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Arcadis Report Finds Construction Disputes in Asia Last Longer Than Ever

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The length of time needed to resolve a construction dispute in Asia increased to an average of 19.5 months.

The length of time needed to resolve a construction dispute in Asia increased to an average of 19.5 months.

The length of time needed to resolve a construction dispute in Asia increased to an average of 19.5 months, according to the Global Construction Disputes: Don’t get left behind report released today by Arcadis. Impacting parties involved in a dispute and the overall construction industry, this figure is four months longer than the global average of 15.5 months.

While in 2015 the industry has seen an overall reduction in the value of construction disputes in Asia, disputes here are still approximately 45 percent higher than the global average of US$46 million.

The value of disputes relating to global construction projects in Asia has dropped from US$85.6 million to US$67 million in 2015. The report found that the value of construction disputes were the highest in the Middle East at US$82 million, followed by Asia. This year’s report is Arcadis’ sixth annual study into the duration, value, common causes and methods of resolution of construction disputes across the globe.

The study reveals that in 2015 there were some changes in the reasons behind disputes in Asia as compared to previous years. A failure to properly administer the contract moved up from second in last year’s report to first in 2015. The study found that the most common causes of construction disputes related to the administration of contracts. The top three causes were:

  • Failure to properly administer the contract
  • Failure to make interim awards on extensions of time and compensation|
  • Poorly drafted or incomplete and unsubstantiated claims

Where a dispute occurred, Joint Ventures (JVs) were more likely to be behind the cause in Asia, with a JV–related difference the cause in 41.4 percent of all cases, compared with a global average of 25.5 percent.

The three most common methods of Alternative Dispute Resolution that were used during 2015 in Asia were:

  • Party to party negotiation
  • Arbitration
  • Mediation

From a market perspective, Arcadis believe that although there is a construction slowdown, China, Hong Kong and Singapore markets are now facing challenges that are presented by large-scale infrastructure projects nearing completion. To address both historic and current issues, several regulatory changes have been implemented across the region. Hong Kong introduced the Rights of Third Parties Ordinance on 1 January, 2016, and the Security of Payment is due in 2017. Singapore is currently in consultation on a Mediation Bill, which looks to strengthen the overall framework for the use of mediation.

Philip Moss, Head of Contract Solutions, Asia, said: “We are expecting to see the number of disputes we will be dealing with in the coming year to increase. Given the current economic conditions, stakes are high for both parties and no one is looking to engage in long and protracted disputes; thus we are likely to see a further increase in the use of ad hoc forms of Alternative Dispute Resolution in the region. With that said, perhaps the best course of action is to seek to resolve issues before they become a formal dispute, instead of passively looking at ways to address issues that arise on the projects.”

Mike Allen, Global Leader of Contract Solutions at Arcadis, added: “The construction industry faced head winds, particularly with commodity and currency volatility. It is evident that the natural resources market is now operating against a very different economic backdrop. The business case assumptions that were likely used to endorse projects and programs have therefore changed, presenting a huge challenge to the project and entity risk profiles.”

Download the full report HERE.

Buildtech Yangon 2016 Meets Needs of Myanmar’s Building and Construction Sector

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BuildTech Yangon is the leading trade show of its kind.

BuildTech Yangon is the leading trade show of its kind.

The third edition of BuildTech Yangon concluded on May 28, 2016 after three days of trade discussions, commercial engagements and extensive knowledge sharing among some 3,000 trade visitors and business professionals from the region. Organised by Sphere Exhibits, a subsidiary of Singapore Press Holdings (SPH), and co-organised by the Myanmar Construction Entrepreneurs Association (MCEA), BuildTech Yangon is the leading trade show of its kind focusing on the entire value chain for the built environment sector.

H.E Zae Aye Maung, Minister for Rakhine Affairs Ministry and Labour Affairs, Immigration and Manpower Ministry, Government of Yangon Region, graced the opening ceremony of the trade show. Designed specifically to meet the needs of the burgeoning building and construction industry in Myanmar, BuildTech Yangon 2016 saw the signing of a memorandum of understanding between MCEA’s Mandalay Chapter and Sphere Exhibits to co-organise the inaugural staging of BuildTech Mandalay later this year. This extended collaboration further reinforces a stronger alliance between the two organisations in their efforts to extend the knowledge building and trade opportunities to industry professionals in Myanmar.

