Pre-cast solutions to cut costs, relieve bottlenecks
Wednesday, 11 July 2007
Lucia Dore
The use of pre-cast building systems over conventional construction methods could see construction costs in the UAE fall significantly as well as relieving bottlenecks within a tight construction industry.
An entire pre-cast build can save developers at least 40 per cent in cost, time and effort," says Munther Hilal, CEO of Capital Industries & Investments (CII), a Dubai-based private equity firm specialising in the construction industry.
CII has created a Dh200 million fund to finance mid-sized construction businesses in the Gulf region and in May it also teamed up with a pre-cast prefabricator, Construction Technology, based in Singapore.
Speaking to Khaleej Times, Hilal says that conventional structures can often be "over-engineered", by which he refers to the "extra cement and extra steel" that is frequently used. "Frankly, it doesn't make a difference, it just adds more raw material," he says. "That is where pre-cast comes in because it studies the laws and specs (specifications) of the building. It saves the developer the extra investment in unwanted raw material," he adds.
And with construction costs increasing daily - which Hilal estimates to be about 60 per cent on a compounded basis over the past two years- this can only be a good thing.
Pre-cast systems work through the production of standard industry construction elements - such as columns, beams and walls - being manufactured offsite and then installed onsite, Hilal says that the use of pre-cast systems can significantly reduce the number of labourers required on a site, speed up the build itself, reduce the regulatory costs associated with it, and ensure a higher quality build. "On an average 40-storey building, you would require about 1,000 labourers but in a complete pre-cast structure you are saving about 40 per cent on the numbers needed," he says and adds: "There are a lot of laws and restrictions on workers and these extra costs are reflected in the cost to the end user".
Hilal cites the example of a 20-storey building using conventional construction methods. "This would take 16 to 18 months to build," he says, "but with pre-cast it would take 12 months." Quality is also more assured because the various segments - whether walls, facades, beams or columns - are pre-engineered "in a controlled environment", he explains.
Although pre-cast is common in Asia, notably Singapore, Australia and New Zealand, as well as in Europe, particularly Germany, it is a relatively new technology in the Middle East. "It only came into this market five or six years ago," says Hilal, who estimates that about 10 per cent of the UAE market is already using pre-cast elements. This is dominated by hollow core, however. "Hollow core has become a commodity. Some (contractors) are using facades, but only a few are using the whole technology," he says, predicting that in the future pre-cast will definitely take a "big chunk" of the market. The new joint venture between CII and Construction Technology, known as Sembawang Precast Systems, will introduce for the first time in the region an integrated and custom-configured total solution technology for pre-cast concrete components. Hilal says: "We are educating the market about our existence. We are talking to consultants and we are going to the municipality to educate them on the importance of pre-cast systems."
The company is building a new 624,000 square foot pre-cast manufacturing plant in Dubai Industrial City and the first phase is expected to start production at the end of September with an initial daily output of 200 metric tonnes a day which, Hilal says, "we expect to double one month after that".
He also expects an increasing number of contractors to outsource work rather than undertake it all themselves, as well as to work on several projects at once. "Contractors want to unlock their equipment. They can save time and commission more than one project at once," he says.
Although contractors in the region are keen to embrace pre-cast technology, the current high volume of work has meant "that they haven't had time to investigate something new," explains Hilal. "They have lost a lot of time by using the conventional route," he says, "but it is never too late." And he is bullish about the UAE's construction industry. "There is at least a good growth window for 10 years, if not more," he says.
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http://www.khaleejtimes.co
The use of pre-cast building systems over conventional construction methods could see construction costs in the UAE fall significantly as well as relieving bottlenecks within a tight construction industry.
An entire pre-cast build can save developers at least 40 per cent in cost, time and effort," says Munther Hilal, CEO of Capital Industries & Investments (CII), a Dubai-based private equity firm specialising in the construction industry.
CII has created a Dh200 million fund to finance mid-sized construction businesses in the Gulf region and in May it also teamed up with a pre-cast prefabricator, Construction Technology, based in Singapore.
Speaking to Khaleej Times, Hilal says that conventional structures can often be "over-engineered", by which he refers to the "extra cement and extra steel" that is frequently used. "Frankly, it doesn't make a difference, it just adds more raw material," he says. "That is where pre-cast comes in because it studies the laws and specs (specifications) of the building. It saves the developer the extra investment in unwanted raw material," he adds.
And with construction costs increasing daily - which Hilal estimates to be about 60 per cent on a compounded basis over the past two years- this can only be a good thing.
Pre-cast systems work through the production of standard industry construction elements - such as columns, beams and walls - being manufactured offsite and then installed onsite, Hilal says that the use of pre-cast systems can significantly reduce the number of labourers required on a site, speed up the build itself, reduce the regulatory costs associated with it, and ensure a higher quality build. "On an average 40-storey building, you would require about 1,000 labourers but in a complete pre-cast structure you are saving about 40 per cent on the numbers needed," he says and adds: "There are a lot of laws and restrictions on workers and these extra costs are reflected in the cost to the end user".
Hilal cites the example of a 20-storey building using conventional construction methods. "This would take 16 to 18 months to build," he says, "but with pre-cast it would take 12 months." Quality is also more assured because the various segments - whether walls, facades, beams or columns - are pre-engineered "in a controlled environment", he explains.
Although pre-cast is common in Asia, notably Singapore, Australia and New Zealand, as well as in Europe, particularly Germany, it is a relatively new technology in the Middle East. "It only came into this market five or six years ago," says Hilal, who estimates that about 10 per cent of the UAE market is already using pre-cast elements. This is dominated by hollow core, however. "Hollow core has become a commodity. Some (contractors) are using facades, but only a few are using the whole technology," he says, predicting that in the future pre-cast will definitely take a "big chunk" of the market. The new joint venture between CII and Construction Technology, known as Sembawang Precast Systems, will introduce for the first time in the region an integrated and custom-configured total solution technology for pre-cast concrete components. Hilal says: "We are educating the market about our existence. We are talking to consultants and we are going to the municipality to educate them on the importance of pre-cast systems."
The company is building a new 624,000 square foot pre-cast manufacturing plant in Dubai Industrial City and the first phase is expected to start production at the end of September with an initial daily output of 200 metric tonnes a day which, Hilal says, "we expect to double one month after that".
He also expects an increasing number of contractors to outsource work rather than undertake it all themselves, as well as to work on several projects at once. "Contractors want to unlock their equipment. They can save time and commission more than one project at once," he says.
Although contractors in the region are keen to embrace pre-cast technology, the current high volume of work has meant "that they haven't had time to investigate something new," explains Hilal. "They have lost a lot of time by using the conventional route," he says, "but it is never too late." And he is bullish about the UAE's construction industry. "There is at least a good growth window for 10 years, if not more," he says.
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http://www.khaleejtimes.co