30
20
10
0
P
e
r
c
e
n
t
Bahrain Egypt Kuwait Jordan U.A.E. Qatar
Males
Females
Saudi
Arabia
Source: International Diabetes Foundation, 2012 estimates
Diabetes
prevalence rate
World
ranking
Kuwait 24 6
Saudi Arabia 23.4 7
Qatar 23.3 8
Bahain 22.4 9
U.A.E. 18.9 11
Egypt 16.6 12
Diabetes prevalence in selected MENA countries
47
44
Revenue drivers — what makes sports
developments successful?
Sports facilities face
challenges on the financial
and commercial front,
having to balance the need
to maintain value for money
in terms of ticket prices and
rising expectations among the
paying public.
The owners of sports
facilities seek revenues from
increasingly diversified income
streams to justify capital
expenditure. Revenues are not
only driven by demand for the
facility, effective utilization
of space, prices charged to
facility users and ticket sales,
but also include commercial
sources, such as from retail
or advertising. Sport and
entertainment events are
increasingly being staged
together, i.e. Grand Prix events
now involve concerts, aimed to
raise the overall experience, increase the length of events
and therefore the time people spend at the venue, which
enhances commercial opportunities.
Source: MEED
While Iraq awarded the
most sports projects in
2010-2012 as it attempted
to rebuild the country’s
infrastructure, Qatar is
expected to award the
highest value of sports
projects in 2013-2015 as
it gears up for the 2022
FIFA World Cup.
Sport sector projects award by date and country
7
6
5
4
3
2
1
0
U
S
$

b
i
l
l
i
o
n
Bahrain
Iraq
Kuwait
Lebanon
Oman
2010 - 2012 2013 - 2015
U.A.E.
Qatar
Saudi Arabia
Revenue drivers
– Government support
– Private sector investments
– Capacity and space
utilization (functional use
and flexibility)
– Ticket sales
– Advertising and signage
– Club boxes and
concessions
– Commercial rental
opportunities (retail,
catering, hotel)
– Other rental opportunities
(schools, universities)
Key client insights
“Revenue sources are
increasingly becoming more
diverse with the line between
sports and entertainment
becoming more blurred.”
“The revenue characteristics
of the sector combined with
the intangible benefits driving
the growth of the sector make
it suitable for public and
private partnerships.”
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.
48
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 facility’s utility or maintenance costs.
Event-driven ticket sales are the prime income source for
many sports facilities. It is difficult to achieve full utilization
of stadiums or arenas, as often there are space restrictions
or events don’t sell out. Business plans must be based
on cautious assessment of potential revenues and, as
a result, it can be difficult to attract initial investment
without public-sector funding. In addition to ticket sales,
most sources of revenue, for example, merchandise and
refreshments sales, are related to the size of the audience.
Only a small proportion of income, typically related to box
and season ticket sales, is fixed. Operators are seeking
to increase non-ticket-based incomes by enhancing the
capacity and quality of retail and catering concessions and
other facilities, thereby increasing the amount of time and
money customers spend there Clients agree that these
defining revenue characteristics of the sector combined
with the intangible benefits driving the growth of the
sector make it suitable for public and private partnerships.
Governments typically look for private investors to help
cover construction and operational costs of the facility
in return for favorable terms on property tax, subsidizing
utilities and funding of surrounding infrastructure.
4
Global sports revenue
Source: PWC “Outlook for Global Sports Market”
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
U
S
$

m
i
l
l
i
o
n
2
0
0
6
Media Rights Merchandising
Gate revenues Sponsorship
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
e
2
0
1
1
e
2
0
1
1
e
2
0
1
3
f
2
0
1
4
f
2
0
1
5
f
49
44
Cost drivers — what are typical investment
and operating costs of sport facilities?
The end purpose and capacity of a sports facility
determines the capital investment required to deliver the
project. Iconic projects built for specific events will often
require an investment premium that balances landmark
architecture and specification with flexible space design to
provide use and revenue options after the event or sporting
season.
All typical operational costs, fixed and variable, come into
play during the life span of the project, however, the extent
of their impact depends on the facility type and usage
frequency. Owners and operators need to be particularly
mindful of the end-users’ requirements and usage behavior
to ensure demands are met without compromising
operational efficiency.
Performance indicators — monitoring the
success of a sport facility
Sports facility performance indicators represent a key
element of the long-term success of the facility. Assets that
are closely monitored for operational efficiency, revenue
generation, and quality maintenance and stakeholder
satisfaction are more likely to be profitable and survive
market and economic shifts. Examples of key indicators are
provided in the in-depth arena review section opposite.
Sports revenue by region
Source: PWC “Outlook for Global Sports Market”
100
90
80
70
60
50
40
30
20
10
0
P
e
r
c
e
n
t
Media Rights
Merchandising
North America EMEA Asia Pacific Latin America
Gate revenues
Sponsorship
This arrangement allows private investors to diversify their
portfolio, undertake highly visible projects while minimizing
operational project risk in the long-run.
50
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.
Act
Venue
Third party
Fixed costs
Variable costs
Audience
Commercial rights
Naming, sponsorship, advertising
$$
$$
$$
$$
$$
$$
$$
$$
$$ ?
$$ Parking ?
$$ Premium seating
$$ Food & beverage
$$ Merchandising
R
e
n
t

a
n
d

h
i
r
e

c
h
a
r
g
e
s
Promoter
Anchor tenant
Simplified revenue model for an arena
Source: AECOM
51
4
Furthermore, regardless of region, owners and operators
can attract additional revenue through advertising or
selling the naming rights of the facility.
Capital costs can vary significantly as there are many
variables that influence size and configuration.
Selection of the main sporting event, capacity, flexibility,
tier configuration, size of main event and roof span/
complexity have a significant impact on the design and
costs, and need to be considered in detail at an early
stage to ensure that an arena proposal is feasible from
both operational and economic perspectives.
Arena capacity is the
principal cost driver, as the
number of seats determines
the size of the arena bowl,
the extent of circulation and
other facilities. Capacity has
a major influence on other
factors such as footprint,
clear roof span and tier
configuration. The number
of seating tiers required is determined by capacity and
means of escape regulations. The size of the main event
floor determines the capacity and design of the arena
bowl. In general, the larger the main event floor, the
larger and more costly the building, as the footprint, roof
spans and the requirement for mobile seating increases.
Seating space allowance influences the quality of a
spectators’ experience of the arena. Standards should
be as high as possible within the constraints of the
budget. Seating space standards affect the size of the
arena bowl, footprint, roof span and the cost of the
seat itself.
Roof span is also a significant cost driver, as above a
certain size there is a disproportionate increase in the
weight and cost of the roof.
KPI 1: Total revenue – revenue generated from services provided
KPI 2: Revenue split by service provided, user and event
KPI 3: Revenue development – growth of revenue (%) split by
service provided and user
KPI 4: Occupancy rate of available rental spaces
KPI 5: Number of attendees by event held (volume)
Key client insight
“On a spectrum that
measures the size and cost of
constructing a sports facility,
arenas more often than not will
sit at the far right representing
the biggest and most
expensive investments within
the sector, often due to their
iconic designs that make them
attractions in their own right.”
52
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.
53
4
Key operational costs for arenas
include maintenance and utility
costs. Regardless of whether the
facility is in use and generating
revenue, the facility still needs
to be cleaned, serviced and
utilities would typically represent
30-60 percent of the total
operational cost. Many owners
and operators have adopted the
use of preventative maintenance
measures and use energy efficient
utilities to reduce operational
costs.
Back-of-house facilities in arenas
include television and press
facilities, function rooms and VIP
areas, as well as changing areas,
and catering and administration facilities. The design
of back-of-house space can have a significant effect on
the quality and cost of operating the arena.
Staffing and administrative costs further impact
operational costs all year round. On event nights,
however, additional costs are absorbed to deliver the
event, including casual staff and equipment, food
and beverages, retail outlets, additional security,
maintenance, ICT and cleaning staff. Staff costs
can potentially be reduced by higher levels of initial
investment in the mechanization of installations in
the arena, such as moveable seating or the insulated
floor and perimeter barriers of an ice rink. Increased
mechanization also helps to reduce the down-time
involved in changing the configuration of an arena thus
resulting in increased revenues.
Disposal cost of sports facilities is usually limited to
refurbishment or demolition as the facilities are purpose
built and would require substantial investment to
convert into another kind of asset.
Additional event
costs
Organizers/ushers
Security
Food and
beverages
ICT and other
event support
equipment
Cleaning staff
Maintenance
Utilities
T
o
t
a
l

o
p
e
r
a
t
i
o
n
a
l

c
o
s
t
s
Daily costs
Utility
Maintenance
Administration/
staffing
KPI 6: Operating cost per service, user and event
KPI 7: Operating expense ratio — operating expense/gross
operating income
KPI 8: Employee retention rate
KPI 9: Repeat business — volume of business/revenue generated
from returning facility users and event organizers
KPI 10: Employee retention rate
54
4
Other sports thought leadership publications produced by AECOM:
Assessing the Opportunities of Venue Regeneration — opportunities in
venue regeneration.
More than a Game — overview of developments within the sports sector.
Revitalising an Urban Asset — a review of successful examples in facility
renewal and revitalization.
Portland’s New Pitch — case study on the renovating of the JELD-WEN Field.
The Rise and Rise of the Temporary Transformers — provides options and
examples of successful legacy planning.
Please email me.business.intelligence@aecom.com for your copy.
55
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
Growth drivers — what market conditions
support leisure development?
Demand within the sector is typically highly elastic. In
a healthy economy, consumers are likely to spend on
recreational and leisure activities, while in less affluent
economic times, leisure-related expenses are the first to
disappear from a consumer’s list of regular expenses. In
addition, political events and/or natural disasters have the
ability to impact the sector performance.
In general, leisure-related construction increases when three
factors occur concurrently. Firstly, operating fundamentals are
strong, driven by consumer demand (and business demand,
i.e. in the hotel sector), measured by performance indicators,
such as ticket sales, food and beverage (F&B) sales and
occupancy levels. Demand growth will attract the attention
of developers, lenders, operator chains and management
companies.
56
4
Secondly, credit is readily
available for new construction
projects. Thirdly, our clients
have particularly expressed
that construction of new
leisure facilities increases
in the absence of attractive
refurbishment or asset
transformation opportunities.
In markets with tighter credit
conditions and an uncertain
demand outlook, lenders are
more likely to provide acquisition
or refinancing loans for operating
facilities with a proven net
operating income history than
construction financing for new
projects. In addition, if market
conditions are such that facilities
are selling for below replacement
cost, some investors may seek to
acquire these assets at favorable
prices and improve their value
with renovations, refurbishment and repositioning strategies
rather than pursue new construction.
Key growth drivers
– Economic activity
– Income growth/
urbanization
– Consumer spend
– Corporate/business travel
– Meetings, Incentives,
Conferences and
Exhibitions (MICE) sector
– Growth of tourism sector
– Credit conditions
– Socio-political stability
Key client insight
“Construction of new
leisure facilities increases
in the absence of attractive
refurbishment or asset
transformation opportunities.
Lenders are more likely
to provide acquisition or
refinancing loans for operating
facilities with proven net
operating income history than
construction financing of
new projects.”
Middle East Leisure Market
The leisure sector in the
Middle East is primarily
driven by the determination
of individual countries
to diversify their revenue
streams, as well as religious
tourism. Countries like
Egypt, Lebanon and
Jordan have long invested and benefited from foreign
investments in the leisure sector as they have rich
histories and natural attractions. The Gulf Cooperating
Council (GCC) countries, although relatively lacking in
natural attractions, have focused on creating man-
made attractions to appeal to regional and international
tourists.
The region’s geographical location — at the cross
roads between the East and the West, make it easily
accessible to tourists from all around the world. Major
airport expansions already undertaken or planned in
Key client insight
“Governments’ focus on raising
its national profile through
international advertising,
organizing national festivals
and hosting international
events help attract leisure
investors and consumers alike.”
57
4
many cities across the region will only help increase
accessibility and boost regional and international
tourism.
The leisure sector is a key development sector within
most countries. However, elements such as political
stability, government wealth and rising incomes have
become essential growth drivers. Performance and
success of the private sector will largely depend on
political stability and credit availability.
Dubai is the top destination for
international visitors and visitor
spend in the region. Cairo’s
long-standing reputation as
a top international tourist
destination is being challenged
by political instability.
Top Middle East countries by international
visitors, 2012 estimates
Source: MasterCard, AECOM
40
35
30
25
20
15
10
5
0
V
i
s
i
t
o
r
s

i
n

m
i
l
l
i
o
n
s
D
u
b
a
i
C
a
i
r
o
A
b
u

D
h
a
b
i
C
a
s
a
b
l
a
n
c
a
R
i
y
a
d
h
A
m
m
a
n
T
u
n
i
s
Source: MasterCard, AECOM
Middle East top destination cities by international visitor
spend, 2012 estimates
40
35
30
25
20
15
10
5
0
25
20
15
10
5
0
-5
-10
U
S
$

m
i
l
l
i
o
n
P
e
r
c
e
n
t
D
u
b
a
i
2010 2011 2012 % Growth 2011 and 2012
C
a
i
r
o
B
e
i
r
u
t
A
b
u