Positive response for integrated show and skills upgrading platform
The show hosted some 80 exhibiting companies from Austria, China, Indonesia, Korea, Myanmar, Singapore, Thailand and Vietnam, each of which offered a range of products, services and solutions for four key areas: Onsite construction machinery and equipment, building materials and architectural solutions, interior finishing and facilities management.

Visitors were able to check out various products and cutting edge technology put on display.

Visitors were able to check out various products and cutting edge technology put on display.

Industry professionals who visited the show included architects, developers, building and trade agency representatives, investors, manufacturers of machine and building, retailers, security, state-owned company owners, surveyors, trainers and wholesalers.

Ms. Nicole Zycinski Singh, General Manager of Killem Pest Pte Ltd, said: “We are very happy with our experience exhibiting at this year’s BuildTech Yangon. The organisers have done a fantastic job in coming up with a focused event and in attracting quality visitors. For a homegrown company with little experience in the Indochina market, we have received very good responses from potential buyers, several of whom have already enquired about our services. We will definitely consider returning for the next edition of BuildTech Yangon.”

The complimentary Business Seminar Series, which took place from May 26 to 28, 2016 focused on the following topics:

  • Construction safety
  • Working at heights
  • Fire safety and disaster management
  • Sustainability
  • Energy efficiency in green buildings
  • Security and town planning
  • Special economic zones
  • The investment outlook in Myanmar
  • Construction law
  • Sustainable and responsible urban design and building management
  • Infrastructure management

Young Construction Entrepreneurs Award
BuildTech Yangon also played host to MCEA’s Golden 20 Jubilee Gala, which hosted 250 guests on May 26, 2016. Three of Myanmar’s young construction entrepreneurs were presented with Diamond, Platinum and Silver awards under two categories: Professionals under 10 Years and Professionals Above 10 Years for successfully incorporating the latest construction technologies into various stages of the supply chain.

The show welcomed 3,000 trade visitors and business professionals from the region.

The show welcomed 3,000 trade visitors and business professionals from the region.

BuildTech Yangon 2016 was supported by the International Facilities Management Association (Singapore Chapter), International Powered Access Federation, Malaysia Heavy Construction Equipment Owners Association, Myanmar Engineering Council, Myanmar Engineering Society, Myanmar Industries Association, Singapore Institute of Building Limited, Vietnam Electronics Industry Association, Vietnam Federation of Civil Engineering Association, World Evergreen Travel & Tours and WSH (Asia).

Mr. U Tha Htay, President of Myanmar Construction Entrepreneurs Association (MCEA), said, “We are happy to receive good feedback from both exhibitors and trade visitors. The third edition of BuildTech Yangon delivered a more focused event that was very well received by the attendees. Its newly revamped platform for the industry, consisting of an extensive product showcase, fruitful networking sessions and specialised seminar programmes, successfully catered to the needs of Myanmar’s industry progression in providing right balance for the progression of the building and construction sector in Myanmar.”

The fourth edition of BuildTech Yangon will take place in May 2017. For more information, visit www.btyangon.com/en.

KONE to equip Middle East’s biggest health campus in Turkey

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The development is set to become the biggest health campus in the Middle Eastern region.

The development is set to become the biggest health campus in the Middle Eastern region.

KONE will install 130 elevators and escalators at the Adana Integrated Health Campus Project in Adana, Southern Turkey. The development is set to become the biggest health campus in the Middle Eastern region, comprising of three hospitals with a total capacity of 1,550 beds.

The main hospital consists of four patient tower blocks surrounding a common core and will have 1,300 beds. In addition to serving as a general hospital, it will include specialised hospitals for oncology, cardiology and cardiovascular disease, women’s and maternal health, and pediatrics.

The development will also include a physical therapy and rehabilitation hospital as well as a high security criminal psychiatric hospital. The campus will house health support facilities, a commercial area, a helipad, a technical unit building, and a combined cooling, heat and power plant.

