WE BUILD TRUST Khayyat Bulletin, March 2013 - Vol.3 Issue No.3 www.khayyat-qa.com ACKNOWLEDGEMENTS KCT publication department would like to thank all who contributes, supports and helps in creating the third edition of our KB newsletter. For all inquiries, please contact IT Department or email to newsletter@khayyat-qa.com 1 www.khayyat-qa.com CONTENTS 03 EDITOR’S MESSAGE 04 CEO 05 WHY THE RETURN ON EXECUTION IS THE NEW RETURN ON INVESTMENT 07 PROCUREMENT MESSAGE 09 CONSTRUCTION DISPUTE RESOLUTION MECHANISMS AND ADR METHODS SEMINAR 12 REASONS THAT THE HR IS FREQUENTLY MISUNDERSTOOD 13 WHAT IS OUR HELP DESK TICKETING SYSTEM? 17 CONTRACT ADMINISTRATION 20 HILTON & UCC SIGNING CEREMONY 24 Face to face interview with Construction week Magazine with Mr.Ramez Alkhayyat ( MD of UrbaCon ) 29 NEW JOINERS we are glad to announce our new website launch please visit us: WWW.KHAYYAT-QA.COM 2 2 www.khayyat-qa.com EDITOR MESSAGE “You don’t write because you want to say something; you write because you’ve got something to say.” Reflecting on those words, I am proud to present to you the third edition of our fabulous newsletter KB (Khayyat Bulletin ) It is with great gladness and honor after presenting the second issue of our fabulous newsletter KB three months ago. that this furthur edition has been produced It took hard work but by the grace of GOD our dreams became true in the form of this newsletter and it is in fact the result of all our hard work. I always expect from my contributors that they will give shine to our hopes and will share hand in hand to make this newsletter a complete blessing for all KCT employees. Contribute as much as you can and give comments regularly to make this newsletter the apple of every one's eye. Contributors are our last hope to make this newsletter better and gradually best. As everything takes time so try to do your work slowly but steadily, take time but do not waste time as it is said 'Rome was not build in a day'. We will be back on with our fabulous newsletter KB in August 2013. I would like to take this opportunity to thank each and every writer for their contributions, and, most especially, thank them for their confidence in our newsletter 3 www.khayyat-qa.com AMR KHATIB EDITOR-IN-CHIEF MOUTAZ AL-KHAYYAT CEO 4 www.khayyat-qa.com Why the Return on Execution is the new Return on Investment Execution is the name of the game It has been validated over and over again that defining the business strategy only accounts for 15% of the business financial performance as it relates to the business competitors. What is the real difference maker is the execution, those who execute better, win. CAROLINE DE CHADEREVIAN CHIEF ADVISOR MANAGEMENT AND HUMAN CAPITAL 3 www.khayyat-qa.com So what is Execution? In today’s world, it is very hard to have any sustained competitive advantage from superior strategies alone. It is easy to copy a competitor’s strategy, but much more challenging to keep pace with a competitor’s high performing execution. Improved business performance is not just about leadership and management discipline; it is heavily dependent on execution. For those who follow sports, there is a common theme between business and team sports. Your business strategy’s desired outcome for a new fiscal year is probably not much different to that of a sports franchise – beat the competition. In business, today’s difficult economic conditions can put strategy through unexpected hoops. In sports, it may be injuries or other unexpected variables that create the unplanned challenges. Both entities are equally driven by individual and team performance, a fact that is more often underestimated in business than in sports. The more management understands the current performance levels of its talent and their ability to address day to day business conditions, the greater the opportunity for effective execution. In sports, the strategy from one game to the next will change based on the recent performance of the individuals and how they match up with the competition. In business, using the example of strategic project construction, the project manager needs to make sure he has the right team, performing the right action in order to beat the competition. The manager who understands how to maximize return on execution depends on an awareness of the strengths of the team’s talent in order to execute different “game plans”. The greater the manager’s insight into the performance capability of the individuals and the team, the more likely there will be consistent and quality outcomes. There is a frequently used spot cliché that states “the manager can only put the players on the field, but the players have to execute”. The reality is that management and talent are in the game together and each needs to be aligned, engaged and motivated to gain expected outcomes. Do you know how much of the operating expense is comprised of labor cost? It is estimated to be on an average of 70%. Of course, the average varies within industries and business size. This percentage is even higher in some cases. The blind spot and active ingredient in executing the business strategy is the talent. With the estimated 70% of operating expense invested in a typical corporate workforce, the effective alignment of talent or the lack of alignment will make a huge difference. When talent can and will walk away from your business to go work for a competitor, or just go lay on the beach, there is much at risk. Human capital is a key to bottom line return. Companies have been paying lip service to the idea that “people are the companies’ greatest asset” for years. In today’s business environment, companies need more than lip service to succeed. People drive not only value creation within an organization, but also cost. More and more of a company’s value is based on intangibles generated by talent. From intellectual property to customer satisfaction, 80% of a company’s valuation is now intangible. It is no longer possible to look at a balance sheet and tally up a company’s assets to estimate its value. Infrastructure, plant operations, cash and other capital assets no longer represent the comprehensive view of the health of a company. In the 21st century’s knowledge based service economy, the impact of human capital is ever more critical to success. With the workforce comprising the lion’s share of your expense budget, therein also resides the active ingredient that executes the business strategy: talent, the key to improving Return on Execution. The sustained competitive difference maker is high performing talent executing in alignment with business strategy. Business results are simply a function of “Strategy & Execution”. With all other competitive differentiators neutralized, people are the final remaining factor that can provide a sustained competitive advantage for any business. 