D
h
a
b
i
C
a
s
a
b
l
a
n
c
a
A
m
m
a
n
T
u
n
i
s
58
4
Revenue drivers — what makes leisure
developments successful?
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.
Owners and operators must
maintain a firm understanding
of current and future consumer needs, behaviors and
preferences to continuously develop products and services
that meet consumer and retailer demand. Customer
loyalty and brand awareness is a major focus as the leisure
industry seeks new opportunities to build market share.
Their ability to attract multiple end-markets, individuals
and businesses helps reduce project risk through revenue
diversification. This is done through optimizing capacity
and functionality of built spaces — incorporating services
that have varying demand cycles. Clients have noted
that there is a growing trend towards secondary services
provided in hotels such as spas, restaurants and sport
facilities which have become major contributors to the
facilities top line.
Revenue drivers
– Capturing and creating end-
market demands
– Capacity and space
utilization (functional use
and flexibility)
– Effective pricing
Key client insight
“Secondary services
provided in hotels such as
spas, restaurants and sport
facilities have become major
contributors to the facility’s
top line.”
Leisure sector projects by award date and country
Source: MEED
U.A.E.
Saudi Arabia
Qatar
Oman
Lebanon
Kuwait
Iraq
Bahrain
10, 000
2010-2012 2013-2015
30, 000
50, 000
20, 000
40, 000
60, 000
70, 000
U
S
$