Staff, patients and visitors will be able to move around the earthquake-protected buildings using 100 KONE MonoSpace® elevators, four KONE TranSys(TM) freight elevators, and 26 KONE TravelMaster® escalators.

“We are proud of this deal, which allows us to offer our eco-efficient technology for this state-of-the-art health campus,” said Pierre Liautaud, Executive Vice President for KONE South Europe, Middle East and Africa. “Ensuring the smooth flow of people is of utmost importance in hospital settings, where no one has time for unnecessary delays. We are happy to be able to offer our solutions for the benefit of everyone on the campus.”

The Turkish Ministry of Health project is set to become the world’s biggest base-isolated structure and will sit on 1,512 isolators, or flexible bearings, which will minimise building movement during an earthquake. The main contractor and architect of the project is RMI RONESANS MEDIKAL TAAH.INS.A.S and the project is due for completion at the end of December 2016.

AIMS AMP Capital Industrial Reit Unveils Plans to Transform 8 & 10 Tuas Avenue 20

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The initiative also coincides with the opening of new highways, and the Tuas West MRT Station, which is conveniently located a short distance away.

The initiative also coincides with the opening of new highways, and the Tuas West MRT Station, which is conveniently located a short distance away.

The Manager of AIMS AMP Capital Industrial REIT (AA REIT) today announced plans to redevelop 8 & 10 Tuas Avenue 20 under its ongoing asset enhancement strategy. The redevelopment will transform two adjoining two-storey detached industrial spaces into a versatile industrial facility with ramp and cargo lift access, making it suitable for production and warehouse usage.

Due for completion in 2H of 2017, the property’s value upon completion is estimated at S$32 million**. Gross floor area will increase by around 41,614 square feet or 35 per cent, improving the plot ratio from 1.03 to the maximum of 1.4. The Manager’s Chief Executive Officer Mr Koh Wee Lih said, “We’re excited to announce this project as we focus on unlocking more organic growth from our portfolio through asset enhancements, to deliver long-term value for Unitholders.”

8 & 10 Tuas Avenue 20 represents AA REIT’s fourth development, adding to the Manager’s successful track record. Plans to redevelop this property were accelerated following a fire incident at the property, which resulted in partial damage. AA REIT’s insurance fully covered the loss of income caused by the incident, and the reinstatement of the asset.

Mr Koh said, “Rather than reinstate the buildings to their original condition where the specifications are customised, we will capitalise on its downtime, and the insurance compensation, to improve the property’s specifications for the current market. This is also timely as the master tenancy expires in mid-2016.”

The property contributed around one percent to AA REIT’s net rental revenue in FY2015. Mr Koh said, “With improving infrastructure and connectivity in Tuas, and supply of industrial spaces forecast to fall beyond 2017, the development’s completion will be well-timed for the market. The property’s value and desirability will also further increase when Singapore’s port facilities shift to Tuas, stimulating demand for production and warehouse facilities.”

The initiative also coincides with the opening of new highways, and the Tuas West MRT Station, which is conveniently located a short distance away. The redevelopment will cost approximately S$27 million (including land cost), and AA REIT has sufficient funding capacity for this project. The Trust’s pro-forma leverage will remain healthy at 33.7 per cent based on its position at 31 December 2015, and taking into account the completion of the 30 & 32 Tuas West Road and 8 & 10 Tuas Avenue 20 redevelopments.

Following a tender process, Boustead Projects Pte Ltd has been appointed as the redevelopment design-and-build partner. The redevelopment has obtained JTC’s in-principle approval but is still subjected to other relevant authorities’ approval.

 

** Based on Savills Valuation and Professional Services (S) Pte Ltd’s valuation dated 31 March 2016.

Milan’s Torre Arcobaleno restoration is completed to mark Expo 2015.

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DCIM105GOPROThe modernisation work of the famous Torre Arcobaleno (Rainbow Tower) at Porto Garibaldi has been completed and was recently presented, under the patronage of Milan City Council and in association with the Rete Ferroviaria Italiana and Gruppo FS Italian e-railway authorities.