6 www.khayyat-qa.com AHMAD JAAFAR DIRECTOR, PROCUREMENT DEPT PROCUREMENT MESSAGE As part of the ongoing effort to move ahead with KCT business, procurement sits at the heart of the delivery process it must channel all its resources to provide support to projects/sites and ensure the continuation of the flow of supplies and try to eliminate site work delays and contribute to the final site delivery schedule. Procurement is one of the most important support departments provided to the company’s overall system. It can play the role of service provider and contribute to the bottom line of total company’s profitability and cut down material prices to reduce unnecessary or hidden costs. Looking towards a bright future with KCT I am hopeful that the Procurement Department will take the shape and image of capable human resources and become a great asset to the company with a pledge and desire to become the best of all companies in the construction industry. We are realistic and we will work with steady steps to achieve what we are looking for and until all these hopes and dreams can come into fruition. Looking forward to a great coming year full of challenges and a fruitful result and this of course will be with the help and coordination of all related KCT teams. 8 www.khayyat-qa.com CONSTRUCTION DISPUTE RESOLUTION MECHANISMS AND ADR METHODS SEMINAR On the 20th Jan 2013, the planning department in KCT conducted a training introductory course on Construction Dispute Resolution Mechanisms and ADR Methods. The purpose of the training course was to increase planners and project management staff awareness on this crucial issue. The seminar took place on the 10th floor training room and was attended by around 20 planners, project managers and project directors. SAMIR S. SAKKA CORPORATE PLANNING MANAGER The seminar was given by Samir Sakka, KCT Planning Manager, where he discussed the mechanisms for conducting various ADR methods and particularly arbitration and mediation. Samir also discussed other methods like the dispute resolution board and showed the pros and cons of each. Subsequently, some of the attendees shared their experience with dispute resolution in construction industry. All attendees expressed their interest in the seminar and encouraged the planning department to conduct more seminars to discuss such hot issues in the construction industry. It's worth mentioning here that Mr. Sakka is a candidate for Masters in Law in Construction Law and Arbitration and Associate in the Chartered Institute of Arbitrators. 9 www.khayyat-qa.com PLANNING DEPARTMENT WEBSITE As part of the planning department strategic plan, the planning department has launched a dedicated website that will be utilized to access KCT projects progress data anywhere in the world. All site based planners are updating their flash reports on this website on a weekly basis and KCT management can view their projects progress online. The website access is limited to certain personnel in KCT that includes: Directors, Project Managers and Planners only. In the forthcoming plans the planning department will use KCTplanning.com to upload numerous resources, reports and software to enhance the working experience of all KCT planners by exposing them to latest state of art technologies in planning and IT. Special thanks to Khaled Koka, Planning Assistant, for his programming skills and the IT department for their assistance in hosting the website and their technical support. 10 www.khayyat-qa.com The HR staff are committed to both the welfare of the employees and the company. They avoid causing both parties issues that can affect their working relationship. NAJIB WAHIB KASSIS SENIOR HR MANAGER REASONS THAT HR IS FREQUENTLY MISUNDERSTOOD The HR staff is entangled between the role of an employee advocate and company business partner. And, no, the employees do not perceive or understand that the HR is playing two roles. They measure the functionality of HR by their effect on their needs. As an example, the employee wants HR to make an exception for him; the employee doesn’t realize that an exception for him begins to set a precedent of events for how the company must treat other employees – employees who may be less deserving of an exception. All information about employees is confidential. Even when the HR handles an issue, whether the issue involved disciplinary measures or just a conversation, the steps taken and the outcomes are private. An HR employee can tell the complaining staff that the issue was addressed. Because of employee confidentiality, they cannot reveal specific details and sensitive information. This can leave the complaining employee believing that their issue was not taken into consideration. (The outcome of a formal, written complaint, as in sexual harassment charges, is disclosed.) HR staff members need documented evidence that a problem exists. Witnesses are helpful, too, as is when more than one employee experiences the same problem. It is difficult to take action based on one employee’s verbal account, especially if the other party denies the problem. What an employee may see as unreasonable behavior on the part of a manager or another employee, HR may find within acceptable bounds of organizational behavior and expectations. The staff may have a personality or work style conflict. The manager may supervise an independent employee more closely than desired. HR can talk with all parties, but often, no one is wrong. When an employee doesn’t like his/ her job or work goals or experiences a conflict with his/her supervisor’s management style, HR can’t always find the employee a new job. Additionally, because of the cost of employee onboarding and training, the organization is likely to have policies about how often an employee can change positions. Indeed, proving yourself and worth in your current role is the right path to a desired new job. HR doesn’t know about the promises your manager made to you about a raise, a promotion, unless the promise was documented in your offer letter. You are welcome