mep middle east

MIDDLE EAST NEWS UPDATE |06THE BIG INTERVIEW |14

CASE STUDY |26OPINION|30

PRODUCTS |38THE LAST WORD |40

ON THE

Renewable energy is hotting up: the latest products from solar water-heating systems to streetlighting

ALSO: CATHY CROCKER FROM SCOTT WILSON ON ENERGY-EFFICIENT BUILDING

An ITP Business Publication | February 2010 Vol. 5 Issue 2Essential information for mechanical, electrical and plumbing professionals

HVAC DESIGNTHE LATEST ADVANCE IN INTEGRATED SOFTWARE

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February 2010 | MEP Middle East 1www.constructionweekonline.com

FEBRUARY 2010 VOLUME 5 ISSUE 2

CONTENTS

03 CONSTRUCTION WEEK ONLINE

05 COMMENT

06 UPDATEFrom ASHRAE’s input into a global HVAC report to a look at the prevailing sentiment in the MEP sector as to prospects in 2010.

12 PROFILE Cathy Crocker from Scott Wilson.

14 THE BIG INTERVIEWFahed and Aslan Al-Barazi from IMEC.

19 SOLAR POWERAn overview of some major players and latest products.

25 COMPUTER MODELLINGIntegrated HVAC design solution.

26 CASE STUDYA look at ASHRAE’s new LEED HQ in Atlanta, Georgia.

30 OPINION

33 BUSINESS LEADS

35 LEGAL Dennis Brand on exclusion and

limiting clauses.

36 METAL MONITOR

38 PRODUCTS

40 THE LAST WORDTransguard MD Mike McGeever.

12

26

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CONSTRUCTIONWEEKONLINE.COM

COLUMNS AND FEATURESNOW DO ITJeff Roberts, Editor, Middle East ArchitectWow, that was a hell of a year. Trust me, I tried to stay positive. I’m urging you to remember your com-mitments, especially working smarter, more transparently and going green.

BIG RELIEFSelina Denman,Editor, Commercial Interior DesignNo one’s sorry to see the back of 2009. For the region’s interior design industry, it was a year steeped in setbacks.

SEALEDConrad Egbert, Editor, Construction WeekThe opening of the renamed Burj Khalifa was nothing short of spectacular, and marks the move towards a clearer federal model.

STORM MACHINEGreg Whitaker, Editor, PMV Middle EastThere has been some pretty wild speculation about the physical properties of the super-tall Burj Khalifa, and the so-called ‘storm effect’.

REEM ISLANDPAL Technology, one of the largest district-cooling providers in the UAE, has commenced the fi nal stages of the piping network at Sectors 2 and 3 for the district cooling plant No. I at the Tamouh development, Reem Island.

For more galleries, check out www.constructionweekonline.com/galleries

IN PICTURES MOST POPULAR

• Six of the best: GCC airport projects

• Abu Dhabi set to release major airport

tender

• Abu Dhabi TDIC prepares to fl oat two

more tenders

• Kuwait set for potential building boom

• RTA allocates US $2 billion for projects

• 25 buildings topped out at Remraam

• Vision wins Saudi Arabian MEP job

• ETA Star delivers Liberty House

• Damac tops off Park Towers

EDITOR’S CHOICE

SPOT POLL

How will your business fare in 2010 compared with 2009?

31.0%I’m still really depressed

26.2%The same

21.4%A bit worse

14.3%A bit better

7.1%Much better

For more comments, check out www.constructionweekonline.com/comments

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COMMENT

Spotlight shines on solar power

In this issue we focus on the solar power sector, and look at a range of companies involved in this burgeoning industry, featuring products as di-verse as solar water-heating systems and solar

streetlights.“DEWA should really be pushing such alternative

technologies, as it is experiencing a lot of shortages, not only in generation capacity, but also infrastruc-ture such as transformers and substations.

“Projects have to wait for power. Generation is also very polluting. In addition, the actual generation costs far outstrip the 20 to 30 fi ls/kWh that DEWA charges, when it actually costs 80 fi ls/kWh.

“If the grid is not overloaded, then underserviced areas can be prioritised. It is in the best interests of electricity providers to promote renewable energy,” Nabil Hamade from CStar International.

“The MENA region has a unique opportunity to develop high-quality, globally-competitive solar sup-pliers, who produce at lower costs than US or Euro-pean suppliers.”

“A competitive regional solar energy industry has the potential of creating more than 100 000 new jobs in the region, based on benchmarks from other regions. This includes direct jobs in PV and CSP

MIDDLE EAST

Published by and © 2009 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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suppliers, developers and operators, as well as sup-porting industries,” says AT Kearney Middle East principal Christian von Tschirschky.

In terms of the perceived need to cut costs in light of the economic downturn, Ecoval General Trading LLC MD Jim Sebastian says a lot of customers do opt for bottom-line products.

“However, I see there is a market for good prod-ucts, and there is a market for cheap. We decided we wanted to opt for the niche of top-quality, high-end products. Quality is remembered long after price is forgotten. Satisfi ed customers equate to peace of mind and repeat business,” argues Sebastian.

Solar power was prominent at the World Future Energy Summit in Abu Dhabi. More than 160 ma-jor players exhibited their products and services, including ABB, Suntech, GE Energy, Schneider Electric, Siemens, Brisban Solar, Azur Solar, Solar One, Canadian Solar, Oerlikon Solar, BP Alternative Energy, Acciona, Yingli Green Energy, Solaria and Terna Energy.

GERHARD [email protected]

Keep up-to-date with all MEP Middle East news at

5

UAE Minister of Environment and Water HE Dr Rashid Bin Fahad and Honorary Minister for New and Renewable Energy, Government of India, Dr Farooq Abdulla at the appointment of PTL Solar as esclusive MENA distributor for the Reliance Solar Group.

UPDATE

6 MEP Middle East | February 2010 www.constructionweekonline.com

ASHRAE to work on global HVAC reportThe latest data from the region will feature in the newest version of the RTOC report

Yousef Alshaer, Ayman El-Talouny and Dr Alaa Olama.

New MD to oversee growth at MACAirAPPOINTMENT

Mike Callender has been ap-pointed MD of MACAir, a Dubai-based MEP contractor re-cently acquired by Transguard, an Emirates Group company.

UK national Callender brings more than 30 years’ experience in mechanical and electrical en-gineering, as well as HVAC, of which 20 have been in senior

management. Callender’s expe-rience includes developing and steering new company start-ups through to strategic and opera-tional roles within major mul-tinationals, including Drake & Scull, GSH and Cofathec GDF.

Welcoming the challenge, Callender says: “The synergy between MACAir’s current busi-ness and Transguard’s FM and

technology businesses offers a wealth of potential for the com-pany going forward.” MACAir’s former MD, Geoff Frost, has been appointed vice chairman, and will continue to assist with the development of the compa-ny. MACAir, which turned over AED225 million last year, is a separate business unit within the Transguard Group.

HVAC

The American Society of Heat-ing, Refrigeration and Air-Condi-tioning Engineers (ASHRAE) is co-operating with the UN Envi-ronment Programme (UNEP) to ensure that data for the Middle East HVAC industry is included in the 2010 Refrigeration, Air Conditioning and Heat Pumps Technical Options Committee (RTOC) Report. The last RTOC report was published in 2006. The 2010 update will contain data from 2008.

While it is commonly known that HVAC accounts for up to

70% of electricity consumption in the UAE, as well as contributing signifi cantly to carbon dioxide emissions, the region has always been under-represented in glob-al surveys of the HVAC industry due to a lack of data.

In order to address this, ASHRAE has teamed up with UNEP to provide “a joint pool of experts,” says ASHRAE Falcon Chapter, UAE President Yousef Alshaer. As a fi rst sign of this co-operation, Ayman El-Talouny from the UNEP Regional Of-fi ce for West Asia addressed an ASHRAE technical seminar in

Dubai and Abu Dhabi. El-Talou-ny is also President Elect for the Bahrain AHSRAE Chapter.

He says that while HFCs and HCFCs represent the next stage in the evolution of refrigerants, “natural refrigerants seem to be the future.”

However, cost considerations and potential safety issues have hampered the large-scale adop-tion of natural refrigerants. Al-ternative refrigerants also have to take into account the total life-cycle cost.

While Europe has already completed its CFC phase-out, developing regions have lagged

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behind. Kuwait phased out CFCs in 1996, Bahrain in 1999 and Qa-tar only in 2007. “Enforcement at international level is a problem, and is generally not feasible in developing countries.

“A big problem in the Middle East is that air-con is used far more than it is needed, due to prevailing custom and force of habit. The ‘comfort zone’ tem-perature here is 16°C to 18°C, which is far lower than the rest of the world. If this can be offset by 2°C, it will have a huge impact on the carbon footprint of the HVAC sector,” argues El-Talouny.

Speaking at the same technical seminar, Dr Alaa E. Olama, head of the sub-committee responsi-ble for writing the Egyptian dis-trict cooling code, highlighted the potential of such ‘alternative’ technologies as absorption chill-ers and indirect or evaporative cooling as future options for the global air-con industry to cut costs and boost effi ciency.

A big problem in the Middle East is that air-con is used far more than it is needed, due to prevailing custom and force of habit.“Ayman El-Talouny

Mike Callender


UPDATE

The Park at Burj Khalifa boasts a unique collection system to promote water reuse

Water recovery at The Park

WATER CONSERVATION

The 11-hectare The Park at the foot of the Burj Khalifa contin-ues the long string of construc-tion fi rsts associated with the world’s tallest building from developer Emaar. An area of gar-dens, colourful trees and water features, The Park is irrigated using a unique water collection system that recovers the conden-sation from the building’s cooling equipment to provide around 15 million gallons of water a year – or enough to fi ll 20 Olympic-sized swimming pools.

“The design of The Park is also inspired by the core concepts of Burj Khalifa, based on the sym-

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The project was carried out by Skidmore Owings & Merrill (SOM), the Chicago-based ar-chitect, and SWA Group of Cali-fornia. WET, the designer of the Dubai Fountain, developed the park’s six water features. Sub-contractors included Fisher Ma-rantz Stone (lighting) and Pelton Marsh Kinsella International (acoustics and ELV systems).

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Water scarcity is a key driver for green building

TECHNOLOGY

A new white paper from Rock-well Automation details how fa-cility managers and owners can reduce energy consumption and maximise savings with HVAC control upgrade technology. The paper outlines a new option to help convert constant volume HVAC systems to variable air volume (VAV) control, while avoiding the cost and complex-ity typically associated with changing mechanical or build-

RESEARCH

A new green building report sponsored by the Mechanical Contractors Education and Re-search Foundation, the research arm of the Mechanical Contrac-tors Association of America (MCAA), has highlighted water conservation as the fastest-grow-ing concern of the green build-ing movement.

Water scarcity is a critical issue in the Middle East. A report from Birzeit University in Palestine re-veals that the MENA region has 5% of the world’s population and less than 1% of the world’s avail-able water. Future projections indicate that demand for water in the UAE will rise from fi ve bil-

ing automation control systems.“VAV is a highly energy-effi -

cient means of distributing air in an HVAC system. VAV is rela-tively new in the Middle East. It is a bit of a ‘black art’ for some con-tractors as they do not fully un-derstand the concept behind it,” says Belimo Automation senior executive Colin Shepherd.