Dating back to 1964 and once upon a time an anonymous water reservoir on the site of the important FS Milano Porta Garibaldi railway station, the Tower was first renovated ahead of the football World Cup held in Italy in 1990, a project that turned a downtrodden public works into a highly recognisable urban beacon. Since then, the Torre Arcobaleno has been a highly significant building for the city, a distinctive symbol of Milan’s colour and creativity, and has gradually become known as a major landmark.

A number of top companies came together with those handling the first refurbishment since 1990 to enable this unusual urban structure – clad with more than 100,000 coloured ceramic tiles – to regain all its original brightness of 25 or so years ago to mark the amazing presence of Expo 2015. The partner firms in the Torre Arcobaleno renovation project, carried out with the supervisory approval of the City of Milan Public Works and Urban Furnishing Department as the guests of the Italian State Railways, were Bazzea – B Construction Technology, Condor, Fila Solutions, Mapei and Marazzi.

Now as then, in 1990, the project was prepared and the works organised by the Architecture Division of the Milan firm Original Designers 6R5 Network, represented by Francesco Roggero, Albino Pozzi, Rita Alfano Roggero and Kiyoto Ishimoto. The renovation – all the costs of which were met by the project’s partner companies and architects – is a gift to Milan and the millions of visitors it will be welcoming during Expo 2015. The works were completed in just 71days, employing 37 workers.

The colours of the Torre Arcobaleno express the desire to inhabit our planet intelligently.

The colours of the Torre Arcobaleno express the desire to inhabit our planet intelligently.

The Torre Arcobaleno forms part of the Wonderline project by Original Designers 6R5 Network, which has been running for a number of years, linking initiatives in the world of art and architecture with the theme of Colour. The colours of the Torre Arcobaleno express the desire to inhabit our planet intelligently, creating a harmony between technology, nature, innovation and tradition. The Garibaldi zone of the nearby Piazza Gae Aulenti is the acknowledged nerve centre of the city’s Business, Fashion and Modern Architecture scenes.

The zone, now restyled by futuristic skyscrapers, has adopted the Torre Arcobaleno as its “Colourful Ceramic Totem”, there to remind people of Italy’s Master Potters and the craft origins of an industry famous all over the world for its Italian Excellence.

Medellín, Colombia Conferred Lee Kuan Yew World City Prize 2016

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The Metro Cable moving over Medellín.

The Metro Cable moving over Medellín.

The Lee Kuan Yew World City Prize 2016 is conferred on Medellín, the second largest city in Colombia after the capital city of Bogota. The biennial Lee Kuan Yew World City Prize is jointly organised by the Urban Redevelopment Authority (URA) and the Centre for Liveable Cities, to honour outstanding achievements and contributions to the creation of liveable, vibrant and sustainable urban communities around the world.

The award seeks to recognise and celebrate efforts in furthering innovation in urban solutions and sustainable urban development. This year’s Prize Laureate was selected from 38 nominated cities, following a rigorous two-tier selection process comprising a Nominating Committee and a Prize Council.

Chairman of the Nominating Committee, Kishore Mahbubani said, “Medellín’s transformation has been extraordinary. It has gone from being one of the world’s most dangerous cities into a liveable and innovative city. Its success gives hope to many cities in developing countries, where the next wave of massive urbanisation will take place. Medellín can become a Mecca of learning for them. We are therefore proud to award the Lee Kuan Yew World City Prize to Medellín.”

A festival taking place at UVA The Dreams - Barrio Versalles: an example of using underutilised spaces for community activities

A festival taking place at UVA The Dreams – Barrio Versalles: an example of using underutilised spaces for community activities

The key to Medellín’s transformation is bold and visionary leadership, as well as social and urban innovation. The elected leaders demonstrated strong political will and commitment to good governance, citizen participation and prioritising equal opportunities for all citizens. Faced with limited resources, they adopted creative and non-conventional approaches in dealing with challenging issues. Medellín emphasised education and cultural transformation to bring about change.

Mayor of Medellín, Federico Guitierez Zuluaga said, “This is an important recognition that we feel proud of for our city. We thank you for the encouragement to continue working for our city, a spectacular city that has come a long way but also has a long way to go.”

Click HERE to read more about Medellín’s initiatives.