to complain to HR if you have addressed the issue with your manager. But, the scenario is likely your word against the manager’s word. Is it possible you misunderstood your manager? If not be cautious about promises made. HR is not always in charge of making the decision. In fact, the decision you don't like may have been made by the upper management. Good and company-oriented HR people won't blame other managers publicly for decisions with which they may disagree. And, they won't bad-mouth the decisions of their Directors or other company managers, so you may never know where the decision was made. So, an insensitive, unhelpful HR department that avoids helping employees with their problems is a false image of the department. There are sincere reasons why HR cannot fulfill every employee's wishes and desires and we appeal to your understanding and patience. WHAT IS OUR HELP DESK TICKETING SYSTEM? The Help Desk Ticketing System is a reliable, efficient and convenient tool to manage tickets submitted by users which enable IT Help Desk team to resolve all tickets faster and more efficiently which will increase user’s satisfaction. Through the past year, IT Department of KCT has been providing high quality service to the KCT Community. As a fast growing Company, and in an effort to improve the service, the IT Department has developed an In-House Help Desk Ticketing System that allows all KCT employees to initiate their tickets on their own. This feature will speed up the responding time and enables Help Desk to attain more tickets daily. MUTTIA AL KHAYYAT SENIOR IT DIRECTOR WHAT ARE THE FEATURES OF THE HELP DESK TICKETING SYSTEM? Eliminates email mess Technicians’ emails can quickly accumulate and become overwhelming. By filtering all employees’ inquiries into one place, Helpdesk Technicians can collaborate & respond to employees in record time. Easy access Users will be able to submit their own tickets to the IT Help Desk by clicking the following link: http://Portal.khayyat-qa.com/CC/IT/Helpdesk Real-time update Employees will be able to track ticket updates online & receive email alerts when comments are added. Tracks Performance Within the Help Desk Ticketing System employee’s inquiries are tracked from beginning to end. Employees can review their ticket's history including the actions taken by IT Help Desk Technicians. Tickets are fully searchable; easily drilled down to specific employee entries and can be sorted by category. The Helpdesk Ticketing System improves communication among all users and will speed up the response time whenever a ticket is created, assigned to a technician, new comments added or whenever a ticket is closed. Review The Full Lifecycle Of Each Ticket. Employee inquiries start by issuing tickets then assigning a Help Desk Technician and closing the ticket. Technicians can work alone or work together, with all actions logged in the System for administrative review. Most of non IT people have no clear idea of what SharePoint is or means. Moreover, many people misperceive its core functions. And Microsoft's product websites — with their broad ambitions — aren't always clear enough for new-comers. So for the confused amongst us, here's a concise response to the simple question: What is SharePoint? For starters, the name SharePoint is a solid clue — this software product is first about sharing information and secondly about finding and collaborating on information at a specific place. Microsoft has released several generations of SharePoint, but you only need to be concerned with SharePoint 2007, and SharePoint 2010, which was officially released in May 2010. SharePoint 2010: An Ambitious Enterprise Platform On-Demand Reports The System is built to produce reports and meaningful analysis that allows the IT Director to measure the productivity and efficiency of his technicians. It can generate many reports related to Department KPI’s. 14 www.khayyat-qa.com 1. Sites: Building and Managing Internal and External Websites Microsoft has stated that they believe SharePoint is a good platform to support your Web Content Management (WCM) needs, whether it's for an intranet, extranet or an Internet. 2. Communities: Creating a Social Collaboration Environment With SharePoint, Social capabilities like Facebook and Twitter are moving into the workplace, as part and parcel of the typical information worker's desktop. It all boils down to providing a modern approach to working together, collaborating and sharing knowledge. So these capabilities need to be a component of every piece of software we use. SharePoint 2010 works towards this goal by supporting: The ability to create detailed user profiles (think employee Facebook pages) Use of modern tools for sharing and collaboration including blogs, wikis, RSS feeds and activity streams The creation of special interest groups (Communities) to share knowledge or work on projects (these often map directly to your company's org chart) Interactivity and engagement via commenting and discussions around content items, and social tagging/bookmarking of content The creation of separate personal spaces or dashboards called MySites where you can keep track of your own content, and the work you are doing in certain communities, projects and more 3. Content: Managing Your Documents, Information and Records In the 2010 release Microsoft greatly improved the functionality for creating and managing business documents. Organizations typically have two types of content: documents and information used to complete tasks and activities, and records. Records differ from the previous category in that they are documents and information that must be frozen and stored for compliance and/or regulatory purposes. 