The paper describes the tech-nology behind this upgrade op-tion, outlines the cost-saving benefi ts. By adjusting fan speeds,

the upgrade option helps facil-ity managers reduce energy con-sumption and building owners reap payback in a relatively short time, often less than a year. The new upgrade option helps build-ing owners avoid costly redesign and capital investments associ-ated with new systems.

Designed as a self-contained unit for easy installation, the in-tegrated control solution delivers more energy savings at a fraction of the cost of a traditional hard-ware retrofi t. The unit includes temperature and carbon diox-ide sensors, a microcontroller, a high-performance variable fre-quency drive and a touch-screen

HVAC control upgrade cuts costsNew white paper spells out how to reduce energy use in HVAC systems

lion cubic metres to seven billion cubic metres in 2020.

In ‘Water Effi ciency Technolo-gies for Mechanical Contractors: New Business Opportunities’, Jerry Yudelson from Yudelson Associates of the US profi les the growing trend of water con-servation, as highlighted by the new LEED requirements of 20% water savings for every project, compared with conventional buildings. “We cannot solve en-ergy problems without dealing with ineffi cient water use,” ar-gues Yudelson.

The report provides a practi-cal guide to water technologies for buildings, and how contrac-tors, in particular, can generate

business opportunities from this trend. “This opportunity is not limited to contractors; it exists also for manufacturers, inves-tors, technology developers, building owners and real estate developers,” says Yudelson.

Water metering, fi xture re-placements, cooling tower water reduction, rainwater harvesting and grey water reuse in buildings are some of the technological op-tions highlighted by the report. These can add signifi cant value to developments by lowering an-nual operating costs and increas-ing net operating income. “It is possible to add US$1 million to the value of a large building just by saving $100 000 in annual wa- Jerry Yudelsonn

operator interface. Rather than cycling between constant speed and off, HVAC fans controlled by the variable frequency drive au-tomatically adjust in response to heating or cooling needs.

“HVAC systems typically con-stitute a large amount of a build-ing’s operating costs, so it makes business sense to upgrade HVAC systems as effi ciently as possible, without being forced to reconfi g-ure an existing system,” said IMS Research market analyst Jenalea Howell. “A new energy-saving solution comprising intelligent motor control technology allows building owners and facility man-agers to take better control.”

HVAC systems typically constitute a large amount of a building’s operating costs, so it makes business sense to upgrade HVAC systems as effi ciently as possible.“Jenalea Howell

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UPDATE

Larry Lim and Zakir Ahmed from Gree

MEP sector is not cutting cornersEXHIBITION

Despite a global slowdown that has forced many in the construc-tion and development industries to look for the lowest-price op-tions, manufacturers and suppli-ers of HVAC and MEP solutions have claimed that developers and specifi ers are not cutting corners on price.

Speaking at The Big 5 ex-hibition at the end of last year, companies specialising in these fi elds have also claimed that the slight tightening of buyers’ bud-gets has, in fact, led to a better and more competitive sector. “There is certainly still a big market here in the Middle East, and while it may not be as huge as it was a year ago, we do feel it is starting to grow again,” said Peter Klyver, marketing director for the Swedish Ostberg Group, which is dedicated to energy-effi cient ventilation systems.

“Our main clients are hotels, and this is the place to be for ho-tels. They are not looking for the cheapest solutions, but actually the right balance between qual-ity and price. We are Swedish, and with that comes a certain reputation for quality – we are not the cheapest, but we are cer-tainly not the highest.”

Western Airducts’ Tom Prideaux-Brune agreed that the search for the right price was not exactly destroying the industry.

“Our company manufactures grilles, diffusers and delivers air-quality engineering. To be honest, many of these prod-ucts are very similar across the board, and therefore you do see a lot of clients looking only at the bottom line.” However, this has lead to a push towards better service levels. “Manufacturing has become a service industry. We have been conscious of that in the UK, and are now applying those principles here.”

The Chinese company Gree manufactures air-con solutions, chillers and fan coil units, and currently boasts a global net-work of 20 000 distributors, while producing more than 27 million units a year, enjoying a 46% market share in China. “We have been doing good business in retail and wholesale, but of course we have also witnessed a decline in construction over the past year,” explained vice gen-eral manager of overseas sales Larry Lim.

Sentiment at The Big 5 was that quality remains king, reports Matthew Warnock

27MILLIONUnits a year manufactured

by Chinese company Gree

“We see the current market as a great opportunity for Gree to grow its business. What de-velopers are actually looking for is a cost-effective solution at an attractive price, and we can cer-tainly compete on quality.”

Zakir Ahmed, GM of NIA Lim-ited, which supplies Gree’s prod-ucts in the region, added: “A few years ago, property prices were booming and nobody was both-ered about price; all they were bothered about was delivery and execution. Now developers and clients need a more realistic price solution.”

Maxell Trading is a UAE-based company that has been supply-ing the HVAC market for the past eight years. Sales executive CS Rathish said: “This market is currently ruled by price and competition. Some big projects and high-profi le smaller ones still demand quality, but others often want rock bottom prices. There are some cases where there is a genuine cheaper alter-native, but a handful of contrac-tors are unfortunately willing to compromise quality for price.”

However, Rathish is quick to point out that this view of the market is far from a negative one. “We feel that it has been a little tough to attract business in the past few months but, having said that, we have already exceeded our target for this year. The next six months could be fairly diffi -cult, but then we are confi dent that we will see the market come back strong.”

So why are some companies revelling in current economic conditions while others are strug-gling to make ends meet and slashing jobs every few months? “It is about the structure of a company. Big companies have huge marketing budgets and big distribution costs, whereas Gree is very lean,” explained NIA Lim-ited’s Ahmed.

The one certainty is that HVAC specialists still see the Middle East as an essential mar-ket. “This is our fi rst time here, and the architecture and fi nishes are amazing – it is like the F1 of construction,” said Western Air-ducts’ Scott Lintern. “In terms of the air-quality engineering side of the business, we are getting a feel for the market and are trying to network. As health and safety regulations become more im-portant, we feel we can play our part with 30 years’ experience manufacturing according to UK regulations.”

What developers are actually looking for is a cost-effective solution at an attractive price.“Larry Lim, Gree

Peter Klyver from the Ostberg Group

PROFILE

he “huge proportion” of the electrical load consumed by air-con has resulted in a larges-

cale focus on effi ciency measures to try and reduce this consump-tion. “Over the last eight to ten years, developers have focused on how we can reduce the electrical consumption for cooling. A district cooling solution, in the correct

application, with the correct design, can con-sume up to 55% less energy than the equivalent standalone cooling system,” is Crocker’s main argument.

However, it is also important to try and re-duce energy consumption at the source, which means the buildings themselves. This, in turn, means that building services designers play a critical role from very early on. “Basically site selection and the outline design stage are, in my opinion, the key time for the design team to get together to lay a good foundation for a building design.

“This is the time at which you can get the building orientation right, the building form and the building fabric. These three elements have a huge impact on the energy consumption of a building throughout its life. As we move on through the design stage into detailed de-sign and construction, obviously the ability to change the building design diminishes.

CHANGE“No one will thank a designer, after a detailed design, for suggesting a change in orientation, even if it does bring about a huge reduction in cooling load,” argues Crocker. “Clients, engi-neers, architects and sustainability consultants really need to get together from day one to agree on a good methodology for the design of a building or the design of a site, so they have a good foundation for an energy-effi cient so-lution.” What elements need to be taken into account in the early design stages? “Building orientation is obviously the key to reducing en-ergy consumption,” points out Crocker. “Here in Dubai it is the early sun in the morning and the late sun in the evening that has the ability to penetrate deepest into the building, and these

MEP Middle East speaks to Scott Wilson associate director: building services Cathy Crocker.

off30%

Reduction in energy use through passive design measures alone


are the areas we need to concentrate on. The overhead sun, while it has a strong irradiation, does not penetrate as far because it is higher overhead.”

Crocker refers to a project in Dubai where Scott Wilson worked with the architects to come up with a self-shading solution. The build-ing comprised three wings, and to protect the building against the low morning and evening sunshine, a heavyweight, opaque façade was applied to the east and west. “This fairly simple approach had a huge effect on the heat gain, so the building did not suffer from high tem-peratures in the morning and evening, and we could really drive down the cooling loads,” ex-plains Crocker.

The next critical element for the design to consider is the building fabric. “If we can get the correct building fabric in terms of thermal mass and UV value, we can dramatically re-duce the peak cooling load. This, in turn, will drive down the energy consumption and size of equipment,” says Crocker. A simple reduction in a building fabric U value from .45 to .35, ap-plied throughout an entire building, can have a huge and incremental impact on the overall structure.

“Another element which I think is very im-portant for designers to consider is infi ltration – the unwanted passage of air in each building due to external pressures. We need to make sure that buildings are well-sealed so that the hot external air does not come into our building and add to the cooling load. This is a design issue, and also a site issue, to make sure that the buildings are detailed and con-structed correctly.

“If we address the U values, the thermal

use throughsures alone

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PROFILE

mass and the infi ltration, I say we can achieve a minimum 30% reduction in peak load. Over recent years, building services designers in the UAE have become more familiar with energy-effi ciency measures. Variable speed drives, heat recovery and other measures are being implemented more and more into build-ings now as a matter of course, which is great for energy consumption,” says Crocker.

She says that Scott Wilson’s favoured de-sign approach, wherever possible, is deemed ‘mix match’. “In essence it just means turn-ing off the air-con when you do not need it. You have to have a building that is designed correctly to enable natural ventilation – that is, opening windows and a shallow-plan fl oor plate. In certain periods of the year in Dubai, we do have the capability of turning the air-con off completely.

TURN OFF“The best way to reduce energy use is to turn off the system completely,” Crocker says sim-ply. She acknowledges that this can be prob-lematic in terms of dust and noise, but these issues can be addressed successfully at the design stage. “For residential buildings or lei-sure facilities, it is very important for us to be

able to design buildings so they can be ven-tilated naturally in winter, as that will save a huge amount of energy. Of course, during the hottest summer period we do need to have air-con, so that will always need to be factored in.

“Another consideration is really to think about increasing the setpoint of the air-con. Just by raising the setpoint from 21°C in summer up to 25°C you almost halve your MW/h of cooling consumption,” ar-gues Crocker. Similarly, the design process also needs to take daylighting into account. “Thermal analysis allows us to experiment with different window designs to ensure we get the correct balance between window size and minimising solar gain. It is a bit of a fi ne balance because obviously we do not want to introduce too much heat, but we also need to ensure that areas are well lit

through natural means wherever possible.”So what does all this boil down to? Do all

the ‘green’ platitudes translate easily into what Crocker terms the ‘construction reality’? “I think it is all very well designing a good build-ing and having good intentions, but we need to make sure this is followed through into construction. Here in the Middle East, some buildings are well built, and some are not. As a design team it is our responsibility to work together so that the intent at the design stage is worked through into installation.

Just by raising the setpoint from 21°C in

summer up to 25°C you almost halve

your MW/h of cooling consumption. “

Cathy Crocker

“A key area we need to work harder on I think is commissioning, putting the building to use and making sure it is up and running correctly before it is handed over to the client. If the building is not set up correctly at hand-over, then the client/operator can never be expected to run the building correctly.” This means proper facilities management is equally important. “Again, buildings do not run them-selves. We need to ensure the equipment is maintained and working at good effi ciency throughout its life.

