In the run-up to Dubai Expo 2020 in the UAE, the government has been taking an active role implementing best practice mechanisms across all construction projects. Ali Mirza, general manager of Nurol Construction, speaks with Lorraine Bangera about how this has been affecting contracting firms and advises on how to cope with the transformation
Based in Abu Dhabi since 2003, Nurol Construction was set up under the sponsorship of H.H. Sheikh Sultan Bin Khalifa Al Nahyan.
Being new to the market at the time, the firm was offered a lot of help from its mother company in Turkey, Nurol Holding.
Turkish general manager (GM), Ali Mirza, says that when he first moved to the GCC, he missed Turkey and working at Nurol Holding, but in a few weeks he never looked back.
He says: “Turks and Arabs have a similar culture and the same religion, which helps ease the transition.”
Mirza moved to the UAE with the intention to stay a couple of years, fifteen years later he considers himself half local. And he is not alone, the engineers and administrators he brought with him from Turkey happen to love working in here as well.
The firm has worked in multiple projects over the years, and before the crisis had over 16,000 employees under its name. Unfortunately, the number was trimmed down as a result of the crash. Mirza recollects the difficult times and says that though it was a painful experience, it taught them a great deal about survival in construction.
“Throughout the difficult times,” Mirza says, “Nurol Holding was saving grace. It helped us tremendously during the crisis.”
Today the firm has overcome many obstacles and has a team of 1600 employees and construction workers. It has worked on road, tunnels and other infrastructure projects, along with high-end hotels in Dubai and Abu Dhabi. In total it has completed projects worth $2bn between the two cities, out of which $600m has been in Dubai and the rest in Abu Dhabi.
Nurol has also worked closely with the Abu Dhabi Municipality on several projects including the first connecting bridge between Abu Dhabi and Reem Island. More recently, the firm has worked with Abu Dhabi-based Tourism Development and Investment Company (TDIC) to construct a connecting bridge from Abu Dhabi to the upcoming Louvre Museum. The project was handed over on time in late October last year.
The firm is currently tendering for different jobs and working on a couple of ongoing projects. Mirza reveals that they are currently preparing a tender for the Dubai Metro.
A contractor’s point of view
As the UAE moves to include several best practices and sustainable procedures in its construction sector, there have been a lot of changing regulations and specifications over the last couple of years. According to Mirza, this could happen within the period of a project delivery as well, which makes it tough for the contractor to follow.
He states that because of the constant change it is important to hire help. “We can’t just have one PR for all the procedures. We need one for labour visa, and another that follows up with the utility departments and municipalities, so that we are aware of what has been changed.”
Mirza says that it is not unforeseen to witness a delay in delivery and changes like these definitely contribute to it.
He discloses that most contractors today don’t admit a specific requested timeline is too short to deliver a project. “To secure the job, they agree on any specified timeline. Most commonly, contractors take a building contract of just 18 months. However, even if they try their best, the work still goes on for 20 to 24 months.”
There has also been a shortage of materials that have made things harder. Mirza debates: “Even though everyone knows about the shortage of cement and steel, clients still insists on a short timeline.”
He points out that the market in the UAE have some fierce competition, as hundreds of construction companies flood into the region every year. “Most new companies in the region have no idea about the nature of the job and the basics of working in this region. As a result, they quote ridiculously low prices when the actual cost of the job should be 20 to 30% more.”
He adds: “Most clients don’t know the specifications, how much a project will really cost.”
He explains that it is not easy to compete because these new companies agree to a price that is 30% lower the actual value and a timeline that is six months shorter than other firms. “This doesn’t guarantee getting the job, but it does give the clients and consultants an opening to negotiate.”
Mirza tries to explain that the UAE or the Gulf region is very different than the West. Factors such as the heat in the summer or Ramadan (with shorter working days) has to be taken into account. He claims that if a project has to be completed in 18 months, two months would be nullified because of the summer (which has 13 hours of work) and a month for Ramadan. “There is only 16 months to complete the project.”
Working in the UAE may have many pros, but comes with its own challenges. The GM says that it has been tough to deal with changes in legislations, changes in labour law, and more. He admits, however, that he wouldn’t have it any other way, as these changes are vital for developing a better system. As changes occur rapidly across the sector, taking place one after the other, Mirza admits that it has been hard to adjust at the same rate.
Though the company has gone through a lot of tough times, Mirza says that he has hope for a brighter future. He believes in keeping a strong and motivated team, out of which the tender department is most crucial.
“I think one thing that could really affect everything else, is the tender. The tender must be ready before you finalise on a project,” Mirza concedes. He explains that the contractor needs to understand the tender and clarify with the client as much as possible so that there is nothing missing in the design. “If you are not clear about the tender, you are bound to end up in a fix later.”
All the cards need to be on the table. Important factors such as the selection of the material and agreeing on a timeline and provisional sum, needs to be discussed. He says: “Of course in huge tenders, there will be things missing here and there. However, for a sizeable tender you have to make precise calculations.”
He states that once the tender is fully ready and understood, execution would be a lot easier.
To execute a great project, one needs a great tender. Mirza says another factor not considered while tendering is productivity. It is common among contracting firms to get a full batch of workers one month, and expect them to be productive in the following month. He argues: “It would not be possible. It would take at least four to five months. So when you are tendering you should consider the time.”
Man behind the team
When it comes to management techniques, Mirza believes that it is important to be region specific and not keep changing methods every six months.
“There can be a lot of challenging times ahead,” he says. “But it is important to not lose it, be patient and support your team consistently.”
Mirza believes in being approachable with all his employees. He even keeps his office door open as a gesture to invite employees in. He says the only time he works privately is when everyone leaves after work.
He believes in sharing knowledge and experience, knowing your team, and being very hands on.
He even started a team building activity every Ramadan that started off as a means to mingle with other subcontractors and clients, but soon became exclusive to Nurol.
Mirza realised this was a great opportunity to make the team grow closer, so instead he made the Iftar dinner exclusive for Nurol employees only. He says that his team come with their families and they get to really know one another.
“There are some companies where the project manager doesn’t know the GM or vice versa, and they have been working in the same company for five years. I simply couldn’t do that.”
With a strong moral ground, Mirza has led his team through many difficult years. He proudly admits that he or his management team has never received a complaint from any employee who has worked for the firm. One of the key reasons being that every employee and worker has always been paid on time, and he vouches for that.
He humbly smiles and admits that even employees who leave the company, ultimately come back to work for the firm. While most other employees have stuck to the firm from day one of operations.
In Mirza’s books there is nothing that reflects a company better than the satisfaction of employees working in it.