b
i
l
l
i
o
n
59
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.
Cost drivers — what are typical investment
and operating costs of leisure facilities?
Leisure-related facilities have certain characteristics — a
24/hour schedule (hotels), diverse types of spaces, a large
number of special services that the operators supply to
guests, which affect capital costs, and operating costs
alike. In addition, client and consumer expectations for
modern facilities and latest equipment can result in
high design specification and technology cost of leisure
facilities. These costs need to be reviewed closely to ensure
that they are in line with current consumer demands and
forecasted changes within the market.
Performance indicators — monitoring the
success of a facility
The necessity of performance indicators in the leisure
sector is not unique compared to other sectors. However,
the need is magnified considering rising consumer
expectations and mounting operational costs. Owners
and operators need to closely monitor their asset’s
competitiveness and operational and financial efficiency to
ensure they remain profitable in a highly elastic market.
Examples of key indicators are provided in the in-depth
hotel review section overleaf.
60
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.
Within the investment cost category, construction costs
make up over 50 percent of the capital cost investment
per room, regardless of hotel type. Land costs are
also similar across the board, averaging around 13
percent. More variation is typically expected within
the development costs and furniture, fixtures and
equipment categories as they are highly dependent on
hotel type and target audience — more sophisticated
hotels and resorts would need to satisfy more refined
client demands.
Average investment cost breakdown for hotels and resorts
Source: JLC Hospitality Consulting, HVS International
100
80
60
40
20
0
P
e
r
c
e
n
t
% of total project cost
Pre-opening and working
capital
Site improvement and
building construction
Development and soft costs
Land
FF&E
KPI 1:
Occupancy rate
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)
Revenue breakdown
Source: Smith Travel Research (STR Global)
100
80
60
40
20
0
P
e
r
c
e
n
t
Revenue
Cancellation Fee
Rentals and Other Income
Other Operated Departments
Telecommunications
Food and Beverage
Rooms
61
4
Operational cost is another main development
success factor to consider. To effectively forecast and
manage operational costs of a hotel, our clients have
emphasized the importance of differentiating between
operational cost types and their main drivers. Fixed
operating costs such as staffing and administrative
costs impact the whole spectrum of hotel and resort
developments and are expected to remain almost
constant throughout an operational year. Administrative
and general costs, including staffing, typically make up
about 45 percent of the total fixed cost of the facility.
Management fees add another 16 percent on average.
Together administrative and management costs make
up more than 60 percent of a hotel’s fixed operational
cost, making performance indicators such as employee
retention and turnover important statistics to monitor.
Hotel INvestment Tool (HINT) is a unique interactive tool created by
AECOM’s 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
Breakdown of fixed operating costs
Source: Smith Travel Research (STR Global)
100
80
60
40
20
0
P
e
r
c
e
n
t
Fixed operating cost
Reserve for Capital Replacement
Property Taxes
Management Fees
Insurance
Franchise Fees (Royalty)
Administrative & General
Breakdown of variable operating costs
Source: Smith Travel Research (STR Global)
100
80
60
40
20
0
P
e
r
c
e
n
t
Variable operating cost
Utility costs
Telecommunications
Rooms
Property Operations & Maintenance
Other Operations Depts & Rentals
Marketing
Food & Beverage
62
4
Other leisure thought leadership publications produced by AECOM:
Quality Time — trends across leisure and culture developments, including
hotels, theme parks and cultural buildings
The Planning Destination — incorporating sustainability into the business of
travel and preserving the environments and cultures of tourist destinations.
Ensuring sustainability drives all stages of resort planning.
Theme Index 2011 — annual report on the top theme parks throughout
the world and global and local trends. The report is compiled by AECOM’s
economics team in conjunction with the Themed Entertainment Association.
Please email me.business.intelligence@aecom.com for your copy.
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.
An important factor to note within operational costs is
that variable operational costs typically outweigh fixed
costs. In our sample study, variable costs represented
75 percent of the total operational costs. Below is a
comparison of major factors contributing to project
success: investment, revenue and operating costs.
KPI 5: Gross operating profit per available room (GOPPAR)
KPI 6: Operating expense ratio — operating expense/gross
operating income
KPI 7: Employee retention rate
KPI 8: Repeat business — volume of business/revenue generated
from returning facility users and event organizers
Comparison of typical annual revenue and operating costs
Source: JLC Hospitality Consulting, HVS International,
Smith Travel Research (STR Global)
Annual revenue
Annual variable
operating cost
Annual fixed
operating cost
63
4
Business and development drivers
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.
Growth drivers — what market conditions
support healthcare developments?
Demand for healthcare provision is rising globally. In
developed countries, demand is driven by changing
demographics and epidemiological trends (ageing
populations and chronic care needs) while in many
developing countries the surging demand for more services
is due to rising populations and income growth together
with “diseases of prosperity,” such as obesity and diabetes.
64
4
Middle East Healthcare Market
Regulatory and funding
reforms, together with
increasing demand for
healthcare services
due to population and
income growth, as well
as an increase in lifestyle
diseases, mean that the
Middle East healthcare
market is undergoing
significant changes and
major development.
With many governments planning further expansion of
the sector, they are seeking increased private sector
participation to fill gaps in services provision and
infrastructure.
Healthcare services demands
can be met through different
channels, primarily public,
private or charitable. Although
demand for healthcare services
is universal, objectives for
undertaking healthcare
provision varies by provider.
Governments invest in
healthcare to improve living
standards of their populations,
private investors focus
on profits and charitable
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.
In addition, clients have indicated that the sector
shift towards patient-centric healthcare delivery in
many countries has encouraged growth of new market
participants from industries such as travel and tourism,
retail, information technology, telecommunications and
health/wellness spas.
Key client insight
“The proliferation of
healthcare facilities built in
the Middle East in association
or partnership with the
international healthcare
industry “heavy weights” is
driven by the need to build
consumer confidence in
local capabilities. Brand and
reputation are key challenges
that healthcare providers in
the region need to overcome.”
Key growth drivers
– Economic activity
– Government reforms and
expenditure on healthcare
– Socio-political stability
– Population growth/
demographic change/
urbanization
– Rising income
Key client insight
“The sector shift towards
patient-centric healthcare
delivery in many countries has
encouraged the growth of new
market participants.”
65
4
Supported by large budget surpluses, Gulf Cooperation
Council (GCC) governments are making investments to
support healthcare provision and bring the industry up
to international standards in terms of bed capacity and
the quality of healthcare services.
Promoting the industry to private players is a priority
for all GCC governments, as it is clearly stated in their
strategic and development plans.
US$10.9 billion worth of
health contracts across 95
projects are known to have
been awarded in 2011-12,
the majority of which were
in 2012.
127 projects worth US$22.5
billion are currently under
construction.
62 schemes worth US$21.3
billion are currently in the
pipeline to be awarded
between 2013 and 2016.
Source: MEED (As of February 2013)
Healthcare project awards
Healthcare demand drivers
Size of bubble: Population growth (2012 to 2020f, absolute
number in million)
MENA GDP and healthcare expenditure
Source: IMF, World Bank, AECOM
Qatar, the Kingdom of Saudi
Arabia and Egypt have the
highest forecast growth in
healthcare spending per
capita between 2012-2017.
Egypt, Iraq and the
Kingdom of Saudi Arabia
have the strongest
projected population
increase.
Saudi
Arabia
Saudi Arabia
66
4
Revenue drivers — what makes healthcare
developments successful?
The field of medicine is both
complex and dynamic. The
emergence of new diagnostic
procedures, progress in
surgical and non-surgical
treatment methods and
consumer awareness on the
variety of available treatment
options, add to the complexity
of the healthcare sector’s
dynamics. This is creating the
dual challenge for healthcare
providers having to keep
up with a rapidly changing
environment and to generate
higher levels of customer
loyalty.
Many patients today no longer
seek medical attention solely at their local healthcare
facility, but also seek second and third medical opinions
from other local, regional or even international healthcare
providers. This diversity in population needs is further
compounded by differences in their income levels allowing
for greater variability within the healthcare sector. As
a result, healthcare facility owners and operators are
finding that their revenue streams do not solely depend
on providing good medical services but are increasingly
more dependent on their ability to capture patient demand
differences and to create appropriate products.
On the other spectrum of consumer-driven health is the
increasing professionalization of medical care processes
for an increasing number of illnesses and procedures, in
which physicians and other providers are accepting and
using more standardized protocols and guidelines for
treating their patients.
These trends are the key drivers of overall spending
in healthcare and are placing significant operational
challenges on providers to improve their healthcare
revenue generation. The revenues of a hospital depend
partly on how many patients it can attract from its
catchment area, its clinical expertise and its administrative
qualities, such as facilities and process efficiencies.
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.”
67
4
The success of a healthcare
facility can be improved by
creating multi-functional
spaces that allow for a great
level of operational flexibility,
e.g. operating theaters and
diagnostic machines available
for rent to private consultants
and physicians.
Medical procedure fees need to ever more reflect the value
of the healthcare procedures/experiences delivered.
Cost drivers — what are typical investment
and operating costs of healthcare facilities?
Cost control has been on the
healthcare agenda for a long
time, but demand surge and
fiscal constraints have given the
subject new urgency, favoring
investment in new ways of
delivering care.
Healthcare providers are facing
extreme pressures to deliver
greater value — higher quality care at a lower cost —
giving a focus on integrated care, capital costs, property
management, streamlining administrative costs and
accounting for the lifecycle cost of the facility.
Future-proofing further adds to a facility’s investment
costs as owners and operators are increasingly becoming
more aware of the need to create flexible spaces that can
continue to operate efficiently to cope with changes in
industry, patient or technology requirements.
Performance indicators — monitoring the
success of a facility
Performance indicators evaluate asset and service data
helping owners and operators estimate the quality of
services, operational effectiveness, patient and employee
satisfaction as well as the financial health of a facility or
asset. As a result of professionalization of the healthcare
sector and regulatory requirements imposed by healthcare
authorities and certification bodies, measuring and
monitoring performance indicators has become almost
mandatory. Examples of key performance indicators
(KPIs) are provided in the hospital in-depth review
section opposite.
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
facility’s profile indirectly.”
Key client insight
“In the Middle East,
resourcing is a key element in
the success of any healthcare
facility. Lack of local and
regional resources increases
a facility’s dependency on
foreign labor, which in turn
increases operational costs
associated with high staff
turnover rates.”
68
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 hospital’s 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.
Hospital design and resourcing is influenced by
increased consumer demand, demographic changes
and advancements in medicine. Best practice guidance
for most hospital facilities today requires heavy capital
investments in design and technology. New hospital
facilities need to accommodate advancements in
patient and physician behavioral research and be
equipped with a high element of medical technology
equipment.
Revenue by funding source
Source: Australian Government Productivity Commission Report
69
4
Excluding medical equipment and furnishings,
services typically represents the largest segment of
construction cost, accounting for 44 percent of the cost
for district general hospitals in the Middle East. This
reflects the high element of mechanical, electrical and
plumbing works that need to be incorporated into a
hospital’s design.
Medical equipment and furnishings also represent a
substantial portion of the overall development cost.
Teaching hospitals incorporating a high element
of research and experimental medicine need more
sophisticated medical equipment compared to other
hospital types. Such hospitals can have medical
equipment and furnishing costs that represent over 50
percent of a hospital’s overall capital cost.
Construction costs for iconic/landmark hospitals
are generally higher than for typical district general
hospitals. Unlike teaching hospitals, where capital cost
increases are driven by medical equipment, higher costs
for iconic hospitals are due to detailed architectural
design, landscaping or furnishings.
KPI 1: Total operating revenue — revenue generated from
services provided
KPI 2: Revenue split — by patient and diagnosis related group
(DRG)
KPI 3: Revenue development — growth of revenue (%) split by
patient and diagnosis related group (DRG)
KPI 4: Number of patients seen (volume)
KPI 5: Number of occupied hospital beds (volume)
Construction cost breakdown for a district general
hospital*
Source: AECOM
*Breakdown excludes external works and services; tenant fit-out;
fittings, furnishings and equipment (FF&E); professional fees
70
4
Construction costs increase with the size of a hospital
but there are two key elements to note. First, operational
efficiency of equipment and technology does not
depend on hospital size as much as other requirements,
i.e. bigger receptions and waiting areas to accommodate
larger number of patients. Secondly, capacity utilization
typically increases as hospital size increases. Up to a
certain size, commonly 500 beds, the construction cost
per bed decreases as the hospital size increases, due to
economies of scale and optimizing the use of support
equipment and facilities. Construction costs for larger
hospitals with more beds tend to increase again as
support facilities need to be larger and construction
premiums associated with specialist consultants and
contractor fees are added.
Land acquisition cost trends are case specific and
depend on government support/subsidies, location
and hospital size. Regardless of hospital ownership
type (public or private) and location, fixed operational
costs within a hospital typically outweigh variable
operational costs.
Construction cost per bed by hospital size
Source: AECOM
Typical breakdown of operational expense
Fixed cost
Variable cost
Source: AECOM
Analysis of five hospitals MHA, AGPC, Overlake Hospital FS, Cook Country Hospital FS
71
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.
Capital expenditure (CAPEX) needs have to be evaluated
regularly as the growth and success of the facility
depends on its ability to keep up with growing consumer
demands and medical technology advancements. CAPEX
requirements are divided into three categories — land,
building and equipment. Land acquisition expenditures
are undertaken least frequently and are part of long-
term strategic growth plans. Building and equipment
are more regular and can be expended on an annual
basis, representing about 2.5 percent and 15 percent
respectively of their original costs.
Fixed
operational costs
Variable
operational costs
Source: AECOM
Analysis of five hospitals MHA, AGPC, Overlake Hospital FS,
Cook Country Hospital FS
Utilities
Average Average
Supplies
Administrative costs +
insurance
Purchased services
(incl. non-payroll staff)
Salaries and wages
Maintenance Employee benefits
100
90
80
70
60
50
40
30
20
10
0
72
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.
Other healthcare thought leadership publications produced by AECOM:
Ford’s Model T Solving the Healthcare Crisis — applying Henry Ford’s
systemization model to healthcare.
Building Vitality — a look at AECOM’s holistic approach to healthcare
project delivery.
Please email me.business.intelligence@aecom.com for your copy.
KPI 6: Operating cost per patient and DRG
KPI 7: Operating expense ratio — operating expense/gross
operating income
KPI 8: Case mix index — average DRG weight for a hospital’s entire
patient intake (benchmark tool)
KPI 9: Medical staff retention rate
KPI 10: All staff retention rate
KPI 11: Medical staff training needs
KPI 12: Non-medical training needs
KPI 13: Patient satisfaction by DRG
KPI 14: Mortality rate by DRG
KPI 15: Complications occurrence rate by DRG
73
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
74
4
Middle East Education Sector
The Middle East is
characterized by a young,
rapidly growing population
and a high rate of
urbanization. These factors,
combined with rising
income levels and increased
integration with world
markets, make the region a
high demand area for educational developments.
Educational developments sit high on government
agendas and public spending is expected to grow as
countries try to improve their economic standing by
developing local skills and capabilities.
Growth drivers — what market conditions
support education developments?
Demographic trends, income
growth, awareness about
the quality of education,
government spending and
private sector participation are
the main drivers for education
demand.
Within the sector there are
two main segments, public
and private education. While
the former is primarily driven
by government spending and
development commitment,
the latter is driven by the
availability of a good business
case — strong population
demand and availability of
funding for ventures. Public
educational facilities are
primarily financed through government grants and hence,
health of the governments’ balance sheets will heavily
dictate the size and advancement of the sector. Private
schools are mostly privately funded and, in addition to
investor or alumni support, student tuition fees make up a
significant portion of the school’s revenue.
Key client insight
“In the GCC, an international
school requires upfront
investment of US$50-100
million, therefore building
new educational facilities
is primarily undertaken by
high net worth individuals or
entities with strong
balance sheets.”
Key growth drivers
– Economic activity
– Government reforms and
expenditure on education
– Availability of credit
– Population growth/
urbanization
– Rising income
– Socio-political stability
Key client insight
“The growth of expatriate
populations in the Middle East
has helped boost the private
education sector considerably.”
“Rising income levels of local
populations and increased
appreciation of education has
promoted the growth of local
students in private schools
across the Middle East.”
75
4
The region’s positive economic activity further promotes
the migration of expatriate workers and their families.
This not only creates additional demand for education
facilities, but further encourages a higher level of
diversification within the sector, with many foreign
governments and private investors seeking to develop
facilities that better meet demand.
Within the Gulf Cooperating Council (GCC) countries
there has also been a high proliferation of public and
private investments in post-secondary institutes and
tertiary educational facilities as investors recognize
the population’s growing awareness of the value of
education. Enrollments by foreign students, in particular
from other Arab countries and Asia, have been steadily
increasing in the higher education segment, mainly
due to access to higher quality education and job
opportunities after studies.
MENA selected countries populations by age bracket
Source: CIA Fact Book
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%.
Growth in number of students by segment,
GCC CAGR (%) 2011-2016f
Source: Alpen Capital
Total number of students
expected to rise from 10.2
million in 2011 to 11.6 million
in 2016, at a CAGR of 2.7%
Saudi Arabia (84%) and the
U.A.E. (11%) account for 95%
of students in the GCC
76
4
Revenue drivers — what makes educational
developments successful?
Revenue drivers differ
considerably by type of school,
for example public, private non-
profit, or private-for-profit.
Public educational facilities
are heavily funded by
governments and hence their
revenue streams depend
more on their ability to attract
more government funds rather than simply the number
of students enrolled. A government sees an educational
facility as a multi-faceted investment, an opportunity to
build a productive workforce for the future, create jobs,
improve communal ties in a neighborhood and reduce
crime within a community. Governmental support for
Revenue drivers
– Government support
– Gifts and grants
– Auxiliary enterprises
– Private sector investments
– Tuition fees
– Capacity and space
utilization (functional use
and flexibility)
Share in number of schools, GCC
Source: Alpen Capital
Total number of schools in 2016f: 51,450
Number of schools CAGR 2011-2016f: 1.6%
Share of private schools in 2016f: 20%
Education sector projects by award date and country
Source: MEED
Kuwait and the Kingdom of
Saudi Arabia are expected to
award the most education
projects between 2013 and
2015. For Saudi Arabia these
include two mega projects,
Emaar’s Education Zone
valued at US$4 billion and Al
Mal’s Prince Abdulaziz
bin Mosaed Economic City
valued at US$1.2 billion.
77
4
public educational facilities is
influenced by the number of
students the facility serves,
the students’ socio-economic
backgrounds and the need
for additional non-teaching
services, such as counselling,
health services and extra-
curricular activities. An
educational facility can secure
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.
Cost drivers — what are typical investment
and operating costs of educational facilities?
The design of an educational facility and information
communication technology (ICT) solutions it encompasses
are key cost drivers in terms of delivering value for money
and a balanced distribution of the expenditure. Although
this impact is most significant during construction, it is not
confined to the initial capital cost; affecting the operational
lifecycle cost of the facility. The ability of the owners
and developers to balance current construction designs
and budgets with future requirements of the education
community is needed to ensure long-term success and
sustainability of the project. Multi-functional flexible
spaces are typically used to future-proof against evolving
teaching and learning styles.
Key client insight
“In the GCC, school tuition is
the main revenue source for
private schools.”
“The GCC private education
market is highly fragmented
consisting of standalone
schools owned by individual
investors, this provides
opportunities for existing
operators to consolidate and
develop economies of scale.”
78
4
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 facility’s 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 in-
depth review section overleaf.
79
4
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: Total revenue — revenue generated from services provided
and external funding/grants
KPI 2: Total revenue per enrolled student
KPI 3: Total operating revenue — revenue generated from
services provided
KPI 4: Operating revenue per enrolled student
KPI 5: Revenue development — growth of revenue (%) split by
type and number of students
KPI 6: Number of enrolled students (volume)
80
4
Operational costs of schools are unique in that
regardless of school type (public/private) it is generally
accepted that fixed operational costs will always
outweigh variable operational costs. Staff wages and
benefits represent the majority of fixed operational
costs in a school —understandably since schools are
part of the service sector. Therefore factors such as
teachers’ pay and qualifications, class size and student-
teacher ratios significantly impact a facility’s bottom line.
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.
Public school revenue by source
Source: OECD, PISA 2009 Database
Private school revenue by source
Source: OECD, PISA 2009 Database
81
4
Other key determinants of operational cost include
educational level and facilities provided. Around the
world, operating expenditures per student of post-
secondary 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.
Utility and maintenance costs for schools also vary by
level of specification within the facility. Schools with
auditoriums, swimming pools and other student life
enrichment facilities have to bare additional utility,
maintenance and repair charges.
The asset lifecycle for a school can end in multiple ways.
Schools share the most basic infrastructure requirements
with other commercial or public assets, hence disposal
options include asset conversion, refurbishment
or demolition.
Construction cost per student by school type
Source: AECOM
Breakdown of total operating expenditure
Source: AECOM
82
4
Other education publications produced by AECOM:
Success — how to make the world’s best higher education campuses even
better
Education space design — innovative solutions for building refurbishment
Please email me.business.intelligence@aecom.com for your copy.
KPI 7: Operating cost per student
KPI 8: Operating expense ratio — operating expense/gross
operating income
KPI 9: Central administrative expenditure as percent of
total expenditure
KPI 10: Student to teacher retention ratio
KPI 11: Student retention rate
KPI 12: Teaching staff retention rate
KPI 13: All staff retention rate
KPI 14: Teaching staff training needs
KPI 15: Non-teaching training needs
KPI 16: Student satisfaction
KPI 17: Employee satisfaction
83
4
ASSET MANAGEMENT IN
THE MIDDLE EAST
Objectives and drivers of asset management
Asset management provides an overarching, multi-
disciplinary 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
Source: AECOM Construction Industry Survey, 2012
To date, asset management in the Middle East is used interchangeably
with facilities management and is generally not adopted as a management
process.
84
4
Our industry survey revealed that there are number of
drivers for organizations to adopt an enterprise-wide asset
management process, including:
Regulatory Industry regulators are increasingly demanding that
organizations have better knowledge of and take a
longer view on system conditions
Organizational
excellence
Provides a clearly documented strategy for
managing assets from design to disposal at the end
of useful life
Allows for making informed decisions to meet
organizational objectives
Allows for optimal resource allocation
Operational cost Provides enhanced control over capital and
operational expenditure
Minimizes lifecycle costs
Allows for more meaningful financial reporting
Provides clearly calculated levels of asset service,
reliability and long-term funding requirements
Allows for effective identification and management
of asset-related risks
Guarantees improved economic and social returns
on infrastructure investments
Sustainability Regulators, operators and end users are
increasingly demanding a longer-term, viable
approach to assets
Asset
performance
Allows for setting performance measures and
performance targets
Competition Ensures service reliability
Ensures satisfied and informed customers
Meets the needs of a growing market
Asset management in the Middle East
Over the past decade, the Middle East has been one
of the fastest growing construction markets globally.
Consequently, research shows that physical assets in the
Middle East could increase by US$1.6 trillion between
2005 and 2015, taking the stock of physical assets in the
region to nearly US$200 trillion in 2015. With built assets
now entering their first replacement cycle, greater focus
will need to be placed on long-term objectives, not only in
design and construction, but also in property management
and maintenance to meet long-term organizational needs.
85
4
Developers, operators and investors in the Middle East are
increasingly acknowledging the competitive advantage
and benefits of adopting a systematic and coordinated
approach to total asset management. However, there are
a number of challenges. In particular, there is currently a
substantial gap in the systematic management of built
assets in the region. This is partially due to the lack of
regulatory drivers that enforce the implementation of asset
management, but also due to a number of market and
organizational challenges.
Success factors for asset management
A number of asset management disciplines are often
procured and implemented as separate services as
opposed to an encompassing multi-disciplinary service.
As a result of these trends, the true value of asset
management as a strategic, organization-wide endeavor is
not realized.
In order for the organization in the Middle East to
successfully implement a true asset management
approach, a number of success factors must be put in
place.
Global stock of physical assets
Source: World Bank, IMF, AECOM estimate
Sub-Saharan Africa
MENA
South Asia
Europe & Central Asia
Latam & Caribbean
East Asia & Pacific
US$, trillion
Percentage growth of
physical assets 2000 - 2005
by region
East Asia & Pacific 52%
South Asia 43%
MENA 22%
Sub-Saharan Africa 21%
Latam & Caribbean 10%
Europe & Central 2%
0 5 10 15
86
4
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.
87
4
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
participant’s understanding of sustainability and the level
of consideration these principles were given on projects in
their field.
Economic concerns are paramount for North American
respondents, as sustainability considerations are defined
by their long-term cost benefits and efficiency gains. In
Europe, social issues are not as prominent. The focus is on
the long-term efficiencies of an asset, energy consumption
and renewable generation. In Asia-Pacific there is a strong
focus on social principles — particularly in China. In the
developed countries of the region, such as Australia, great
importance is placed on a long-term, cost-benefit approach
to project delivery, including the whole-of-life costs for an
asset as imperative to sustainable practices.
A vision of sustainability — economic, environmental and
social priorities
Source: AECOM Global Construction Sentiment Survey, 2012
High
Economic
Priority
Low
Economic
Priority
Low Social
Priority
High Social
Priority
Low Environmental
Priority
High Environmental
Priority
North America
Australia
Europe
New Zealand
Middle East
Sub-Sahara Africa
India
SE Asia
China
88
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.
89
5
REFERENCE
ARTICLES
90
91
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 don’t 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?
92
5
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 client’s
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 team’s 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 pre-
construction 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.
93
5
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 client’s 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 client’s 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.
94
5
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 client’s architect or a sub-
consultant appointment.
Kingdom of Saudi Arabia
Construction contracts in the private sector are generally
based on Fédération Internationale Des Ingénieurs-
Conseils (FIDIC) forms of contract and are amended
to suit the particular conditions for each project.
Employers prefer lump sum versus re-measured contracts
and normally exercise great control in the administration of
the construction process by imposing various restrictions
95
5
on the engineer’s (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 large-
scale 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 re-
measurement 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
96
5
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-to-
medium 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).
97
5
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.
United Arab Emirates (U.A.E.)
Construction contracts in the U.A.E. are predominantly
based upon the FIDIC forms of contract. The growing
number of large-scale developers and major repeat clients
in the region has led to the development of bespoke
forms of contract, tailored to each individual 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. This also
applies to works procured by the Dubai Municipality. The
Abu Dhabi Municipality, however, bases its contract on
a modified FIDIC 3 form, taken from the third edition of
the FIDIC Conditions of Contract for Works of Civil Engineering
Construction.
Contracts based on the 1999 “red book” are now starting
to be used in the U.A.E., but in general the market remains
firmly rooted in the FIDIC 4 form.
Civil works contracts within the U.A.E. are mostly procured
on a re-measurable basis, whereas building works will
generally be based on a fixed-price lump sum.
98
5
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.
99
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.
100
5
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.
Kingdom of Saudi Arabia
Obtaining a building permit in the Kingdom of Saudi
Arabia varies from region to region, however, they tend to
follow the same basic principles. The various procedures
and approvals from the main municipality, the branch
municipality and the Fire Department need to be obtained.
Obtaining these approvals typically takes between three
to four months depending on the nature and size of the
building/project.
The following is a general outline of the steps needed to
obtain a building permit.
Stage 1: Obtaining letter from the Main Municipality
A letter from the owner is submitted to the main Riyadh
Municipality, along with a copy of the land deed. The
municipality checks the master plan of the area to ensure
the suitability of the plot for the construction of a building.
The municipality then writes a letter to the branch
municipality of the area where the plot is located. This
process takes five days and does not incur a charge.
Stage 2: Obtaining Preliminary Location Permit from
Branch Municipality
The owner submits a copy of the letter obtained previously
from the main municipality to the branch municipality,
requesting an inspection of the plot to ensure that the plot
length, width and total area are as indicated on the deed.
The branch municipality then issues an approval to use
the land. This process takes five days and does not incur a
charge.
Stage 3: Obtaining approval from the Fire Department
The branch municipality writes to the Fire Department, or
Civil Defence, to obtain its approval of the plan submitted
by the owner for the fire-alarm and fire-fighting systems.
101
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
102
5
– 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 Electricité 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.
103
5
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 project-
specific 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.
104
5
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.
105
5
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 façade 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.
United Arab Emirates (U.A.E.)
The following is a general outline of the procedure for
obtaining a building permit in the U.A.E. However, there are
many further obligations and procedures to be completed
within each of the stages. Building permit application stage
3, for example, requires no less than 15 different forms,
documents and separate approvals to be submitted as part of
the application.
106
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.
AECOM’s project management team is experienced in the
procedures for obtaining building permits across the region
and are able to oversee this process.
107
6
REFERENCE
DATA
108
109
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 evidence-
based 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 building’s effectiveness or
efficiency can be analysed instantly against local or global
standards, allowing clients to make informed design
decisions consistent with world’s 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.
110
6
Measurement
The latest measurement software allows direct
measurement from the design team’s electronic
drawings (2D or 3D).
Accurate cost advice can be provided faster than
before and by collaborating with the design team,
parameters can be set to maximise the potential cost
savings.
01
02
Cost
Quantities and costs are measured and compared
against the Global Unite benchmark system. When the
design is incomplete, Global Unite provides confidence
through an extensive evidence-base.
111
6
03
Global Data Warehouse
Design and cost data from over 10,000 benchmarked
projects centrally stored and globally accessible
*
.
Automated process that captures all projects by cost
management stage.
All historic costs adjusted by location and time to suit
your project.
*Increasing daily with every completed cost plan globally.
Benchmarking and Analytics
Compare cost and design attributes against local
or world’s best practice to better inform project
decisions.
04
01
University, NSW, 0.98
0
0
2.5
2.0
1.5
1.0
0.5
5.000 10,000 20,000 15,000
Floor Area (m
2
)
Cost Plan Best Fit
E
x
t
e
r
n
a
l