“An interesting debate in the UK recently is energy certifi cation of buildings. A number of public buildings are getting a rating from ‘A’ to ‘F’, which informs the public at large and the occupier how well the building is performing. I think it will be an interesting analysis in this part of the world to begin considering some form of energy certifi cation,” says Crocker.

How does the design phase interface with district cooling, for example, in terms of en-ergy effi ciency? “District cooling has been a popular way of providing cooling to large de-velopments and large areas. The way we ap-

proach district cooling systems is, fi rst of all, to take a good long look at the site, at the build-ings on the site, and how they will be used. Typically, we would not necessarily advocate a district cooling solution for a purely low-rise development, for example, as it might not be fi nancially viable to do so.

CONFIGURATION“When we work out a district cooling network we look at the best confi guration, which is ob-viously informed by the site phasing, the load profi le and then the remote station size. And that, in turn, generates a footprint area for the district cooling plant. The district cooling plant size is generated purely by the load it carries.

“So to return to my earlier point: if we can achieve a 30% reduction in energy use through purely building measures, we can in turn re-duce district cooling plant sizes, whereby you can service an increased area through the same plant. Our aim is to really try and dem-onstrate how interlinked all these elements are. If we can work very hard on the building systems, we can infl uence the larger utilities infrastructure.

“In conclusion, I believe it is very impor-tant for designers to work very hard from day one of design to reduce the electrical load at source. That is the most important step we can take as designers. We need to incorporate passive design measures such as orientation, shading and daylighting, and active design measures such as mixed-mode ventilation and even turning off the air-con and raising the setpoints. That, in turn, will provide benefi ts to the clients and developers through releasing commercial space, reducing energy consump-tion and, of course, reducing capital and run-ning costs,” says Crocker.

www.constructionweekonline.com

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An example of an energy-effi cienct hotel project that Scott Wilson has worked on

THE BIG INTERVIEW

Established in 1973, IMEC’s growth has refl ected the evolution of the district

cooling industry in the UAE. MEP Middle East speaks to father-and-son team Fahed and Aslan Al-Barazi about the company’s distinguished history

and penchant for innovation.

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THE BIG INTERVIEW

ahed attended the University of Florida’s School of Engineer-ing, whereupon he immediately

set about distinguishing himself at Moore Dry Kiln Company in the US in the fi eld of heat transfer. This was about 1964.

“The batteries of heating coils I recom-mended were half what the manufac-turers were trying to sell them. The end result was a saving of about US$1

million.” In appreciation of his achievements, ‘preference status’ US citizenship was secured. Fahed joined the Borg-York division in 1966 to become its youngest Middle East GM, a record that stands to this day.

“The main reason for establishing IMEC was simply that I wanted to be independent. Being GM was fi ne, but what was next? The fact that I had become GM at such a young age was certainly a stepping stone in my reputation and credentials,” refl ects Fahed. The products he started out with were non-competitive with Borg Warner/York as such, comprising allied equipment such as boilers and fans.

“This was the early 1970s, when Dubai was hardly anything at that time. Reciprocating chillers and air-cooled packaged equipment had just made their appearance on the market. The district cooling industry as we know it today was still in its infancy,” explains Fahed. Interestingly, the hub of innovation during this period was Kuwait, which opted for centrifugal water-based cooling for anything over 300 TR, which meant using cooling towers, and air-cooled condensers for up to 120 TR.

CENTRIFUGAL CHILLERSKuwait also introduced centrifugal chillers, which the mainly British-orientated consult-ants in the UAE at that time were quite leery of. “Air-cooled, packaged equipment was not really viable for large projects, as you ended up with ten chillers for a cooling load of 1 000 TR, for example,” says Fahed. He was quick to take note of the pioneering spirit of Kuwait.

“IMEC’s fi rst major success, now we are talk-ing 1978, was three years after I had left Borg Warner/York. Our fi rst major breakthrough was supplying the cooling requirements for four major naval bases in Kuwait, for which we supplied huge AHUs from the UK, a move that made the industry sit up and take notice,” says Fahed. In addition to car-park areas 5 and 9, the project comprised 18 000 TR, which was a staggering size at the time.

Not content with his initial resounding suc-cess in Kuwait, Fahed then entered the Iraqi market with a new range of cooling towers, im-

mediately landing a 1 500 TR project, the Na-tional Research Centre. This success resulted in various renowned manufacturers approach-ing IMEC to represent their products exclu-sively in the region. “Thus we added AHUs and FCUs to our range, for example. Our strategy was that we added products to our main range as and when we needed them, or as a result of being approached directly.”

This meant that Fahed began to forge business relationships that have endured for decades. “Our client base is extensive,” he ac-knowledges. “Many are friends and acquaint-ances who have known us since the inception of the business, and beyond that to our student days. We have acquired a good set of loyal clientele, which has enabled the company to survive the vicissitudes of the current global economic turmoil.”

KUWAIT MILESTONESFahed is particularly proud of the fact that he has personally witnessed, and contributed to, the evolution of the district cooling industry in the Middle East. “The fi rst milestone was the Kuwait Radio and Television Compound (6000 TR) and the Kuwait International Airport (7000 TR). I was the effective designer; York centrifugal chilled water systems were speci-fi ed.” Fahed says his success in this regard was based on rigorous equipment selection and evaluation.

“What I did was apply the principle of ‘mix matching’ equipment, which resulted in the

You need to have a particular commitment

to take up a possible innovation and change

the market’s perception about it. “

Aslan Al-Barazi

selection of a smaller compressor system, a move that immediately saved 15% in total capi-tal and energy costs.” It sounds simple, but Fahed says the engineering underpinning this decision meant looking closely at factors such as kW/t and the square feet per ton of surface area. “I got big orders on the basis of this, as consultants would normally have to approach the factory for such data, and I was much fast-er as well.” Later in Europe, AHUs and FCUs were built for IMEC, based on Fahed’s design, for which he still has the catalogued engineer-ing details.

The next major development in the fl edgling district cooling industry was the Gold Market in Kuwait, a project for which Fahed advised the Ministry of Public Works, Electricity and Water to opt for a combined system compris-ing centrifugal and absorption systems. (Today IMEC is continuing this trend of innovation by championing ice thermal storage, a system that employs absorption chillers.) Another ma-jor project at this time was the 1 000 TR Hilton Hotel in Jeddah, Saudi Arabia.

“These major projects were the inception of what eventually resulted in district cooling as an industry. What is important is that we are continuing to promote new technology in the industry to this very day,” notes Fahed. Aslan concurs: “You need to have a particular com-mitment to take up a possible innovation and change the market’s perception about it. For us, the process of innovation is very simply fi nding a gap, something that has not been used in the area but logically should be. We then fi ll this gap with the new technology. It takes a lot of education of the industry to change a mindset to a new way of thinking, but it is an enjoyable process in and of itself.”

25 000 TR/100 000 TRA large district cooling plant in the US

vs. a large plant in the UAE

THE BIG INTERVIEW


ADDED CAPITAL COSTFahed cautions that a lot of so-called modern technological improvements “do not justify the outlandish added capital cost, such as a run-around coil in an AHU, which practically doubles the original cost. This is unjustifi ed in terms of less than 10% added effi ciency.

“It takes that much extra effort when people are used to something and do not want to in-novate or change. Here the issue of risk-taking is more entrenched.” However, legislation is resulting in something of a step change as the trend of green building spearheads the adop-tion of innovation as a viable business practice, says Aslan.

So what has made IMEC endure for such a long period of time? Fahed’s answer is simple: “It is our reputation and integrity,” he says. “It is based on our professional background, our ongoing contribution to the market, and also on a personal level.” Aslan, for example, has become a leading authority on cooling tower technology. When clients seek out his advice or expertise, they also often enquire after his father, the founder of the company.

Another issue that cannot be ignored is pre-vailing market conditions. “A critical factor of any company is its fi nancial robustness, which allows it to ride over any bumps on the road to success,” says Fahed. Aslan adds that a key issue at the moment is cash fl ow. “A company may have an order book fi lled with a backlog of orders, or projects in the case of a contrac-tor. However, if the cash does not fl ow timeous-ly from the client to the main contractor and down the supply chain to suppliers and sub-contractors, companies can choke to death as they are unable to cover their running costs.”

DEAD ENDLooking at the market more specifi cally, Aslan says that “district cooling is practically halted now and come to a complete dead end. But it should move back in 2010. That being said, there are still some projects going on, and we are on top of that. That is very important. You obviously need to be winning orders at the same time.”

Another major issue is the increasing mul-tinational nature of manufacturing conglom-erates, which fl ood the market with cut-price products. “Every company without exception is either wholly or partially manufacturing in China, India, Pakistan, Korea, Taiwan or Ma-laysia. For example, all horizontal split-case pumps used in district cooling in particular are made either in India or China,” argues Fahed. Such products are then shipped to the US and re-exported under different brand names, and at vastly increased prices.

“This is something that over the last ten years has turned the market upside down. For example, a fan used in a cooling tower costs US$1200 if imported from China. That same fan, made in Germany or the US, costs US$12000. This state of affairs has caused great turmoil in the market among suppliers and manufacturers,” says Fahed.

Aslan comments that the basic principles underlying mechanical engineering have not changed over the years. “As a fi eld it has not changed much since the 1960s, and very little in comparison to other sectors such as com-puter engineering. The greatest changes have been in increased effi ciencies.” Having said that, Fahed is of the fi rm opinion that the qual-ity of mechanical engineering in the UAE is on a par with the US, and is certainly superior to that in Europe. “I can say without reservation

We have acquired loyal clientele, which has

enabled the company to survive the vicissitudes of the global economic

turmoil.“Fahed Al-Barazi

that, apart from the US, we are unequalled.”Aslan says this is because of the size and

scope of the district cooling industry in the UAE, which has transformed itself into the biggest in the world. “The tonnages here are unheard of elsewhere. In the US, a big plant is 25 000 TR, whereas here it is 100 000 TR. Here they are constantly setting new design records. So if you want to be a district cooling design specialist, you really need to have ac-quired experience in the Middle East market.” Another engineering challenge is the associ-ated primary and secondary stage pumping involved. “You have to be a very competent engineer to lay out such systems, as you are taking water kilometres away from a central point,” adds Fahed.

What does the future hold for IMEC? While Fahed has gradually stepped aside, Aslan has taken over the reigns of the company. “We are a genuine family-owned business,” says Fahed. “If Aslan had not been interested, I do not know what I would have done. I would have probably sold it. As the Koreans say, people pass away, but companies should remain forever.”

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SOLAR POWER

The solar power market in the Middle East is hotting up, with a diversifi cation of products

and suppliers. MEP Middle East fi nds out about the latest products and developments.

Solar powers

SOLAR POWER


The nice thing about solar hot water heating systems is that you do

not have to worry about the grid.” “

Nabil Hamade

CSTAR INTERNATIONALCEO Nabil Hamade, who is a certifi ed energy manager from the Association of Energy Engi-neers in the US, explains that, while CStar In-ternational specialises in energy auditing and energy management, it also offers a range of solar-power products. These range from solar hot water heating systems to streetlights and PV panels.