15 www.khayyat-qa.com 4. Search: The Google for Your Organization's Private Info It doesn't matter how large or small your organization is, when you need certain information or documents, you want it now. Rarely does that happen. Information is typically scattered around and often your internal search engines are not very effective at finding it. That's why a strong search facility is critical to the success of a product like SharePoint SharePoint 2010 offers the ability to: Search for information and people, including particular expertise Index content and data stored outside of your SharePoint database Use your Windows 7 desktop search to find information within SharePoint Refine search results based on taxonomy and metadata (how content is organized and classified) 5. Insights: Digging for Business Intelligence With SharePoint 2010 you can: Use tools like Excel to gather and analyze data that is stored in SharePoint Use SharePoint's native Excel Services engine to crunch data and build web-based reports Pull together information from different systems and present it in SharePoint Create dashboards, scorecards, and other views — making key performance indicators widely accessible to information workers and process managers 6. Composites: Integrating Your Business Systems Another big improvement for SharePoint 2010 relates to its ability talk to — pushing and pulling data — your other business systems. Instead of having to work in multiple systems, you can create composite applications on the SharePoint platform that pull together various data and content from different systems, including SharePoint content, to provide a single location for an employee to work. Last and not least, Understanding Microsoft's vision and SharePoint's capabilities is important. This article helps there. Moving your organization towards a more engaged and collaborative daily routine is a much more complicated task. We would like to congratulate our colleague Mohamed Helmy For passing the exam of ( Planning and scheduling Professional “PSP” ) Accredited by “AACEI” based on their testimony by mail on 9th Jan 2013 , AACEI ID # : 102500. Congratulations for Our colleague Mohamad Kheir for his engagement Congratulations for our colleague Marlon Caballes for the Birth of a new baby 16 www.khayyat-qa.com SAPRUDIN MOHAMMAD SHARIF CONTRACTS MANAGER Contract Administration efficiency impacts directly on pre-contract and post-contract outcomes. The importance of the need for effective contract administration and management throughout the lifecycle of a construction project therefore, cannot be underestimated. In fact, every effort should be made to put in place an effective and viable working structure of contract administration at the early stage of a Project. This short article is an attempt to give a brief perspective on contact administration, its legal aspects and how it can be optimally utilized. 17 www.khayyat-qa.com 1. Objectives of Contract Administration Depending on the types and nature of the construction project, several pertinent objectives of construction administration can be generally identified. Firstly, it is the understanding and implementing of the requirements for each construction project as per the contractual obligations of the Company towards the Owner/Employer while at the same time making sure to address and documenting significant issues which may impact the Company’s ability to timely and profitably complete the project as scheduled. Secondly, there is the vital need to ensure that the Company’s subcontractors perform their work in a timely and professional manner in accordance with the agreed and approved construction drawings and schedules, agreements, plans and specifications. Thirdly, identifying and resolving claims and disputes (if any) promptly, in coordination with other departments involved in the construction project. Such pre-emptive actions are to avoid the need for litigation, arbitration/alternative dispute resolution (ADR) or similar time consuming, risky and costly legal measures. Finally, it is pertinent to have a thorough familiarity and understanding of both the Main Contract with the Owner/Employer and the Subcontracts with Subcontractors/Consultants while at the same time maintaining a solid and cooperative communication with all the parties involved in the project and keeping a well-documented file of every aspect of the project. 2. The Nature of Construction Contracts. Understanding and familiarity with construction contracts are important for an effective Contract Administration. Fundamentally, a variety of factors make ‘construction contracts ‘different from other types of contracts. These include but are not limited to the length of the project, its complexity, and the fact that the price agreed and the amount of work done may be changed or varied as the Project proceed. The term construction contract includes ‘contracts for building works’ as well as ‘engineering work’ (Chitty on Contracts, 2010 Edition devoted a chapter on this subject). A judicial guide on ‘what is a building contract’ is succinctly given by Lord Diplock in Modern Engineering (Bristol) Ltd. v Gilbert-Ash Northern (1974) AC 689, a case related to a standard form of building contract, where his Lordship described a building contract as: “an entire contract for the sale of goods and work and labor for a lump sum price payable by installments as the goods are delivered and the work done. Decisions have to be made from time to time about such essential matters as the making of variation orders, the expenditure of provisional and prime cost sums and extension of time for the carrying out the of the work under the contract” In essence, there is no special body of rules that applies to ‘building, engineering or construction contracts’. As judicially recognized in the Modern Engineering case that “where the parties enter into detailed building contracts there were no overriding rules or principles covering their contractual relationships beyond those which generally apply”. Ordinary rules of the law of Contract apply subject to a certain degree of qualification related to the construction and engineering legislations (Acts or Statutes) applied in varying degrees in different countries. 