Mining Industry Represented Through Architecture At New $20 Million Library

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The South Australia Drill Core Reference Library. Image by James Knowler.

The South Australia Drill Core Reference Library will hold 7.5 million metres of drill core samples collected over 130 years of exploration from across South Australia. The library has the capacity to display up to 2 kilometres of cores for inspection on a series of automated conveyor belts in the main viewing area.

Leading practice architectural design and engineering has combined to integrate function with striking form that honours the origins and visual characteristics of drill core. The building, which opened on February 17, also features conference rooms and a 3D viewing room, which uses virtual reality technology to give geologists a worms-eye view of geology and mineral deposits under the earth’s surface.

The library brings together samples previously stored at four separate drill core libraries spread across South Australia. The vast collection is midway through the shift into the massive storage warehouse at the rear of the building, featuring eight seemingly never-ending aisles that reach to the high ceiling. A hi-tech turret truck and forklift are used to fetch requested core samples to be brought to the main viewing area for inspection.

Architects Thomson Rossi were key partners in the South Australian Government to prepare a business case to look at the fundamental economics of such a project in 2011 and worked with multi-disciplinary engineering firm Aurecon before an advanced business case was commissioned in 2013. Funding for the project was approved in 2014 with construction starting in January 2015 and completed in December 2015.

The library is located in the Tonsley precinct. Image courtesy of James Knowler.

The library is located in the Tonsley precinct. Image by James Knowler.

The $19.8 million building is divided into three sections – administration, library and logistics – and has a total floor area of 7470 square metres. Thomson Rossi Director Simon Thomson said the firm was able to engage with the client from an early stage to establish the overarching design principals of vision, inspiration and iconography.

The library is located in the Tonsley precinct, the site of a former Mitsubishi car manufacturing plant, which has been converted into a modern hub for high-value industries.

Thomson said the “long and skinny” site at Tonsley was ideal because it had access to high-speed Internet, was part of a hub focused on innovation and would provide a catalyst for other mining related companies to set up in the precinct.

“It ticked a lot of boxes – it’s easy to access from the airport and there’s a lot happening on the site to make it an interesting place to be,” he said. “The vision of what this building actually should be was that it should be a beacon, it should be experiential and it should represent world’s best practice.”

He continued, “The previous (South Australian) drill core library had been rated the second best facility of its type in the world so we wanted to build on that and make the new one the best,” he said. “So as a beacon we saw it as a signpost for South Australian mining ambition and a chance to establish an exciting and iconic brand for mining in South Australia.”

The building is divided into three sections – administration, library and logistics. Image by James Knowler.

The building is divided into three sections – administration, library and logistics. Image by James Knowler.

Exploration companies in South Australia are required by legislation to provide the Department of State Development with samples of any core and cuttings taken during tenure. Core and cuttings are stored in the Drill Core Reference Library.

Thomson said the experience the firm wanted to create was of a world-class facility ensuring a positive impression for visitors. The other part of the experience was that it needed to be able to be used as an educational tool for university and school students. The building had to reflect the best practice in core libraries and embrace new technology and research in a collaborative environment.

Images on the themes of mining, outback, geology and the imagery of the drill cores themselves were used to provide inspiration for the design and look of the building. The front section of the building is clad in COR-TEN steel sheets that have a rusted iron look.

“In an abstract way we are trying to reflect the geology that this building is all about. Using the COR-TEN steel sheeting, which basically just rusts, it’s all about creating a building that is very raw as the raw materials of mining are but also from a pragmatic sense it’s recognizing that governments don’t have a lot of money to spend on maintenance so it’s a wonderful material that you never have to maintain and it continues to change as the building ages.”

The library brings together samples previously stored at four separate drill core libraries spread across South Australia. Image by James Knowler.

The library brings together samples previously stored at four separate drill core libraries. Image by James Knowler.

Thomson said the “dramatic” front end was designed to evoke images of mining sites. “There are some quite raw elements inside as well. We’ve used things like the polished concrete where you can see the aggregate, the carpet in certain sections is like looking at an aerial map of outback South Australia. We’ve got exposed ducting and perforated steel sheet that’s bolted together that forms the staircases so it’s that kind of a rough industrial look you might find on a mining site. At the same time we’ve made it a very convivial environment,” said Thomas.