Hamade is convinced that solar-powered streetlights offer the biggest potential for this technology to become common and accepted in the Middle East, which is only starting to embrace renewable energy in any signifi cant fashion.

“When you get into solar, your upfront costs are very high. If you want to develop a brand new solar-power generation facility for air-con, for example, it is costly. With solar lighting, on the other hand, you do not have to run wires, and conduits or trenches are eliminated. It sim-ply comprises a streetlight mast with a battery and a solar panel. It is totally independent, and you can put it anywhere, whether in streets or even in gardens.

“We have calculated a two-year payback pe-riod, with a 50% return-on-investment – com-pared to solar-power generation itself, which typically has a 20-year payback. So in order to benefi t the diverse communities here and meet the new sustainability objectives of the government, we think this is the way to go.”

In terms of the streetlights them-selves, Hamade explains that the company offers LED, metal halide and low-pressure sodium types. “We focus on LED as this represents the latest technology and offers the best cost-savings. The output from a 28 W LED light is equivalent to a standard 150 W light. There-fore you do not need a big battery either, which has an added cost benefi t in terms of ancil-lary infrastruc-ture.”

All the com-pany’s products are imported from China at present. “We have not con-sidered local manu-facture right now, as

I do not think the market is big enough to sus-tain this. We are considering possible manu-facture of additional components in the future. Masdar City in Abu Dhabi is already looking into local manufacture, which could possibly fl ood the market and result in an oversupply of products, unless it can tap into another con-sumer base.”

Hamade adds that service support and back-up are as important as the innovative technology itself. “We offer a ten-year war-ranty on solar panels and a three-year warranty on batteries. We also stock replacement com-ponents – batteries, lights or whatever may be needed. Of course, with big users we are able to offer maintenance contracts, including annual check-ups, replacement and predictive

maintenance if required, such as cleaning the panels.”

In terms of retrofi tting existing buildings to take advantage of re-newable energy, Hamade points to

solar hot water heating systems as a good starting point.

“There is limited space on commercial high-rise tower roofs

for solar panels, but they will read-ily support solar hot water systems.

The industrial sector has much more roof space available, so

there are opportunities there.”

Hamade adds that, because solar hot water heating is an off-grid solution, the prickly issue of

integrating with the existing

DEWA tariff s t r u c t u r e is avoided. “That is why it so

popular in parking lots

and any island-type applications.”

Global management consulting fi rm AT Kearney expects that solar power will become cost-competitive in the near future as rising costs for oil and gas make renewable energy sources increasingly attractive. AT Kearney believes that, when looking at energy generation cost and job creation opportunities, MENA countries should invest in solar power energy.

Concentrated Solar Power (CSP) will likely become cost-competitive in the next 12 months, as oil and gas prices are increasing, to oil expected to selling at above US$100 and the costs for CSP technology sinking due to productivity improvements.

“The cost-competitiveness of solar energy will lead to a global boom, and represents a unique opportunity for the Middle East,” said AT Kearney Middle East MD Dr Dirk Buchta. In the past, European and US suppliers in particular have dominated the solar market. This is currently about to change as cheap Chinese suppliers are entering the market, but with low-quality products.

This may be the chance for the Middle East, which is geographically well-positioned to become a future major player. With an average of 310 sunny days a year, and a high annual solar irradiance of over 2 500 kWh/m²/y, the Middle East has more than double the amount of solar energy potential than anywhere in Central Europe.

“The Middle East may benefi t from the expected global boom in solar energy through developing its own solar power energy industry, supplying its own demand and parts of the growing global demand for renewable energy,” said AT Kearney Middle East principal Christian von Tschirschky.

“There is an increasing demand for solar technology on a global basis, which may be covered partially by technology and production sites in MENA – why leave it to the Chinese?” he questioned. According to AT Kearney, the Middle East therefore has the opportunity to become a boom centre for solar energy in the next ten years, with an additional 9 000 MW of concentrated solar power capacities until 2020, and more than 40 000 MW until 2030.

This solar generated power will give the Middle East the option to sell its gas and oil at increasing prices to the world market instead of burning it to generate electricity, and also create huge employment opportunities.

MENA SOLAR MARKET

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SOLAR POWER

The slowdown in the construction industry,

combined with growing environmental awareness, means that energy-saving products

should fi nd a ready market. “

Nigel Dawson

The installed capacity for solar is also much

smaller for the same or an even greater amount

of power generated, leading to reduced initial

outlay and costs. “Jim Sebastian

ECOVAL GENERAL TRADING LLCMD Jim Sebastian says he “defi nitely sees the market for solar hot water heating systems picking up.” This is because electricity sup-ply cannot keep pace with demand, which is forcing the authorities to look for alternative solutions. “The installed capacity for solar is also much smaller for the same or an even greater amount of power generation, leading to reduced initial outlay and costs.”

Ecoval imports solar hot water heating sys-tems from Australia, a brand called Solarhart owned by Rheem. “This is one of the most popular brands in the world, from South Africa to the Middle East,” comments Sebastian. In 2009, Ecoval achieved the distinction of being the largest Solarhart distributor out of 90 coun-tries. “The top position used to be dominated by Italy, but this year we are on top.”

Sebastian says Solarhart is the only system in the world to feature drain-back technology. “What happens is you have your storage tank on the lower level, which is the ground, and you have the collectors on the roof. When the sun is out, there is a pump that switches on. The high solar irradiation results in the fl uid in the panels that transfers the heat being cir-culated by a pumping system. In the evening, when the sun is down, the pump switches off, and all the fl uid settles by gravity. Hence it is

SOLAVEILExhibiting for the fi rst time in the Middle East at The Big 5, Digital Surface Research from Wales launched an innovative energy conser-vation system called SolaVeil ‘Cool Daylight’.

SolaVeil technical operations manager Nigel Dawson explains that the technology is able to harvest and manage daylight into a building, signifi cantly reducing solar heat gain, eliminat-ing glare and cutting energy bills by more than half. Solar heat gain is cut by as much as 81%, while maximising the potential for daylight us-age within buildings, with overall lighting sav-ings of up to 70%.

Dawson says SolaVeil is a digitally manufac-tured and enhanced fl exible substrate that can be applied to existing or new glass surfaces. Cleaning is simple, and is undertaken as part of a normal cleaning regime for glass.

SolaVeil has been designed to be retrofi tted to existing buildings. The application process is simple but technically thorough. Utilising a water-based application solution, SolaVeil is applied to existing glazing that has been pre-pared scrupulously.

This proprietary Welsh technology is now being marketed in the Middle East. SolaVeil’s

unrivalled ability to reduce solar heat gain and the region’s commitment to reducing energy usage and related carbon emissions made the UAE an obvious location to develop our busi-ness, explains Dawson. He reveals that distrib-utorships will be set up in due course.

“However, the core commercial relation-ships will be that of joint ventures, as we see the future development of SolaVeil being driv-

en in part by what we can learn from the mar-ket and reintroduce as part of our commitment to continuous research and development.”

The slowdown in construction, combined with the ‘green’ trend, means that energy-sav-ing products like SolaVeil should fi nd a ready market. In addition, SolaVeil’s signifi cant sav-ings equate into a short return on investment of typically two to three years.

vital that the tank is one level below.“What happens normally is that most people

place everything on the roof, which means the circulating fl uid is always in the loop, the tem-perature goes too high, and then the pumps and pipes fail. Our system is very simple, as it switches off before it can overheat,” explains Sebastian.

In addition, the PV panels comprising the system are extra strong and durable. There are six different types of panel depending on the specifi c requirement. “We install and com-mission the systems. When we started Enval in 2002, we focused mainly on solar hot water heating, whereafter we moved into large com-mercial systems for hotels, for example, with the establishment of Ecoval in 2007.

The average lifecycle of a Solarhart system

is anywhere from 12 to 25 years, depending on routine mechanical equipment maintenance. “We have a maintenance contract with Holiday Inn, for example.” Sebastian says that one par-ticular Solarhart system at the company’s head offi ce in Australia had been in operation for an astonishing 50 years.

“At the moment we are involved with the Movenpick on The Palm, which involves heat-ing a 15 000 litre pool. This required an 8 MW boiler system and heat exchangers. In com-parison, the pool at Atlantis, another project completed successfully by Ecoval, was 1 500 litres,” reveals Sebastian.

An example of a Solarhart hot water system

SOLAR POWER


MEGASUN SOLAR ENERGY SYSTEMS

Effi cient solar lights last up to 100 000 hours,

which is 100 times as long compared to

incandescent lamps.“Prabissh Thomas

The UAE has led the way for much of the region in terms of its commitment

to environmental treaties. “Yanni Vassalos

PTL SOLAR PTL Solar, an expert in solar streetlighting solutions, and part of Green Energy LLC, has announced its appointment as exclusive dis-tributor for the Middle East and Africa region for Reliance Solar Group, part of Reliance In-dustries, the largest private sector enterprise in India. Following this announcement, Dr. Farooq Abdullah, Honorary Minister for New and Renewable Energy, Government of India, inaugurated the fi rst exclusive international Reliance showroom at the Dubai Creek Tow-ers in Deira.

His Excellency Dr. Rashid Ahmed Bin Fa-had, UAE Minister of Environment and Water, was the chief guest at the inauguration ceremo-ny, which was also attended by Ali bin Towaih, executive director of Enpark and Sustainable Energy and Environment Division (SEED) at Tecom Investments, and Rabindra Satpathy, president of the Reliance Solar Group. A del-egation from the Confederation of Indian In-dustry (CII) was also in attendance.

PTL Solar MD Prabissh Thomas said: “This alliance is a perfect match for us, as it will bring synergy to our operations and help us meet our aim of offering the best energy solu-tions. We are looking forward to extending the benefi ts of this partnership to a wide base of stakeholders in the entire region.”

The Reliance Solar Group specialises in de-veloping and offering products, systems and solutions ranging from solar lanterns, home lighting systems and streetlighting systems to water purifi cation systems, refrigeration sys-tems and solar air-conditioners, all based on solar energy.

“Enpark’s mandate is to ensure that its busi-ness partners are provided with an optimal environment and the resources to grow the green energy industry in the region. We are

confi dent PTL So-lar will play a cru-cial role in driving forward the green

industry and positioning the UAE as a leading player in the global energy sector,” comment-ed bin Towaih.

As part of its campaign to transform the ex-isting lighting system into solar-based applica-tions, PTL Solar has supplied its GRENlite solar energy outdoor lighting units to Dewa, as well as Tecom Investments’ Dubai Outsource Zone and Dubai Internet City. It has also installed so-lar carpark lights for Nakheel in its Waterfront project, as well as having illuminated the fi rst automotive factory in the UAE for heavy vehi-cles assembled by Scania, the world’s third-largest maker of trucks and buses.

Export sales manager Yanni Vassalos argues that technology adoption is critical for the re-gion to embrace the full benefi ts of renewable energy. In addition, the UAE will have to em-brace solar water-heating technologies in or-der to meet its Kyoto Protocol commitments.

“The UAE has led the way for much of the region in terms of its commitment to the Kyoto and Johannesburg environmental treaties, but is not yet embracing the simple solutions that will make that possible,” explains Vassalos.