W
a
l
l

:

F
l
o
o
r

R
a
t
i
o
112
6
I
n
t
e
r
n
a
t
i
o
n
a
l

B
u
i
l
d
i
n
g

C
o
s
t

C
o
m
p
a
r
i
s
o
n

(
U
S
$
/
m
²
)

Q
4

2
0
1
2









B
u
i
l
d
i
n
g

T
y
p
e
S
y
d
n
e
y
,

A
u
s
t
r
a
l
i
a
H
o
n
g

K
o
n
g
B
e
i
j
i
n
g
,

C
h
i
n
a
S
i
n
g
a
p
o
r
e
K
u
a
l
a

L
u
m
p
u
r
,

M
a
l
a
y
s
i
a
M
u
m
b
a
i
,

I
n
d
i
a
B
a
n
g
k
o
k
,
T
h
a
i
l
a
n
d
J
o

b
u
r
g
,

S
o
u
t
h

A
f
r
i
c
a
N
e
w

Y
o
r
k
,

U
.
S
.
A
.
L
o
n
d
o
n
,

U
.
K
.
R
E
S
I
D
E
N
T
I
A
L
A
v
e
r
a
g
e

M
u
l
t
i

U
n
i
t



H
i
g
h

R
i
s
e

2
,
8
5
0
2
,
3
2
0
6
8
5
1
,
8
0
0
5
1
5
4
1
5
8
7
5
8
4
0
4
,
0
0
0
3
,
3
3
0
L
u
x
u
r
y

U
n
i
t



H
i
g
h

R
i
s
e
3
,
2
8
0
2
,
5
6
0
1
,
0
5
0
3
,
1
0
0
1
,
1
6
5
5
5
0
1
,
2
2
5
1
,
4
6
0
4
,
9
0
0
4
,
9
5
0
I
n
d
i
v
i
d
u
a
l

P
r
e
s
t
i
g
e

H
o
u
s
e
s
3
,
4
2
0
3
,
9
9
0
8
1
0
#
3
,
0
0
0
1
,
0
4
5
6
5
0
1
,
0
1
0
1
,
4
7
0
4
,
1
0
0
6
,
9
3
0
C
O
M
M
E
R
C
I
A
L
/
R
E
T
A
I
L
A
v
e
r
a
g
e

S
t
a
n
d
a
r
d

O
f

c
e
s



H
i
g
h

R
i
s
e
3
,
1
8
0
2
,
3
4
0
9
7
5
2
,
4
0
0
8
2
5
4
9
5
7
9
0
1
,
1
0
0
4
,
2
5
0
2
,
9
5
0
*
*
P
r
e
t
i
g
e

O
f

c
e
s



H
i
g
h

R
i
s
e
3
,
6
0
0
2
,
8
4
0
1
,
3
0
0
#
2
,
8
0
0
1
,
2
1
0
5
9
0
1
,
0
3
5
1
,
4
2
0
4
,
8
0
0
3
,
6
0
0
*
*
M
a
j
o
r

S
h
o
p
p
i
n
g

C
e
n
t
e
r
2
,
5
4
0
N
/
A
1
,
0
8
0
3
,
2
0
0
9
9
5
5
5
0
9
8
5
1
,
1
0
0
3
,
3
5
0
2
,
2
0
0
I
N
D
U
S
T
R
I
A
L
L
i
g
h
t

D
u
t
y

F
a
c
t
o
r
y
6
8
0
1
,
3
4
0
N
/
A
1
,
6
0
0
4
8
0
4
3
5
6
3
0
3
8
0
1
,
2
5
0
1
,
4
9
0
H
e
a
v
y

D
u
t
y

F
a
c
t
o
r
y
8
6
0
1
,
4
6
0
N
/
A
1
,
7
0
0
5
7
0
6
7
0
N
/
A
5
3
0
2
,
0
0
0
2
,
5
4
0
H
O
T
E
L

(
i
n
c
l
u
d
i
n
g

F
F
&
E
)
3

S
t
a
r
/
B
u
d
g
e
t
3
,
2
8
0
2
,
8
8
0
1
,
2
0
5
*
3
,
1
0
0
*
1
,
6
2
5
1
,
5
8
0
1
,
4
1
0
1
,
6
9
0
2
,
4
0
0
2
,
6
1
0
5

S
t
a
r
/
L
u
x
u
r
y
4
,
5
5
0
4
,
0
1
0
1
,
9
5
0
*
4
,
5
0
0
*
2
,
4
8
5
2
,
7
6
0
1
,
9
8
0
2
,
2
3
0
5
,
0
3
0
5
,
1
0
0
113
6
B
u
i
l
d
i
n
g

T
y
p
e
S
y
d
n
e
y
,

A
u
s
t
r
a
l
i
a
H
o
n
g

K
o
n
g
B
e
i
j
i
n
g
,

C
h
i
n
a
S
i
n
g
a
p
o
r
e
K
u
a
l
a

L
u
m
p
u
r
,

M
a
l
a
y
s
i
a
M
u
m
b
a
i
,

I
n
d
i
a
B
a
n
g
k
o
k
,
T
h
a
i
l
a
n
d
J
o

b
u
r
g
,

S
o
u
t
h

A
f
r
i
c
a
N
e
w

Y
o
r
k
,

U
.
S
.
A
.
L
o
n
d
o
n
,

U
.
K
.
R
e
s
o
r
t

S
t
y
l
e
4
,
1
3
0
N
/
A
N
/
A
4
,
5
0
0
*
1
,
7
6
0
1
,
4
8
0
2
,
3
4
5
2
,
6
7
0
N
/
A
N
/
A
O
T
H
E
R
M
u
l
t
i

