The Future of Project Delivery Technology Trends Shaping Construction and Engineering in the Middle East

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THE FUTURE OF PROJECT DELIVERY TECHNOLOGY TRENDS SHAPING CONSTRUCTION AND ENGINEERING IN THE MIDDLE EAST

NOVEMBER 2020

The Future of Project Delivery 1 2 The Future of Project Delivery PREFACE

TRANSITION POINT

he coming years will see a transformation in the way that projects are delivered in the Middle East and North Africa (Mena) as pro- T ject sponsors reshape their plans to reflect the changing social and economic needs of the region. In a market that is seeing change across a wide range of areas, including a slowdown in real estate demand, localisation of content, and more stringent welfare requirements in response to Covid-19, the two biggest factors that are forcing project owners to adapt their development plans are climate change, and the long-term slowdown in demand for oil. The drive to reduce carbon dioxide and other greenhouse gas emissions to hit the targets set out in the 2015 Paris Agreement is seeing governments demanding the decarbonisation of projects through a greener approach to building and infrastructure design, construction and delivery. Meanwhile, project clients are seeking greater social and economic value from their project investments, as the Covid-19 pandemic and lower oil prices squeeze balance sheets. Private sector real estate investors and developers are delaying or downsizing their investment plans in response to declining demand for many asset classes, while governments are seeking to reduce their capital spending commitments through alternative delivery mechanisms such as public-private partnerships (PPP), on critical infrastructure projects The key to achieving these objectives is the digital transformation of construction, engineering and operation of projects in the region. A call for greater use of advanced building information modelling (BIM) by project clients is forcing designers, contractors, suppliers and end-user operators to integrate information through cloud-based digital twins. The earlier engagement of downstream contractors, suppliers and operators in design that this enables will reduce on site clashes and late-stage variations that lead to delays and disputes. The drive to reduce mistakes and improve safety will see increasing adoption of modular construction techniques, while the development of sensor technology in combination with artificial intelligence will enable real time monitoring of assets during construction and operation, allowing for more efficient utilisation of the asset, more efficient maintenance procedures, and optimisation of services. With some $3.5tn of major projects planned across the Mena region, the pipeline of future projects is bigger than the $3.1tn combined value of all of the project contracts awarded in the region since 2004. So the potential for the region’s incredible growth story to continue is immense. However, unlocking that opportunity depends entirely on the ability of the region’s projects industry to deliver its digital transformation.

The Future of Project Delivery 3 4 The Future of Project Delivery CONTENTS

06-09 20-21 30-31 MARKET OVERVIEW CASE STUDY CLOUD The state of the projects Construction as a manu- Mining operations benefit market in the Middle East facturing process optimis- from the integrated and North Africa region es project delivery workflow approach 10-11 22-23 32-33 FROM THE EXPERT 0IL 4.0 COLLABORATION Digitalisation is transform- Adnoc’s smart growth Common data environ- ing project delivery in the strategy is underpinned ments can aid in Middle East by digital technology streamlining insights

12-15 24-25 34-35 SURVEY DECARBONISATION LEISURE Insights from the people The need for net-zero Creating a seamless at the heart of the con- carbon reform in the customer experience struction sector construction sector through digitalisation

16-17 26-27 36-37 MEGASTRUCTURES DIGITAL TWINS MACHINE LEARNING Technology will be pivotal Advancing building infor- AI-driven transformation in Ciel Tower’s record- mation modelling in the is underway across the breaking ambitions virtual space construction sector

18-19 28-29 SUPPLY CHAIN MANUFACTURING Real-time visibility offers Emirates Global Alumnium improved efficiency and turns to digital twins to lowered costs optimise performance

The Future of Project Delivery 5 MARKET OVERVIEW

Projects planned or underway in the Mena region ($bn) THE REGION’S 1,381 0.23 0.4 10.2 11.5 28.9 30.4 TIPPING POINT 49.6 838.9 65.9 163 AFTER TWO The most significant projects market 175.8 DECADES trend in 2020 has been a slump in the 232.3 476.8 OF GROWTH value of contract awards as a result 243.6 DRIVEN BY REAL of the disruption of the coronavirus 371.3 244.6 (Covid-19) pandemic. The impact of the ESTATE AND Saudi Arabia Iran Algeria Tunisia INFRASTRUCTURE pandemic is profound, changing the eco- UAE Kuwait Bahrain Libya nomic priorities for governments, and PROJECTS, Egypt Qatar Morocco Lebanon investment plans of private developers. Iraq Oman Jordan Yemen 2020 HAS SEEN For project stakeholders, it changes Syria SIGNIFICANT the direction of the market, in the short Mena project contract awards, 2011-2020 ($bn) CHANGES IN term at least, and it is imperative that 250.8 THE MIDDLE companies adapt quickly. 266.4 EAST PROJECTS A five-year slowdown in contract 170.6 MARKET awards following the 2014-2016 crash in oil prices, had already put the re- 243.7 gion’s projects industry under stress, 196.5 even before 2020 and Covid-19. In the four years since 2015, the average annual value of project contract 172.1 196.1 awards in the Middle East and North 153.6 198.7 Africa (Mena) region was about $173bn 77 a year, according to projects tracking 2011 2013 2015 2017 2019 database MEED Projects. This repre- 2012 2014 2016 2018 2020* sents a 28 per cent cut on the $240bn *= 2020 figures cover 10 months from Jan-Oct 2020 average annual value of contract awards in the four years from 2012 to 2015. Mena project contract awards 2018 vs 2019 vs In 2020, the value of awards has 2020, by country ($bn) Total crashed. In the first ten months of the UAE 98.4 year, Mena project contract awards Saudi Arabia 94.9 reached only $77bn as governments Egypt 65.6 and private developers reigned in Qatar 33.9 spending in response to the pandemic. Iraq 28.4 The biggest falls have come in the Iran 17.2 biggest markets, with the UAE, Saudi Oman 16.5 Arabia and Egypt set to record year-on- Kuwait 13.1 year falls in 2020 of about half the value Algeria 12.8 of awards in 2019. Bahrain 9.9 By sector, building and real estate Morocco 7.4 projects, traditionally the biggest seg- Jordan 2.5 ment of the region’s projects market, Lebanon 2 have seen the biggest slowdown in Syria 0.1 Yemen 0.05 awards in 2020, with the value of con- 0.04 struction contract awards reaching only Libya about $24bn in the first ten months Source: MEED Projects Nov 2020 2018 2019 2020

6 The Future of Project Delivery • DATA INSIGHTS

Mena project contract awards 2018 vs 2019 vs 2020, by sector ($bn) of 2020, compared to over $50bn of Total awards for the full year in 2019. Construction 137.96 Transport project contract awards have also slumped in 2020, with the Transport 66.6 value of awards reaching only about Oil 53.63 $16.7bn in the first ten months of 2020, compared to about $26.8bn of awards Power 50.96 for the full year in 2019.

Water 29.5 Project pipeline Despite the devastating impact of Gas 29.38 Covid-19, the potential for new oppor-

Chemical 20.17 tunities remains vast. At the start of November 2020, an estimated $4.3tn of Industrial 14.58 major projects were planned or under construction across the Mena region, 2018 2019 2020 according to MEED Projects. Status of known projects in the Mena region (%) This total includes long-term masterplans that promise to deliver project opportunities for decades to come, such 23% 29% as Saudi Arabia’s $500bn Neom development, as well as thousands of standalone projects and subprojects that are part of larger programmes. 9% Accounting for about $2.9tn of projects, the six oil-rich states of the 3% GCC account for two thirds of all 3% 27% 2% projects planned or underway in the 4% Mena region with Saudi Arabia being the biggest market with about $1.4tn On hold Design Main Contract PQ of projects. The UAE is the region’s Execution Main Contract Bid FEED second-biggest market with $839bn of Study Bid evaluation projects in planning or under execution. The region’s third biggest projects Value of projects in execution by country ($bn) market, and the biggest outside the 0.05 225.5 GCC, is Egypt, which had about $477bn 0.18 2.2 of projects planned or underway at the 3.7 start of November 2020. The Egyptian 3.8 182.9 17.6 projects market has expanded rapidly 18.6 since 2015, as Cairo has invested in 37 infrastructure and new city develop- 40.7 ment as part of the country’s post-Arab Spring recovery plan. 47.7 85.23 Removing the as-yet unknown aspects 48.5 of the region’s long-term masterplans 78.2 72.3 and ‘gigaprojects’, and also the $959bn Saudi Arabia Iran Oman Jordan of projects that are currently on hold, re- UAE Kuwait Morocco Tunisia veals a Mena project market with about Egypt Iraq Bahrain Syria $2.3tn of projects planned or underway. Qatar Algeria Lebanon Yemen While many of the projects that are Source: MEED Projects Nov 2020 officially ‘on hold’ have effectively been

The Future of Project Delivery 7 cancelled, never to return, many others Value of projects in execution, by sector ($bn) are simply stalled, the victims of the 169 deteriorating market conditions caused by the pandemic. Many of these could 98.8 be restarted quickly. But, for now, they remain off the market.

Active projects Of the $2.3tn known projects that are 96.4 currently active in the Mena region, some $864bn (about 39 per cent) are 48.5 374.2 36.7 in execution. 21 219.2 With $225bn of projects currently Construction Oil Gas Chemical in execution, Saudi Arabia is the most Transport Power Water Industrial active market in the region. This a represents a shift in the market since 2018, Status of projects planned in the Mena region (%) when the UAE was the most active market thanks to an Expo 2020 surge 21% in Dubai real estate and infrastructure projects. The UAE is now the region’s second most active market with $182bn of projects in execution. 7% 52% Construction projects, covering building and real estate projects, account 6% for the biggest industry segment of the regional projects market in terms 4% of projects in execution, with about 10% $374bn of projects. Study FEED Main Contract Bid Transport and logistics projects, Design Main Contract PQ Bid Evaluation including road, rail, ports and air- port schemes, account for the second Value of projects being tendered, by country ($bn)

biggest segment with $169bn worth of Saudi Arabia 62.16 projects underway. Qatar 54.16 About 80 per cent of the $1.4tn of ac- 53.61 tive projects in the Mena region are ei- UAE ther under study ($743bn) or in design Oman 27.12 ($407bn). These are the projects that Iraq 26.36 will shape the trajectory of the market Kuwait 20.12 for the coming five-ten years. 18.22 Egypt Opportunity markets Jordan 6 At the start of November 2020, about Tunisia 5 $284bn of projects were at some stage Lebanon 3.3 of tendering. These projects will shape Morocco 3.1 2.9 the short and medium-term outlook and Algeria will be the providers of new construc- 1.2 Bahrain tion opportunities in 2021. Iran 0.77 Three markets – Saudi Arabia, the 0.3 UAE and Qatar – account for about 60 Libya per cent of these near-term opportuni- Syria 0.06 ties, and will provide the most reliable Source: MEED Projects Nov 2020

8 The Future of Project Delivery • DATA INSIGHTS

Value of projects in design, by country ($bn) source of new work for contractors and Saudi Arabia 244.89 suppliers in 2021 and 2022. UAE 190.92 A second group of four countries – Egypt 180.1 Oman, Iraq, Kuwait and Egypt – account for nearly all of the remaining Kuwait 124.69 projects currently being tendered. 116 Iran Based on the value of projects currently Oman 59.3 under study or in design, Saudi Arabia, Iraq 59.2 the UAE and Egypt have the biggest

Algeria 45.4 pipeline of future projects. Significantly, where building and real Qatar 38.75 estate projects account for about 43 Bahrain 25.82 per cent of all projects under execution, Morocco 22.5 they represent only about 12 per cent Jordan 20.5 of projects currently being tendered.