The Greek company, exhibiting at last year’s The Big Five for the second time, used the high-profi le platform to promote its solar wa-ter-heating panel and tank systems. Vassalos reveals that Megasun is looking for a network of distributors to take its product to the wider Middle East, having already made signifi cant inroads into Dubai and Abu Dhabi.

“What I really want is to fi nd a distributor who can sell directly into Saudi Arabia, Qatar and Bahrain. This year, we have already sold three full shipping containers to Iraq and more to Syria, but we want a network in the Middle East that can transform occasional sales into a reliable business stream.” The company is hoping to turn the 2% of business the Middle East market currently represents into 10% within two years.

According to Vassalos, the Greek system is capable of heating 300 litres of water to 75ºC in just a couple of hours, even on cloudy mornings in this region. “The systems we have on display are suitable for single resi-dential units, right up to industrial-sized plant facilities, and obviously in the Middle East the application of this technology could result in real utility bill savings.”

630 000terawatt hours in the form of solar energy falls unused on the MENA

deserts. In contrast, Europe consumes just 4 000 terawatt hours of energy a year – a mere 0.6% of the unused

solar energy falling in the desert.

Dr. Farooq Abdullah, Dr. Rashid Ahmed Bin Fahad and Prabissh Thomas

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incandescent lamps.Prabissh Thomas

environment and the resources to grow the green energy industry in the region. We are

confi dent PTL So-lar will play a cru-cial role in driving forward the green

Dr. Farooq Abdullah, Dr.Rashid Ahmed Bin Fahadand Prabissh Thomas


SOLAR POWER

LENNOX INDUSTRIESA leading provider of customised home heat-ing, cooling and indoor air-quality products, Lennox Industries has introduced its patent-pending SunSource Home Energy System, a new solar-powered central heating and cool-ing system that reduces overall household electricity consumption without the costs as-sociated with traditional solar installations.

The new SunSource Home Energy System not only harnesses solar energy from the sun to reduce the electricity consumed by a residential heat pump or air-conditioner, but is also able to use that solar power to oper-ate other devices in the home that consume electricity, such as lighting and appliances,

when the heating and cooling system is not running. In addition, if the SunSource system generates more power than is used by the home, that power will be sent back to the util-ity company, for example, which may entitle the homeowner to a credit on their utility bills in the US.

According to the US Department of Ener-gy, the typical US household pays US$2 200 a year on utility bills, and the bulk of those energy costs – between 50% and 60% – comes from heating and cooling the home. “With SunSource, homeowners can reduce the en-ergy consumption associated with heating and air-conditioning, while also signifi cantly cutting their overall utility bills,” said Lennox VP: product management John Hurst.

“Lennox is the fi rst heating and air-condi-tioning manufacturer to harness solar ener-gy for central heating

and cooling and beyond, and the new SunSource system is really a gate-

way to the future of in-novation in the HVAC in-

dustry.” The SunSource Home Energy System comprises:

• A solar-ready, high-effi ciency Lennox air-conditioner or heat pump that has been spe-cially enhanced to serve as the platform for this new home energy system;• A Lennox solar subpanel that provides the connection between utility-interactive solar power system and the HVAC unit;

Lennox is the fi rst heating and air-con manu-

facturer to harness solar energy for central heating

and cooling and beyond. “John Hurst

Masdar, Abu Dhabi’s multifaceted renewable energy initiative, the Masdar Institute of Science and Technology, Japan’s Cosmo Oil Company and the Tokyo Institute of Technology have launched an advanced concentrated solar power (CSP) central tower research and development project at Masdar City.

The state-of-the-art, collaborative research project will test an innovative ‘beam down’ technology, which has the potential to convert solar irradiation into electricity in a more effi cient way than other technologies – producing a commercially-viable ‘beam down’ process would represent a signifi cant breakthrough in (CSP) technology.The ‘beam down’ process inverts

conventional tower solar tower technologies, which uses mirrors (heliostats) to direct the

‘BEAM DOWN’ TECHNOLOGY

sun’s rays onto a receiver at the top of a central tower to heat a heat transfer fl uid (molten salt, oil, or water) in order to generate steam, which is then used to drive a steam turbine. By placing the receiver at the base of the tower (ground level), the research team believes it can reduce energy losses resulting from pumping the fl uid

to an elevated receiver, raising operational effi ciency and lowering electricity costs.

Talking on the importance of the project and the development of solar power technologies, Dr. Sultan Al Jaber, chief executive of Masdar said: “Solar thermal technology is a key research area for Masdar. The initial project fi ndings have been very positive and, if the results continue to be successful, ‘beam down’ technology has the potential to revolutionise the way in which all solar towers are built in the future.

“Masdar has once again shown its commitment to establishing Abu Dhabi as a global renewable energy hub, consistently raising the bar in terms of our investment in new technologies that serve to create a better tomorrow for us all,” he concluded.

The CSP project at Masdar

• One to 15 roof-mounted solar modules that harness clean, sustainable energy from the sun and use it to run the home’s central heat-ing and cooling system as well as other appli-ances – the more modules, the more home-owners can reduce their utility costs; and• A communications system that allows homeowners to monitor each solar module’s operation and energy production online, as well as other environmental benefi ts such as the amount of carbon offset.

“The most effi cient air-conditioners and heat pumps manufactured by Lennox will automatically come ‘solar ready’, just like many of today’s television sets are automati-cally sold as ‘HD ready’,” commented Hurst. “Consumers who purchase these systems will have the option to integrate a solar package at installation or at a later date.

And because the system is expandable, homeowners can start small with a couple of solar modules and add more in the future, for a total of up to 15 solar modules per outdoor unit and added energy savings.”

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dustry.” The SunSystem comprise

• A solar-ready, high-econditioner or heat pumcially enhanced to servthis new home energy s• A Lennox solar subpconnection between upower system and the H

The SunSource Home Energy System from Lennox Industries

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COMPUTER MODELLING

ineHVAC, an advanced software solution for HVAC design, com-bines design and calculations

within a synergistically inte-grated environment, perform-ing all the required calculations directly from the drawings, and

automatically producing all the study results.

These range from calculation sheets, technical reports, a complete series

of fi nal drawings updated with the calculation results (plan views, vertical diagrams, details), bill of materials, cost estimation and all the rest. FineHVAC differs from any other HVAC soft-ware as it faces the HVAC design process from a holistic point of view, considering at the same time:• The Building model as a complex but uni-form entity, composed by particular entities with specifi ed features and given interactions (for example, the structural elements consti-tute walls, the walls constitute spaces, spaces compose levels etc);• The HVAC system also as a logical entity composed of particular entities (for example, a heating installation consists of radiators, pipe network and engine room, each of them having its own characteristics and interactions with the other ones);• The ‘smart’ interaction between the building model and the HVAC system.

From its structure point of view, FineHVAC consists of two big components, namely the CAD and the calculations Components that work together, interacting synergistically with each other. The CAD component supports the user in designing any HVAC project in a simple way through a set of high-level commands.

Then it ‘recognises’ the HVAC installation and transfers the required data to the calcula-tions component. After the possible user in-terventions on the calculation environment, the CAD component gets back the results and

FineHVAC, advanced software for HVAC design, combines design and calculations within an integrated environment, performing all the required calculations directly from the drawings, and automatically producing all the study results.

Integrated software for HVAC design


installs the heating radiators in the ground plan on its own, as well as the FCU Units and the duct grills, based on rules of logic;• Automatic connections: Using the commands ‘automatic designing of single pipe circuit’, ‘au-tomatic connection of radiators with columns’ etc., entire blocks are designed with just one move;• Commands of automated piping drawing (auto-routing): Using the rooting commands ‘double pipe’ (that is, inlet-return), ‘pipe paral-lel to wall’ or ‘parallel to points’ etc., the pipes and their connections are designed almost au-tomatically;• Automatic installation recognition: The pro-gram recognises and numbers the nodes (junc-tions) and transfers the data exactly as the cal-culating subsystem demands;• Automatic location of symbols: The ground plan drawings are enriched automatically with the results values, and also with the necessary drawing symbols according to the standards;• Automatic creation of drawings: All the view plan project drawings are produced automati-cally, as well as the vertical diagrams (automati-cally through the ground plans), plus other de-tailed drawings such as, for example, the 2D or 3D air duct network. The two-dimensional air duct network is also produced automatically by the conversion of the single line drawing.

creates, in a completely automatic way, all the project drawings in their fi nal form (vertical charts and ground plans fully updated with the calculation results).

The calculations component acquires the information from the drawings automatically (calculation data sheets are fi lled automati-cally), while it uses a rich and reliable meth-odological background in order to produce the whole case study booklet (calculation sheets, diagrams, bill of materials, technical reports, etc.), also taking advantage of a fl exible report generator.

OPERATION AND FUNCTIONALITYFineHVAC has its own autonomous CAD en-gine, based on IntelliCAD, the famous alter-native CAD solution provided by ITC (www.intellicad.org). The CAD component performs all the tasks needed for the design of an instal-lation through a series of expert functions. In particular, the main tasks accomplished by FineHVAC CAD are the following:

• Recognition of any architectural ground plan: The program recognizes – that is, it makes enti-ties of – walls and openings, even if they come from a different architectural or even bitmap drawings (from a scanner);• Automatic receptor installation: The package


COMPUTER MODELLING

ready-print templates on many levels (general presentation, fonts, headings/frames/layout, etc.) that can also be defi ned by the user. The calculation environment consists of eight mod-ules, divided into two groups:

I. HEATING • Heat Losses: Heat loss calculation and en-ergy analysis using the degree/days method;• Twin-pipe system: Calculation of twin-pipe heating installation for any network case (clas-sic or reverse-return), with either the classic method or even with full hydraulic simulation;• Single pipe: Complete calculations of the sin-gle pipe heating system with three alternative methodologies, namely equal friction, equal temperature drop, hydraulic simulation; and• Infl oor: Complete calculations of the infl oor heating installation.

II. AIR-CONDITIONING

The program redefi nes the competitive

standards in the HVAC design industry. “

Papathanasiou and Perez

• Cooling loads: Calculation of the cooling loads using one of the Carrier, ASHRAE CLTD or ASHRAE TFM methods;• Fan coil piping: Calculation of the fan coil pipe network for any case (classic or reverse-return), using either the classic method or even with full hydraulic simulation;• Air ducts: Calculation of air duct networks using three alternative methods, namely equal velocity, equal friction, static regain; and• Psychrometry: Selection of air-conditioning units and distribution of the air in the air-condi-tioned spaces, based on the detailed equations of psychrometry (for cooling and heating), with any method (for example, cooling dehy-dration, re-heating, pre-conditioned, return air bypass, 100% wet, etc).

LATEST DEVELOPMENTSRecently the European Commission launched a public consultation on the recasting of the Energy Performance of Buildings Directive (2002/91/EC), which closed on 20 June 2008. The building sector accounts for 40% of the EU’s energy requirements. It offers the largest single potential for energy effi ciency. Research shows that more than one-fi fth of the present energy consumption, and up to 30 to 45 million tons of carbon dioxide/year, could be saved by applying more ambitious standards to new build, and when refurbishing existing build-ings – which represents a considerable contri-bution to meeting the Kyoto Protocol targets.

Within this new framework, FineHVAC is being extended to meet these new needs. For this reason the heating load application now includes also the EN12831 standard, while an-other major extension has to do with the incor-poration of ISO 13790:2008.