S
t
o
r
e
y

C
a
r

P
a
r
k
8
9
0
1
,
0
0
0
N
/
A
7
8
0
3
1
0
2
1
5
3
7
0
4
1
0
1
,
0
0
0
6
5
0
D
i
s
t
r
i
c
t

H
o
s
p
i
t
a
l
4
,
0
7
0
3
,
5
0
0
N
/
A
N
/
A
1
,
0
8
0
6
9
0
N
/
A
1
,
1
1
0
6
,
8
0
0
4
,
4
0
0
P
r
i
m
a
r
y

&

S
e
c
o
n
d
a
r
y

S
c
h
o
o
l
s
1
,
7
1
0
1
,
7
0
0
N
/
A
1
,
4
0
0
3
2
0
5
3
0
N
/
A
7
6
0
3
,
9
0
0
2
,
0
1
0
E
X
C
H
A
N
G
E

R
A
T
E
S
A
U
D
H
K
D
C
N
Y
S
G
D
R
M
I
N
R
T
H
B
Z
A
R
U
S
D
G
B
P
U
S
$
1
.
0
0

(
a
s

o
f

1

N
o
v
e
m
b
e
r

2
0
1
2
)
0
.
9
5
7
.
9
8
6
.
4
6
1
.
2
2
3
.
1
4
5
4
.
5
8
3
1
.
5
8
8
.
9
3
1
.
0
0
0
.
6
2
E
x
c
l
u
d
e
d
:

e
x
t
e
r
n
a
l

w
o
r
k
s

a
n
d

s
e
r
v
i
c
e
s
;

t
e
n
a
n
t


t
-
o
u
t
;



t
t
i
n
g
s
,

f
u
r
n
i
s
h
i
n
g
s

a
n
d

e
q
u
i
p
m
e
n
t

(
F
F
&
E
)
;

p
r
o
f
e
s
s
i
o
n
a
l

f
e
e
s
;

l
a
n
d

a
c
q
u
i
s
i
t
i
o
n

c
o
s
t
s
;


n
a
n
c
i
n
g

c
o
s
t
s
;

V
a
l
u
e

A
d
d
e
d

T
a
x

(
V
A
T
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.
#

R
a
t
e

i
n
c
l
u
d
e
s

p
a
r
k
i
n
g

a
n
d

m
i
n
i
m
a
l

e
x
t
e
r
n
a
l

w
o
r
k
s
*

R
a
t
e

i
n
c
l
u
d
e
s

F
F
&
E
*
*

U
p

t
o

1
2

s
t
o
r
e
y
s
114
6
R
e
g
i
o
n
a
l

B
u
i
l
d
i
n
g

C
o
s
t

C
o
m
p
a
r
i
s
o
n

(
U
S
$
/
m
²
)

Q
4

2
0
1
2









B
u
i
l
d
i
n
g

T
y
p
e
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
S
A
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
R
E
S
I
D
E
N
T
I
A
L

A
v
e
r
a
g
e

M
u
l
t
i

U
n
i
t



H
i
g
h

R
i
s
e
1
,
2
0
0
1
,
5
0
0
1
,
5
0
0
1
,
3
0
0
N
/
A
1
,
3
6
0
L
u
x
u
r
y

U
n
i
t



H
i
g
h

R
i
s
e
1
,
7
0
0
1
,
8
0
0
2
,
1
0
0
1
,
6
0
0
N
/
A
1
,
7
0
0
I
n
d
i
v
i
d
u
a
l

P
r
e
s
t
i
g
e

H
o
u
s
e
s
2
,
1
0
0
1
,
6
0
0
1
,
9
0
0
1
,
7
0
0
1
,
6
9
0
1
,
2
5
0
C
O
M
M
E
R
C
I
A
L
/
R
E
T
A
I
L
A
v
e
r
a
g
e

S
t
a
n
d
a
r
d

O
f

c
e
s



H
i
g
h

R
i
s
e
1
,
2
5
0
1
,
5
0
0
1
,
8
0
0
1
,
1
7
0
N
/
A
1
,
5
0
0
P
r
e
s
t
i
g
e

O
f

c
e
s



H
i
g
h

R
i
s
e
1
,
6
0
0
2
,
0
0
0
2
,
0
5
0
1
,
2
8
0
N
/
A
1
,
7
7
0
M
a
j
o
r

S
h
o
p
p
i
n
g

C
e
n
t
e
r

(
C
B
D
)
1
,
3
0
0
1
,
3
0
0
1
,
2
5
0
1
,
2
3
0
1
,
3
0
0
1
,
3
5
0
I
N
D
U
S
T
R
I
A
L
L
i
g
h
t

D
u
t
y

F
a
c
t
o
r
y
7
5
0
7
0
0
9
7
0
6
2
0
7
8
0
6
1
0
H
e
a
v
y

D
u
t
y

F
a
c
t
o
r
y
1
,
0
0
0
9
0
0
1
,
1
0
0
7
0
0
9
1
0
8
9
0
H
O
T
E
L

(
i
n
c
l
u
d
i
n
g

F
F
&
E
)
3

S
t
a
r
/
B
u
d
g
e
t
1
,
7
0
0
1
,
7
0
0
2
,
0
5
0
1
,
8
0
0
1
,
8
2
0
1
,
9
0
0
5

S
t
a
r
/
L
u
x
u
r
y
3
,
0
0
0
2
,
6
5
0
3
,
3
5
0
2
,
6
2
0
2
,
9
2
5
2
,
8
0
0
115
6
B
u
i
l
d
i
n
g

T
y
p
e
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
S
A
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
R
e
s
o
r
t

S
t
y
l
e
N
/
A
3
,
2
0
0
3
,
7
5
0
3
,
2
0
0
2
,
6
6
5
3
,
4
0
0
O
T
H
E
R
M
u
l
t
i

S
t
o
r
e
y

C
a
r

P
a
r
k
6
0
0
6
0
0
7
6
0
6
2
0
6
5
0
8
2
0
D
i
s
t
r
i
c
t

H
o
s
p
i
t
a
l
2
,
7
0
0
2
,
0
0
0
3
,
5
9
0
2
,
4
5
0
2
,
3
4
0
3
,
1
5
8
P
r
i
m
a
r
y

&

S
e
c
o
n
d
a
r
y

S
c
h
o
o
l
s
N
/
A
1
,
1
0
0
1
,
2
5
0
1
,
5
1
0
1
,
2
3
5
1
,
4
3
0
E
X
C
H
A
N
G
E

R
A
T
E
S
L
B
P
S
A
R
Q
A
R
B
H
D
O
M
R
A
E
D
U
S
$
1
.
0
0

(
a
s

o
f

1

N
o
v
e
m
b
e
r

2
0
1
2
)
1
,
5
0
7
3
.
7
5
3
.
6
4
0
.
3
7
0
.
3
8
3
.
6
7
E
x
c
l
u
d
e
d
:

e
x
t
e
r
n
a
l

w
o
r
k
s

a
n
d

s
e
r
v
i
c
e
s
;

t
e
n
a
n
t


t
-
o
u
t
;


t
t
i
n
g
s
,

f
u
r
n
i
s
h
i
n
g
s

a
n
d

e
q
u
i
p
m
e
n
t

(
F
F
&
E
)
;

p
r
o
f
e
s
s
i
o
n
a
l

f
e
e
s
;

l
a
n
d

a
c
q
u
i
s
i
t
i
o
n

c
o
s
t
s
;


n
a
n
c
i
n
g

c
o
s
t
s
;

V
a
l
u
e

A
d
d
e
d

T
a
x

(
V
A
T
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.
116
6
M
e
c
h
a
n
i
c
a
l

&

E
l
e
c
t
r
i
c
a
l

C
o
s
t

C
o
m
p
a
r
i
s
o
n

(
U
S
$
/
m
2
)

Q
4

2
0
1
2
B
u
i
l
d
i
n
g

T
y
p
e
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
S
A
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
R
E
S
I
D
E
N
T
I
A
L
A
v
e
r
a
g
e

M
u
l
t
i

U
n
i
t



H
i
g
h

R
i
s
e
3
4
3
4
0
6
3
6
5
4
4
0
N
/
A
4
1
0
L
u
x
u
r
y

U
n
i
t



H
i
g
h

R
i
s
e
4
3
7
5
1
0
5
3
0
7
3
0
N
/
A
5
4
0
C
O
M
M
E
R
C
I
A
L
/
R
E
T
A
I
L
A
v
e
r
a
g
e

S
t
a
n
d
a
r
d

O
f

c
e
s



H
i
g
h

R
i
s
e
3
4
3
4
1
6
4
8
0
N
/
A
N
/
A
4
5
0
P
r
e
s
t
i
g
e

O
f

c
e
s




H
i
g
h

R
i
s
e
4
1
6
4
7
8
7
2
0
6
7
0
N
/
A
5
8
0
M
a
j
o
r

S
h
o
p
p
i
n
g

C
e
n
t
e
r

(
C
B
D
)
3
4
8
4
2
6
3
2
5
4
2
0
3
2
5
5
2
0
I
N
D
U
S
T
R
I
A
L
L
i
g
h
t

D
u
t
y

F
a
c
t
o
r
y
2
2
9
3
1
2
2
9
0
3
5
0
3
1
0
3
6
0
H
e
a
v
y

D
u
t
y

F
a
c
t
o
r
y
2
9
6
4
1
6
3
3
5
4
0
0
4
2
0
4
8
0
H
O
T
E
L

(
i
n
c
l
u
d
i
n
g

F
F
&
E
)
3

S
t
a
r
/
B
u
d
g
e
t
2
7
6
4
1
6
4
9
5
5
8
0
N
/
A
4
1
0
5

S
t
a
r
/
L
u
x
u
r
y
6
7
6
7
2
8
1
,
0
5
0
8
7
0
N
/
A
8
2
0
117
6
B
u
i
l
d
i
n
g

T
y
p
e
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
S
A
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
R
e
s
o
r
t

S
t
y
l
e
7
5
4
8
3
2
1
,
1
5
0
1
,
0
0
0
9
4
0
8
8
0
O
T
H
E
R
M
u
l
t
i

S
t
o
r
e
y

C
a
r

P
a
r
k
1
3
0
1
5
6
2
2
5
1
2
0
1
3
5
1
3
0
D
i
s
t
r
i
c
t

H
o
s
p
i
t
a
l
N
/
A
N
/
A
N
/
A
N
/
A
N
/
A
N
/
A
P
r
i
m
a
r
y

&

S
e
c
o
n
d
a
r
y

S
c
h
o
o
l
s
N
/
A
N
/
A
N
/
A
N
/
A
N
/
A
N
/
A
E
X
C
H
A
N
G
E

R
A
T
E
S
L
B
P
S
A
R
Q
A
R
B
H
D
O
M
R
A
E
D
U
S
$
1
.
0
0

(
a
s

o
f

1

N
o
v
e
m
b
e
r

2
0
1
2
)
1
,
5
0
7
3
.
7
5
3
.
6
4
0
.
3
7
0
.
3
8
3
.
6
7
E
x
c
l
u
d
e
d
:

i
n
c
o
m
i
n
g

s
e
r
v
i
c
e

u
t
i
l
i
t
y

l
i
n
e
s

a
n
d

c
o
n
n
e
c
t
i
o
n
s
;

s
i
t
e

d
i
s
t
r
i
b
u
t
i
o
n

n
e
t
w
o
r
k
s
;

a
s
s
o
c
i
a
t
e
d

b
u
i
l
d
e
r

s

w
o
r
k
;

a
n
d

V
a
l
u
e

A
d
d
e
d

T
a
x

(
V
A
T
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.
118
6
M
a
j
o
r

M
e
a
s
u
r
e
d

U
n
i
t

R
a
t
e
s

(
U
S
$
)

Q
4

2
0
1
2
D
e
s
c
r
i
p
t
i
o
n
U
n
i
t
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
.
S
.
A
.
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
B
a
s
e
m
e
n
t