Tunisia 10.9 By contrast, with about $125bn of projects being tendered, oil and gas, Libya 10.6 and petrochemicals projects jointly Lebanon 1.1 account for the biggest value of upcom- Yemen 0.4 ing work with about 44 per cent of the market. Transport projects are about 19 Value of projects being tendered, by sector ($bn) per cent of the value of projects being 46.6 45 tendered ($54bn), while power projects represent about 16 per cent of the pipe- 54.4 line ($45bn).

33.6 Outlook Despite the hiatus in real estate projects in 2020 and 2021, over the longer term, building and infrastructure projects 23 56.2 will continue to account for the biggest share future project opportunities. 22 3.5 Building and real estate projects in Gas Oil Construction Chemical Transport Power Water Industrial the early design or study stage account for about 27 per cent of the value all Value of projects in design, by sector ($bn) projects under design or study in the 119.5 Mena region, and will provide the most 272.2 reliable pipeline of future projects once 118.7 the market conditions improve. With $272bn of projects in design or under study, the transport sector offers the second biggest long-term pipeline 118.6 of future projects. For anyone involved in the Mena projects industry, the pain of the past five 108 310.7 years is set to continue through 2021 61.2 and 2022. But the pipeline beyond is 42 bright. The biggest challenge will come Construction Chemical Power Industrial from an increased focus from projects Transport Gas Oil Water sponsors on higher levels of efficiency, Source: MEED Projects Nov 2020 reduced wastage, and lower costs.

The Future of Project Delivery 9 FROM THE EXPERT

site. This may also see a rise in the use of EVOLVING technologies such as 3D printing ■ For transparency/visibility, there is interest in the use of employer’s informa- BUSINESSES tion requirements (EIR) and other ways to capture and share data throughout the lifecycle of a project. These can benefit INDUSTRY 1. How has Covid-19 changed the out- strategic decision-making and provide LEADERS look for projects in the Middle East? more control as projects progress ANTICIPATE The industry is still coming to terms GREATER ROLE OF with what’s happened before, what is 3. How has Covid-19 affected technolo- DIGITALISATION happening now, and what might happen gy providers such as Oracle? IN THE in the future. Here is what we are see- Oracle Construction and Engineering, CONSTRUCTION ing and where we may be headed next: our partners, and other technology AND ■ A slowdown in private sector projects providers offer solutions that really ENGINEERING as the industry navigates fallout from support the new way that construction the pandemic businesses want to work as they adapt SECTORS IN THE ■ Continued activity for mega projects and evolve their businesses as a result POST-COVID in Saudi Arabia such as Neom, Red Sea of the pandemic. WORLD Development, Qiddiya and others We are seeing an acceleration of ■ Increase in government spending digital transformation as organisations on infrastructure projects to stimulate realise the need to digitise information economies in the GCC. In, Egypt we’ve and have it available to project partic- seen projects that may have been on ipants when and, increasingly, where hold or planned prior to Covid-19 are they need it. now seen as key to stimulating both the Moreover, project leaders are willing industry and the overall economy to innovate and try new approaches to construction to evolve their practices and 2. How should the projects market re- processes, as opposed to working the spond to the challenges of Covid-19? same way they did before the pandemic. From conversations with our customers In lieu of on-site inspections, construc- and industry observers, we are already tion companies have begun embracing a seeing responses to the challenges the variety of remote visual tools—including industry faces such as: drones, laser scanning, light detection ■ Greater emphasis on collaboration— and ranging technology (LiDAR) —to being able to share information across remotely monitor the progress, quality multiple teams remotely and security of their projects. ■ There is a growing interest in identi- Construction companies are increasing- fying processes that can be performed ly finding success with artificial intelli- away from the physical site to mini- gence (AI) in improving jobsite safety and mise the number of people that need mitigating risk when on-site inspections to be on site at any one time. Perhaps are necessary. Driving that is AI’s ability most critical is the need for robust and to provide more safety coverage without considered scheduling of activities that sending additional people to the site— have to be performed on site, again creating automated reports to help with to reduce physical contact and ensure mitigation plans and documentation. social distancing We are also seeing a greater application ■ Methodologies such as modular con- of sensor technology that can alert work- struction and pre-fabrication are seeing ers when they come to close to one anoth- greater interest as project leaders look at er. These proximity alarms will gradually ways to move construction processes off change and improve the habits of workers

10 The Future of Project Delivery • LOOKING AHEAD to practice safe social distancing. Where positive Covid-19 results exist, the ability to track workers’ activity (ie., where they have been and who they have worked near) can help mitigate exposure.

4. What will be the long-term impact of this slowdown? With any situation, it is important to learn and identify better ways of working to protect employees and support the needs of citizens. As we come out of this crisis, I am confident we will see EIRs, and data collection/usage will positive new ways of working and oper- increase in focus. ating from construction businesses. I believe collaboration will improve 6. What will the role of digitalisation be between teams through the greater moving ahead? use of cloud solutions to avoid people It has often been reported that the con- needing to be on site and also to aid struction industry is one of the slowest transparency across a project. to adapt to using technology, but recent We will see more focus on data require- challenges may well be changing that. ments agreements such as EIRs as busi- We are seeing a rapid acceleration in nesses look to data to help shape strate- terms of the acceptance and willingness gic and tactical decisions on projects. to embrace digitisation. The design work and decisions on Digitisation provides greater control the types of materials used on a project and project continuity for owners and will be undertaken more efficiently and general contractors as they look to potentially earlier in the construction increase the visibility into projects by process to have greater visibility into having information captured in one how the project is likely to progress but easily accessible cloud space. This also also to benefit from sustainable con- helps to avoid issues around any future struction practices. slowdowns, as well as the loss of project intelligence that is not shared with 5. What is your outlook for construction wider teams. and engineering in the Middle East in The capturing and sharing of project the coming years? data and information is critical for the For the short term, we believe that in- industry to benefit from strategic deci- frastructure and residential projects will sion-making. This will help to overcome drive the industry forward with commer- both the traditional challenges of low cial projects where activity has slowed productivity, project overspends and taking a little more time to recover. project delays, as well as new challenges Digital transformation within con- related to site safety and sustainability. struction businesses will accelerate as Also, with information that is not dig- businesses recognise the value of col- itised, important project knowledge can ABOUT THE AUTHOR laboration, visibility and construction be lost from a changeover of employees, innovations as well as a greater emphasis such as during a project halt. The poten- on reducing the number of people on site tial dramatic productivity impact from Baraq Hadi is the and processes being undertaken on site. such loss underscores the need to effec- vice president – Middle East at Productivity and efficiency will con- tively capture, centralise and manage Oracle Con- tinue to be important for construction data across teams. That’s the foundation struction and projects, but sustainable construction, for a successful project today. Engineering

The Future of Project Delivery 11 SURVEY

What is your outlook for engineering projects OUTLOOK FOR and construction in the Middle East post Covid-19? 37.62% TECHNOLOGY 17.82%

THE PANDEMIC In a survey of construction companies HAS HIGHLIGHTED conducted by MEED in September, the THE NEED FOR majority of participants said they were 29.7% GREATER FOCUS slightly optimistic about the outlook for ON DIGITAL engineering projects and construction 7.92% 6.93% TRANSFORMATION in the Middle East post Covid-19. Strongly optimistic; Neutral; we are past the worse, Nearly 38 per cent of the participants industry will recover but challenges will continue said that the industry will recover stead- quickly to pre-Covid levels ily over the next 18-24 months. Mean- Slightly optimistic; industry Slightly pessimistic; current will recover steadily over market conditions will while, 8 per cent said that the industry 18-24 months prevail throughout 2021 will quickly recover to pre-Covid levels, Strongly pessimistic; the situation will get worse indicating strong optimism. However, nearly 30 per cent said they were “slightly pessimistic”, expecting How do you think Covid-19 will affect Middle current market conditions to prevail East project spending in the coming years? throughout 2021. Increased use of private “The epidemiological curve of cov- finance models (PPP) 14.85%

id-19 is still increasing,” writes one No change in procurement survey respondent who supports this models; spending cuts will 20.79% slow projects outlook. “Risk is still out there for a Cancellation of projects due second and maybe third wave. Hence to lack of finance 31.68% V- shape recovery is too optimistic. Project sponsors tap into new funding sources such as 12.87% Without the recovery of travel and tour- export credit ism industries, growth of the construc- Governments increase spending on projects 19.80% tion economy is a big question mark. But because it is closely connected with Source: MEED Industry Survey the supply chain labour and material, I believe in a U- shape recovery, at least 12 months from now.” sentiment in favour of alternate fund- Nearly one third of participants ing models. 15 per cent of the survey (about 32 per cent) expect greater can- participants said they expect to see an cellation of projects in the Middle East increased use of private finance mod- due to a lack of finance. Another 21 per els such as public-private partnerships cent expects delays on projects due to (PPP), while another 13 per cent said a spending cuts. greater number of project sponsors will “It is always a wrong sign to progress tap into funding sources such as export in bad times,” says one respondent. credit agency (ECA) finance. However, nearly 20 per cent also “An example of this is traditional cli- say they expect an increased project ents such as Adnoc that haven’t turned spending by governments, with one to ECA finance previously are now participant stating that “increased beginning to review them in tenders,” government spending will be required says one participant. to kickstart economies”. When asked to rank nine trends in There also seems to be growing terms of which would be most de-

12 The Future of Project Delivery • TRENDS IN CONSTRUCTION

Which trends will shape the Middle East cisive in shaping the market in the projects market in the coming years? coming years, government spending Skills shortages 4.0 cuts ranked number one. Govern- ment-backed schemes form a significant Increased focus on worker welfare and safety 3.6 chunk of the projects commissioned particularly in the infrastructure, oil Increase in disputes 3.9 and gas and utilities sectors. Rising competition 4.7 “Most governments are facing in- Changing design philosophy creasing pressures on their finances and eg: modular designs, flexibility, 5.1 ability to fund major capital projects, smart infrastructure especially if oil prices remain at their Digitalisation and innovation 5.6 current levels,” says a respondent. Pressure on prices and 5.5 contract renegotiations Challenges Decarbonisation 5.3 Late payments and reduced profit margins are seen as the biggest challenges 6.9 Government spending cuts affecting the stability of the engineering and construction industry. This is What are the biggest challenges affecting followed by unfair risk allocation on the stability of the E&C industry post Covid? contractors and issues around securing (select two) working capital. Late payments and 71.29% “For too long contracts have been one delayed cash flow sided,” says one respondent. “Clients Smaller profit margins 39.60% continue to expect lower fees even when costs have increased due to Cov- Poor productivity 6.93% id-19. The situation is unsustainable.”