CONCLUSIONSFineHVAC makes true the dream of any HVAC designer to automatically obtain the case study results directly from the project drawings through a really friendly, fast and reliable proc-ess. FineHVAC gives the opportunity for users to examine, in a very easy and fast way, various design alternatives in order to achieve optimal solutions. The fact that FineHVAC advances both the speed of designing and the quality of the end project proves that the program rede-fi nes the competitive standards in the HVAC design industry. Much more than an HVAC software application, FineHVAC is a sophisti-cated tool for green building design.

By Spiros Papathanasiou E.E. Phd, 4M S.A. and Asif Perez M.E., 4M-UAE. For more in-formation, visit www.4m-uae.com or e-mail [email protected].

The calculation component of FineHVAC is characterised by the following features and functionalities:• High-performance calculating core (spread-sheet-like): The user can interfere freely in the independent parameters and observe in real-time the results of his or her selections (the system is self-updated);• Rich methodological background: The user has the ability to select among a wide spectrum of alternative methods and techniques (for example, DIN, EN and ASHRAE for the heat loads, Carrier-ASHRAE for the cooling loads [in fact, three ASHRAE methods are included, namely CLTD, TFM and RTS], equal velocity/equal friction/static regain methods for the air ducts, classical or based on simulation piping models, etc);• Results in various forms: Text, tables, dia-grams, auxiliary drawings and others that re-sult automatically from the calculation sheet;• Advanced bill of materials/cost estimation/bid system: Many possibilities, such as free-dom of editing, possibility to select from aux-iliary material and task libraries, are open to the user;• Integrated technical report manager: Ready technical descriptions, specifi cation and ac-ceptance templates, are open to the user;• Enriched material libraries: Material librar-ies are open to the user, and with the possibili-ty of co-operating with specifi c material guides on CDs; and• Integrated reporting system: Selection of

CASE STUDY


s an innovator in energy-effi -cient technology, ASHRAE felt its headquarters should serve as a showcase of sustainabili-ty. “The resulting design tru-ly refl ects that sentiment, as well as how ASHRAE stand-ards and guidelines can be put into practice to result in a high-performance building,” said ASHRAE

president Gordon Holness.“While our fi rst objective was to provide a

The ASHRAE headquarters in Atlanta, Georgia in the US has been awarded a LEED Platinum rating, the highest certifi cation available. MEP Middle East takes a closer look at the project as a landmark case study in green building.

WAYS TO MAKE A LEED PLATINUM BUILDING28

healthy, comfortable and productive environ-ment for our staff, we also wanted to set an example of what can be done to renovate ex-isting buildings. Given that 75% to 80% of all existing buildings will still be around in 2030, our greatest opportunity for a sustainable future is through the upgrade and retrofi t of these buildings,” said Holness.

Built in 1965, the building was known as the Wausau Building until 1981, when ASHRAE purchased it and moved its headquarters from New York to Atlanta. It was renovated extensively in 1981, with another major in-

terior renovation taking place from 1991 to 1992. Changes here included reconfi guration of interior space for additional offi ce space. The decision to commit to a comprehensive revamp was taken by the board of directors on 25 January 2006.

ASHRAE aimed to earn 55 LEED points out of a potential total of 69 under LEED NC 2.2. It ultimately earned 54 LEED points (37 design and 17 construction). This meant a coveted Platinum rating. Below is a full listing of the building’s features and how they relate to the LEED requirements:

The ASHRAE headquarters in Atlanta, Georgia in the US


CASE STUDY

Storage and collection of re-cyclables: ASHRAE staff are working hard to reduce waste generated within the building and hauled to and disposed

of in landfi lls by collecting paper, cardboard, glass, plastics and metal on-site for recycling and by switching to bottle-less water coolers.

1

9

16

Site selection: It was a greyfi eld site, which eliminated the impact on envi-ronmentally-sensitive areas such as prime farmland, fl ood zone, endan-gered species habitat, wetlands, etc.

2Development density and community con-nectivity: The site was within a half mile

radius of three residential zones and at least ten basic services.

3 Alternative transportation, public transpor-tation access, parking capacity: The site is

within a quarter mile of two public bus lines. On-site bike storage and a shower and chang-ing room were provided. Ten per cent of the parking spaces in preferred locations was allo-cated to carpool and low-emitting/fuel-effi cient vehicles.

4Maximise open space : The amount of veg-etated open space was increased by 45.2%

above the local code requirement.

5Stormwater management: The amount of site run-off was reduced by 31%. The

run-off rate was reduced by 30% through in-creased vegetated open space, green roofs and a stormwater detention system. In addition, a bio-retention system treats 90% of the annual rainfall volume to remove 80% of the total sus-pended solids.

6Heat island effect: Polycon Manufacturing Inc. installed a SlurryKote material with a

solar refl ectance index of 32 over more than 50% of the asphalt parking lot to minimise the heat-island effect. A white refl ective roof mem-brane with a solar refl ectance index of 78 was installed to minimise the heat-island effect.

7Light pollution reduction: Light trespass/sky glow from the building and site was

minimised. Nighttime visibility was improved through glare reduction and reduced devel-opment impact on nocturnal environments through the careful selection of interior and exterior light fi xtures.

8Water-effi cient landscaping: The landscap-ing has been updated and the need for

landscaping irrigation eliminated.

Innovative wastewater technologies: The estimated water consumption a year for bathrooms was reduced from 133 100 gallons/year to 63 500 gallons/year (a 52.3% reduction) by utilising low-fl ow fi xtures.

10Water-use reduction: The estimated overall annual water consumption per

year was reduced from 253 021 gallons/year to 135 921 gallons/year (a 46.3% reduction) by utilising low-fl ow fi xtures. When compared with the old building’s water usage, the sav-ings are even greater, with an estimated 79% reduction in annual water consumption.

11Optimise energy performance : The esti-mated annual energy usage was reduced

by more than 32.5% through enhancements to the building envelope and use of a dedicated outside air supply (DOAS) with energy recov-ery, ground-source heat pumps and mini-split systems with heat recovery. Nine out ten po-tential points were earned for this credit.

12On-site renewable energy: GA Power demonstrated how PV arrays can be uti-

lised to generate clean power by taking advan-tage of under-utilised space on the building’s roof. It is estimated that the installed array will provide more than 8% of the building’s total an-nual energy cost as renewable energy.

13Enhanced commissioning: The en-hanced commissioning process from

ASHRAE Guideline 0 was used.

14Enhanced refrigerant management: Re-frigerants were selected that minimise

the emission of compounds that contribute to ozone depletion and global warming. In addi-tion, a refrigerant leak detection system from Thermal Gas Systems is used to identify poten-tial system leaks early.

15Measurement and verifi cation: An ex-tensive measurement and verifi cation

system has been implemented to provide for the ongoing accountability of the building per-formance over time through the ASHRAE Liv-ing Lab.

Overall water consumption a year was reduced drastically

PV arrays on the roof provide on-site renewable energy

Refrigerants with low ozone depletion were selected

Refrigerant leak detection system

CASE STUDY


19Recycled content: Products and materi-als made from recycled content make up

more than 22% of the total value of the materi-als for the project.

20Regional materials: ASHRAE increased the demand for building materials and

products extracted and manufactured within 500 miles of the building site by utilising ma-terials from this region, which made up more than 29% of the total value of the project ma-terials.

Outdoor air delivery moni-toring: An air quality moni-toring system from Aircuity is helping sustain occupant comfort and well-being in the

renovated building.

22 Increased ventilation: ASHRAE and Trane worked together to provide a

6000 CFM dedicated outside air system for the building, which can provide ventilation rates to each space 30% higher than Standard 62.1-2004.

23Construction IAQ management plan: GAY Construction Company helped to

reduce IAQ problems resulting from the con-struction/renovation process in order to help sustain the comfort and well-being of construc-tion workers and building occupants by devel-oping and following a construction IAQ man-agement plan. Air-quality tests done just prior to occupancy validated the intended results of this plan and eliminated the need for a lengthy, energy-consuming, air fl ush-out process.

24Low-emitting materials: Interface Carpet helped to reduce the quantity of indoor

air contaminants that are odorous, irritating and/or harmful to the comfort and well-being of installers and occupants.

25Thermal comfort: A comfortable ther-mal environment supports the produc-

tivity and well-being of all building occupants by adhering to the requirements of ASHRAE Standard 55 and by surveying occupants for feedback on a regular basis.

26Sustainable education : ASHRAE is uti-lising its headquarters to educate de-

sign professionals and the general public on the sustainable features and processes used to renovate the building and site in order to expand and enhance the awareness of green design principles and its impact on the envi-ronment.

27Green cleaning policy and integrated pest management (IPM) programme:

This reduces the exposure of building occu-pants and maintenance personnel to potentially hazardous chemical, biological and particulate contaminants, which adversely affect air qual-ity, human health, building fi nishes, building systems and the environment.

Building envelope com-missioning: ASHRAE took the extra step of commis-sioning the building en-velope (new and existing sections) to further reduce

energy consumption and improve occupant comfort and indoor air quality.

Building reuse: ASHRAE is showing building owners how to extend the lifecycle of existing building stock, conserve resources and re-duce waste and environmen-

tal impacts of new buildings by retaining more than 92% of the building structure.

18Construction waste management: Over 91% of the construction waste from this

project was diverted away from landfi lls and incinerators, and instead redirected back into the manufacturing process as recovered re-sources.

17

28

21

The building automation system

Electric commercial water heater

Water-efficient landscaping

A dedicated outside-air supply system was used

Part of the air-quality monitoring system

OPINION


Mark Bull from Illumine Middle East FZE examines sourcing and applying project fi nancing.

ith apologies to Randy Newman, here is the fundamental reason why Dubai and the Mid-dle East region needs to improve the way that it sources and applies project fi nancing. The fol-lowing excerpt is from a

song about Karl Marx called ‘The World Isn’t Fair’:

“See Karl the world isn’t fair, it isn’t and nev-er will be, they tried out your plan, it brought misery instead, if you could have seen how they worked it you would be glad you were dead, just like I’m glad I’m living in the land of the free, where the rich just get richer and the poor you never ever have to see; it would de-press us Karl because we care that the world, still, isn’t fair.”

Herewith is a checklist of some key due diligence issues for reference and use by the interested reader:

The project sponsor(s)Who are they, what are the ownership inter-ests in the project company, what is their fi -nancial status? What will each project sponsor contribute to the project in terms of equity, de-velopment experience, construction and start-up expertise, technology, operating abilities,

host government experience?What limited recourse liability does each project sponsor have? Are they creditworthy? Is credit enhancement necessary to support the creditworthiness of the sponsor(s) such as a letter of credit or a bank payment guar-antee? What restrictions, if any, do the laws of the host country place on equity ownership of the project?

The project siteWhat is the terrain on which the site will be developed? What is the terrain of access roads, fuel storage areas and other important elements of the project?

The infrastructure (existing and needed)What is the existing and needed infrastruc-ture necessary to access the site? What is the condition and weight tolerance of roads, road shoulders, intersections and bridges? What is the quality and quantity of water at the project site for construction and operation?