E
x
c
a
v
a
t
i
o
n

m
³
1
5
1
1
1
2
7
4
5
F
o
u
n
d
a
t
i
o
n

E
x
c
a
v
a
t
i
o
n

m
³
1
6
1
3
1
5
8
7
1
4
I
m
p
o
r
t
e
d

S
t
r
u
c
t
u
r
a
l

F
i
l
l

m
³
3
5
1
3
3
0
1
3
.
5
1
1
1
1
C
o
n
c
r
e
t
e

i
n

P
a
d

F
o
o
t
i
n
g
s

(
2
5

m
e
g
a
p
a
s
c
a
l
s

(
M
p
a
)
m
³
1
2
5
1
2
5
1
4
0
1
2
8
9
2
1
0
8
C
o
n
c
r
e
t
e

i
n

W
a
l
l
s

(
3
2

m
e
g
a
p
a
s
c
a
l
s

(
M
p
a
)
m
³
1
3
5
1
3
0
1
5
0
1
3
5
9
9
1
1
7
C
o
n
c
r
e
t
e

i
n

S
l
a
b
s

(
3
2

m
e
g
a
p
a
s
c
a
l
s

(
M
p
a
)
m
³
1
2
5
1
3
0
1
5
0
1
3
5
1
0
0
1
1
7
F
o
r
m
w
o
r
k

t
o

S
l
a
b

S
o
f

t
s

(
u
n
d
e
r

5

m
e
t
e
r
s

(
m
)

h
i
g
h
)
m
²
2
0
3
2
4
4
2
0
1
9
2
9
F
o
r
m
w
o
r
k

t
o

S
i
d
e

a
n
d

S
o
f

t
s

o
f

B
e
a
m
s
m
²
2
3
4
0
4
4
2
0
1
5
2
9
P
r
e
c
a
s
t

W
a
l
l

P
a
n
e
l

A
r
c
h
i
t
e
c
t
u
r
a
l

w
i
t
h

S
a
n
d

B
l
a
s
t

F
i
n
i
s
h
m
²
2
0
0
2
0
0
1
8
5
2
0
5
1
8
9
1
7
3
R
e
i
n
f
o
r
c
e
m
e
n
t

i
n

B
e
a
m
s

k
g
1
.
1
1
.
2
1
.
4
1
.
2
1
1
S
t
r
u
c
t
u
r
a
l

S
t
e
e
l

i
n

B
e
a
m
s

k
g
3
.
5
4
4
3
2
2
.
9
S
t
r
u
c
t
u
r
a
l

S
t
e
e
l

i
n

T
r
u
s
s
e
s

k
g
3
.
5
4
4
3
3
2
.
9
H
o
l
l
o
w

C
o
n
c
r
e
t
e

B
l
o
c
k

P
a
r
t
i
t
i
o
n

(
2
0
0

m
i
l
l
i
m
e
t
e
r
s

(
m
m
)

t
h
i
c
k
)
m
²
3
0
3
0
4
0
3
0
2
2
2
2
119
6
T
h
e
s
e

r
a
t
e
s

(
U
S
$
)

a
r
e

i
n
d
i
c
a
t
i
v
e

a
n
d

r
e
p
r
e
s
e
n
t

c
o
m
p
e
t
i
t
i
v
e
l
y

t
e
n
d
e
r
e
d

p
r
i
c
e
s

f
o
r

a
v
e
r
a
g
e

s
p
e
c
i

c
a
t
i
o
n

w
o
r
k
s

o
f

t
h
e

t
y
p
e

d
e
s
c
r
i
b
e
d
.

L
o
c
a
t
i
o
n

f
a
c
t
o
r
s

s
h
o
u
l
d

b
e

a
p
p
l
i
e
d

t
o

a
d
d
r
e
s
s

g
e
o
g
r
a
p
h
i
c

v
a
r
i
a
t
i
o
n
s

i
n

e
a
c
h

c
o
u
n
t
r
y
.

T
h
e

r
a
t
e
s

a
r
e

e
x
c
l
u
s
i
v
e

o
f

c
o
n
t
r
a
c
t
o
r
s


p
r
e
l
i
m
i
n
a
r
i
e
s

(
s
i
t
e

e
s
t
a
b
l
i
s
h
m
e
n
t
,

s
c
a
f
f
o
l
d
i
n
g
,

h
o
i
s
t
i
n
g

e
t
c
)

a
n
d

V
a
l
u
e

A
d
d
e
d

T
a
x

(
V
A
T
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.
D
e
s
c
r
i
p
t
i
o
n
U
n
i
t
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
.
S
.
A
.
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
A
l
u
m
i
n
i
u
m

F
r
a
m
e
d

W
i
n
d
o
w

(
6
.
5
m
i
l
l
i
m
e
t
e
r
s

(
m
m
)

c
l
e
a
r

g
l
a
s
s

c
o
m
m
e
r
c
i
a
l

q
u
a
l
i
t
y
)
m
²
2
5
0
4
4
0
2
5
5
2
2
0
2
7
3
2
3
0
A
l
u
m
i
n
i
u
m

C
u
r
t
a
i
n

W
a
l
l

S
y
s
t
e
m

(
i
n
c
l
u
d
i
n
g

s
t
r
u
c
t
u
r
a
l

s
y
s
t
e
m
)
m
²
7
0
0
6
1
5
6
0
0
5
3
5
5
4
0
5
4
0
A
v
e
r
a
g
e

Q
u
a
l
i
t
y

S
t
e
e
l

S
t
u
d

P
a
r
t
i
t
i
o
n

(
w
i
t
h

s
i
n
g
l
e

l
a
y
e
r

p
l
a
s
t
e
r
b
o
a
r
d

e
a
c
h

s
i
d
e
)
m
²
5
0
5
1
9
5
5
2
6
0
3
9
S
u
s
p
e
n
d
e
d

M
i
n
e
r
a
l

F
i
b
r
e

C
e
i
l
i
n
g

m
²
3
2
3
5
3
6
4
8
3
5
3
5
P
a
i
n
t

o
n

P
l
a
s
t
e
r
b
o
a
r
d

W
a
l
l
s

m
²
1
0
8
5
8
4
7
C
e
r
a
m
i
c

T
i
l
e
s

t
o

W
a
l
l
s

m
²
3
5
3
5
7
0
5
3
2
4
3
6
A
v
e
r
a
g
e

Q
u
a
l
i
t
y

M
a
r
b
l
e

P
a
v
i
n
g

o
n

S
c
r
e
e
d
m
²
1
3
0
1
6
0
2
0
0
1
6
0
9
8
1
6
3
A
n
t
i

S
t
a
t
i
c

C
a
r
p
e
t

T
i
l
e
s

t
o

O
f

c
e

a
n
d

A
d
m
i
n

A
r
e
a
s
m
²
6
5
6
0
7
5
3
9
5
6
5
1
120
6
M
a
j
o
r

M
a
t
e
r
i
a
l

P
r
i
c
e
s

(
U
S
$
)

Q
4

2
0
1
2
D
e
s
c
r
i
p
t
i
o
n
U
n
i
t
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
.
S
.
A
.
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
O
R
D
I
N
A
R
Y

P
O
R
T
L
A
N
D

C
E
M
E
N
T
I
n

B
a
g
s

T
n
1
0
3
8
8
8
5
9
5
9
2
6
6
I
n

B
u
l
k

T
n
9
4
7
8
8
0
8
0
8
2
6
1
S
A
N
D
S
a
n
d

f
o
r

c
o
n
c
r
e
t
i
n
g

m
³
2
2
1
2
2
5
2
0
1
3
1
2
A
G
G
R
E
G
A
T
E
1
9
m
i
l
l
i
m
e
t
e
r
s

(
m
m
)

t
h
i
c
k

A
g
g
r
e
g
a
t
e

m
³
1
7
1
4
3
4
2
5
1
5
1
8
R
E
A
D
Y

M
I
X
E
D

C
O
N
C
R
E
T
E
G
r
a
d
e

5
0

O
r
d
i
n
a
r
y

P
o
r
t
l
a
n
d

c
e
m
e
n
t

(
O
P
C
)

m
³
9
7
7
5
1
0
5
1
0
0
7
9
6
8
G
r
a
d
e

4
0

O
r
d
i
n
a
r
y

P
o
r
t
l
a
n
d

c
e
m
e
n
t

(
O
P
C
)

m
³
8
8
7
0
9
9
9
0
7
4
5
9
G
r
a
d
e

2
0

O
r
d
i
n
a
r
y

P
o
r
t
l
a
n
d

c
e
m
e
n
t

(
O
P
C
)

m
³
7
4
6
0
9
4
8
0
6
3
4
9
R
E
I
N
F
O
R
C
I
N
G

S
T
E
E
L
H
i
g
h

T
e
n
s
i
l
e

T
n
6
6
0
6
9
0
9
0
0
8
0
0
7
2
5
6
8
0
M
i
l
d

S
t
e
e
l

T
n
6
9
0
6
9
0
8
5
0
8
0
0
7
2
5
7
4
0
121
6
T
h
e
s
e

c
o
s
t

r
a
t
e
s

(
U
S
$
)

a
r
e

i
n
d
i
c
a
t
i
v
e

a
n
d

r
e
p
r
e
s
e
n
t

s
u
p
p
l
y
-
o
n
l
y

c
o
s
t
s

o
f

t
h
e

m
a
t
e
r
i
a
l
s

l
i
s
t
e
d
.

L
o
c
a
t
i
o
n

f
a
c
t
o
r
s

s
h
o
u
l
d

b
e

a
p
p
l
i
e
d

t
o

a
d
d
r
e
s
s

g
e
o
g
r
a
p
h
i
c

v
a
r
i
a
t
i
o
n
s

i
n

e
a
c
h

c
o
u
n
t
r
y
.

T
h
e

r
a
t
e
s

a
r
e

e
x
c
l
u
s
i
v
e

o
f


V
a
l
u
e

A
d
d
e
d

T
a
x

(
V
A
T
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.
D
e
s
c
r
i
p
t
i
o
n
U
n
i
t
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
.
S
.
A
.
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
H
O
L
L
O
W

C
O
N
C
R
E
T
E

B
L
O
C
K
W
O
R
K
1
0
0

m
i
l
l
i
m
e
t
e
r
s

(
m
m
)

t
h
i
c
k

m
²
4
7
9
1
8
7
6
2
0
0

m
i
l
l
i
m
e
t
e
r
s

(
m
m
)

t
h
i
c
k


m
²
8
9
1
0
2
0
9
7
S
T
R
U
C
T
U
R
A
L

S
T
E
E
L
W
O
R
K
M
i
l
d

S
t
e
e
l

G
r
a
d
e

5
0

t
o

B
S

4
3
6
0

T
n
1
,
5
0
0
1
,
4
0
0
1
,
5
4
0
1
,
3
0
0
1
,
4
7
0
1
,
0
9
0
T
I
M
B
E
R
H
a
r
d
w
o
o
d

M
e
r
a
n
t
i

m
³
1
,
6
0
0
7
3
2
1
1
7
5
7
9
0
7
6
9
8
8
5
S
o
f
t
w
o
o
d

m
³
5
5
0
4
3
2
7
7
5
3
9
5
4
5
4
4
4
3
F
U
E
L
D
i
e
s
e
l

L
i
t
r
e
0
.
8
5
0
.
0
7
0
.
2
7
0
.
2
7
0
.
3
8
0
.
8
9
P
e
t
r
o
l

P
r
e
m
i
u
m

9
5
L
i
t
r
e
1
.
1
4
0
.
1
6
0
.
2
5
0
.
2
7
0
.
3
1
0
.
4
7
122
6
L
a
b
o
r

C
o
s
t
s

(
U
S
$
)