Lack of collaboration and 6.93% None of these challenges are new to poor communication the market. Following the collapse of Poor scheduling and 8.91% oil prices in 2014, the oil exporting forecasting countries in the region have struggled Securing working capital 19.80% to match fiscal breakeven prices with crude oil rates. Lack of skilled workers 9.90% The UAE was investing heavily in Safety risks 4.95% diversifying its economy, with Dubai taking the lead on the back of tourism Attitudes towards 6.93% technology adoption and Expo 2020, but still felt the pinch when crude prices plummeted to nearly Unfair risk allocation 22.77% on contracts $28 per barrel ($/b) in January 2016,

Other (please specify) 3.96% from highs in mid-2014 at $115/b. The Middle East economy finds itself What measures can E&C players take to man- in a similar situation in 2020, once age cash flow issues? again facing the effects of debilitating oil prices, exacerbated by a health Negotiate better 29.70% payment terms crisis. Project owners are now focusing Transparent procurement and 21.78% on retaining working capital and min- supply chain practices imising overheads, affecting cashflow Greater visibility of project 21.78% costs and schedules across the supply chain. Portfolio planning and holistic 19.80% Nearly 30 per cent of the survey approach to projects participants said that negotiating better Export finance solutions 6.93% payment terms could be a solution for Source: MEED Industry Survey engineering and construction players to

The Future of Project Delivery 13 Covid-19 will introduce a greater focus on better manage cashflow issues. Around digitalisation moving ahead. 44 per cent said that transparent procurement and supply chain practices, 49.50% and a greater visibility of project costs 40.59% and schedules is also a critical measure. Export finance is regarded as another Strongly agree Neither agree solution to ease cashflow pressure. nor disagree “An external funding source [can] Somewhat agree keep the flame burning and [enable] completion in required time, cost and Somewhat disagree quality parameters.” Strongly disagree 8.91% 0% Digitalisation 0.99% The 2020 Global Innovation Index (GII) Which of the following digital measures will report by the World Intellectual Proper- your company prioritise moving ahead? ty Organisation notes that “the current Design and construction crisis hit the innovation landscape at a coordination (using tools 24.75% time when innovation was flourishing”. such as BIM) Mobility and remote 51.49% The pandemic has not changed the working options potential for breakthrough technologies Building a construction 4.95% and innovation. The GII report states ecosystem that top companies and research and Reporting and analytics 13.86% development (R&D) spenders would be

ill-advised to drop R&D, use of intel- Vendor management 4.95% lectual property (IP), and innovation in their quest to secure competitiveness. Source: MEED Industry Survey Digitalisation will play an important role in the coming years, as cost pres- highlights that Middle East and North sures increase and companies struggle Africa IT spending is forecast to reach to ensure productivity and efficiency $160.24bn in 2020, recording 2.4 per while still making a profit. cent growth compared to 2019 spend- Nearly half of the survey participants ing. Much of this growth will be driven said they strongly agree that Covid-19 by enterprise software devices, which will introduce a greater focus on digital- are expected to achieve double-digit isation moving ahead. growth in 2020. This trend will con- The Middle East is not new to tech- tinue for the next three years as more nology. The UAE ranks 34 in the GII organisations move to cloud-based 2020 report, while Saudi Arabia is 66. products and services. In the UAE in particular, knowledge The majority of the MEED survey economy has been prioritised for devel- respondents said they would prioritise opment. The UAE Ministry of Econo- mobility and remote working options. my’s 2019 Annual Economic Report One of the biggest challenges imposed highlights that between 2014 to 2018, by Covid-19 is the restriction on move- the country’s information and commu- ments and social distancing measures. nications sector grew by a total of 27.2 But companies are also finding that per cent and at an average annual rate work that was previously conducted us- of 5.4 per cent. The digital economy ing paper and on-site physical meetings now contributes 4.3 per cent to GDP, can easily be done through virtual calls and that figure is predicted to rise sub- and remote supervision systems. stantially in the coming years. “Remote construction sites are the Research from Gartner in March 2020 future,” says one survey participant.

14 The Future of Project Delivery • TRENDS IN CONSTRUCTION

What do you think is preventing E&C firms from Which of the following technologies is your investing in digital solutions? company already using or testing in its operations? (select all that apply) Cost 19.80% Building information Lack of awareness 27.72% modelling 47.52%

Lack of top-down initiative 27.72% Digital twins to drive innovation 11.88%

Dated attitudes towards 21.78% technology adoption Cloud collaboration 53.47% Other (please specify) 2.97%

Artificial intelligence 26.73% and machine learning What is the biggest reason to harness digital technologies for E&C projects? Internet of Things 32.67% and sensors 5.94% 0.99% 24.75% 27.72% Drones 23.76%

Robots 10.89%

Augmented and 12.87% virtual reality tools

20.79% Wearable tech such as 11.88% helmets and wrist straps) 12.87% 3.96% 2.97% Prefabrication and 27.72% Streamlining resources and Improved productivity modular construction greater visibility of supply chain

Enhanced testing and Worker safety 3D printing 13.86% surveying Better data sharing Monitoring and inspections Reduced operational Improved communication Others 12.87% expenditure among project teams Source: MEED Industry Survey

“Managing remote projects and day- ing in digital solutions. Cost was also to-day activities are feasible and cost highlighted as a reason by nearly 20 per effective, and will improve supply chain cent of those surveyed. management considerably.” “Construction and engineering indus- Nearly 25 per cent of the respond- try needs lot of capital investment for ents also said design and construction digitalisation, and the prevalent eco- coordination will be prioritised by their nomic circumstance will hinder it,” says companies, while 14 per cent highlight- a respondent. ed reporting and analytics. Investors and procurers of projects, However, E&C firms still lag behind can stimulate greater technology adop- their counterparts in other sectors when tion in the construction sector. This can it comes to the adoption of technology. be done by setting minimum technology Nearly 56 per cent of the respond- requirements on government projects, ents said that a lack of awareness and building local R&D capabilities and top-down initiative to drive adoption reducing barriers and risks unique to are preventing E&C firms from invest- emerging technologies.

The Future of Project Delivery 15 MEGASTRUCTURES

in the design of large, complex projects”. TOWERING Computer aided design software was used during the development of the tower’s architectural design and the AMBITIONS conceptual phases, helping simplify and speed up otherwise complex tasks. The design team also used software DIGITAL Dubai’s affinity for delivering some for renders and 3D visualisation tasks, TOOLS ARE of the most complex engineering and while more common software packages TRANSFORMING construction modern day marvels is including Photoshop, PowerPoint and THE DELIVERY well-known. These projects have set InDesign were employed for visual pres- OF COMPLEX benchmarks for ongoing and future entations and graphic editing. ENGINEERING developments not just in the city but Jan says that the “greatest challenge PROJECTS IN across the region. is how these tools are integrated, across The past few years have seen digital- all aspects of design, to produce effi- THE REGION isation play an increasingly significant ciencies and to unlock potential”. role in the development and delivery of This requires the management of data these landmark construction projects. and the effective visualisation of design One such project currently underway issues so that informed decision-making is the Ciel Tower, which at a height is possible within what are usually very of 365 metres, is set to become the compressed time schedules, he says. world’s tallest hotel when inaugurated “There are many aspects of this pro- in 2023. ject that required the use of integrated “Despite the broader challenges that technologies, to address and to over- have impacted the construction sector come complex design issues,” he says. as a result of the Covid-19 lockdown, “An initial challenge for us was how best we are making great progress in the to resolve the basement design of this development of Ciel,” says Rob Burns, development. When we commenced CEO of The First Group (TFG), the with design, the property had already developer behind the project. been partially developed with be- More than 11,800 cubic metres (cbm) low-grade concrete piles for an unbuilt of concrete and in excess of 3,000 residential tower. tonnes of steel have been used to con- “This earlier project went on hold 12 struct the building’s foundations. The largest concrete pour, completed in mid-August, comprised 7,000cbm of concrete over a 48-hour period.