Political considerationsWhat is the regulatory framework under which the project must operate? What is the host country’s ability to provide guarantees for a project fi nancing? Are special agree-ments necessary to provide a stable environ-ment for a project fi nancing?

Economic considerations

How do trade alliances and relationships of the host country affect the project? How do the public and private sectors interact in the economy?

Legal and regulatory considerationsWhat are the specifi c laws and regulations applicable to the project? What governmental approvals, permits, licences, concessions, fi l-ings and other governmental actions are re-quired for the project and each of the project participants?

Sensitivity analysisAre all assumptions used in the preparation of the construction budget and fi nancial projec-tions reasonable – including, but not limited to, those relating to interest rates, foreign exchange, infl ation, fuel price infl ation, raw material price escalation and de-escalation, the construction schedule and maintenance schedule?

Construction (period support by project sponsors)What are the funding commitments of each of the sponsors during the project construction period? What events trigger the funding obli-gations? Are the events consistently defi ned in the fi nancing documents? If a construction cost overrun occurs, what are the funding ob-ligations of the project sponsors?

Potential sources of cost overrunsHave the construction costs been verifi ed by a truly independent and impartial con-sultant? How reliable is the cost estimation? What assumptions have been made in de-termining the construction period budget?

The construction contractWhat is excluded from the fi rm price? Are the performance guarantees acceptable? Is the force majeure provision integrated with the other project contracts?

PROJECT FINANCINGInternational

Here is the fundamental reason why Dubai and the Middle East region needs to improve the way it sources and applies project fi nancing ... “Mark Bull


BUSINESS LEADS

An impression of Sowwah Island, Abu Dhabi.

For the latest Middle East MEP project information, visit

PROJECTS IN THE UAEMEP Middle East and Ventures Middle East have teamed up to provide you with essential project information.

Project Title Client Consultant Main Contractor MEPContractor

Value(US$. Mn)

ProjectStatus

Type ofProject

Royal City Seasons Hotel in Abu Dhabi

City Seasons Group James Cubitt & Partners Tae Young Contracting Not Appointed 101 - 250 project under construction

Hotel

Layia Hospitality in Dubai Gulf General Investment Co. National Engineering Bureau

Not Appointed Not Appointed 31 - 100 project under design Hotel

Fisherman's Quay in Ras Al Khaimah

RAK Properties EDAW Not Appointed Not Appointed 101 - 250 project under design Residential Development

Extension to the Ruler's Court in Souk Al Kabir

Dubai Municipality Arif & Bintoak Consulting

Not Appointed Not Appointed 22 project under design Others

Arjaan Hotel Apartments in Adnec

Bin Hamoodah Properties GA Architects & Engineers

Not Appointed Not Appointed 31 - 100 award awaited for the construction contract

Residential Buildings

Alps Hotel in Ras Al Khaimah Union Group of Companies UniEstate Not Appointed Not Appointed 101 - 250 project under design Hotel

Frankfurt Sports Tower 1 in DSC

Memon Investments Al Hatmy Design & Engg. Cons.

OST Constructional Projects

Not Appointed 92 project under construction


Refurbishment of Oasis Hospital in Al Ain

Oasis Hospital Peddle Thorp Architects Not Appointed Not Appointed 31 - 100 project under design Hospital

Al Gurm Complex in West Abu Dhabi - Banyan Tree Hotel

ALDAR Properties Dar Al Handasah Not Appointed Not Appointed 101 - 250 award awaited for the construction contract

Hotel

City Center in Masdar City Masdar Laboratory for Visionary Arch.

Not Appointed Not Appointed 101 - 250 project under design Mixed Use

Champions Tower IV in Dubai Sports City

Memon Investments Adnan Saffarini Al Jassmy Contracting Not Appointed 122 project under construction


Medical Complex in Arzanah Capitala HDP Overseas Not Appointed Not Appointed 31 - 100 bidding underway for the main contract

Hospital

Villas in Safa Park Area Meraas Development Dewan Al Emara Engineers & Arch.

Not Appointed Not Appointed 31 - 100 project under design Residential Development

City Center in Masdar City Masdar Laboratory for Visionary Arch.


Mall at Deerfi elds Town Square Mubarak and Brothers Investment

RMJM Not Appointed Not Appointed 31 - 100 project under design Shopping Center

Julphar Residences in the City of Lights on Reem Island

RAK Properties Arkonsult Abu Dhabi Not Appointed Not Appointed 109 project under design Residential Buildings

202 Villas at the Falcon City of Wonders

Salem Al Moosa Group Arab Experts Not Appointed Not Appointed 101 - 250 award awaited for the construction contract

Residential Development

Multi Media Towers at the City of Lights - C14

Royal Group National Engineering Bureau


Rosewood Hotel on Sowwah Island

Mubadala Dev.Co/John Buck Int'l Serex International Not Appointed Not Appointed 200 bidding underway for the main contract

Hotel

Client: Mubadala Dev.Co/John Buck Int’lConsultant: Serex InternationalMain contractor: Arabian Construction CompanyMEP contractor: Not appointedMEP consultant: WSPValue: $200 million

ROSEWOOD HOTEL ON SOWWAH ISLAND

Mubadala plans to develop the Rosewood Hotel on Sowwah Island, a 1.1 million square metre real estate development between Reem Island and Mina, Abu Dhabi. The project includes a hotel, retail area, parking and related facilities. Phase 1 of Sowwah Island comprises the Cleve-land Clinic and Sowwah Square. The latter is a mixed-use development including the Abu Dhabi Securities Exchange Centre, four offi ce towers, a hotel and conference facilities. Handel Architects and Serex International Consultants are the project architects, WSP is the MEP con-sultant and Magnusson Klemencic Associates is the structural engineering consultant. The US$218 million main construction contract was awarded in January 2010.

33

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LEGAL

Dennis Brand from Traprain Consultants looks at ‘exclusion and limiting clauses’.

Exemption clauses, sometimes called ‘exclusion and limiting clauses’ are clauses, are terms in a contract that seek to restrict the rights of the parties to a contract. A common example of an exemp-tion clause is a clause inserted into a contract with the aim of

excluding or limiting one party’s liability for breach of contract or negligence.

In the construction and engineering indus-try there are really only three types of exemp-tion clause in general use, namely:

a) those clauses which wholly exclude the liability of a party. The clause recognises a po-tential breach of contract, and then excuses li-ability for the breach. Alternatively, the clause is constructed in such a way it only includes reasonable care to perform duties on one of the parties;

b) those clauses which limit the compensa-tion (damages) that can be claimed and recov-ered from the other party. The clause places a limit on the amount that can be claimed for a breach of contract, regardless of the actual loss; and

c) those clauses which make liability subject to certain pre-conditions or qualifi cations. The clause states that an action for a claim must be commenced within a certain period of time or the cause of action becomes extinguished.However, for an exemption clause to be en-forceable, certain conditions have to be met:

1. It must be properly (validly) incorporated into the contract. That is to say, the person wishing to rely on the exclusion clause must show that it formed part of the contract. An ex-clusion clause can be incorporated in the con-tract by signature or notice:

* If a party signs a document having contrac-tual effect containing an exclusion clause, the clause will automatically form part of the con-tract, and the party will be bound by its terms. This is so even if the party has not read the document and regardless of whether he under-stands it or not;

* The exclusion clause may be contained in a document which is not signed, for example a printed notice or ticket. In such case, rea-sonable and suffi cient notice of the exclusion clause should be given. The clause must be contained in a contractual document, that is one which a reasonable person would assume to contain contractual terms, and not in a doc-ument which merely acknowledges payment, for example a receipt. It is important howev-er, that the existence of the exclusion clause must be brought to the notice of the other party before or at the time the contract is en-tered into. Reasonably suffi cient notice of the clause must be given; it should be noted that reasonable, not actual, notice is required;

* However, where there has not been suf-fi cient notice given, an exclusion clause may nevertheless be incorporated where there has been a previous and consistent course of dealing between the parties concerned on the same terms.

2. Its meaning must be clear and compare favourably with the nature of the defence to which it is to be put. For an exclusion clause to operate, it must cover the breach (assum-ing there actually is a breach of contract). If there is, then the type of liability arising is also important. Generally, there are two types of liability: strict liability (liability arising due to a state of affairs without the party in breach necessarily being at fault) and liability for negligence (liability arising due to fault).

In terms of negligence, courts in many ju-risdictions have taken the approach that it is unlikely that someone would enter into a con-tract that allows the other party to evade fault-based liability. As a result, if a party wishes to exclude his liability for negligence, he must make sure that the other party understands that.

3. It must not be prevented by statute or the law of the country. It might be said that this goes without saying, but although the parties to a contract may agree to a particular type of liability being excluded, the law may not al-

low it. An example of this is Article 882 of the UAE Civil Code: ‘‘Any agreement the purport of which is to exempt the contractor or the ar-chitect from liability, or to limit such liability, shall be void.’’ Therefore, in relation to decen-nial liability, whether the parties to a contact for design agree to limit or even exclude the liability of the architect (designer), such limit or exclusion is prohibited by law.

4. A contract must remain suffi ciently in-tact that the clause still has some legal force. Courts generally have a tendency of requiring the party relying on the clause to have draft-ed it properly so that it exempts them from the liability arising and, if any ambiguity is present, the courts usually interpret it strictly against the party relying on the clause; this is called the contra proferentem rule. There-fore if after attempting to construe an exclu-sion clause (or indeed any other contractual term) in accord with the ordinary and natural meaning of the words, there is still ambigu-ity (if the clause was imposed by one party upon the other without negotiation) then the contra proferentem rule applies. Essentially this means that the clause will be construed against the person who imposed its initial in-clusion.

According to the UAE Civil Code Section 4 – Construction of Contracts adopts a similar provision in Article 266:

(1) ‘‘A doubt shall be resolved in favour of the obligor.

(2) Nevertheless it shall not be permissible to construe ambiguous words in contracts of adhesion in a manner detrimental to the in-terests of the adhering party.’’

Therefore, when considering the inclu-sion of exemption clauses in a contract, one should always ensure that the conditions for such clauses are met in order that they are [email protected]

CLAUSESExemption

METAL MONITOR


THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS:

DECEMBER 2009THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE

PrimaryAluminium(dollars)

AluminiumAlloy(dollars)

Copper

(dollars)

Lead

(dollars)

Nickel

(dollars)

NASAAC

(dollars)Cash Buyer 2,179.29 1,881.76 6,979.93 2,327.00 17,055.00 2,026.95Cash Seller & Settlement 2,180.10 1,886.81 6,981.71 2,328.52 17,066.43 2,033.86

Cash Mean 2,179.69 1,884.29 6,980.82 2,327.76 17,060.71 2,030.40

3-months Buyer 2,212.74 1,916.86 7,015.79 2,356.33 17,145.00 2,056.76

3-months Seller 2,213.50 1,926.24 7,017.90 2,358.48 17,168.10 2,065.62

3-months Mean 2,213.12 1,921.55 7,016.85 2,357.40 17,156.55 2,061.19

15-months Buyer 2,313.38 2,020.00 7,064.29 2,402.86 17,191.67 2,166.19

15-months Seller 2,318.38 2,030.00 7,074.29 2,407.86 17,291.67 2,176.19

15-months Mean 2,315.88 2,025.00 7,069.29 2,405.36 17,241.67 2,171.19

27-months Buyer 2,391.81 2,102.86 7,063.10 2,412.71 17,039.05 2,237.86

27-months Seller 2,396.81 2,112.86 7,073.10 2,417.71 17,139.05 2,247.86

27-months Mean 2,394.31 2,107.86 7,068.10 2,415.21 17,089.05 2,242.86

LME AVERAGE SETTLEMENT PRICES IN EURO

Metal Euro SettlementConversion Rate

Primary Aluminium 1,491.92

Aluminium Alloy 1291.48

Copper 4,775.89

Lead 1592.69

Nickel 11,684.14

Nasaac 1,392.10

$6989Copper 3-months seller

The London Metal Exchange (LME) is the world’s premier non-ferrous metals market. The LME offers futures and options contracts for aluminium, copper, lead, nickel and NASAAC, among others. Many of these materials are indispensable in the MEP sector. The latest historical data from the LME is presented to give readers insight into this dynamic trading market. For further information visit www.lme.co.uk.