Q
4

2
0
1
2
D
e
s
c
r
i
p
t
i
o
n
U
n
i
t
B
e
i
r
u
t
,

L
e
b
a
n
o
n
R
i
y
a
d
h
,

K
.
S
.
A
.
D
o
h
a
,

Q
a
t
a
r
M
a
n
a
m
a
,

B
a
h
r
a
i
n
M
u
s
c
a
t
,

O
m
a
n
A
b
u

D
h
a
b
i
,

U
.
A
.
E
.
C
o
n
c
r
e
t
e
r

D
a
y
2
8
4
5
4
0
2
9
4
0
2
9
S
t
e
e
l

B
e
n
d
e
r

D
a
y
2
8
5
0
4
0
5
8
4
0
2
9
C
a
r
p
e
n
t
e
r

D
a
y
3
7
5
0
4
4
5
8
4
8
3
1
M
a
s
o
n

D
a
y
3
2
5
0
4
4
5
0
4
0
3
1
G
e
n
e
r
a
l

L
a
b
o
r
e
r

D
a
y
2
0
2
5
2
7
4
6
2
7
2
0
C
r
a
n
e

O
p
e
r
a
t
o
r

D
a
y
6
0
2
5
6
6
8
4
5
4
5
9
H
e
a
v
y

M
a
c
h
i
n
e
r
y

O
p
e
r
a
t
o
r

D
a
y
5
5
6
5
6
6
7
5
5
4
5
4
D
u
m
p

T
r
u
c
k

D
r
i
v
e
r

D
a
y
3
2
5
5
5
0
5
9
3
6
4
1
P
l
u
m
b
e
r

D
a
y
3
5
7
0
5
5
7
5
4
8
4
4
E
l
e
c
t
r
i
c
i
a
n

D
a
y
3
5
6
5
5
5
8
7
4
8
4
6
F
o
r
e
m
a
n

D
a
y
1
1
0
9
0
9
0
1
3
2
6
8
7
4
S
i
t
e

E
n
g
i
n
e
e
r

M
o
n
t
h
4
,
2
0
0
5
,
0
0
0
7
,
0
0
0
5
,
2
5
0
4
,
0
2
0
5
,
6
0
0
C
o
n
s
t
r
u
c
t
i
o
n

M
a
n
a
g
e
r

M
o
n
t
h
8
,
5
0
0
1
3
,
0
0
0
1
4
,
0
0
0
1
1
,
1
3
0
1
1
,
4
0
0
1
1
,
2
0
0
T
h
e
s
e

r
a
t
e
s

(
U
S
$
)

a
r
e

i
n
d
i
c
a
t
i
v
e

a
n
d

r
e
p
r
e
s
e
n
t

a
n

a
l
l
-
i
n

u
n
i
t

c
o
s
t

f
o
r

e
a
c
h

o
f

t
h
e

d
i
s
c
i
p
l
i
n
e
s

l
i
s
t
e
d
.

I
n
c
l
u
d
e
d
:

w
a
g
e
s
,

s
a
l
a
r
i
e
s

a
n
d

o
t
h
e
r

r
e
m
u
n
e
r
a
t
i
o
n
s

p
r
e
s
c
r
i
b
e
d

b
y

l
o
c
a
l

l
a
b
o
r

l
e
g
i
s
l
a
t
i
o
n
,

a
v
e
r
a
g
e

a
l
l
o
w
a
n
c
e
s

f
o
r

c
o
s
t
s

o
f

e
m
p
l
o
y
m
e
n
t
,

r
e
c
r
u
i
t
m
e
n
t
,

v
i
s
a
s
/
p
e
r
m
i
t
s
,

p
a
i
d

l
e
a
v
e
,

t
r
a
v
e
l
,

a
c
c
o
m
m
o
d
a
t
i
o
n
,

h
e
a
l
t
h

a
n
d

w
e
l
f
a
r
e
.

E
x
c
l
u
d
e
d
:

o
v
e
r
t
i
m
e

w
o
r
k
i
n
g
,

c
o
n
t
r
a
c
t
o
r

m
a
r
k
-
u
p

f
o
r

o
v
e
r
h
e
a
d
s

a
n
d

p
r
o

t
,

V
A
T

(
V
a
l
u
e

A
d
d
e
d

T
a
x
)

o
r

s
i
m
i
l
a
r
,

w
h
e
r
e

a
p
p
l
i
c
a
b
l
e
.

T
h
e
s
e

c
o
s
t

r
a
t
e
s

s
h
o
u
l
d

n
o
t

b
e

m
i
s
i
n
t
e
r
p
r
e
t
e
d

a
s

c
o
n
t
r
a
c
t
o
r
s


d
a
y
w
o
r
k

r
a
t
e
s
.
123
6
B
u
i
l
d
i
n
g

S
e
r
v
i
c
e
s

S
t
a
n
d
a
r
d
s
S
u
b
j
e
c
t
B
C
O

(
U
.
K
.
)

S
p
e
c
i

c
a
t
i
o
n


2
0
0
9
B
a
h
r
a
i
n

S
p
e
c
i

c
a
t
i
o
n

U
.
A
.
E
.

S
p
e
c
i

c
a
t
i
o
n
*
Q
a
t
a
r

S
p
e
c
i

c
a
t
i
o
n
O
m
a
n

S
p
e
c
i

c
a
t
i
o
n
L
e
b
a
n
o
n

S
p
e
c
i

c
a
t
i
o
n
N
e
t

:

G
r
o
s
s

R
a
t
i
o

(
T
y
p
i
c
a
l
)
8
0

-

8
5
%
7
0

-

8
0
%
7
5

-

8
0
%
7
0

-

8
0
%
7
0

-

8
0
%
8
0

-

8
5
%
O
c
c
u
p
a
n
c
y

S
t
a
n
d
a
r
d
s



T
y
p
i
c
a
l
1
:
8

-

1
:
1
3
/
m
²
1
:
1
0

-

1
:
1
4
/
m
²
1
:
1
0

-

1
:
1
5
/
m
²
1
:
1
0

-

1
:
1
4
/
m
²
1
:
1
0

-

1
:
1
5
/
m
²
1
:
1
2

-

1
:
1
4
/
m
²
O
c
c
u
p
a
n
c
y

S
t
a
n
d
a
r
d
s



D
e
a
l
e
r
n
o
n
e

s
t
a
t
e
d
1
:
7

-


1
:
1
2
/
m
²
1
:
7
/
m
²
1
:
7

-


1
:
1
2
/
m
²
1
:
7
/
m
²
1
:
7
/
m
²
O
c
c
u
p
a
n
c
y

S
t
a
n
d
a
r
d
s



T
o
i
l
e
t
s
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
2
m
²

u
s
i
n
g

6
0
/
6
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
2
m
²

u
s
i
n
g

7
0
/
3
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
2
m
²

u
s
i
n
g

7
0
/
3
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
2
m
²

u
s
i
n
g

7
0
/
3
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
2
m
²

u
s
i
n
g

7
0
/
3
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
S
i
n
g
l
e

s
e
x

1

p
e
r
s
o
n

t
o

1
4
m
²

u
s
i
n
g

6
0
/
6
0

m
a
l
e
/
f
e
m
a
l
e

r
a
t
i
o

b
a
s
e
d

o
n

1
2
0
%

p
o
p
u
l
a
t
i
o
n
F
o
r
m

o
f

A
i
r

C
o
n
d
i
t
i
o
n
i
n
g
F
a
n

C
o
i
l

U
n
i
t
s
,

V
R
V
/

V
R
F
,

V
A
V
,

D
i
s
p
l
a
c
e
m
e
n
t
,

C
h
i
l
l
e
d

C
e
i
l
i
n
g
/
B
e
a
m
,

N
a
t
u
r
a
l

o
r

m
i
x
e
d

m
o
d
e

v
e
n
t
i
l
a
t
i
o
n
F
a
n

C
o
i
l

U
n
i
t
s
,

V
A
V
,

D
X
,

C
o
n
s
t
a
n
t

V
o
l
u
m
e
F
a
n

C
o
i
l

U
n
i
t
s
,

V
A
V
,

D
o
w
n

o
w

U
n
i
t
s
F
a
n

C
o
i
l

U
n
i
t
s
,

V
A
V
,

V
A
V

w
i
t
h

R
e
-
H
e
a
t
,

D
X
,

C
o
n
s
t
a
n
t

V
o
l
u
m
e
,

p
l
a
t
e

h
e
a
t

e
x
c
h
a
n
g
e
r
s
F
a
n

C
o
i
l

U
n
i
t
s
,

V
A
V
,

D
o
w
n

o
w

U
n
i
t
s
F
a
n

C
o
i
l

U
n
i
t
s
,

V
A
V
,

D
i
s
p
l
a
c
e
m
e
n
t
,

C
h
i
l
l
e
d

C
e
i
l
i
n
g
/
B
e
a
m
H
e
a
t
i
n
g

a
n
d

A
i
r

C
o
n
d
i
t
i
o
n
i
n
g

I
n
t
e
r
n
a
l

C
r
i
t
e
r
i
a
2
4
o
C
,

+
/
-

2
o
C

(
S
u
m
m
e
r
)

2
2
o
C
,

+
/
-

2
o
C

(
W
i
n
t
e
r
)
2
2
o
C
,

+
/
-

1
o
C
2
2
o
C
,

+
/
-

2
o
C
2
2
o
C
,

+
/
-

2
o
C
2
2
o
C
,

+
/
-

2
o
C
2
2
o
C
,

+
/
-

2
o
C
F
r
e
s
h

A
i
r

S
u
p
p
l
i
e
s
1
2

-

1
6

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
1
0

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
1
2

-

1
6

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
1
2

-

1
6

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
1
2

-

1
6

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
1
2

-

1
6

l
i
t
e
r
s

p
e
r

s
e
c
o
n
d

p
e
r

p
e
r
s
o
n
V
e
n
t
i
l
a
t
i
o
n



W
C
s

(
E
x
t
r
a
c
t
)
n
o
n
e

s
t
a
t
e
d
1
2

A
i
r

C
h
a
n
g
e
s

p
e
r

H
o
u
r
3

-

1
0

A
i
r

C
h
a
n
g
e
s

p
e
r

H
o
u
r
1
0

A
i
r

C
h
a
n
g
e
s

p
e
r

H
o
u
r
1
0

A
i
r

C
h
a
n
g
e
s

p
e
r

H
o
u
r

n
o
n
e

s
t
a
t
e
d
124
6
S
u
b
j
e
c
t
B
C
O

(
U
.
K
.
)

S
p
e
c
i

c
a
t
i
o
n


2
0
0
9
B
a
h
r
a
i
n

S
p
e
c
i

c
a
t
i
o
n

U
.
A
.
E
.

S
p
e
c
i

c
a
t
i
o
n
*
Q
a
t
a
r

S
p
e
c
i

c
a
t
i
o
n
O
m
a
n

S
p
e
c
i

c
a
t
i
o
n
L
e
b
a
n
o
n

S
p
e
c
i

c
a
t
i
o
n
I
n
t
e
r
n
a
l

H
e
a
t

G
a
i
n
s



L
i
g
h
t
i
n
g

l
o
a
d
1
2

W
/
m
²
1
5

W
/
m
²
1
2

W
/
m
²
1
2

-

1
5

W
/
m
²
1
2

W
/
m
²
1
2

W
/
m
²
I
n
t
e
r
n
a
l

H
e
a
t

G
a
i
n
s



E
q
u
i
p
m
e
n
t

l
o
a
d

(
T
y
p
i
c
a
l
)
n
o
n
e

s
t
a
t
e
d
2
5

W
/
m
²
1
5

W
/
m
²
1
5

W
/
m
²
1
5

W
/
m
²
1
2

W
/
m
²
I
n
t
e
r
n
a
l

H
e
a
t

G
a
i
n
s



E
q
u
i
p
m
e
n
t

l
o
a
d

(
D
e
a
l
e
r
)
n
o
n
e

s
t
a
t
e
d
6
0

-

2
1
5

W
/
m
²
4
5

W
/
m
²
n
o
n
e
n
o
n
e

s
t
a
t
e
d
n
o
n
e
S
u
p
p
l
e
m
e
n
t
a
r
y

c
o
o
l
i
n
g

a
l
l
o
w
a
n
c
e

(
e
.
o
.
/
%

a
r
e
a
)
2
5
W
/
m
²
,

2
5
%

a
r
e
a
n
o
n
e
2
5

W
/
m
²

t
o

2
5
%

a
r
e
a
n
o
n
e
n
o
n
e

s
t
a
t
e
d
2
5
W
/
m
²
,

2
5
%

a
r
e
a
A
c
o
u
s
t
i
c
s



O
f

c
e
s
N
R

3
5

-

4
0
N
R

3
5
N
R

3
0

-

3
5
N
R

3
0

-

3
5
N
R

3
0

-

3
5
N
R

3
5

-

3
8
A
c
o
u
s
t
i
c
s



C
o
m
m
o
n

A
r
e
a
s
N
R

4
0

-

4
5
N
R

4
0
N
R

4
0

-

4
5
N
R

4
0
N
R

4
0
N
R

4
0

-

4
5
P
r
i
m
a
r
y

P
o
w
e
r



L
i
g
h
t
i
n
g
1
2

W
/
m
²
1
5

W
/
m
²
1
2

W
/
m
²
1
2

-

1
5

W
/
m
²
1
2

-

1
5

W
/
m
²
1
2

W
/
m
²
P
r
i
m
a
r
y

P
o
w
e
r



T
y
p
i
c
a
l
1
5

-

2
5

W
/
m
²
3
5

W
/
m
²
2
5

W
/
m
²
3
0

-

4
0

W
/
m
²
2
5

-

3
0

W
/
m
²
1
5

-

2
5

W
/
m
²
P
r
i
m
a
r
y

P
o
w
e
r



D
e
a
l
e
r
n
o
n
e
4
0
0
,

8
0
0

o
r

1
,
5
0
0
W

p
e
r

d
e
s
k
8
0
0

o
r

1
,
6
0
0
W
/
p
e
r
s
o
n
n
o
n
e
n
o
n
e

s
t
a
t
e
d
n
o
n
e
P
r
i
m
a
r
y

P
o
w
e
r

U
p
g
r
a
d
e

(
e
/
o

p
o
w
e
r
/

%

a
r
e
a
)
2
0

-

2
5

W
/
m
²
,

2
0

-

2
5
%

a
r
e
a
n
o
n
e
2
5

W
/
m
²

t
o

2
5
%
a
r
e
a
n
o
n
e
n
o
n
e

s
t
a
t
e
d
2
0

-

2
5

W
/
m
²
,

2
0

-

2
5
%

a
r
e
a
125
6
S
u
b
j
e
c
t
B
C
O

(
U
.
K
.
)

S
p
e
c
i

c
a
t
i
o
n


2
0
0
9
B
a
h
r
a
i
n

S
p
e
c
i

c
a
t
i
o
n

U
.
A
.
E
.