Turning digital “Today, the design of complex buildings, especially of super tall structures, requires architecture and engineering firms to embrace the latest technological tools,” says Yahya Jan, president and design director at NORR, the architecture firm on the project. “While our industry at large is still in its early days in adopting latest technologies in the way projects are designed and engineered, BIM and other data modelling has now been widely implemented

16 The Future of Project Delivery • REENGINEERING RISK years ago and the redevelopment of this being regarded as a way to streamline property was now as an iconic hotel operational processes, reduce costs and tower, completely different in shape and maintain a competitive edge in what is form, to the earlier design for a residen- becoming an increasingly challenging tial tower,” explains Jan. “As a result, economic environment. the interface and resolution of an exist- “We are constantly assessing emerging below-grade piling structure, to the ing technologies and developing new revised design of the tower and podium, approaches in a bid to drive efficiencies was a detailed structural study that across every aspect of our organisa- required latest technology to resolve.” tion,” says Al-Bawab. “While we do not set ‘tech targets’ for our contractors, we pride ourselves on identifying and working with partners who are similarly ambitious in their approach to technology and adopting new techniques to overcome complex challenges, while setting new benchmarks for excellence across all facets of their operations,” he says. TFG’s Burns believes that as one of the world’s largest projects markets, developers in the UAE have a key role The shaping of the tower was heavily to play in promoting the use of digital influenced by wind tunnel and com- technologies in the design and con- putational fluid dynamic modelling to struction of projects across the region. minimise wind loads on the tower and The rapid evolution of solutions also related loading on the subterranean means that design firms need to continu- structure. In the later stage of design, ously invest in the training and hiring of technological modelling of façade, spa- professionals that have an understanding tial and environmental aspects of the of how technology can be used. design was instrumental in establishing “Today, I believe there are two issues agreed design direction. that many of us face as designers of The project management team is uti- large complex projects,” says Jan. lising collaborative technologies that are “The first is that the earlier genera- aiding workflows during the building’s tion of architects and engineers, those construction phase, including Oracle’s in mid-career or older, are often not as Aconex cloud-based operation manage- open to recognising and embracing the ment platform, which gives access to tremendous potential of leading-edge each stakeholder in the development. technologies as they should be. “The Aconex platform has enabled “The second is that the younger gen- each party to create, review and modify eration of designers, while extremely Rob Burns documents, drawings and other vital adept at the use of digital solutions, (topmost) is data in real-time both onsite and from often do not have a deep understanding the CEO, and Amr al-Bawab remote locations,” says Amr al-Bawab, of construction methods at this early (middle) is the chief construction officer at TFG. “It has stage of their careers. chief construc- made it far easier and simpler to track “The challenge for us then, is to find tion officer, and control processes, from design and ways to overlap these capabilities and both at The construction to signoff and completion.” constraints – to create an environment First Group. Yahya Jan is the within our design groups that makes president and A new normal the most of these synergies and that en- design director In the post-Covid world, digitalisation is courages experimentation and growth.” at NORR

The Future of Project Delivery 17 SUPPLY CHAIN

go before the use of the technology is REAL TIME woven into standard operating procedures. A paper-centric workflow has been the norm in the construction in- VISIBILITY dustry for many decades, and while the lack of visibility and real-time access to information a paper-centric workflow DIGITALISATION 1. How important is transparency and provides is painful, I liken this to a IS OFFERING THE increased efficiency for construction ‘latent’ pain. OPPORTUNITY projects, especially post Covid? However, as the adoption of tech- TO REFORM Many companies have now started nologies such as building information TRADITIONAL implementing a digital supply chain and modelling (BIM) and 4D/5D planning SUPPLY CHAIN digital workflows to provide a single increase, the desire for real-time data PRACTICES ON source of truth regarding material avail- such as material availability to feed the CONSTRUCTION ability and status. models and tools become greater. PROJECTS The real-time material information Construction contractors, owners and provided by these digital material operators will begin to search for ways workflows (termed ‘material readiness’) technology can provide more accurate is crucial to providing the transparen- and timely information to feed the mod- cy needed to ensure that construction els and planning tools. planners have the information about We are seeing more companies em- what material will be available for brace digitalisation, and the analytics installation so that construction crews they can create with the data, so they can continue to operate efficiently and can make more informed decisions in a without unnecessary, or unplanned, timely and efficient manner. work disruptions. We call this ‘feeding the beast’ and this has become all more 3. How does the Jovix platform ensure important now that Covid-19 has creat- safety and security of client data? ed situations where construction crews When we first started implementing may be operating at less than their Jovix more than a decade ago, the con- optimal capacity due to crew members cept of cloud and Software as a service missing work, required social distanc- (SaaS) were not as commonly trusted ing procedures, etc. and accepted within the construction Simply put, Covid-19 has introduced industry, and on-premise software solu- many new variables that can disrupt the tions were more of the norm. construction schedule and plan, and there is no reason that a lack of information about material availability and status is a variable project teams should have to deal with, given the proven technology available today to effectively manage materials.

2. Where does the construction industry currently stand with regards to adoption of tracking solutions? While we have seen a great uptick in adoption and implementation of material tracking technology and digital workflows in the last few years, the reality is that we have a long way to

18 The Future of Project Delivery • REENGINEERING RISK

However, as the underlying cloud using the integration of Jovix mobile technologies have become more widely apps and sensor technology to provide adopted, the benefits far outweigh any near real-time visibility of materials perceived data security related risks. throughout the global supply chain. Our application has been tested The client continues to work with the and past security audits and reviews Jovix team to conduct detailed value from some of the largest construction assessment as construction comes close contractors and owner operators in the to completion, reporting documented world. We use the latest cloud security savings in the millions of dollars, even applications, processes and procedures in a low-cost labour market. to protect our client’s data. Additionally, role-based access is 5. What is the biggest benefit of digi- utilised to ensure that multiple project talisation in project management and team members, from different compa- portfolio planning? nies (eg: suppliers, fabricators, general Access to more accurate, and real-time, contractors, sub-contractors, owners, information that project managers can etc) can only access the information of use to make more informed decisions, which they have been granted access. before a construction productivity We see a great future for the appli- impacting event occurs, is one of the cation of blockchain in construction biggest benefits of digitalisation. and we are currently in the process of Materials represents one of the most deploying Jovix integrated with block- critical constraints against a work chain for a large client in the Middle package or scope of work, and histor- East. The use of Jovix with IoT tech- ically, access to accurate and timely nology can provide the real-time data information about material availability collection needed to realise the full for a work package has been difficult benefits of blockchain. to achieve. While there can be many reasons 4. Was Jovix deployed on any projects that can explain this lack of access in the Middle East? to information, one reason that has Jovix was implemented by one of our become obvious over the last decade enterprise engineering, procurement, is the underlying paper-centric work and construction (EPC) customers to processes used to collect, process and digitise the materials management work analyse information regarding material processes used in the construction of a availability and status. refinery project located in Kuwait. Industry studies have shown that ma- Jovix was fully integrated with the terials can account for 40-50 per cent EPC’s procurement and work packing of project cost and control up to 80 per system, and leveraged mobile device, cent of the project schedule. IoT sensors and advanced data analytics You simply cannot complete a scope to remove impediments to productivity, of work without the required materials, ensuring material availability and sup- and you certainly cannot be confident in ply chain visibility to support construc- your construction plans if you are not tion activities. confident in the accuracy and timeliness The project onboarded over 160 sup- of the information used as an input to ABOUT THE AUTHOR pliers into the Jovix digital supply chain the planning effort. programme by leveraging vendor-sup- The current and future predicted loca- plied barcodes and passive RFID tags tion and status of materials can provide Jon Chesser is the chief associated to finished materials at an excellent proxy for forecasting future revenue officer the supplier and fabrication facilities. construction schedule within necessary of Atlas RFID Construction productivity was improved adherence and performance norms. Solutions

The Future of Project Delivery 19 CASE STUDY

employees by October 2020, contracted STREAMLINED once again to DuBox. The extension phase was delivered to the client in Sep- tember 2020, a month ahead of sched- AND EFFICIENT ule, saving 20 per cent of time. The Red Sea Project OFFSITE Modular construction is increasingly In July 2019, Saudi Amana Contract- MANUFACTURING seen as a cost-effective, efficient and ing, a part of the Amana Group, was AND MODULAR environmentally-friendly alternative to awarded a contract to design and build CONSTRUCTION IS traditional construction. If utilised effec- a management hotel by the Red Sea EMERGING AS ONE tively, it could solve many of the produc- Development Company (TRSDC). OF THE BIGGEST tivity challenges facing the industry. The contract is part of the Coastal DISRUPTORS “Modular methodologies are gaining Village initiative by TRSDC that will IN MODERN higher traction from developers, archi- provide accommodation, office space, tects and contractors across the region and supporting civil amenities to the CONSTRUCTION as this innovation can cut projects costs 40,000 workers and staff that will work and durations, thus boosting profitabil- at the Red Sea project both during and ity in a volatile market without compro- after development. mising quality,” says Riad Bsaibes, The manufacturing of pre-finished president and CEO of UAE-based Ama- modular units was subcontracted to na Investments. DuBox, which has a factory in Rabigh, In recent years, Amana’s subsidiary Saudi Arabia. DuBox has seen a growing appetite for TRSDC wanted a fast-track and sus- its modular design and offsite manufac- tainable construction solution as part turing solutions across the GCC region. of its competitive bid process. DuBox’s proposal promised finished products Qiddiya project that could be relocated as needed, with In June 2019, DuBox was awarded a a shorter delivery timeframe. contract by Qiddiya Investment Com- TRSDC in an official statement stated pany to build a 2,000 square-metre that the contract was awarded to DuBox building located 30 minutes from for its “innovation and proven track re- Riyadh to serve as a temporary hub for cord in delivering pre-finished modular the Qiddiya team. units to a very high standard of quality Qiddiya wanted a fast-track solution and its capabilities to provide with a to mobilise their 150 employees on-site stand-out residential hotel in half the in the shortest time possible. DuBox time using PPCV methodologies”. proposed a six-month delivery timeline, Manufacturing in a factory-controlled using prefinished, volumetric concrete environment promotes far lower wast- (PPVC) construction methodology. This was to be achieved by shifting 85 per cent of construction to a factory-controlled environment, reducing the overall schedule by 30 per cent and minimising impact on the environment. DuBox was able to deliver within a span of five months, between June-December 2019, providing its client with a quicker time to market. In April 2020, Qiddiya wanted to expand its office for another 150

20 The Future of Project Delivery • REENGINEERING RISK age rates than an open construction Additionally, the transfer of site, potentially reducing material waste site activities to a controlled KEY FACTS by 30 per cent. There is also minimal processed environment can disruption to the ambient environment have a significant impact on Qiddiya site office when compared with traditional practic- the performance of the build- • Delivered a month es. This becomes especially important ing in terms of durability and ahead of schedule in pristine environments (such as that operational cost • 24 PPVC modules of TRSDC) or existing communities. The solution also reduces delivered to the The PPVC modules are shipped via the need for manpower by project site from trailers from Rabigh to the Red Sea pro- 30 per cent and improves the the DuBox factory ject site. In July 2020, a major milestone work safety environment by • Key milestone: was achieved as the first modules were up to 70 per cent. Factory nine-day assem- delivered to the Red Sea project site. production process is said to bly of 24 PPVC have far lower wastage rates modules on site The process than an open construction delivered from The DuBox off-site methodology site, potentially reducing ma- DuBox factory involves subdividing a building into terial waste by 30 per cent. smaller units called modules, which are There is minimal disruption Qiddiya site office designed and manufactured offsite in a to the ambient environment extension controlled factory environment. when compared with tradi- • Agile approach in Modules in various stages of com- tional practices. project manage- pletion form a production line from Because the process is ment as design assembly to complete fit-out. factory-based, fourth indus- and engineering All architectural, structural and elec- trial revolution tools (eg: IoT, works completed tromechanical design processes occur automation, Big Data) are remotely at the same time since the modules are much more easily integrated • Completed in Sep- essentially part of an entire building. into the construction process tember 2020 and Buildings are designed in a BIM vir- than in traditional projects. ahead of schedule tual environment, resulting in a single For example, IoT is utilised by one month resource of information that allows all at DuBox factories to track despite Covid-19 design disciplines to work effectively. the presence of all employ- Buildings are virtually tested, enabling ees and their activity-based The Red Sea project asset managers to work with their con- productivity. • 85 per cent of sultants collectively to evaluate building Hospitality clients are residential units performance prior to manufacturing increasingly interested in manufactured and construction. “smart” modules that pre-fit- offsite at DuBox ted in the factory with sen- factory in Rabigh Off-site benefits sors enabling them to track • DuBox delivers Cost and programme certainty are guar- the consumption of power 20 per cent of the anteed to a greater extent in modular and water in their rooms im- residential build- construction. This dramatically lowers mediately upon installation. ings to the site in site overheads for all stakeholders includ- Off-site provides accurate July 2020 ing the client, consultant and contractor. delivery mechanics, ena- • Overall construc- The repetitive, simplified and stand- bling clients to become more tion work 30-50 ardised factory operating process flexible with their product per cent faster promotes safer working conditions. offering, as well as the agile with minimal Shifting 85 percent of construction management of market sup- impact on environ- activities off-site to a factory-con- ply and demand. The final ment; lower site trolled environment reduces the project products are easily relocat- overheads for all delivery timeline as manufacturing is able, enabling the client to stakeholders performed around the clock. relocate as needed.