The building also has several meeting and conference rooms of varying sizes, a kitchen area, laboratory and a lobby area to welcome visitors upon entry.

One of Hong Kong’s Largest Public Art Hoardings Takes Centre Stage at H Queen’s

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The building’s  unique architecture provides maximum flexibility and eco-friendly  features to  accommodate  a  range  of exhibition  and  entertainment needs

The building’s
unique architecture provides maximum flexibility and
eco-friendly features
to accommodate a range of exhibition and
entertainment needs

Henderson Leasing Agency Company Ltd., as a wholly owned subsidiary of Henderson Land Development Company Ltd. (collectively called “Henderson”) as well as the leasing and marketing agent of the development H Queen’s (HQ), has announced a new public art programme Time & Scale: 10 Hong Kong artists at HQ in preparation for the 2017 launch of its latest development.

 

“Over the years, Henderson has witnessed the growth in Hong Kong’s art and cultural landscape. The art scene has transformed dramatically in recent years and we hope to inspire conversation about the role of Hong Kong on the global art stage through compelling pieces by Hong Kong talents,” says Kristine Li, Assistant General Manager of Henderson Leasing Agency Company Ltd.

“HQ is a game changer. The building incorporates an historic setting with an advanced modern design and a premium tailored space that capitalises on the urban backdrop of Central. Committed to forging a creative community and making Hong Kong a more vibrant place to live. HQ presents this programme to bring art closer to the general public.”

To be unveiled on 21 March during Hong Kong’s period of art celebration when connoisseurs globally flock to the city, Time & Scale: 10 Hong Kong artists at HQ is the first time 10 of Hong Kong’s most notable artists have joined forces to create captivating artwork on the building’s hoarding

This select group of established and emerging contemporary artists were invited to answer the question of what it takes to make or change a culture and have their responses showcased in one of the largest scale public art hoardings seen in Hong Kong HQ’s hoarding, an art platform widely visible to the public until the last quarter of 20 comprises three sections, Queen’s Road Central (measuring 12 metres x 5 metres), Pottinger Street (36 metres x 3 metres) and Stanley Street (2r2metres x 3 (metres). Artist   featured inclue Frog King (Kwok Mang Ho),

Lam Tung pang, Ho Sin Tung, Bosco Law, South Ho, Damon Tong, Esther Poon, Stanley Siu, and Peggy Chan.

Designed by renowned architect and artist William Lim of CL3 Architects, and occupying a prime location on 80 Queen’s Road Central, HQ will b an architectural icon and a showcase for the city’s top artistic and ifesetyle ventures.

With an emphasis   on   spaciousness, functionality, eco- friendliness and energy efficiency, HQ is specially designed ideal kthspaces for art exhibitions, as well as floors dedicated for exclusive   retail and dining establishments.   Situated   in the   centre   of   Hong   Kong’ s   art   and   lifestyle hub, the award-winning building offers esthetes and gourmets around the world an unparalleled contemporary experience.

Featured Artists
The outdoor exhibition will feature works by celebrated Hong Kong artists, including Frog, King (Kwok Mang Ho) and, Lam Tung-pang.

An  iconic  landmark  design  with  all  glass  mullions at  the  podium portion to create a glass box effect

An iconic landmark design with all glass
mullions at the podium portion to create a glass box effect

Since 1967, Frog King has exhibited his works in over 3,000 art events worldwide. In 1998, he   received the coveted Hong Kong Arts Development Council Emeritus Fellowship award, and also represented 5th Venice Biennale in 2011. In 2015, his works were featured in Mobile M+: Live Art presented by West Kowloon Cultural District

An MA graduate of Central St Martins College of Art, London, Lam Tung-pang is recognised for his paintings and sculptures that interpret social content   using a combination of traditional and modern techniques. He has received numerous scholarships and awards including The Schoeni Prize -Sovereign Asian Art Prizes (2006) and Young Artist of the Year – Hunting Art Prize, U.K. (2005).

