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Middle East Property & Construction Handbook 2010/2011

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Middle East Property & Construction Handbook 2010/2011 MIDDLE EAST PROPERTY & CONSTRUCTION HANDBOOK 2010/2011 1 2 MIDDLE EAST PROPERTY & CONSTRUCTION HANDBOOK 2010/2011 Middle East Offices Abu Dhabi, UAE [email protected] +971 2 444 2040 Beirut, Lebanon [email protected] +961 1 780 111 Doha, Qatar [email protected] +974 4458 0150 Dubai, UAE [email protected] +971 4 423 3690 Manama, Bahrain [email protected] +973 17 588 796 Riyadh, KSA [email protected] +966 1 463 2625 Cairo, Egypt (North Africa) [email protected] +974 5581 7035 / +44 7740 922 931 1 1 DAVIS LANGDON An AECOM company 3 Global presence 3 Rich Middle East history 4 Industry awards 4 2 GLOBAL CONSTRUCTION CONSULTANTS The bigger picture 7 Sector specialists 7 Cohesive solutions 7 Thought leaders 8 3 ECONOMIC ROUND UP Country statistics 2009 11 Economic trends and outlook 12 Construction inflation trends and outlook 17 4 ARTICLES Spotlight on Syria 23 Grand Prix racing – on track in the Middle East 27 Property service charges and the Dubai Strata law 31 High speed rail – high risk, high cost, high rewards 35 Adding value through sustainability management 40 Case study – King Abdulaziz Centre for World Culture 45 Regional integration and potential for religious 50 tourism sector Building information modelling – cost and value 55 drivers for integrated working Bridging the gap – the demand for social infrastucture 58 2 Public private partnership (PPP’s) 61 Development management – creating a viable scheme 66 5 REFERENCE ARTICLES Procurement routes 73 Middle East forms of contract 76 Building regulations and compliance 80 6 REFERENCE DATA Exchange rates 89 International building cost comparison 90 Regional building cost comparison 92 Mechanical and electrical cost comparison 94 Major measured unit rates 96 Major material prices 98 Labour costs 100 Building services standards 101 Measurement formulae - two dimensional figures 104 Measurement formulae - three dimensional figures 105 Weights and measures 107 7 DIRECTORY OF OFFICES Middle East 111 International 114 DEGW 124 3 FOREWORD Welcome to the fifth edition of our Middle East Property and Construction Industry Handbook. I hope you will enjoy this year’s selection of articles, reference information and cost data. During my travels around the region, I receive so many kind comments with regard to the handbook and how it adds value to individuals and organisations. It is therefore a pleasure to continue to support you with this new edition. This year we consider recovery in the Middle East following the 2008/09 economic downturn, as well as construction trends and opportunities. Overall we feel the outlook for the region is positive with the drive to invest in education, health and affordable housing expected to provide ample construction opportunity over the coming years. The necessity for social infrastructure is discussed in Bridging the gap – the demand for social infrastructure, while developments in transport infrastructure are considered in High speed rail: high risk, high cost, high rewards. Other highlights include a focus on Syria as an important emerging market and the prospects for religious tourism as a sector in the Middle East. Last year I noted the news of our merger with DEGW. This year brings another exciting change which marks the start of a new chapter in the evolution of Davis Langdon. In August 2010 it was announced that we are joining AECOM, a leading provider of professional technical and management support services. In partnership with AECOM we will be well positioned to deliver our front-end cost and project management and consultancy services as part of a complete end-to-end offer. This will allow us to better serve our global customers while presenting new long-term growth opportunities for our people. In the Middle East the transaction brings a combined cost and project management team of 750, enabling us to expand our presence in countries such as Saudi Arabia, Kuwait, Jordan and Oman. The combined AECOM team across the region is some 3,500 offering just about every professional service associated with the construction industry. We hope you find the handbook of interest, assistance and value to you and your projects and developments across the region. As with previous years, we are seeking your feedback to support our drive for continuous improvement in everything that we do. Kevin Sims, Vice President Davis Langdon, An AECOM Company 4 1 DAVIS