The Future of Project Delivery 21 OIL 4.0

daily work, and how it can be used to A NEW ERA FOR solve their everyday challenges. Experience shows us that when the workforce is engaged, they create their OIL AND GAS own digital ideas, and become co-owners of new digital solutions. Hence, focus on change management, ABU DHABI 1. What do you think has been crucial education and upskilling of digital NATIONAL OIL to shaping Adnoc’s approach as a digi- skillsets are key to breaking down these COMPANY’S tal disruptor? initial barriers to change. STRATEGY FOR Since the launch of Adnoc’s group- GROWTH IS wide transformation programme in 3. Oil and gas continue to play a pivotal UNDERPINNED 2016, digital was identified as a criti- role in the GCC’s economies. Do BY AN APPETITE cal success factor to achieve Adnoc’s you think this makes it important for FOR DIGITAL 2030 strategy. The digital agenda was companies such as Adnoc to spear- TRANSFORMATION strongly supported by the CEO and top head innovation? management team, and the program Adnoc clearly has a significant role to was launched with a focus on value play when it comes to innovation, both creation by solving real business issues for digital solutions and more tradition- and challenges. al research and development. We created the Panorama Digital At Adnoc, we have clear ambitions to Command centre to drive this pro- be a major innovation player, and we gramme, but digital solutions is also the have recently updated our innovation focus area for the entire business, and strategy to reflect this. We will focus on all our operating companies. The exact increased cooperation with our current business value is hard to measure, as partners and suppliers, strengthen our there are so many projects changing links to academia both in the UAE and the way we work and creating lasting with top universities around the globe, value at all levels of the organisation. However, to give a sense of proportion, our Panorama centre alone created net measurable business value of above U$1bn in its first three years of operations.

2. How can engineering and construction firms overcome the barriers that are preventing from adopting digital practices? Most emerging digital technologies are disrupting the way we work, challenging current business processes and may require training. However, most people are naturally more comfortable in and also expand our local and interna- executing their work tasks in a repeti- tional partnerships to further our inno- tive manner, and any change is usually vation agenda. This can be exemplified perceived as disturbing this “comfort through the following examples: zone”. It is therefore crucial to make ■ We are currently rolling out a group- sure the workforce is equipped to un- wide and predictive maintenance pro- derstand the potential benefits to their gramme using artificial intelligence (AI)

22 The Future of Project Delivery • TRANSFORMING FOR RESILIENCE

various companies are already working to develop such solutions. Successful deployment of such integrated solutions will take us from incremental improve- ment to leaps in our performance.

5. Tell us about your recently launched joint venture AIQ. What are some of the products/services that we can expect to see that combine your AI and oil and gas expertise? I want to emphasise that we cannot progress in the digital transformation journey on our own, and need reliable partners to work closely with us on this journey. AIQ brings together G42’s and machine learning under a 10-year expertise in AI modeling, supercom- deal with Honeywell, making it one of puting and its world-class team of data the largest programmes of its kind in scientists and software engineers with the entire industry Adnoc’s world-class oil and gas industry ■ In 2019, we joined forces with the know-how, domain experts and its vast UK-based research consultancy TWI amount of data. and Saudi Aramco to launch a non-me- This partnership model allows Adnoc tallic innovation center (NIC) in Cam- to develop AI solutions and applications bridge, UK, to research new non-me- in a cost-efficient way and strengthens tallic solutions both for the oil and gas Abu Dhabi’s and the UAE’s position as a and other industries global hub for AI and technology-driv- ■ We recently launched AIQ, a new joint en industrial growth. venture with Abu Dhabi-based AI com- AIQ is part of our strategic objectives pany Group 42 (G42) to develop and to commercialise digital solutions and commercialise AI tools for the global oil we are in the early stage of co-devel- and gas industry opment. Going forward, we will be announcing new AI tools specifically in 4. In your opinion, which technologies the upstream domain. will play the biggest role in the digital transformation of oil and gas in the 6. In-country value and localisation are coming years? becoming increasingly important in We might see several disruptive tech- the post-Covid world. Is it a conscious nologies maturing and helping us decision on your part then to localise to achieve better performances, but digital capabilities by partnering, for personally I think it is the combina- instance with local firms such as G42? tion of technologies including artificial Adnoc has been leading the way in the intelligence (AI), augmented and virtual UAE on our overarching In-Country-Val- ABOUT THE AUTHOR reality, Internet of Things (IoT), block- ue (ICV) programme, where we seek chain, robotics and cloud that will play to foster industrial growth and create Khaled al-Blooshi the major transformational role. more value creation locally. is the vice pres- For example; a drone with a built-in This also applies to our digital efforts, ident for digital AI platform and various IoT sensors and the partnership model with G42 projects and innovation at can become a new hybrid tool and allows Adnoc to develop AI solutions Abu Dhabi Na- powerful combination to solve several and applications in a cost-efficient way, tional Oil Com- tasks and functions simultaneously, and while establishing local expertise. pany (Adnoc)

The Future of Project Delivery 23 SUSTAINABILITY A ZERO-CARBON FUTURE

THERE HAS The International Energy Agen- REPORTEDLY BEEN cy (IEA)’s Global Energy Review A SIGNIFICANT 2020 report estimates a 6 per cent DECLINE IN decline in global emissions this year GLOBAL CARBON to levels from 10 years ago; this is DIOXIDE (CO2) directly attributed to reduced mobil- EMISSIONS ity and economic activity. IN 2020, AS However, researchers are noticing THE WORLD a rebound in carbon emission levels as The role of innovation people across the globe gradually return A range of innovations are in develop- FINDS ITSELF to ‘normality’ due to easing of lockdown ment and being adopted by industry in- IN THE MIDST restrictions and a return to pre-pandem- cluding materials and design, renewable OF A GLOBAL ic levels of economic activity. energy conversion and storage technol- PANDEMIC The energy sector (which includes ogies, and demand side management. electricity and heat, manufacturing Industry stakeholders, especially de- and construction, transportation, and velopers, are aware of the high energy buildings) is accountable for releas- intensity of construction materials such ing two-thirds of greenhouse gases as steel and concrete which are still (GHG) globally. considered to be the best materials in A granular analysis by the World terms of mechanical and ageing proper- Resources Institute shows that within ties for the construction industry. the energy sector, the generation of The associated cumulative manufac- electricity and heat is the most car- turing process contributes nearly 47 bon-intensive (30 per cent of total GHG per cent of the construction industry emissions in 2016), followed by trans- carbon footprint, however, as revealed portation (16 per cent) and manufac- in a recent report by the C40 Cities turing and construction (12 per cent). Climate Leadership Group. While the Therefore, the decarbonisation agenda production processes of both have and the global fight against climate already been optimised, there is a po- change will necessitate significant tential emissions saving of 6 per cent in changes in the energy sector using low carbon cement, 18 per cent Construction and infrastructure is in general material efficiency, and 7 per one of the largest industries in terms of cent in material switching respectively. output and its contribution to the GDP Now take the oil and gas industry, of the UAE and other countries in the where the main focus of decarbonisa- wider region. The industry, undoubted- tion is on its operations (responsible for ly, is carbon intensive across all stag- 9 per cent of the global GHG emis- es of the life cycle, starting from the sions). By applying lean principles and extraction of raw materials, to on-site tools to asset operations, electrifying activities, operation of the building and operations where possible and employ- end-of-life. And hence, there is a greater ing pro-sustainability vendors, oil and need to find innovative solutions that gas companies can embrace sustainabil- help minimise the negative environmen- ity along the value chain. tal impact of the construction industry. Similarly, the construction industry