From 21 March, the Stanley Street façade will double as a canvas for Lam’s drawing that incorporates old and new images of Hong Kong. The HQ public art programme will also present works from 8 emerging artists. Representing the next generation of contemporary artists, Ho Sin Tung, Bosco Law, South Ho, Damon Tong, Esther Poon, Stanley Siu, Tony Ng and Peggy Chan will apply their creative visions t the foot tunnel adjacent to HQ.

Living Free
The site-specific art forms will range   from intricate illustrations to photography and mix media collages to colrful yarn installations. Many of the exhibits will feature interactive elements to engage and connect passersby.

Future of Construction: Your Next Building Won’t Be Built – It Will Be Manufactured

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Imagine a 57-storey tower built in just 19 days.

That’s what China’s Broad Sustainable Building (BSB) Company just did. Constructed at a pace of three stories per day, the tower includes 800 apartments, 19 atriums, and office space for 4,000 people.

Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

 

And BSB isn’t the only one with this type of ambitious plan for the future of construction. The industry is entering the age of the mass-manufactured building. Prefabrication is growing up, reaching a new level of maturity that is now going to change the industry and define new categories of building. Check the trailer-park stereotype at the door.

While the construction of BSB’s tower is staggering in its speed, the concept isn’t completely new. For the past decade, there has been a lot of talk about the inefficiencies of the building industry and the need to turn to manufacturing techniques.

It has happened in pockets, but now that surge is really taking off and going beyond the typical stuff: metal, curtain wall panels, cabinetry. There’s a huge rush to prefabrication—from whole bathrooms “plopped” into place to hospitals with entire floors built in days rather than weeks.

 

 

Given that the technique has been part of building for decades, the obvious question is: Why is prefab gaining such traction? Like most things with architecture and construction, it’s complicated.

Why Now?
Revolutionary changes don’t come along very often in the building industry, and when they do, usually a confluence of stuff pushes those changes forward. Prefabricated architecture, sometimes also called “assembled architecture,” looks to be one of those transformations. In the past decade, a few pivotal events shaped the transformation of “manufacturing buildings” from hyperbole (or desperate banality) to reality.

 

One story of Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

One story of Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

First, there’s the increasing use of digital models paired with ever-cooler fabrication methodologies. New “making” techniques such as additive manufacturing and 3D printing, more robotics both on and off the job sites, CNC-controlled technologies, and even laser scanning for field verification are major influencers. Collaborative project-delivery models such as integrated project delivery—which put information sharing at a premium – are moving toward more integration, too. Early signs suggest that robots might be as important to construction, eventually, as people.

 

And then there are economic and cultural factors that are pushing the shift to prefab. During and after the recession, construction capacity was destroyed due to job loss as millions of construction workers were out of work. In 2010, the number of people working in U.S. architectural firms plummeted. In turn, clients used the crisis to drive prices down further, taking advantage of the marketplace in crisis. Construction was buying at rock bottom, and architects were working at below-breakeven cost just to keep the lights on. Many in the construction industry retired or departed. Five years after the recession, as design and construction vitality returns, the capacity to support it no longer exists in its previous form.

 

Image 3At the same time, baby boomers are retiring left and right, as evidenced by the dwindling numbers of skilled craftspeople and experienced site superintendents. The family-owned drywall company handed down through the generations now has 21st-century kids in medical school instead. Many trade skills are disappearing, and those workers are harder and harder to come by now, meaning builders are looking for alternative methods to handwork and manual methods of assembly.

So with the combination of technology breakthroughs, economic shifts, fewer workers, and increased cost to skilled trades, the demand for prefab has never been higher—or more critical. Right now, buildings are still mostly built; in short order, they are going to be assembled.

What Will It Look Like?
To get one stereotype out of the way, prefab does not equal “generic.” Major institutional buildings are not going to be like your local big-box stores. Design will be as important—if not more so—in the age of mass customization and increasingly sophisticated consumer demand.

Image 4Take a hospital, for example, one of the more popular uses for prefab. Current designs combine both design and optimum care: wide hallways, rooms designed for natural light and effective use of space for equipment, appropriate finishes—all preassembled off-site and then snapped into place with structure and mechanical systems in one fell swoop. Once the design is finalized and the assembly facility is ready to go, the floors can be replicated as necessary.