LANGDON 1 2 1 DAVIS LANGDON An AECOM company In 2010 Davis Langdon joined AECOM, a leading provider of professional technical and management support services for government and commercial clients around the world. AECOM has been a publicly traded company on the New York Stock Exchange (NYSE: ACM) since 2007. Listed on the Fortune 500 as one of America’s largest publicly traded companies, AECOM has over 50,000 talented professionals – including architects, engineers, designers, planners, scientists and management professionals – who serve clients in more than 100 countries around the world. Since AECOM was launched as an independent company in 1990, the firm has grown and diversified through corporate expansion and acquisition activities that have significantly broadened the company’s business lines and geographic reach. In partnership with AECOM, Davis Langdon is positioned to deliver consultancy services as part of a complete end- to-end offer, while Davis Langdon’s strong cost and project management capabilities bolster AECOM’s growing portfolio of construction management services. Global presence Davis Langdon is a global business line within the AECOM organisation. With over 3,000 people in over 75 offices worldwide, Davis Langdon can support long-term business needs from both a local and global perspective. We have offices in the following regions: Middle East Bahrain, Lebanon, Qatar, Saudi Arabia, United Arab Emirates and Egypt (North Africa) Africa Botswana, Mozambique, Nigeria and South Africa Australia & New Zealand Adelaide, Auckland, Brisbane, Cairns, Canberra, Christchurch, Darwin, Hobart, Melbourne, Perth, Sydney and Townsville UK & Europe England, France, Germany, Holland, Ireland, Italy, Scotland, Spain, Turkey and Wales 3 1 USA Boston, Honolulu, New York, Philadelphia, Sacramento, San Francisco, Santa Monica, Seattle and Washington DC Asia (In collaboration with the independent firm of Davis Langdon & Seah) Brunei, China, Hong Kong, India, Indonesia, Japan, Kazakhstan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Thailand and Vietnam Rich Middle East history Our Middle East history is a commitment and legacy we are most proud of. We are celebrating over 60 continuous years of adding value to construction projects in the Middle East. Industry awards The consistently high standard of professional service provided by both Davis Langdon and AECOM is recognised throughout the construction industry, as evidenced by the following prestigious industry awards: Davis Langdon Building ‘Project / Construction Manager of the Year’ 2004 World Architecture ‘Top International Cost Consultant’ 17 years in succession Building ‘Consultant / Surveyor of the Year’ 1995, 1996, 2000, 2001, 2003, 2006, 2007, 2008 & 2009 Times ‘100 Best Companies to Work For’ 2005, 2006, 2007, 2008 & 2009 AECOM Engineering News-Record AECOM is ranked No 1 on the magazine’s list of the top 500 design firms Newsweek AECOM featured in Newsweek’s list of the Greenest Big Companies in the US 4 2 GLOBAL CONSTRUCTION CONSULTANTS 5 6 2 GLOBAL CONSTRUCTION CONSULTANTS Davis Langdon has always seen itself as a forward-thinking organisation and has developed a wide range of technical expertise around the development of land, infrastructure and buildings. More recently, ambition has pushed us to think harder about the context in which we give our advice. We believe there are too many consultants who view a problem as a technical issue, and therefore provide a technical solution. In many cases this is simply giving the client the ‘expected’, but such advice can have limited value. The bigger picture If we were to analyse 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 construction consultancy we are today. Sector specialists Where appropriate we structure ourselves around our clients’ sectors, to maintain a detailed understanding of the dynamics influencing their different markets. Simply put, clients have access to individuals who are experts in their specific field. Our ability to offer specialists and not generalists adds real value and sets us apart from our competitors. Cohesive solutions We can support the challenges and opportunities our clients face throughout the life cycle of a development, from business and investment strategy at organisational level right through to operational efficiency of the final built product. 7 2 Our core services of program management, project management and cost management are augmented by a comprehensive range of specialist services which complement what we do at the core,
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