24 The Future of Project Delivery • TRANSFORMING FOR RESILIENCE too can focus on reducing carbon foot- Countries including Algeria, Leb- print along its value chain by sourcing anon, Oman and to an extent Saudi environment-friendly materials (eg. Arabia, have fewer sustainability/green green concrete), minimising waste, and building codes, and largely pursue de- reducing energy consumption. carbonisation on a case by case basis. Heavy construction machinery is Egypt, Jordan, Morocco, Tunisia and one specific area that is still heavily the UAE all have, or are in the process dependent on fossil fuels where the of implementing green building codes. inefficient usage of electricity can result Green building is incentivised through in the unnecessary burning of fossil the Banque Du Liban (BDL) Green fuels further down the energy supply Incentives in Lebanon, and the Green line. Construction companies should Building Housing Award in Jordan. consider low-emission equipment that In the case of the UAE, it is gener- run on alternate energy sources such as ally accepted that there is no specific biodiesel or hydrogen fuel cell as one strategic level plan for decarbonising step towards sustainability. construction. Only some of the emirates The challenges of the climate in this have codes in place, and in these cases, region require different approaches to they are considered the highest standard building design than for those in more in the region, especially in Abu Dhabi moderate climates. and Dubai. At a national strategic level, Innovations in design, which may the UAE Energy Plan 2050 includes a draw on a more traditional vernacular, reduction in CO2 emissions from power incorporating careful consideration of generation by 70 per cent, reaching a glazed facades, glazing orientation and 44 per cent clean energy share of total use of shading devices, could be ex- energy consumption, and a 40 per cent ploited to minimise excessive heat gain. increase in energy efficiency. Moreover, further research into highly There should be a collaborative ap- insulated low-thermal mass buildings proach between government, industry could influence future building design. and academia as the responsibility sits There is also increasing interest in with all three sectors. special coatings (also nano-materials) While the industry has deeper insights for windows that decrease solar gain, on challenges owing to on-ground expe- and consequently energy consumption rience, the academia has the resources associated with cooling. For instance, and brain power to study and produce nanogel when applied on windows research on how best to tackle issues. could decrease the energy required for The Centre of Excellence in Smart cooling by 16 per cent compared to Construction (CESC) set up by Heri- double-glazed windows. Adopting ma- ot-Watt University Dubai is one such terial efficiency strategies at all stages example which aims to offer a creative of the value chain can significantly help environment for collaboration between avoid CO2 emissions. multidisciplinary research teams, industry and the UAE government to Urgent collective action react to and solve challenges facing the ABOUT THE AUTHOR Across the Middle East and North Africa construction industry. region, there are many different ap- In a nutshell, the combined leader- Tadhg O’Donovan proaches being taken to reduce carbon ship of governments, industry, aca- is the head of emissions in the construction industry. demia, and civil society will remain the School of Engineering Several countries impose that large gov- instrumental in steering the decar- and Physical ernment projects are built sustainably bonisation of the construction indus- Sciences at but have introduced fewer sustainability try, beyond the mere declaration of Heriot-Watt Uni- and green codes. sustainability commitments. versity Dubai

The Future of Project Delivery 25 DIGITAL TWINS

in its National Digital Twin Programme. A DIGITAL All of this points to what we consider as an infinite loop representing how we integrate into the system in the future. ECOSYSTEM Consider this as plan, build, operate and integrate (PBO-I). As a result, the built asset industry VIRTUAL Utilisation of building information mod- can respond by expanding tradition- REPRESENTATION elling (BIM) across a project continues al working practices and embracing OF BUILT to expand beyond design related teams, digitisation much like manufacturing ASSETS IS becoming a much broader methodology and other industry sectors have. This TRANSFORMING adopted across more project partic- will enable digital twins to evolve in and THE WAY ipants. This is a positive step in the beyond construction to help us build WE DELIVER evolution of BIM, but there is so much better and live better. PROJECTS more scope. When we consider how demographics and lifestyles have changed, this has placed greater emphasis on making our built and natural environments smarter, sustainable and connected. Recent events have only served to accelerate this. We’ve also seen a steady rise in international climate movements such as Fridays for Future (a climate change movement that began in August 2018) as well as changes to our working lives, leading to a greater acceptance and appre- ciation for remote working. What is a digital twin? These changes impact our view of At a basic level, a digital twin is simply how BIM has to develop to fully em- a digital representation, a mirror or rep- brace a digital twin concept. lica, of a physical thing (i.e. an asset, a BIM is a necessary pre-step which process, a system, a sector, etc.). But can help the building of a digital replica for the built asset industry, digital twins in the first place. For a digital twin, the can play a profound role in how owners connection – right-in-time connections– manage built assets and how consumers between the cyber and the physical interact with, and in many cases, live asset are crucial. and work in, such structures. It’s about looking beyond the tra- The two-way connection between the ditional concept of plan, build and digital and physical asset is key. As the operate (PBO) to something akin to cost of sensor technology has reduced, a system of systems which remains internet of things (IoT) solutions are “forever”. This becomes the focus of a readily available. Objects in a build- new vision where we as citizens are in ing thus become smart construction the centre of how the built and natural objects (SCO), sharing data with the environment around us should evolve. digital twin. The UK-based Centre for Digital Built Data transformation tools allow better Britain has driven much of this thinking insights and decisions by using artificial

26 The Future of Project Delivery • TRANSFORMING FOR RESILIENCE

same way and connected to other parts of our built or natural world, such as waste, water, transport, energy or green spaces. An ecosystem of digital twins could result in a city that learns from how we live, combining multiple data sources to continually improve everything that we interact with. The expansion, enhancements, or regeneration of that city would be determined based on the data captured and analysed by the intelligence (AI), machine learning (ML) ecosystem of digital twins, enabling or basic data analysis to provide data it to continually improve and adapt to insights and enabling interventions. the needs of its citizens. These interventions (recommended actions or changes) are fed back to the Considerations physical asset, providing better out- The physical world has a lot of rules comes. The more that machine-to-ma- established: things are organised, there chine data exchanges are used, the are lights, pathways, people etc. We better the results are. know that because we see it. In the Data is exchanged between the physi- digital world, however, there are still cal asset and digital twin at right-in-time many things which are unclear or not connections, depending on the purpose captured as a digital element. All of that of the digital twin. If the digital twins’ has to be defined. purpose is to facilitate operations, This information has to be properly real-time data might be required. If the captured, stored and be utilised effec- purpose is to facilitate better planning tively. There are tools we use in the or resilience, real-time data may not be built asset world today that can help us required. The refresh rate of data could achieve this: be once a week or month. ■ A true common data environment assists in design, build, and operations Ecosystem of digital twins ■ Model coordination within the BIM Consider transportation as a sector methodology helps unlock new levels of with numerous systems, eg: road, rail, visibility, coordination, and productivity metro, air, etc. Many have a physical across people and processes asset connected to a digital twin. Each ■ Critical design and construction activ- of them is a successful system on their ities can be supported through planning own but these individual digital twins and scheduling solutions can also be connected together. ■ Assets can be better managed throu- If you had the digital twin of a train gh project and asset lifecycle manage- connecting to other transport systems ment solutions – such as road networks – these digital twins could share information about Through the evolution of BIM, the built ABOUT THE AUTHOR potential issues with the rail system asset industry is transforming the way in a certain area which could lead to a it manages information and data across busier road system in the same loca- all project participants. The next phase Frank Weiss is tion. That issue could be recognised will be about using this information to the senior director of product and avoided. connect outside of the project, outside strategy at Ora- Now, imagine what could happen if of the industry with other systems and cle Construction the built asset industry operated in the sectors to help improve people’s lives. and Engineering

The Future of Project Delivery 27 MANUFACTURING

Emirates Global Aluminium (EGA) is EMBRACING THE the UAE’s largest industrial company outside of oil and gas. Founded as Dubai Aluminium in 1979 by Sheikh REVOLUTION Rashid bin Saeed Al Maktoum (then Ruler of Dubai), EGA has, in just 40 years, taken the UAE from a country VITAL UAE Looking ahead to the end of 2020 and that produced zero aluminium to one INDUSTRIES MUST the next decade, the Covid-19 pandem- that now ranks as the fifth largest alu- EMBRACE THE ic is certain to not be the only global minium producer in the world. COMING DIGITAL phenomenon to upend daily life. At the root of this growth is EGA’s REVOLUTION The UAE and similarly advanced historic and continued investment in countries across the world are standing the research and development of new, on the precipice of a Fourth Industrial homegrown technologies. Revolution that is destined to disrupt Aluminium is one of the most essen- the understanding of “normal” in ways tial elements of daily life, as well as the more lasting and positive than anything most abundant, naturally occurring, we have experienced this year. and malleable metals in the earth’s Unlike past industrial revolutions crust. This metal is so omnipresent and of the 19th and 20th centuries, this versatile that most of us use it count- coming “digital revolution” will not less times a day without ever realising. only introduce new technologies that Every time we use a mobile phone, replace manual labour with machine computer or any other electronic devic- manufacturing. They will also replace es, we are using aluminium. so-called “knowledge workers” with ra- And when we gaze upon city skylines, tional systems that can think critically, we are looking at whole metropolises self-monitor and react—with an almost built using the same dependable and human-like level of nuance and rational- strong, lightweight metal. In fact, the ity to their surroundings. world’s tallest skyscraper, the Burj In other words, the Fourth Industrial Khalifa in Dubai, was constructed with Revolution, also known as Industry EGA’s aluminium. 4.0, will introduce digital and automat- For over 25 years, EGA has been ed technologies capable of replacing everyone, from the manual labourer to the knowledge worker. However, for those willing to adapt and learn, these technologies will also create more opportunities than ever thought possible.

A step ahead Among the best prepared to harness Industry 4.0’s potential are those in the UAE’s manufacturing sector, which is now leading the world in embracing new technologies to change the face of modern industry for the better.

28 The Future of Project Delivery • TRANSFORMING FOR RESILIENCE

preparing for the Fourth Industrial Rev- “digital twin,” this simulator proved olution, investing significant resources instrumental in the preparations for in the research and development of our the refinery’s production start-up over own aluminium-smelting technologies, a year ago, and continues to inform its which have used since 1990 in every safe ramp-up and operational upgrades. one of our smelter expansions and ret- Specifically, the digital twin was able rofits of older production lines. to identify gaps in the Al-Taweelah This technological investment culmi- alumina refinery’s design while it was nated recently in the licensing of EGA’s still on the drawing board, helping DX+ Ultra aluminium-smelting technol- avoid complications in the control logic ogy to Aluminium Bahrain, marking a during commissioning and start-up milestone achievement for the nation’s which would have otherwise hampered knowledge economy, as it was the first or even delayed production. time any UAE-based industrial company Today, the digital twin also serves licensed its own technology abroad. as a mitigation tool for risks, allowing Looking ahead, EGA is poised to control room operators to use it for var- continue driving the global aluminium ious emergency trainings in a simulated industry forward with our embrace of setting. For comparison, think of airline new Industry 4.0 technologies. pilots using a simulator to work through the many emergency scenarios that will Digital twin hopefully never come their way. We have been developing the use of By running a similar programme, the Big Data to enable the use of advanced safety of the operators is much higher, analytics and automated process con- greatly reducing the risk of any fault trol in our smelting process, and began leading to shutdown. fully rolling this out in 2020. The use of As Industry 4.0 continues to catalyse big data creates innumerable opportu- the merger of heavy manufacturing nities to make continuous incremental with digital and automated technolo- improvements, which together add up gies, engineers such as those working ABOUT THE AUTHOR to millions of dollars in cost savings. with EGA’s digital twin will be able to EGA’s new Al-Taweelah alumina refin- harness everything from AI to machine ery, is already using our own Operator learning to make the aluminium-manu- Najeeba al-Jabri is the vice-presi- Training System (OTS) to digitally map facturing process safer, more environ- dent technical at every detail of the refinery’s perfor- mentally sustainable and efficient. Emirates Global mance. Referred to as the refinery’s This is the power of innovation. Aluminium (EGA)

The Future of Project Delivery 29 CLOUD

tainable growth and realise operational, REIMAGINING capital and commercial excellence. Cloud-led transformation MINING Ensuring that the proper foundational building blocks are in place is essential to achieve any digital vision. For THE CLOUD IS With the advent of the Fourth Industri- Ma’aden, one of those blocks was to HELPING al Revolution, smart technologies are replace the on-premises data centers UNLOCK DIGITAL causing seismic shifts across indus- with a cloud deployment model that TRANSFORMATION tries and sectors. Many companies can meet our ever-increasing needs for AND BUSINESS are creating value like never before, scalability and integration. GROWTH with the implementation of connected The mining industry as a whole is IN MINING manufacturing systems that collect and moving towards operational integration, OPERATIONS analyse insights. The mining industry is leading to workflows being redesigned. no different. At Ma’aden, our systems were somehow However, mining productivity has siloed, with low interoperability. We been turbulent. Outlined in several in- have sought to standardise our systems ternational reports, mining productivity with a cloud solution across the organ- declined between 2004 and 2009, then isation to unify processes and enable was relatively flat until 2013. Although further growth and integration. mining productivity is starting to improve, it is still 25 per cent lower than its peak in the mid-2000s. To maintain the improving trajectory of productivity, innovation is essential. The industry is beginning to realise that there is no going back. Mining companies need to prioritise productivity and operational excellence and support the adoption of new technologies.