3. Main Elements of Construction Contract. The construction contract sets out the rights, responsibilities, relationships and liabilities of the parties’ involvement. The ‘Contract Documents’ as is well known in the construction industry contained all the elements of a construction contract. It consist of the Owner/Employer agreement, the conditions of the contract (general and special/particular conditions), the drawings, specifications, all the addenda (including the official correspondences between the parties), issued prior to execution and all modifications/changes/variations issued after the execution of the contract (American Institute of Architects definition).Contract documents are similarly defined albeit in varying terms in most international construction contracts. Industry related organizations have their own prepared standard form contracts. FIDIC (Federation Internationale des Ingenieurs-Counseils), ICE (Institute of Civil Engineers, United Kingdom),and JCT(Joint Contracts Tribunal) are examples of organizations which have prepare recommended general conditions of contract and associated forms for use in the construction industry. FIDIC Standard Form Contracts have been recognized internationally and used as a model, with certain modifications in most countries including Qatar. Clear and correct legal interpretation of the various terms and conditions of the contract agreement are important to avoid ambiguities in their application and also for the proper implementation of the construction project. In the interpretation of contract, the generally applied rule is the ‘purposive rule’ which basically means that ‘the effect be given to the intention of the parties as gathered from the plain reading of the entire agreement, with ambiguities normally construed against the drafters (this rule was applied in the English case of Investors Compensation Scheme Ltd. West Bromwich Building Society (1998) 1 WLR.896). Applying this approach in the drafting of contracts or scrutinizing contract documents before their execution is a fundamental tool to maintain clarity before mobilization of the Project works. Being meticulous from the early lifecycle of a construction project can avoid litigation/arbitration/ADR and disputes in connection with the contract in future. 18 www.khayyat-qa.com 4. Frequently Invoked Clause It has to be acknowledged that the most frequently invoked clauses in construction contracts whether domestic or international is the change orders/variation orders clauses. Basically, this clause provides that the Owner/Employer may order changes/variations in the work after the main contract is executed. and requires performance of the work without invalidating the contract. The changes may consist of additions or deletions within the general scope of work (specifications, method or performance of work, facilities, equipment, material, services or site and acceleration of work). In addition, the clause provides adjustment of contract time and price based on the effect of the changes ordered which often resulted in the ‘making of claims’. For effective administration of the claims (including ‘global claims’) which naturally arise from such change orders/variation orders, it is crucial to maintain proper documentation and records of all related documents. This is to ensure completeness and in compliance with the provisions of the contract agreement particularly when making a claim where supporting/evidentiary documents are required. Hence, keeping complete records and filing of the following documents should be made mandatory:- minutes of meeting, site work instructions, material submittals, priority list (that indicate which issues from the Contractor’s perspective the Engineer should treat as priority so as to prevent delay to the impacted works), a statement on completion, and interim payment applications. Undoubtedly, a well-organized contract administration and an in- depth knowledge of the construction contracts by the administrator are pre-requisites for the smooth operation of construction projects. With careful planning and coordinated actions with the various departments, it can support the various components of the construction management. Suffice to conclude that, the adoption of best and prudent practices of contract administration will not only ensure the successful implementation and completion of a project but will further enhanced the reputation of the Company. 19 www.khayyat-qa.com HILTON & UCC SIGNING CEREMONY Many of us at the AI Jassim Bldg. have the distinct advantage to see the fast moving UCC/KCT Double Tree Hotel emerging across the street and often are proud to show to our Colleagues and Clients this impressive development. As a standard bearer in the Middle East, we are seeing increased interest from owners wanting to develop hotels in Qatar and they are looking across our spectrum of award winning brands to make the most of this prosperous development market. KCT started this project in mid 2011 with a mandate to fast tracking a Hotel. We look forward to a long, constructive working relationship with owner AI Jaryan Trading & Contracting" Double Tree Suites by Hilton Doha- Old Town, Qatar will offer a host of amenities including a health club, outdoor pool and, for the business guest, the hotel will also include two boardrooms, a large, dividable function room, meeting lounge and business centre. Construction progress is well on schedule and we are now pleased that UCC has also successfully selected a Hotel Operator, Double Tree Suites by Hilton Doha. In the presence of Khalifa Hamad Khalifa Abdullah AI-Attiyah, Hilton executed a 20 year operating agreement on 13th January 2013. Hilton Worldwide's latest hotel for Qatar, the 186-room DoubleTree Suites by Hilton Doha - Old Town, Qatar is expected to open in 2015 in the AI Salata district of the capital, an emerging area close to the Corniche and the new Doha International Airport, expected to open in 2015. The surrounding area will be home to a number of high profile, landmark projects including the recently opened Orient Pearl Restaurant, the Qatar National Museum, a Central Park inspired by a large, landscaped recreational area and Musheireb, Dohaland, a major signature project featuring a theatre, housing, schools and retail outlets, all of which are expected to transform the centre of the capital. Owner Hamad Khalifa Abdullah AI Attiyah, Owner of AI Jaryan Trading & Contracting said: "We worked closely with developer UrbaCon Trading and Contracting and numerous other expert Design and Hospitality Consultants to have allowed us to successfully to secure the deal with Hilton Worldwide and we are delighted we can now move forward with one of the industry's most respected operators to bring a truly impressive hotel property to this dynamic new area of Doha." Rudi Jagersbacher, President, Hilton Worldwide Middle East & Africa said: "This is an inspirational signing which will see Hilton Worldwide deliver a further 1144 rooms in Qatar within the next three years. On site dining facilities will feature a welcoming lobby lounge, and an all-day dining restaurant. John Greenleaf, global head, DoubleTree by Hilton said: "I am delighted to see demand for the DoubleTree brand increasing year-on-year across the Middle East, including in Qatar's thriving capital Doha, where we now