Settlement Conversion Copper Cash Seller & Settlement: £4,295.72 Exchange Rates Copper 3-months Seller: £4,320.48 Stg/$ 1.6256 Lead Cash Seller & Settlement: £1,432.54 $/JY 89.7124 Lead 3-months Seller: £1,451.80 Euro 1.4624


NON-FERROUS METAL PRICES

Neither the LME nor any of its directors, officers or employees shall, except in the case of fraud or wilful neglect, be under any liability whatsoever either in contract or in tort in respect of any act or omission (including negligence) in

relation to the preparation or publication of the data contained in the report.


NOVEMBER 2009THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE

PrimaryAluminium(dollars)

AluminiumAlloy(dollars)

Copper

(dollars)

Lead

(dollars)

Nickel

(dollars)

NASAAC

(dollars)Cash Buyer 1,948.60 1,740.00 6,674.24 2,307.62 16,982.62 1,809.00Cash Seller & Settlement 1,949.29 1,750.55 6,675.60 2,308.76 16,991.19 1,817.55

Cash Mean 1,948.94 1,745.27 6,674.92 2,308.19 16,986.90 1,813.27

3-months Buyer 1,981.24 1,770.95 6,696.48 2,328.90 17,053.33 1,835.48

3-months Seller 1,981.95 1,782.71 6,698.12 2,331.26 17,071.67 1,845.57

3-months Mean 1,981.60 1,776.83 6,697.30 2,330.08 17,062.50 1,840.52

15-months Buyer 2,087.38 1,856.67 6,717.14 2,348.43 17,011.19 1,948.81

15-months Seller 2,092.38 1,866.67 6,727.14 2,353.43 17,111.19 1,958.81

15-months Mean 2,089.88 1,861.67 6,722.14 2,350.93 17,061.19 1,953.81

27-months Buyer 2,170.43 1,940.24 6,683.33 2,340.86 16,714.76 2,021.43

27-months Seller 2,175.43 1,950.24 6,693.33 2,345.86 16,812.38 2,031.43

27-months Mean 2,172.93 1,945.24 6,688.33 2,343.36 16,763.57 2,026.43

LME AVERAGE SETTLEMENT PRICES IN EURO

Metal Euro SettlementConversion Rate

Primary Aluminium 1306.70

Aluminium Alloy 1173.50

Copper 4474.99

Lead 1547.77

Nickel 11392.95

Nasaac 1218.35

$6588Copper 3-months seller

Settlement Conversion Copper Cash Seller & Settlement: £4,022.51 Exchange Rates Copper 3-months Seller: £4,038.51 Stg/$ 1.6596 Lead Cash Seller & Settlement: £1,391.19 $/JY 89.1481 Lead 3-months Seller: £1,405.59 Euro 1.4917


PRODUCTS


DURAVIT’S LATESTDuravit has embraced an age-old design tradition to produce its new 1930 series, inspired by a model that was a market success as early as the 1930s. The latest addition to the range is a built-in bathtub.

With dimensions of 180 cm by 80 cm, the bathtub is octagonal on the inside and rectangular on the outside. At the same time, the timeless design can be combined with state-of-the-art whirl technology. As a two-seater tub with central outlet, the tub comfortably offers space for two people. Here, too, the rectangular outer shape facilitates installation.

In addition to the washbasin in widths of 60 cm, 70 cm and 80 cm, with matching pedestals,

there is also a built-in washbasin with a width of 58 cm for installation in practical surrounds. As an alternative to the hand-rinse basin with a 50 cm width, a corner hand-rinse basin is also offered. A bidet and WC are available as free-standing and wall-mounted versions, featuring an octagonal body and lid.

All accessories feature skilled craftsmanship and an uninterrupted love of detail: from the towel stand and mirror to the glass holder and soap holder. Even the ceramic shelf is octagonal and the fastening of the towel holder has eight corners. For the metal surfaces, there is a choice of chrome or high-quality brass. www.duravit.com

STMicroelectronics 1200V IGBT series of power transmitters reduce the environmental impact of daily-use equipment such as home appliances, HVAC systems and industrial machines. The series was designed to minimise two major sources of energy loss, namely conducting and switching.

According to STMicro, the transmitter’s lower switching losses were engineered to allow a higher operating frequency – which, in turn, permits smaller and lower-cost components to power-control circuits. Its compact, industry-standard TO-247 package is intended to save component count by integrating the ultra-fast free-wheeling diode required by most circuits.

The IGBT series was also designed to survive short circuits lasting up to 10 µsec, making them resistant to common causes of motor-controller failures such as an error in the gate drive signal, shorting at grounding and breakdown of motor phases-to-phase insulation. The goal is to improve motor reliability and save on repair and replacement costs.www.st.com

POWER TRANSMITTERS

Trace 700 building energy and economic analysis software from Trane is used widely to model LEED buildings according to the requirements of the Performance Rating Method (Appendix G) in ASHRAE Standard 90.1-2007.

Trace can model various ‘green’ strategies (such as daylighting, shading, optimised control sequences and thermal storage) and simplifi es the calculation pro-cess by automatically rotating the baseline building and generating a pre-formatted LEED compliance report.

Trane also offers advanced engineering support services to assist customers with modelling a building for energy simulation and LEED compliance.

Unlike overly simplifi ed spreadsheet-based energy analyses, Trace 700 software accurately compares the impact of building alternatives.

Customers can test the effects and consequences of different architectural fea-tures, HVAC systems and building utilisation or scheduling scenarios. And you can see the different economic options for each scenario. This enables you to make genuine life-cycle, cost-based system decisions with absolute confi dence.www.trane.com

SOFTWARE TO MODEL ‘GREEN’ STRATEGIES

The Octagonal 1930 series from Duravit

We help our customers to save money by improving their energy saving potential whilst conserving the environment. We achieve this by offering energy saving systems with chilled beams and high effi cient energy recovery.

Swegon is one of the leading manufacturers of equipment for air treatment in Europe. However, our vision is to create the world’s best indoor climate for people, with the least possible impact on the environment.

Swegon’s development of ventilation products focuses on four key objectives:

High energy effi ciency and reduced carbon footprint Maximum comfort Low installation costs Minimum space requirement

For further information, please contact:

www.swegon.com

Gunnar Svensson, Swegon Bassel Anbari, InterCoolMobile: +971 50 919 7181 Mobile: +971 50 667 0527E-mail: [email protected] E-mail: [email protected]

We create the world’s best indoor climate for people and the environment

SwegonSolutionsTM

THE LAST WORD


How has the downturn affected Transguard?Growth, while it has been impres-sive historically, has slowed simply because the size of the marketplace has decreased, and people are tak-ing a little longer to make decisions in terms of their contracting.

Our outlook for the future is very positive. The acquisition is a strong vote of confi dence in Dubai and the UAE. We are very bullish about the future. The infrastructure being set up here in Dubai and the UAE in particular includes such notable achievements as the Dubai Metro, and the F1 at Yas Island in in Abu Dhabi, which was superb. So we have every confi dence that we will continue to grow into the future.

What was the reasoning behind the acquisition?MACAir is a considered strategic move. What we have done in FM is decided that, as well as having the soft services, we want to offer the full package – proper FM, self-per-forming, so we can control quality, effi ciency and the expediency. We are very, very keen on making sure that when we have a client we can provide and anticipate everything that they will require.

The acquisition has expanded your market and customer reach?Clearly it gives us a whole new cli-ent base. There is the dichotomy between contracting and mainte-nance. We are very supportive of the contracting side of MACAir. We have a signifi cant forward or-der book of about AED550 million on the contracting side. We are bringing in Mike Calender as MD. His remit is to be build the mainte-nance side, where he has been very successful running a maintenance company for the last ten years, an MEP company in the UK.

Transguard MD Mike McGeever talks about its acquisition of MACAir.

Many MEP companies have aspired to, and some have managed to become, FM companies, particularly in Europe.“Mike McGeever

FM and MEP are essentially two sides of the same coin?I think MEP maintenance is a sub-set of FM. I do not think you can be an FM company if you are not able to provide the full package. What we are doing really is making our-selves a supplier of choice to enable us to sit down with our customers and really all sorts of activities. Many MEP companies have as-pired to, and some have managed to become, FM companies, particu-larly in Europe. Similarly, you have single-trick ponies – catering and cleaning companies – moving up the value chain to FM. I think MEP is just another example of this.

I do not think we are in the busi-ness of compromising on quality. I do not think you can, particularly with MEP, as health and safety is-sues are wrapped around it. Very often, particularly with MEP, there are also security issues wrapped around it. I do not think we can cut corners. I do not think Dubai and the UAE want corners to be cut. There is nothing to be gained. Short-termism is inimical to long-term quality.

We are looking at operating lease type of ideas. We are very keen on off balance sheet solutions. My in-tention is ultimately to be able to put equipment in at our own cost in return for a long-term operating lease, a quasi-EFI type deal.

The MACAir name will be retained?We see an intrinsic value in the name at this moment in time, sim-ply because of the association it has had with quality in the MEP busi-ness over the last ten years. It will be the fourth division within Trans-guard group. We have already put our mobilisation and transition team into play to allow MACAir and its staff to bridge, hopefully bump-free, into Transguard.

What is your overall growth strategy in terms of growth?We have been asked by customers in Oman, Bahrain, Qatar, Saudi Arabia and many African coun-tries, as well as India, Pakistan and four European countries, to go and open Transguard internation-ally. We have not done so because the marketplace in Dubai, and the extraordinary growth we have had since our inception seven years ago, has suggested we are much better off to build on what we have and where we know, and that is across the UAE generally.

We will be moving internation-ally, and we will be selecting some-where within the GCC to open fi rst and foremost. Internation-ally, outside of the GCC, we are in discussions with several organi-

sations about taking on a Trans-guard franchise. We will supply the knowledge, know-how and, in some instances, the opportunities and leads for the business; they will supply in-country knowledge and infrastructure. So that is a very ex-citing dimension for us.

Any final message?I would like to extend a sincere thank you to the historic custom-ers of MACAir and the Transguard group. All of you will understand that change sometimes brings un-certainty – that is not our intention at all in this instance. We would like the customers of MACAir to acknowledge and understand the benefi ts of the deal. We look for-ward to servicing them in the fu-ture, and introducing MEP to our existing customer base.

ON GUARD

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mep middle east - feb 2010

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