A digital revolution The national Information and Com- munication Technology (ICT) sector has been identified as one of the major enablers of Saudi Vision 2030. The strategic goals of the national ICT Strategy 2019-2023 include contributing SAR- 50bn ($13.33bn) to Saudi Arabia’s GDP over five years. The first phase of the ICT strategy seeks to build the digital foundations for a connected and an innovative Saudi Arabia. Having the right digital ecosystem to facilitate growth is critical, Equipped with an increasingly secure especially for companies in the minerals and agile ICT infrastructure, we are sector, which are integral to the econom- able to deploy transformation pro- ic transformation of Saudi Arabia. This is grams across the entire organisation, why we are investing in and prioritising contributing to increasing safety levels, digital transformation to achieve sus- productivity and efficiency.

30 The Future of Project Delivery • UNLOCKING INSIGHTS

THE BENEFITS OF CLOUD IN MINING be able to create a real-time view of our projects and resources, which is As mining companies contend with a imperative to optimise and extract the competitive market and pressure on most value out of our operations. This margins, many companies’ IT systems is particularly significant for Ma’aden, have gradually transitioned to cost-sav- considering the importance of our busi- ing cloud-based solutions. ness model that spans not just mineral By joining the cloud, IT expenditure extraction, but the whole process right is outsourced. Infrastructure is hosted, through to the final product. maintained, and updated by providers Integrated data collection and machine through serverless architecture, allow- learning capabilities will make a huge ing companies to vacate or sell IT infra- difference to our mine to market model. structure and reduce operating costs. The insights that are extracted will be Dealing with petabytes of data is a used to maximise the product output standard requirement for many mining and maintain a more robust production companies nowadays. It is also essen- planning process throughout the val- tial for companies to harness this data’s ue chain. This will not just maximise potential to generate improved produc- production but also it will do so in a way tivity on site. that is sustainable for the environment However, with a large fragmented and safer for our operating staff. stakeholder base involved in every project, data is often siloed, making The only way is upwards it challenging to combine information In the future, data flow integration will sets and draw insights. By hosting data extend beyond a company’s own oper- on a cloud platform, information in one ations, to include their suppliers and centralised hub can be accessed ubiqui- partners. This will create an even deep- tously by an internet-connected device. er and more efficient value chain for all Cloud also facilitates greater efficien- parties involved. The future of cloud cy by evolving from a data storage facil- technology will also support emerging ity to offering platforms and tools that innovations such as algorithmic-driv- can be applied to big data and generate en production, artificial intelligence, actionable insights. machine learning and blockchain, Finally, safety is an essential factor which will revolutionise the industry in given the hazardous working environ- inconceivable ways. ments in the mining industry. Real-time For Ma’aden, steady and sustainable data from an increasing number of sen- progress is critical. We are committed sors and monitoring systems being in- to exploring and cultivating the wealth tegrated into operations can be stored of mineral resources in Saudi Arabia and analysed using cloud computing. and driving the growth of the industrial This can provide valuable insights to sector as part of Saudi Arabia Vision improve health and safety for workers 2030. Becoming a data-driven organisa- and assets. tion that is empowered by the cloud is integral to the future of our company. Source: GlobalData As the Fourth Industrial Revolution ABOUT THE AUTHOR gets underway, mining companies, in Supply chain integration particular, should build their strate- Managing assets in a complex supply gic roadmap prioritising continuous Bander Awad Al chain has been a hallmark of our indus- digitisation. Embracing the new era Habshan is the acting try. That said, there are inefficiencies and adopting an innovation-centric chief informa- to address. approach will be paramount to remain tion officer at With cloud deployment, we will also relevant and maintain market position. Ma’aden

The Future of Project Delivery 31 COLLABORATION

our cloud based CDE on models and SHARING THE project data for hundreds of projects, representing billions of dollars in construction. Our CDE has generally two DIGITAL SPACE key fundamental objectives: COMMON DATA Construction is seen by many com- 1. Ensures all approved users on a ENVIRONMENTS mentators as slow to adopt technology project have access to up-to-date, ARE INCREASINGLY innovations. The past decade, howev- reliable information in a structured SEEN AS AN er, has seen the information economy and easily accessible format about a EFFECTIVE WAY rapidly transform every facet of the way built asset: single source of truth; TO HAVE A we live and work. It is crucial that con- 2. Supports the management, creation, HOLISTIC VIEW struction grasps this digital opportunity assurance, sharing, dissemination OF THE OVERALL if we are to solve current productivity and coordination of information PORTFOLIO and sustainability challenges facing the generated during any design, con- sector globally. struction or maintenance activities It is forecast that over the next decade, existing technologies such as BIM Increasingly, information models are will converge with the internet of things being developed across the project (IoT), which provides sensors and other lifecycle within the security of the CDE. dynamic information, as well as geo- This essentially has two distinct states graphic information systems, advanced as illustrated in figure 1. manufacturing and data analytics. We recommended that the client (as The combination of these constructs the appointing party), and consistent and integrated data sets will enable with international standards, shall effective planning of new investments, establish the project’s CDE to serve the assemble assets faster and most impor- overall requirements of the project and tantly operate and maintain them much to support the collaborative production more efficiently. of information. Digital will enable us to make better In certain cases, the client will ap- use of the built assets we already have, point a third party such as the lead de- with linked data supporting perfor- signer or contractor to provide and host mance and experience. the PIM CDE on their behalf for sharing At the foundation of this change is and publication of project information well managed and secure information. (note: work in progress, uncoordinated This information ultimately enables information, is often still hosted within project, and increasingly programme teams, to collaborate and work more INFORMATION DETAILS efficiently. Additionally, those who own and operate built assets are using information to create and leverage a digital PROJECT ASSET estate across their portfolio. INFORMATION INFORMATION MODEL MODEL Supporting this transformation has (PIM) (AIM) been the use of common data environment (CDE) technologies and workflows, which supports the sharing CapEX OpEX and coordination of information using clearly defined operating procedures for DESIGN & OPERATIONAL & CONSTRUCTION IN-USE a consistent approach. PHASE PHASE At Aecom, we have at any given time thousands of people collaborating in  Figure 1: Information models

32 The Future of Project Delivery • UNLOCKING INSIGHTS

organisations such as design teams own ■ Improved collaboration and outcomes server environments). The AIM CDE is including BIM viewing and reviewing generally established by the asset owner within the CDE at an organisational and strategic level. It is recommended that the appointing During operational stage party defines the CDE’s functional and ■ Saves time required to transfer ac- non-functional requirements specifica- curate and complete information from tion as early as possible. construction to operational stages; ■ Improved accessibility to relevant and Integration reliable information in the event of an It is most likely that where an AIM CDE asset failure or trigger event; is being procured, there will also be an ■ Improved estate planning, procure- element of integration with other enter- ment and maintenance; and prise systems such as an asset register ■ Improved analysis cross portfolio or computer assisted facilities manage- benchmarking of built assets ment systems (CAFM). Additionally, some more mature The CDE and a robust information clients are using the CDE as means of management system is therefore the supporting digital twinning and con- foundation to any modern construction necting a digital representation of an organisation. However, there are often asset to a unified operational layer with- challenges which should be addressed in the CDE. This layer may include data including: from sensors, building management ■ Multiple CDEs within a project caus- systems, SCADA etc. ing confusion; It is important that while determining ■ CDE not properly specified as part of an integration strategy, consideration a tender or commission; is given to what key decisions each ■ Multiple tendering vendors with person in the client’s organisation varying technical offerings which make needs to make as they navigate a typical tender comparison challenging; life cycle pathway, and what data and ■ Poor information management pro- information they need to support their cesses to support the technology; evaluations. It is also important to un- ■ Lack of information managers to man- derstand how different persons interact age and curate the CDE; and what collective decisions they may ■ Poor consideration of security; make as this might be answered by ■ No AIM CDE for the information to unified data sets. transfer to at handover; and Prior to CDE being established, espe- ■ Compatibility and integration with cially the AIM CDE, the benefits must other asset management systems and be clearly articulated to any provider. databases within an organisation Typically, these include: The more we collect accurate and During design and construction stages secure information about our projects ■ Greater reliability of information and and assets, the better we can create and reduced risk; maintain them. The real value is derived ■ More efficient (semi-automated) pro- in how we share it and use it. We will ABOUT THE AUTHOR cesses and workflows with the creation increasingly see sharing of information and management of information; not just across projects, but across or- ■ Reducing time and effort required to ganisations and sectors as new ontolo- David Philp is the global BIM/ check, version and reissue information; gies emerge along with greater insights MIC consultan- ■ Reducing time and cost of producing through high performing computing cy director at coordinated information; and advanced data analytics. Aecom