have three properties in the pipeline. The Double Tree Suites portfolio is proving a popular choice for international guests and is now the second largest full-service, all-suite brand in the world. DoubleTree Suites by Hilton Doha - Old Town, will incorporate all of the signature 'comforts of home' into an upscale hotel experience to give Doha guests a spacious and convenient retreat for extended stays." Qatar's ambitious strategy to become a leading global destination has led to a number of significant project investments in tourism and in major global events, such as the FIFA World Cup, due to be staged in 2022. To support the expected growth in visitor numbers, plans are also underway to improve the country's infrastructu re including the building of a new rail network, new cruise terminal and the new international airport, which will be capable of handling 50 million passengers annually. All of us at KCT & UCC are proud of this accomplishment and look forward to the success of this project. 20 www.khayyat-qa.com "WE BUILD TRUST" Vision: Our vision is to create value and establish long-term relationships with our Clients and increase our client base by building trust. Trust is defined as UCC's unconditional guarantee to deliver our services and projects with the Clients best interests protected in all matters relating to the quality and economic success of their projects. Doha, Qatar, P.O. Box: 201184, Doha - Qatar, Tel: +974 4429 2220, +974 4429 2221 | Fax: +974 4429 2244, | E-Mail: info@urbacon-intl.com Website: www.urbacon-intl.com 25 www.khayyat-qa.com Face to face interview with Construction week Magazine with Mr.Ramez Alkhayyat ( MD of UrbaCon ) UrbaCon Trading & Contracting LLC (UCC) MD Ramez Al Khayyat tells CWQ that design and build is one of the keys to Qatar’s successful delivery of the 2022 World Cup Many construction industry experts and commentators have remarked on the slow pace of tender awards in Qatar’s 2022 World Cup build-up. However, one local contractor has proved that Qatar does indeed have the capability to get things done. That contractor is one of the sister companies of UrbaCon Trading and Contracting (UCC), which completed the Lekhwiya Sports Complex design-and-build project in 18 months. The achievement is particularly significant in that Lekhwiya will serve as a benchmark for future World Cup facilities. UCC MD Ramez Al Khayyat is adamant that design-and-build is the best way for Qatar to achieve its 2022 World Cup goals. “When we started we said we should be different in the market, we wanted to build our infrastructure very strong, so what we did was establish a company to do the design and build all together, so we are able to do a project from A-Z. There is no need for the client to have any headache in coordinating suppliers, contractors or consultants on projects; he will be working with one company only. We have the ability to do the design management; we do not do the design ourselves. And we hire the best consultants and architects from around the world.” Design-and-build is particularly suited to the 2022 World Cup build-up, asserts Al Khayyat. “Especially with fast-track, as most of the projects are now. When the client comes to you to do something, he just wants the project to be done. If you ..... 24 www.khayyat-qa.com Face to face Souq Waqif Car Park. Souq Waqif carpark in Doha will provide a vital link between the Souk Waqif retail centre and the Doha Corniche. The link will be achieved at the surface level elevation and below grade by means of a pedestrian tunnel. give the contractor the design-and-build contract, he will be able to start the project immediately. Starting the project in parallel with the design – this is most important.” “Also, this is to the benefit of the owner and client as well, because he will be unaf fected by inflation, price escalation and all those issues. If you wait two to three years for the design to be finalised before com mencing construction, and if the inflation rate is 5% to 10% a year, then he will be paying 25% to 30% more if he waited until the design was finished … So it is better from the beginning to start the project and 25 www.khayyat-qa.com construction immediately. And actually this is how we work on most of our projects; all the tenders we have participated in, with different clients, have been design-andbuild tenders,” says Al Khayyat. “And we are proud of course, of our achievements with the design-and-build contracts. We did that in a very short time. For example, for Lekhwiya Sports Complex, we achieved complishion of this project in 18 months. We did it, it is finished, it is ready and the client can use it, all in 18 months.” Such has been the success of the design-and-build approach that, in the short space of three LekhwiyaLekhwiya Sports Complex completed in a record months. Sports was Complex was completed in18 a record 18 months years, UCC has completed seven major proj ects, as well as making a name for itself in Qatar’s construction industry. Experts and commentators have also remarked that the influx of international companies into Qatar in anticipation of 2022 is bad news for local companies; Al Khayyat begs to differ though. “I do not think it is going to make it difficult for the local con tractors. We know that international con tractors cannot work in this market alone, especially with the government stipulating that the Qatari contractor should have 51% of any tender. International companies, when Face to face “When we started, we said we should be different in the market … what we did was establish a company to do the design and build together.” Ramez Al Khayyat they come in, they do not participate in the labour acquisition, resourcing, the services and all these issues; they outsource this local expertise and essentially only carry out construction management. “They have an expertise in a certain type of construction, and they give this expertise to the local contractors. It is not competi tion actually, as they have to work with the local contractors; otherwise they will not be competitive enough, and the project also will not be successful, because the local contractor has the necessary infrastruc ture,” says Al Khayyat. This is not to say that Qatar’s construc tion industry is without its challenges. One aspect that needs careful consideration on the part of government is staggering the World Cup tenders to prevent any bottle necks and