S
p
e
c
i

c
a
t
i
o
n
*
Q
a
t
a
r

S
p
e
c
i

c
a
t
i
o
n
O
m
a
n

S
p
e
c
i

c
a
t
i
o
n
L
e
b
a
n
o
n

S
p
e
c
i

c
a
t
i
o
n
L
i
g
h
t
i
n
g



O
f

c
e
3
0
0

-

5
0
0
l
u
x
,

U
n
i
f
o
r
m
i
t
y

R
a
t
i
o

0
.
7
4
0
0

-

5
0
0
l
u
x
3
5
0

-

5
0
0
l
u
x
,

U
n
i
f
o
r
m
i
t
y

R
a
t
i
o

0
.
8
5
0
0
l
u
x
4
0
0

-

5
0
0
l
u
x
,

U
n
i
f
o
r
m
i
t
y

R
a
t
i
o

0
.
8
3
0
0

-

5
0
0
l
u
x
,

U
n
i
f
o
r
m
i
t
y

R
a
t
i
o

0
.
8
L
i
g
h
t
i
n
g



S
t
a
i
r
s
/
C
i
r
c
u
l
a
t
i
o
n
2
0
0

-

2
7
0
l
u
x
2
5
0
l
u
x
2
0
0

-

2
7
0
l
u
x
L
i
g
h
t
i
n
g



W
C
s
2
1
5
l
u
x
2
0
0
l
u
x
2
1
5
l
u
x
L
i
g
h
t
i
n
g



P
l
a
n
t
r
o
o
m
s
2
1
5
l
u
x
1
5
0
l
u
x
2
1
5
l
u
x
P
a
s
s
e
n
g
e
r

l
i
f
t
s



C
a
p
a
c
i
t
y

a
n
d

w
a
i
t
i
n
g

t
i
m
e
s
8
0
%

l
o
a
d
i
n
g

w
i
t
h

2
5

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

1
5
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
2
8
0
%

l
o
a
d
i
n
g

w
i
t
h

3
5

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

c
a
p
a
c
i
t
y

o
f

1
1
%

t
o

1
7
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
2
8
0
%

l
o
a
d
i
n
g

w
i
t
h

3
5

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

1
5
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
4
8
0
%

l
o
a
d
i
n
g

w
i
t
h

3
0

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

1
5
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
4
8
0
%

l
o
a
d
i
n
g

w
i
t
h

3
0

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

1
5
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
4
8
0
%

l
o
a
d
i
n
g

w
i
t
h

3
0

s
e
c
o
n
d

w
a
i
t
i
n
g

i
n
t
e
r
v
a
l
,

h
a
n
d
l
i
n
g

1
5
%

i
n

5

m
i
n
u
t
e
s
.

P
o
p
u
l
a
t
i
o
n

d
e
n
s
i
t
y

1
:
1
4
*

S
p
e
c
i

c

t
o

t
h
e

E
m
i
r
a
t
e

o
f

A
b
u

D
h
a
b
i

(
d
i
f
f
e
r
i
n
g

s
t
a
n
d
a
r
d
s

i
n

t
h
e

s
e
v
e
n

E
m
i
r
a
t
e
s
)
.

E
x
c
l
u
d
e
s

i
m
p
l
i
c
a
t
i
o
n
s

o
f

n
e
w

b
u
i
l
d
i
n
g

c
o
d
e

r
e
g
u
l
a
t
i
o
n
s

f
o
r

t
h
e

E
m
i
r
a
t
e

t
h
a
t

c
a
m
e

i
n
t
o

e
f
f
e
c
t

a
t

t
h
e

b
e
g
i
n
n
i
n
g

o
f

t
h
e

2
0
1
1
.

126
6
E
x
c
h
a
n
g
e

R
a
t
e
s
L
o
c
a
l

c
u
r
r
e
n
c
y

t
o

U
S
$
1
.
0
0
L
a
t
e
s
t
2
0
1
2
2
0
1
1
2
0
1
2

v
s

2
0
1
1

P
e
r
c
e
n
t
E
n
d

M
a
r
c
h

2
0
1
3
A
v
e
r
a
g
e
L
o
w
H
i
g
h
A
v
e
r
a
g
e
L
e
b
a
n
e
s
e

P
o
u
n
d
1
,
4
8
6
1
,
4
8
7
1
,
4
7
1
1
,
4
9
9
1
,
4
9
1
-
0
.
3
E
g
y
p
t
i
a
n

P
o
u
n
d
6
.
7
4
6
.
0
3
5
.
9
8
6
.
1
6
5
.
9
2
2
.
0
J
o
r
d
a
n
i
a
n

D
i
n
a
r
0
.
7
0
6
0
.
7
0
6
0
.
7
0
5
0
.
7
0
8
0
.
7
0
6
0
.
0
S
a
u
d
i

R
i
y
a
l
3
.
7
5

x
e
d

x
e
d

x
e
d

x
e
d

x
e
d
K
u
w
a
i
t

D
i
n
a
r
0
.
2
8
4
0
.
2
8
0
0
.
2
7
7
0
.
2
8
2
0
.
2
7
6
1
.
3
Q
a
t
a
r
i

R
i
y
a
l
3
.
6
3

x
e
d

x
e
d

x
e
d

x
e
d

x
e
d
B
a
h
r
a
i
n
i

D
i
n
a
r
0
.
3
7
4

x
e
d

x
e
d

x
e
d

x
e
d

x
e
d
U
.
A
.
E
.

D
i
r
h
a
m
3
.
6
7

x
e
d

x
e
d

x
e
d

x
e
d

x
e
d
O
m
a
n
i

R
i
a
l
0
.
3
8
4

x
e
d

x
e
d

x
e
d

x
e
d

x
e
d
I
r
a
q
i

D
i
n
a
r
1
,
1
4
7
1
,
1
5
1
1
,
1
2
8
1
,
1
6
5
1
,
1
5
8
-
0
.
7
S
o
u
r
c
e
:

O
a
n
d
a
.
c
o
m




















127
6
Measurement Formulae — Two
Dimensional Figures
Figure Diagram Area Perimeter
Square
a² 4a
Rectangle
ab 2(a + b)
Triangle
½ ch a + b + c
Circle
π r²
¼π d²
where 2r = d
2π r
πd
Parallelogram
ah 2(a + b)
Trapezium
½h (a + b) a + b +
c + d
Ellipse
Approximately
π a b
π (a + b)
Hexagon
2.6 x a²
Octagon
4.83 x a²
Sector of
circle
½ rb or q π r²
note b = angle q π r²
Segment of
circle
S - T
where S = area of sector
T = area of triangle
Bellmouth
3 x r²
360
360
14
128
6
Measurement Formulae — Three
Dimensional Figures
Figure Diagram Surface Area Volume
Cube
6a² a³
Cuboid/
rectangular
block
2(ab + ac + bc) abc
Prism/
triangular
block
bd + hc + dc + ad ½ hcd
Cylinder
2π rh + 2πr²
πdh + ½πd²
πr²h
¼πd²h
Sphere
4πr² 4/3r³
Segment
of sphere
2πRh
1
/6 πh (3r² + h²)
1
/3 πh² (3R - H)
Pyramid
(a + b) l + ab
1
/3 abh
Frustum
of a
pyramid
l (a+b+c+d) + √
(ab+cd)
[regular figure only]
h/3(ab +
cd +
√ abcd)
129
6
Figure Diagram Surface Area Perimeter
Cone
πrl + πr²
½ πdh + ¼ πd²
1
/3 πr² h
1
/12 πd²h
Frustrum
of a cone
π² + πR² + πh (R+r)
1
/3 π (R² + Rr
+ r²)
130
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 (cm
2
) = 100 mm
2
= 0.1550 in
2
1 square meter (m
2
) = 10 000 cm
2
= 1.1960 yd
2


1 hectare (ha) = 10 000 m
2
= 2.4711 acres
1 square kilometer (km
2
) = 100 ha = 0.3861 mile
2
Capacity/Volume
1 cubic centimeter (cm
3
) = 1 cm
3
= 0.0610 in
3
1 cubic decimeter (dm
3
) = 1000 cm
3
= 0.0353 ft
3
1 cubic meter (m
3
) = 1000 dm
3
= 1.3080 yd
3
1 liter (liter) = 1 dm
3
= 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
U.S.A. Measures and Equivalents
USA Dry Measure Equivalents
1 pint = 0.9689 UK pint = 0.5506 liter
U.S.A. Liquid Measure Equivalents
1 fluid ounce = 1.0408 UK fl oz = 29.574 ml
1 pint (16 fl oz) = 0.8327 UK pt = 0.4723 liter
1 gallon = 0.8327 UK gal = 3.7854 liter
131
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
1 int. nautical mile = 2025.4 yd = 1.853 km
Area
1 square inch (in
2
) = 6.4516 cm
2
1 square foot (ft
2
) = 144 in
2
= 0.0929 m
2
1 square yard (yd
2
) = 9 ft
2
= 0.8361 m
2
1 acre = 4840 yd
2
= 4046.9 m
2
1 sq mile (mile
2
) = 640 acres = 2.59 km
2
Capacity/Volume
1 cubic inch (in
3
) = 16.387 cm
3
1 cubic foot (ft
3
) = 1728 in
3
= 0.0283 m
3
1 fluid ounce (fl oz) = 28.413 ml
1 pint (pt) = 20 fl oz = 0.5683 litre
1 gallon (gal) = 8 pt = 4.5461 litre
Mass (Weight)
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
Temperature Conversion
C = 5/9 (F – 32) F = (9/5 C) + 32
132
6
Page Left Intentionally Blank
133
7
DIRECTORY
OF OFFICES
134
135
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
Kingdom of Saudi Arabia (Al Khobar)
AECOM Arabia Ltd
Al Khereji Business Centre, Level 1
King Faisal Road, Bandariyah District
PO Box 1272
Al Khobar 31952
Kingdom of Saudi Arabia
T: +966 3 849 4400
F: +966 3 849 4411/8494422
Office E: AAL.MiddleEast@aecom.com

Contact: Fawzi Al-Malki
E: Fawzi.Al-Malki@aecom.com
Kingdom of Saudi Arabia (Jeddah)
AECOM Arabia Ltd
7th Floor, Bin Sulaiman Center
Al Rawdah Street
PO Box 15362
Jeddah 21444
Kingdom of Saudi Arabia
T: +966 2 606 9170
Office E: AAL.MiddleEast@aecom.com

Contact: Andy Ritchie
E: andy.ritchie@aecom.com
136
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
137
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
138
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
United Arab Emirates (Dubai)
AECOM
UBora Tower, Level 43
PO Box 51028
Business Bay
Dubai
United Arab Emirates
T: +971 4 439 1000
F: +971 4 439 1001
Office E: dubai@aecom.com
Contact: Mark Prior
E: mark.prior@aecom.com



139
7
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
140
7
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




141
7
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.
142
7
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
143
7
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 Gálvez
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
144
7
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



Full contact information is available on our global website
www.aecom.com.
145
7

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.