The Future of Project Delivery 33 LEISURE

■ MyCRM enables our team to manage CURATING the customer journey and track interac- tions to ensure a positive experience for all users. EXPERIENCES ■ MyPass is a unique customer ID, coupled with a single customer view. This helps us deliver a seamless and ABU DHABI’S Embracing technology is no longer an consistent guest experience powered by MIRAL IS option. It is an essential part of how a unique customer identity. The analysis ENHANCING we operate as a business. Consumers of deep customer data and insights is a THE EMIRATE’S expect and demand digital experiences powerful tool that allows for improved STATUS AS A and we therefore need to engage with targeting of promotions, cross-selling VIBRANT HUB customers on their terms in order to and up-selling. FOR TOURISM meet and exceed their expectations. ■ MyInsights complements MyCRM and AND LEISURE In no industry is this more applicable MyPass as a powerful business intelli- than the leisure and entertainment sec- gence platform for executives to access tor. Innovating through the adoption real time information and support deci- of technology is essential to sustain a sion making. competitive edge and enhance visitor experiences. We aim to create a seam- A key pillar of MyConnect is innova- less journey for our guests by bridging tion. We believe in continuous innova- the gap between physical and digital, tion via technology, to disrupt the norm, developing Yas Island into a wall-less challenge ourselves while keeping destination where the fun begins be- customer experience at the heart of fore guests arrive and continues after everything we do. they leave. Miral uses data gathered from day- At Miral, technology is at the heart to-day park operations and visitation of our business ecosystem, from digital to conduct predictive modeling that front-end customer experience to the enhances visitors’ experiences. For intelligent back-end platforms which instance, we can predict visitor footfall fuel our services. We recognise the and conduct customer targeting that importance of technology and the is much more tailored, based on the fundamental role it plays in transform- patterns we see from the data. ing the business. In areas such as data In light of Covid-19, the need for analytics and digital marketing, it empowers us to reach new markets, launch new products and develop agile business models that respond to customer needs and demands. One of our foundational digital platforms is “My- Connect”, which is essential in helping us activate and achieve this mission. Its vision is to provide robust digital capabilities to all Mi- ral assets through an integrated solution. MyConnect has several built in tools:

34 The Future of Project Delivery • UNLOCKING INSIGHTS disrupting customer experience, and introducing frictionless touch points with our assets is a reality. We are currently looking into introducing facial recognition in our theme parks and attractions, with the aim to provide an enhanced, frictionless experience.

Continuous learning Design and construction technology is reshaping the industry and helping streamline the process in various ways. As part of a recent agreement, rene- We constantly monitor the latest able energy developer Masdar will advancements in the industry to evolve deliver Abu Dhabi’s largest rooftop our developments in line with world- solar PV project at the Warner Bros class standards. We deploy a number World Abu Dhabi theme park on Yas of foundational technologies that Island. Some 16,000 solar modules streamline the design and construc- will be installed on the roof of the tion of our projects including program park, to meet about 40 per cent of portfolio management, reporting and annual energy requirements of the dash boarding and ERPs. 3.6 hectare site. The project is due Miral and its partners are early adop- to be completed in Q4 2021 and will ters of BIM. This system is currently make Warner Bros World Abu Dhabi being implemented on some of our the largest solar energy theme park flagship developments. in the GCC. Through BIM, we have digitised our construction site and connected pro- As a leading curator of experiences ject information from design through and the developer of award-winning construction and handover. It has also attractions, we have witnessed firsthand helped us make better design deci- the effect of adopting technology on the sions and collaborate more effectively performance of our business. throughout the project lifecycle. As well as supporting advancements We are seeing more technologies in project management and construc- that are changing the game across the tion, there are tangible enhancements industry such as Big Data, artificial in customer experience enabled by intelligence, robotics, internet of things digital tools. Solutions such as cloud (IoT), augmented reality/virtual reality, computing, Big Data, and predictive digital twins and cloud computing. analytics have enhanced the way we Data gathered through the various operate as a business and manage our technologies in the design and con- destinations and attractions. struction process, such as IoT, sensors, As an industry leader, we believe we and digital twin, can provide granular have demonstrated how technology can and real-time views of projects. enhance our customer-centric approach. As a result, this enables a transfor- We have also shown partners that we are mational shift in operations from a embracing digital innovations that bene- ABOUT THE AUTHOR reactive to a proactive approach. When fit the overall delivery of projects. implemented, predictive technologies It is our belief that through the allow organisations to forecast mainte- practical and tangible demonstration Ali Nimer is the nance requirements before a problem of technology’s positive impact we will executive director for digital even occurs, minimising downtime and see increased momentum and even and technology enhancing health and safety. more innovation. at Miral

The Future of Project Delivery 35 MACHINE LEARNING

of different data that is now becoming GROWING increasingly possible due to digitisation of many aspects of construction. Of- ten termed feature selection, the vast CAPABILITIES amount of data from different systems allows identification “markers” of project success and delays and therefore con- ARTIFICIAL Machine learning (ML) from a construc- tributes to building ML models with bet- INTELLIGENCE tion perspective has come a long way ter accuracy than was possible before. IS ENABLING in terms of understanding what can be Developments in automated ma- CONSTRUCTION achieved using data science. But it’s chine learning (AutoML) means that a TO TAP INTO still got a long way to go before adop- large part of the grunt work typically NEW DIGITAL tion of things such as predictive analyt- required in identifying the right data OPPORTUNITIES ics is commonplace. set for prediction (called features) and In general, ML capabilities have the right model that produces the best increased especially in areas such as prediction is getting simpler. These computer vision, use of neural networks developments mean this technology is and deep learning. getting into the hands of people that We’ve seen increases in the ability to weren’t able to develop and deploy ML process Big Data through distributed models prior to this. computing as well as the emergence of Machine Learning as a Service (MLaaS) Machine learning in construction from all leading cloud providers in- There are many emerging use-cases cluding Oracle to democratise artificial of ML in the industry including ideas intelligence (AI) and make it available that will positively impact the metrics to as many organisations as possible. that the industry has always cared Additionally, there have been im- about – schedule, budget, quality, safety provements in existing open source and risk. Data and ML is being used to frameworks such as Tensorflow, Keras, change the status-quo across all these PyTorch etc, and new ones that are key dimensions. making AI more accessible. All of this Computer vision is being used to means that the next five years will prob- solve problems such as identifying ably see a large uptake of ML technolo- progress on site, tracking delivery of gies in construction. materials, understanding movement of

Data is the key Data is the lifeblood for any AI and ML strategy to work. Many construction businesses already have data available to them without realising it. This data, traced from previous projects and activities, and collected over a number of years, can become the source of data that ML models require for training. Models can use this existing data repository to train on and then compare against a validation test before it is used for real world prediction scenarios. Model accuracy can improve with not just more of the same data but more

36 The Future of Project Delivery • UNLOCKING INSIGHTS labour and material on-site and more 2. Surfacing early recently, application of social distancing warnings of under- rules on construction site. lying risks across The application of ML techniques to plan, design and build ML capabilities have unstructured data coming from videos phase activities and photos is becoming progressively 3. Predicting budget increased especially in pervasive in solving several use-cases performance and that were often tricky to solve previously. sources of potential areas such as computer Use of natural-language process- cost over-runs ing (NLP) is now being deployed for 4. Providing actiona- vision, use of neural net- use-cases that should reduce manual ble insights and rec- error, improve productivity and mitigate ommendations to help works and deep learning” risks. For example, NLP is being used ensure that projects to track submittals required for differ- are delivered ahead of time and budget ent jobs, identify non-standard terms 5. Enabling supply chain selection in a contract, highlight a potential HSE based on historical performance issue or escalate a risk of an upcoming change request. These allow contrac- The future tors and owners to better plan and As smartification drives datafication, respond to situations. AI-driven transformation will naturally Use of ML for predictions about happen as companies begin to question schedule delays and cost-blowouts is how they leverage all the data that they another area where ML really scores, as have. The cost of ML is already decreas- there is a lot of prior data on schedule ing with infrastructure that leverages and budget performance which can be pay-as-you-go models in the cloud. used as training data to make predic- New tools are democratising ML to tions. the non-data scientists by way of drag- Schedules and budgets are becoming drop modelling, visualising predictions smart by incorporating ML driven rec- and simplifying the creation of easy to ommendations, supply chain selection consume insights. Digitisation is going is becoming smart by using data across to disrupt every part of the supply disparate systems and comparing per- chain and this is creating data that can formance and risk planning is getting change how built assets are delivered: smart by using ML to identify and quan- ■ Schedules and budgets auto-created tify risks from the past that might have as a starting point optimised for the a bearing on the present. client and their requirements Oracle Construction and Engineering ■ Risks identified and mitigated through is concentrating on what machines are machine powered recommendations really good at as opposed to humans– before issues arise the ability to separate signal from noise ■ Sub-contractors dynamically selected in large amounts of non-visual data. based on their historical performance Our products are used across many and the type of job being done ABOUT THE AUTHOR different phases of construction. We’re ■ Change requests and variations currently focused on building ML pow- predicted well in advance to ensure ered predictive insights using Oracle minimum disruption Karthik Ven- Aconex, Oracle Primavera Cloud, Ora- ■ Work sites made safer by completely katasubramanian cle Textura Payment Management and eliminating work site HSE incidents. is the vice pres- Oracle’s Primavera Unifier data. Some As processes get digitised for improv- ident of data and analytics at of these use cases will include: ing productivity, the data that these Oracle Con- 1. Predicting the probability of schedule systems generate will drive a paradigm struction and and activity delays shift in the process itself. Engineering

The Future of Project Delivery 37 38 The Future of Project Delivery ABOUT MEED ABOUT ORACLE

MEED has been integral to The Oracle Cloud offers delivering business informa- a complete suite of inte- tion, news, intelligence and grated applications for analysis on the Middle East sales, service, market- economies and activities for ing, human resources, over 60 years. Attracting a finance, supply chain and key senior management au- manufacturing, plus high- dience through its content ly automated and secure and activities, MEED is a me- generation 2 infrastruc- dia brand, publication and ture featuring the Oracle data business that covers a Autonomous Database. spectrum of services which For more information inform, engage, connect and about Oracle, please visit ultimately support our sub- us at www.oracle.com scribers and partners in their business development and ABOUT ORACLE strategic growth. CONSTRUCTION Recently acquired by AND ENGINEERING GlobalData Plc, MEED is now part of one of the larg- Asset owners and project est data and insights solution leaders rely on Oracle providers in the world with Construction and Engi- the capacity to build global neering solutions for the communities for our clients. visibility and control, Our purpose is to support connected supply chain the region’s companies make and data security needed better and more timely deci- to drive performance and sions through our innova- mitigate risk across their tive data solutions and grow processes, projects and through our comprehensive organisation. and worldclass marketing Our scalable cloud solu- solutions. To find out more, tions enable digital trans- email: [email protected] formation for teams that plan, build, and operate critical assets, improving efficiency, collaboration and control across the project lifecycle. To learn more, visit: www.oracle.com/construction-and-engineering

The Future of Project Delivery 39