subsequent inflationary issues. “If they only award all the tenders at the end, that would be a problem, especially in terms of inflation, because the demand for building materials will be very high and it will affect the construction cost. And it might at some time hurt the contractor himself, because you will price the project today, and then after one or two months, the prices will have increased. “There are a lot of projects to be tendered, and if those are floated gradually, it will be much better than them all being awarded at the end, which will affect the client, con tractor and stakeholders.” Al Khayyat points to Qatar’s successful hosting of the Asian Games in 2006. “They learnt very good les sons, so I think [the inflationary pressure] will not happen again. They are putting all the projects gradually out to tender, and I think it is going to be successful.” UCC executive director Moutaz Al Khayyat says it is important for Qatari contractors to have all their resources and infrastruc ture in place in order to be able to cope with the anticipated World Cup project pipeline. “When we started UCC, we first worked on our infrastructure. We built up our infrastructure to be very strong in terms of everything related to construction. We are very proud of what we have achieved. We have labour camps that can accom modate up to 40,000 workers.” A particular achievement of UCC, and a strong differentiator from the competition, is the creation of a Workshop Department within the company. “This Workshop Depart ment has different sectors, from shuttering to plastering and joinery, which we deal with like sub-contractors, because one of the challenges we have found is the availability, capability and quality of sub-contractors.” Al Khayyat explains that each section is dealt with “like an army. You have 12 skilled labourers; they have three charge hands; and they have foremen. When we move from site to site, we do not move people, we move teams. This is the most important issue, and we are really proud of what we 26 www.khayyat-qa.com FACE TO FACE For up-to-the-minute analysis log on to constructionweekonline.com UrbaCon Trading & Contracting, LLC (UCC), a leading Qatari construction company, has received ISO 14001:2004 and OHSAS 18001:2007 certification, it has announced. Certification to ISO 14001:2004 is Environmental Management system compliance, whereas OHSAS 18001:2007 is an Occupational Health and Safety certification. UCC had previously achieved ISO 9001:2008 Quality Management System certification in 2012. “The certification of compliance with ISO 14001:2004 and OHSAS 18001:2007 recognises that the policies, practices and procedures of our company ensure consistent health, safety and environment within the organization,” said UCC executive director Moutaz Al Khayyat. To become certified as ISO 14001:2004 and OHSAS 18001:2007 compliant, UCC underwent a thorough evaluation process that included development of a formal HSE management system, maintaining and implementing management systems. Both these certificates are certified by SGS, a leading global certification company. "We are pleased to have achieved ISO 14001:2004 and OHSAS 18001:2007 certifications for our UCC business,” said UCC MD Ramez Al Khayyat. “ISO 14001:2004 and OHSAS 18001:2007 certifications are part of our constant commitment to the environment and occupational health and safety. "Our employees' health, safety and well being are integral to the company's core values and sustainability initiatives. This standard reinforces how we continue to adhere to the highest standards for safe and healthy workplace conditions for our employees, subcontractors and visitors.” “For Lekhwiya Sports Complex, we did it, it is finished, it is ready and the client can use it, all in 18 months.” Ramez Al Khayyat have achieved with the Workshop Depart ment.” Such an approach gives UCC the flexibility and adaptability to tackle a range of projects simultaneously, which is key to Qatar delivering a successful 2022 World Cup. “If you move just the labour, in order for them to get to know their leader, it is going to take time, and you will not get the same quality. We have adopted this type of organisational structure in order to ensure the level of quality we require. It is much 105,000M2 TOTAL AREA OF SOUK WAQIF CAR PARK • 2,427 NUMBER OF PARKING BAYS 29 www.khayyat-qa.com FACE TO FACE Face to face Banana Island posed specific challenges for the UCC team in terms of logistics and planning. better and easier for the workers them selves, rather than going to and fro from site to site. I think this is also necessary in terms of the future with all the big projects that will need to be done; you have to take the longer view.” As a result of this approach, UCC has grown to encompass nine sister companies, says Al Khayyat, ranging from the largest landscaping contractor in Qatar to marble and stone and joinery factories. “If you rely on local sub-contractors, it is going to be a problem. Meantime we are doing 65% of the work ourselves and the other 35% is sub-contracted. We are very selective in choosing sub-contractors.” An example of UCC’s attention to detail is that it employs 500 Moroccans skilled in detailed, special ity finishing work, particularly for highend projects. Al Khayyat maintains that, contrary to many views, sourcing unskilled labour is not a problem in Qatar. “International contrac tors have to work with local contractors, because they have the labour, so it is not a big issue. While unskilled labour is not an issue, skilled labour is becoming more of an issue, because new international contrac tors coming to the market bring in labour from outside, and these workers have to be tried out on projects beforehand.” Looking to the future, Al Khayyat confirms that UCC is looking to expand throughout the region. “Yes, of course we are looking to expand outside of Qatar. At the moment we are very busy and have enough work to do in Qatar, but still we have a special development team working outside Qatar.” At the same time, Al Khayyat points out that “the construction industry is the most difficult industry in the world. It is not the same as any other type of business; it is really different. But at the same time it is very exciting. This is a family business, established by my father in Syria in 1983, so we lived with construction in the family, we went to project sites with him to see what he was