Of course, the ER floor plan isn’t identical to the in-patient-care floors. But oft-repeated spaces and areas—and modern hospitals have lots—can be built this way, and many are today. So prefabrication won’t just save time in construction; it will also make the entire process more efficient and less reliant on increasingly scarce resources such as architects, engineers, and skilled craftspeople.

And it won’t be just prefab forever. Once prefab is even more mainstream, another disruption will come right on its heels: mass customization. When a computer is driving the making of a building part, it doesn’t care if you change that part for each customer. That means the same computer-controlled building assembler will make what you want for no additional cost.

It’s Not Perfect, but It’s Inevitable
Although prefab is gaining traction, it’s not all rosy. Last year, Brooklyn’s Pacific Park (formerly named Atlantic Yards) – at the time touted to become the world’s tallest modular-constructed building – came to an unfortunate, grinding halt. Challenges in the design and fabrication project have all sides pointing fingers and arming for lawsuits.

 

Image 5Prefab is a disruption, so it’s going to have fits and starts. It’s not always pretty –new business relationships will need to develop; contracts will evolve (never to look the same again); the nature of work will shift. How construction workers show up on a job (and where) will change. Increasingly, they might clock in at the factory and not at the build site as much anymore.

Although all of this was a unique idea 10 years ago, almost every major design school is now teaching the fundamentals of prefab. A new generation is coming into the field equipped to do this, and the wheels of manufacturing buildings will soon be humming. Those folks will catch the wave of prefabrication fully, and workers swinging hammers will give way to assemblers in the era of manufactured buildings.

This article was contributed By: Phil Bernstein, Vice President, Industry Strategy and Relations, AEC Solutions, Autodesk

 

Bentley’s EADOC capital project management offering set to help Carollo Engineers reduce construction management costs

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Carollo Engineers and Bentley Systems have announced that Carollo has chosen Bentley’s EADOC cloud-based construction management software as its corporate standard for capital project management. Carollo Engineers will standardise on EADOC across its construction services teams, bringing cost savings to all of its projects and eliminating the inefficiencies of managing multiple legacy systems.

 

EADOC helps you manage design and construction documents. Image courtesy of Bentley.

EADOC helps you manage design and construction documents. Image courtesy of Bentley.

As a long-standing user of EADOC, Carollo Engineers has firsthand knowledge of the solution’s ability to help manage risks, track construction documents and communications, and control costs for construction managers at engineering/construction management firms or infrastructure owner organisations.

 

By standardising its construction management process on EADOC, Carollo will further improve the management of its construction teams using an automated workflow and also improve control of project finances, including budget, funding sources, contracts, and change orders. In addition, the ability to effectively and consistently manage its contractual deliverables with a detailed electronic construction record and audit trail will provide Carollo with the accountability it needs to resolve disputes quickly and streamline project and program execution.

EADOC is being supplied to Carollo through a corporate-wide subscription that is available for all projects, users, data storage, and technical support. As a result, Carollo Engineers’ project teams no longer need to procure individual subscriptions for their projects, which will reduce administrative costs and enable the company to standardise its construction services throughout the organisation.

Carollo Engineers Vice President Michael Warriner said, “Bentley’s EADOC gives us a competitive advantage by helping us deliver better projects with less risk and at a lower cost. Our new subscription will streamline EADOC’s availability among our teams and eliminate the administration cost of managing multiple, project-based subscriptions. Standardising our construction project management practice through EADOC will take the benefits we’ve seen on individual projects and extend them across our organisation.”

It's now easier to manage contracts and mitigate project risks. Image courtesy of Bentley.

It’s now easier to manage contracts and mitigate project risks. Image courtesy of Bentley.

Eric Law, Bentley Systems senior director, product management, and EADOC founder, said, “We thank Carollo Engineers, a leader in water engineering, for selecting our EADOC system as its preferred construction management solution. Carollo’s management team recognises the tremendous benefits that EADOC brings to its entire construction services practice, and we welcome the opportunity to help it realise the full potential of that advantage in its delivery of benchmark-setting, high-quality projects.”

For additional information about Bentley’s EADOC, visit www.bentley.com/EADOC

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