doing; that is what gave us not only the understanding of it, but also our love for it.” Al Khayyat sees exciting times ahead for Qatar not only in the lead-up to 2022, but up to 2030 and even beyond that. “It is even beyond the National Vision 2030. As you know, the goal of Qatar is to have 80% of its GDP from non-oil sources, which means a lot of construction and infrastructure in multiple business sectors.” He adds that many of the projects on the go now “have never been done in the world before … and are really different. So it is bringing more and more to the country, and giving con tractors experience they can transfer to Qatar. Even international contractors are doing work they have never done before.” Some of the luxury chalets under construction at Banana Island. • 12.9ha AREA OF BANANA ISLAND • 140 NUMBER OF KEYS AT THIS RESORT PROJECT 28 www.khayyat-qa.com NEW JOINERS DECEMBER-12 JANUARY-13 FEPRUARY-13 Ahmad Amer Nouh Ghawji Project MEP Coordination Manager Muhammad Adil Land Surveyor Level 4 Donabel Pecante Capuno Commercial Coordinator Level 4 Carlo Mofar Dayo HSE Officer Level 1 Fadi Khaled Haddad Material Manager Hasim Husain Sayyad Document Controller Level 1 Maharajan Mahalingam QA/QC Inspector Level 1 Isam Jamil Subuh Alzraikat Senior Construction Manager Thaer Ghawi Ali Al Ghawi Project Engineer Level 4 Maribel Abellare Pardinan QA/QC Engineer Level 2 Ehab Metwalli Mohamed Metwalli Accountant Level 2 Florante Ponce Patacsil Land Surveyor Level 3 Parvez Alam Ansari AutoCAD Operator Level 3 Shaikh Tauqeer Arshad IT Officer Level 2 Adbdeljalil Agourram Senior Contract and Commercial Manager Noli Santos Dela Cruz Quantity Surveyor Level 1 Expidito Manatad Cabal Architect Level 2 Ann Asuncion Faustino Structural Engineer Level 3 Mohamed Abouelmagd Wadn IT Officer Level 2 Jehad Yousef Abd Almajeed Saleh Project Engineer Level 1 Bhaskar Narayan Sunil Narayan Lal Electrical Engineer Level 2 Bilal Mashal Khan Mashal Manpower Administrator Level 3 Shahrizan Bin Amir Hamzah Senior Design Manager Judelon Mark Devera Labrador AutoCAD Operator Level 2 Vinod Sasidharan Nair Senior QA/QC Engineer Mohamed Dawy Hassan Ahmed Mahmoud Senior HSE Officer Jevelyn Marzan Estole AutoCAD Operator Level 2 Richard Goc Ong Lauron QA/QC Engineer Level 1 Almira Maria Caparros Imperio Quantity Surveyor Level 2 Ali Hasan Kalakech Technical Coordinator Abdul Fattah shakir Construction Manager Level 1 Atif Ali Shah Atif Ali Shah Ali Asad Ullah Project Engineer Level 2 Vinay Teligi Halappadevara Mathada Senior Estimation Engineer Shiela Natividad AutoCAD Operator Level 2 Adoremos Marianne Executive Assistant Level 3 Aurora Manzano Quantity Surveyor Level 2 Mostafa Ahmed Mhd Abdelrazek Technical Manager Level 1 Rowena Mallari Dabu AutoCAD Operator Level 2 Menandro Gawan QA/QC Engineer Level 1 Jocelyne Immaculata Ambrocio AutoCAD Operator Level 2 Maria Ana Liza Asprec Document Controller Level 1 Kinda Hasseb Eisa Administrator Level 2 Fadi Bassam Othman Ali Al Thalthini Electrical Engineer Level 4 Tamer Abdelfattah AbdelRahman Ibrahim AutoCAD Operator Level 2 Salah Mahoud Aly AutoCAD Operator Level 2 Ahmed Mahmoud Seoudi Ibrahim Accountant Level 1 Rajan Savier Emmanuel Gunanayagam Senior HSE Manager Claudette De La Cruz Arceno AutoCAD Operator Level 2 Mohamad Amir Hamoui Architect Level 4 Mohammad Bikou Maintenance Supervisor Anne Marie Abi Zeid Daou Executive Assistant Level 2 Raaed Abdelhalim Mohamed Abdelfattah Yehia Administrator Level 3 Mohamed Hmaidan Document Controller Level 1 Omar Samir Mitri Marar Senior Planning Engineer Asim Shahzad Land Surveyor Level 3 Ouertani Ahmed IT Officer Level 2 Tahani Naim Odeh Haddadin Technical Manager Level 1 Khaled AbdelAziz Ali Mohamed Kokah Assistant Planning Engineer Mhd Ziad Sardar Accountant Level 3 Mohammad Khaled Jarrah Project MEP Coordination Manager Mohamad Ammache Architect Level 3 Mhd Aiman Al Homsi Quantity Surveyor Level 3 Santhosh Purayidathil Gangadharan Executive Assistant Level 3 Khaled Hosni Abdelsalam Ahmed Architect Level 2 Mostafa Abul Kalam Mohammed Golam Senior QA/QC Inspector Shadi Jadaan Document Controller Level 1 Shahzada Shahiryar Senior QA/QC Engineer Robert Charles Gray Project Operations Manager Level 2 Ahmed Bou Taleb Construction Manager Level 1 Naser Masood Land Surveyor Level 4 Ric Tulagan AutoCAD Operator Level 2 Lourence Pascual Nurse Level 1 Melenio Jover Basco Nurse Level 1 Joel Pua Ong Project Coordinator Level 1 Fahmi Abul Feilat Project Director Level 2 Ashraf I.N.Naser Nawal Construction Manager Level 1 Hossameldien Abdelaziz Mouhamed AutoCAD Operator Level 2 Mohammed Mazen Miftah Plant Procurement Manager Gina Chavez Amboya Administrator Level 2 Khaled Yaqob Accountant Level 3 29 www.khayyat-qa.com MARCH-13 Feroz Latif Shaikh Administrator Level 1 Andy Ecija Project Engineer Level 2 Patrick Ishac Senior Administrator Jayaprakash Kuttanpillai Document Controller Level 1 Muhammad Ali Syed QA/QC Engineer Level 2 Eamonn Andrew Contruction Manager Level 1 Mohammad Al Habbal Accountant Level 3 Eduardo Robles QA/QC Engineer Level 1 Mark Anthony Mc Loughlin Construction Manager Level 1 Platinum Sponsor Qatar Project please visit us: WWW.PROJECTQATAR.COM Catherine Salem From: Sent: To: Subject: Attachments: Catherine Salem Sunday, April 21, 2013 5:36 PM AllKCT; UCC Internal Email Circulation Re: KB Newsletter Vol.3 Issue No. 3 March 2013 KB Newsletter 2013.pdf Dear All, Please see attached KB Newsletter – March 2013 issue. Sent on behalf of Mr. Amr Khatib – Communication Manager, for your information. Regards, Catherine Salem Document Controller Al Khayyat Contracting & Trading Tel: +974 4429 2220 – 4429 2222 | Fax: +974 4429 2223 | Ext: 2126 PO Box: 201184 Doha – Qatar Email: c.salem@khayyat‐qa.com Website: http://www.khayyat‐qa.com | Website: www.khayyat‐sy.com Save a tree. Don't print this e-mail unless it's really necessary Information in this email is intended solely for use by the addressee and may contain confidential information. If you are not the intended recipient, you are not authorized to disclose, use, distribute or in any way rely on the contents of this email or attachments and are requested to notify the sender immediately by responding to this email and delete it from your system(s). UCC/KCT do not accept any responsibility for the email content and/or attachments. It is the recipient’s responsibility to safeguard from computer/ computer network related security issues before use. 1